Malaysia, UAE sign joint AI & digital investment agreement
Collaboration to include AI, data centres, digital security & digital tax systems
#UAE #Malaysia - The UAE and Malaysia have signed a Memorandum of Understanding (MoU) to collaborate on artificial intelligence (AI) as part of the Malaysia Madani Artificial Intelligence (MMAI) initiative (a national policy framework being developed for the adoption of AI). Witnessed by Sheikh Khaled bin Mohamed bin Zayed and Malaysian Prime Minister Anwar Ibrahim, the MoU focuses on AI for national security, data analytics, and operational efficiency. The agreement builds on growing UAE-Malaysia ties and several recent agreements on investment and trade. Non-oil trade between the two countries grew to $2.5 billion during the first half of 2024.
SO WHAT? - The MoU represents a significant step forward following the signing of an agreement one year ago, in which Malaysia and the UAE agreed to develop a framework for investment cooperation in digital infrastructure. Malaysia has become the fastest growing data centre market in South East Asia, supported by the country's advanced digital infrastructure. It has attracted billions of dollars in investment including hyperscalers like Google, NVIDIA and Microsoft. In October, the UAE and Malaysis announced the conclusion of negotiations towards a Comprehensive Economic Partnership Agreement (CEPA), that seeks to eliminate or lower tariffs, reduce barriers to trade, promote private-sector collaboration and establish new pathways for investment. Meanwhile, digital infrastructure has become a core area of focus for the UAE in looking for overseas investments.
Here are some key points about the MoU announcement:
An MoU regarding joint investment in AI and digital infrastructure was signed by UAE Minister of Investment Mohamed Hassan Alsuwaidi and Malaysia’s Home Affairs Minister Saifuddin Nasution Ismailunder on Monday, witnessed by His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, and His Excellency Anwar Ibrahim, Prime Minister of Malaysia, in the presence of His Highness Sheikh Tahnoon bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi and UAE National Security Advisor.
The joint investment outlined in the MoU will fall under the Malaysia Madani Artificial Intelligence (MMAI) initiative, a national AI framework that aims to use AI to enhance community safety, national security, and operational efficiency.
Focus areas include AI-driven national security systems, high-performance data centres, and digital tax collection systems.
Malaysia is the UAE’s 12th-largest Asian trading partner and 5th among ASEAN nations, with non-oil bilateral trade reaching $2.5 billion in H1 2024, a 7% year-on-year increase.
The MoU builds on a January 2024 agreement to develop Malaysia’s digital infrastructure, including data centres, which are forecasted to grow 16% annually to $2.9 billion by 2027.
UAE-Malaysia relations have deepened through economic agreements, such as the Comprehensive Economic Partnership Agreement confirmed in October 2024.
ZOOM OUT - The UAE Ministry of Investment (Invest UAE) has signed investment memorandums with a number of countries over the past year, focusing on AI and digital infrastructure. In addition to Malaysia, it has signed similar agreements with Azerbaijan, Egypt, Greece, India, Indonesia, Kazakhstan, Kenya, the Philippines and Uzbekistan totaling a potential of more than 8 Gigawatts of future data centre capacity.
Read more about UAE digital infrastructure investments:
G42 to deploy 2GW data centre and supercomputer in India (Middle East AI News)
Microsoft & G42 announce $1b digital investment in Kenya (Middle East AI News)
UAE could invest billions of dollars in overseas data centres (Middle East AI News)