Imagine interacting with a virtual assistant that understands you perfectly—whether you’re speaking fluent Arabic, simplified English, or a natural mix of both. Within seconds, it delivers a response that isn’t just accurate but also culturally attuned, recognizing regional nuances and context. This is the promise of AI agents, intelligent digital assistants powered by cutting-edge Large Language Models (LLMs).
LLMs are transformative AI systems capable of understanding and generating human-like language. They serve as the brains behind AI agents, enabling them to process complex queries, adapt to different dialects, and engage in meaningful conversations. Whether assisting with customer service, translating in real-time, or offering legal and financial guidance, these agents are redefining human-computer interactions.
While models of private-sector leaders like OpenAI’s GPT-4.5, Google’s Gemini 2.0, and DeepSeek R1 lead the global AI race and more advanced AI agents are evolving (e.g., Manus AI), a new movement is taking shape: national LLMs. Countries are developing their own AI models tailored to their linguistic, cultural, and economic realities. These homegrown models not only ensure greater data sovereignty but also provide AI systems that truly understand local dialects, traditions, and societal values—bridging gaps left by global models and shaping the future of AI on their own terms.
For the UAE and the broader Middle East, the potential of Large Language Models (LLMs) extends far beyond technological innovation. They represent a strategic opportunity to drive economic growth, enhance digital sovereignty, democratize AI access, and foster inclusivity. While developing an advanced LLM comes with technical complexities, it also involves key economic decisions, workforce development, and long-term strategic planning. What gives the UAE an edge is its strong political determination, investment capacity, and rapidly growing AI ecosystem.
With a clear vision to lead in AI, the country is not just adopting global models but actively shaping the future of LLMs through the development of models like Jais—a 13-billion parameter model trained on a dataset containing 395 billion tokens of Arabic and English data. By building models that understand the region’s linguistic diversity, cultural nuances, and economic needs, the UAE can create AI solutions that are not only locally relevant but also globally competitive—setting a new benchmark for AI in the Arabic-speaking world and beyond.
The demand for LLMs is undeniable, with applications spanning customer service, education, healthcare, coding, and even governance. Globally, over 30 nations are developing their own LLMs, embedding their unique linguistic and cultural preferences into AI systems. That’s not just about national pride but also about developing independent capabilities. National LLMs allow countries to reduce reliance on foreign models by ensuring data sovereignty and security as well as full control over model parameters and biases.
Significant steps in this direction have already been taken with Jais in the UAE, one of the most advanced Arabic LLMs, demonstrating the country’s commitment to AI leadership and laying the groundwork for future innovations. Arabic is a rich and complex language, infused with layers of dialects depending on the region and social context. Often, global models struggle with these intricacies. LLMs developed locally could further bridge this gap, fostering AI systems that understand and adapt to Emirati nuances while extending this capability to the wider Arabic-speaking world.
The region’s bilingualism—most prominently the interplay between Arabic and English—creates yet another incentive. Think of a business traveler at Dubai International Airport or a student accessing academic materials; an LLM that intuitively understands the cultural and linguistic expectations in such scenarios could transform user experiences. By enabling these services locally, the UAE can reduce reliance on foreign-produced AI systems, keeping data safe within national borders.
Beyond immediate use cases, a successful national LLM enhances the UAE’s competitiveness in the global AI race. It positions Emirati institutions as essential players in shaping the future of AI, fostering not just innovation but economic growth through AI-enabled industries. Building a national LLM also becomes an economic catalyst beyond a technological milestone.
Having an LLM available locally means government agencies, universities, and private enterprises can integrate advanced language understanding into their systems. This reduces time, effort, and costs previously spent outsourcing or adapting foreign tools. But the economic benefits extend far beyond ease of use. A national LLM becomes the foundation for an ecosystem of innovation. It empowers local tech startups to build applications on top of the language model—from chatbots and translation aids to advanced analytics tools and agents.
This boosts local entrepreneurship and economic diversification, a critical pillar of the UAE’s long-term development strategy. National LLMs also create jobs, not only in the fields of AI model development but also in linguistics, ethics, and policymaking. Expanding regional AI expertise fosters human capital, ensuring that regional talents lead the way, rather than relying on external specialists.
At the same time, developing an LLM is a high-stakes endeavor. Building state-of-the-art AI systems requires vast amounts of high-quality data, computing power, and financial investment. Data availability and quality are arguably the most pressing challenges. Arabic dialects vary drastically not just between countries like Morocco and Iraq but even intra-nationally. Sourcing digitized, representative datasets for these diverse linguistic forms is daunting.
Large portions of Arabic text available online—social media posts and blogs—might not meet the quality standards required for AI training. Resources are another challenge. Training LLMs requires massive computing power and high-performance GPUs. The UAE’s growing investments in cloud infrastructure provide a strong foundation, while efficient approaches like DeepSeek’s offer a path to more affordable models. But technology alone isn’t enough—a national LLM holds value only if widely adopted.
Without strong buy-in from government agencies, businesses, and educators, it risks becoming an underutilized investment. Success depends on aligning innovation with real-world needs, ensuring the model has a clear edge and practical impact. Lastly, the talent question is critical. The UAE has made significant strides in cultivating AI-centric education, but the reality of a global AI talent shortage remains. Attracting world-class experts while simultaneously developing homegrown capabilities will be essential to leading the way in the future.
For the UAE and regional players, the choice to invest in a national LLM must be guided by purpose. Does everyone build from scratch, like GPT-NL in the Netherlands? Or do we layer Arabic-language capabilities onto an existing foundational model (RAG-layering), a cost-effective approach? Each decision has trade-offs.
Building a new foundational model offers exceptional contextualization but requires ongoing financial commitment for updates and maintenance. RAG-layering limits the scope of flexibility but ensures faster rollouts and lower initial costs. Stakeholders must also decide how to prioritize applications. Should early focus be on public sector adoption, such as using LLMs in smart government services? Or should innovation centers work closely with private enterprises looking to solve commercial challenges? These choices will define the trajectory of the UAE’s AI ambitions.
The drive to build a national LLM isn’t merely a technical pursuit; it’s a strategic response to a rapidly shifting world. For the UAE and its neighbors, the opportunity lies not just in offering localized capabilities but in galvanizing economic innovation through AI tools that resonate globally and regionally. The challenges, no doubt, are significant. But with visionary leadership, strategic public-private partnerships, and a commitment to developing both talent and infrastructure, the UAE can emerge not just as a participant but as a pioneer in the global AI landscape.
