The Middle East is taking the next steps to shift its economy from an oil-dependent to an innovative and digital one. The United Arab Emirates (UAE) and Mastercard have inked a Memorandum of Understanding to accelerate the development and adoption of artificial intelligence (AI) in the region.

The partnership will focus on enhancing digital security, combating financial crime, and promoting inclusive growth, marking a significant step in the UAE's journey towards becoming a global hub for AI.

Mastercard and UAE: Strategic Partnership for AI Advancement

Mastercard recently unveiled its Global Center for Advanced AI and Cyber Technology in Dubai, which will work in tandem with the UAE government to develop AI-powered solutions. The center aims not only to secure the digital ecosystem but also to nurture local talent in AI. Ajay Bhalla, the President of Cyber & Intelligence at Mastercard, stated that the center would "deliver greater value for our customers and reinforce trust in the digital ecosystem."

The collaboration between the UAE government and Mastercard is part of a broader effort to position the UAE as a leader in AI technology. Omar Sultan Al Olama, the UAE's Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, highlighted the importance of such strategic partnerships with the private sector and international companies.

The partnership is expected to have a ripple effect across the Middle East, a region already experiencing a surge in digital transformation investments. According to reports from IDC and PwC, AI could contribute as much as $320 billion to the Middle East and over $15 trillion to the global economy by 2030.

Dimitrios Dosis, the President of Eastern Europe, Middle East, and Africa at Mastercard, emphasized that the collaboration is "actively supporting the National Artificial Intelligence Strategy 2031."

UAE is increasingly moving towards a digital economy. For example, clear cryptocurrency regulations have led to increasing international exchanges and digital asset platforms relocating to the country, including Binance, which has faced regulatory issues in the United States. Local economic awareness is significantly increasing, and the number of retail traders have reached record levels in 2023.

Mastercard Opens New AI Center

Mastercard has a history of investing in advanced AI, with existing US, Canada, and India centers. The company has successfully leveraged AI to enhance cybersecurity and user experiences, protecting more than 125 billion transactions annually. The new center in Dubai aims to explore use cases for AI, including generative AI, which has the potential to transform customer experiences and reshape industries.

"At Mastercard we are using generative AI for many purposes, including through synthetic transaction data to supercharge fraud detection and boost approval rates," Mastercard commented in the official press release.

The partnership between the UAE and Mastercard signifies an important moment in advancing AI technology in the UAE and the broader Middle East region. It aligns with the UAE's strategic vision for AI, as outlined in their Artificial Intelligence Strategy 2031, and sets the stage for future collaborations that could change the digital landscape.

In a noteworthy development impacting both the cryptocurrency sector and conventional financial markets, MasterCard and Binance have chosen to terminate their collaboration on cryptocurrency card initiatives in multiple nations.