Compute Institute
Ratings for the physical buildout of AI

Jurisdiction Index / United Arab Emirates

United Arab Emirates

Tier 2 · Competitive
Positive
Rank #3 of 30
Data confidence A
69.7 /100

JCI composite · as of · methodology v0

United Arab Emirates scores 69.7/100 on the Compute Institute Jurisdiction Competitiveness Index (Tier 2, Competitive), ranking #3 of 30 rated jurisdictions with a positive outlook, as of June 15, 2026 under methodology v0. Its strongest dimension is Capital & Ecosystem Depth at 8/10; its weakest is Power Cost at 6.3/10. 20 of 22 sub-factors are scored on E1–E2 evidence (data confidence A). The positive outlook is driven by 2 forward-looking signals (+3.15 net points, E3–E4 evidence): time-to-power (E4) and committed capital (E4).

Dimension breakdown

Seven dimensions, each 0–10, weighted per methodology v0. JCI = Σ(dimension × weight) × 10.

Power Availability & Deliverability

6.4 /10 weight 20%

Power Cost

6.3 /10 weight 12.5%

Speed to Build

7.2 /10 weight 17.5%

Regulatory & AI Policy Environment

6.5 /10 weight 12.5%

Fiscal & Incentives

7.4 /10 weight 10%

Capital & Ecosystem Depth

8 /10 weight 12.5%

Stability & Execution Risk

7.4 /10 weight 15%

Outlook drivers — Positive (+3.15 net points)

Forward-looking E3–E4 signals. They move the outlook only — never the base score.

Sub-factor scores and sources

Every base-scored input below carries E1–E2 evidence: a justification, an evidence-level grade, and a link to the underlying source document.

Power Availability & Deliverability — 6.4/10 (weight 20%)

Sub-factor
Score
Justification
Evidence
Source
Grid headroom 40% of dimension 7 /10 EWEC centrally procures capacity ahead of demand (Barakah 5.6 GW nuclear online, multi-GW solar+storage procurements); state-directed allocation avoids open-queue congestion. as of
E1
EWEC statement of future capacity requirements www.ewec.ae
Time-to-power 35% of dimension Excluded — no E1–E2 evidence available; weaker evidence cannot enter a base score.
Energy mix & expandability 15% of dimension 7.5 /10 Barakah nuclear, world-record-cost solar pipeline plus firm gas; round-the-clock solar+storage procurement (e.g., 1 GW RTC project) under construction. as of
E1
EWEC statement of future capacity requirements www.ewec.ae
Water availability 10% of dimension 2.5 /10 Extreme baseline water stress (WRI Aqueduct top category); desalination-dependent cooling raises cost and resilience exposure despite air-cooled design mitigation. as of
E1
WRI Aqueduct Water Risk Atlas www.wri.org

Power Cost — 6.3/10 (weight 12.5%)

Sub-factor
Score
Justification
Evidence
Source
Industrial electricity price 60% of dimension 6 /10 Commercial/industrial tariffs ~AED 0.23-0.45/kWh equivalents (~USD 60-120/MWh by emirate and load class); large-user deals negotiable with EWEC/DEWA. as of
E1
DEWA slab tariff schedule www.dewa.gov.ae
Price trajectory & exposure 25% of dimension 6.5 /10 Major subsidy reform already executed; cheap new solar and nuclear additions damp escalation; some fuel-surcharge exposure remains. as of
E1
EWEC statement of future capacity requirements www.ewec.ae
Cost certainty / contractability 15% of dimension 7 /10 Long-term sovereign offtake structures available to anchor projects; AED pegged to USD removes FX risk on power contracts. as of
E1
Central Bank of the UAE — fixed USD peg www.centralbank.ae

Speed to Build — 7.2/10 (weight 17.5%)

Sub-factor
Score
Justification
Evidence
Source
Permitting regime 40% of dimension 7.5 /10 State-directed fast-track for strategic projects; free-zone one-stop-shops in force; minimal third-party litigation exposure. as of
E1
UAE free zone regimes (e.g., KEZAD/Masdar City statutes) www.kezad.ae
Observed construction velocity 35% of dimension 6.5 /10 Khazna delivered repeated 30-100 MW builds on schedule and Stargate phase 1 tracking ~18 months, but no completed >=500 MW campus yet. as of
E2
G42/Khazna sponsor disclosures www.g42.ai
Labor & supply capacity 25% of dimension 7.5 /10 Imported-labor model with proven megaproject delivery capacity and duty-free equipment import via free zones. as of
E1
UN Comtrade — transformer imports (HS 8504), Argentina comtradeplus.un.org

Regulatory & AI Policy Environment — 6.5/10 (weight 12.5%)

Sub-factor
Score
Justification
Evidence
Source
AI-specific law in force 35% of dimension 6 /10 No restrictive AI statute; enabling instruments in force (AI ministry/office, free-zone digital regulations, PDPL); permissive with codified state support but discretionary. as of
E1
UAE Federal Decree-Law 45/2021 (PDPL) and AI governance framework u.ae
DC-specific regulation 35% of dimension 6.5 /10 No moratoria or capacity rationing; allocation is state-directed and supportive, but informal gatekeeping substitutes for transparent rules. as of
E1
EWEC statement of future capacity requirements www.ewec.ae
Regulatory predictability 30% of dimension 7 /10 WGI Regulatory Quality ~80th percentile and consistent pro-investment administration; rule-of-law mechanisms less independent than OECD peers. as of
E1
World Bank Worldwide Governance Indicators www.worldbank.org

Fiscal & Incentives — 7.4/10 (weight 10%)

Sub-factor
Score
Justification
Evidence
Source
Enacted incentives 40% of dimension 7.5 /10 Free-zone regimes in force grant customs exemption, 0% qualifying income and full repatriation; no DC-specific abatement needed given baseline. as of
E1
UAE free zone regimes (e.g., KEZAD/Masdar City statutes) www.kezad.ae
Headline tax burden 40% of dimension 7.5 /10 9% federal CIT (since 2023) with 0% qualifying free-zone rate; 15% DMTT applies to large MNE groups under Pillar Two from 2025. as of
E1
UAE Ministry of Finance — Corporate Tax (Federal Decree-Law 47/2022) mof.gov.ae
Incentive durability 20% of dimension 7 /10 Free-zone guarantees are long-standing (50-yr horizons) with no clawback history; Pillar Two DMTT shows regime can shift for large groups. as of
E1
UAE Ministry of Finance — Corporate Tax (Federal Decree-Law 47/2022) mof.gov.ae

Capital & Ecosystem Depth — 8/10 (weight 12.5%)

Sub-factor
Score
Justification
Evidence
Source
Committed capital 40% of dimension Excluded — no E1–E2 evidence available; weaker evidence cannot enter a base score.
Ecosystem 30% of dimension 6.5 /10 Growing DC stock (Khazna ~500 MW+), strong subsea connectivity, hyperscaler presence; GPU access now licensed (35k GB300 approval, E1) but remains conditional on US export-control posture. as of
E1
G42/Khazna sponsor disclosures www.g42.ai
Sovereign/anchor capital availability 30% of dimension 9.5 /10 MGX (AI-dedicated sovereign vehicle), Mubadala and ADIA with explicit AI-infrastructure mandates in force; deepest sovereign AI capital pool in cohort. as of
E1
MGX fund disclosures www.mgx.ae

Stability & Execution Risk — 7.4/10 (weight 15%)

Sub-factor
Score
Justification
Evidence
Source
Political/policy continuity 40% of dimension 7.5 /10 Highly consistent state policy under stable leadership; no electoral reversal risk, but personalized governance carries succession/key-man concentration. as of
E1
World Bank Worldwide Governance Indicators www.worldbank.org
Currency, transfer & convertibility 35% of dimension 8.5 /10 AED-USD peg since 1997, no capital controls (IMF AREAER), AA sovereign ratings. as of
E1
IMF AREAER — United States www.elibrary-areaer.imf.org
Physical & geopolitical risk 25% of dimension 5.5 /10 Regional conflict adjacency (Gulf escalation scenarios, 2022 Houthi strikes on Abu Dhabi) and structural dependency on US chip-export licensing are material tail risks. as of
E1
ACLED / public risk data acleddata.com

Signals

Recent ingested source documents linked to this jurisdiction via extracted claims or triage mentions, newest first.

  1. · MEED — UAE · relevance 0.00

  2. · AGBI · relevance 0.00

  3. · The National · relevance 0.00

  4. · MEED — UAE · relevance 0.00

  5. · MEED — UAE · relevance 0.30

  6. · MEED — UAE · relevance 0.00

  7. · MEED — UAE · relevance 0.30

  8. · MEED — UAE · relevance 0.20

  9. · MEED — UAE · relevance 0.20

  10. · MEED — UAE · relevance 0.20

Scores are reproducible from the frozen inputs snapshot recorded at computation time (2026-06-15T23:52:35+00:00). See the full methodology for rubrics, weights, and the evidence ladder.