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AI could contribute up to $15.7 trillion to the global economy by 2030 as per a PWC report
June 28, 2024 | Staff Reporter | UAE | PropTech
DAMAC Group, a leading property developer known for its diverse investment portfolio, has announced a significant increase in its investment in the rapidly evolving Artificial Intelligence (AI) sector. This strategic move aligns with the group's vision to support and develop cutting-edge AI technologies and infrastructure.
The real estate group’s diversified family office has already invested in over 70 funds across various strategies, demonstrating its commitment to fostering innovation and growth across multiple industries. With this new focus on AI, the group aims to further enhance its role in advancing foundational AI models and infrastructure.
"As a forward-thinking organisation, we recognise the transformative potential of AI in shaping the future," said Hussain Sajwani, Founder and Chairman of DAMAC Group. "Our increased investment in AI reflects our commitment to supporting the development of groundbreaking technologies that can drive significant progress and create new opportunities across various sectors."
DAMAC Group has made notable investments in leading AI companies including a $50 million in the AI startup, Anthropic – as one of the top investors who have bought into the company from the bankrupt cryptocurrency exchange, FTX. The Group has also made investments in xAI – an American AI startup founded by Elon Musk and in Mistral – a France-based AI company which is one of the best European large-language model open source.
Our increased investment in AI reflects our commitment to supporting the development of groundbreaking technologies that can drive significant progress and create new opportunities across various sectors.
Hussain Sajwani, Founder and Chairman of DAMAC Group
"We are excited to be part of the AI revolution and to contribute to the growth of this dynamic industry," added Sajwani. "Our investments in companies like Mistral, Anthropic, and xAI underscore our dedication to fostering innovation and driving the next wave of technological advancements."
Accelerated Digital Transformation
A study by PwC1 underscores the immense potential of AI to transform the productivity and GDP potential of the global economy. AI could contribute up to $15.7 trillion to the global economy by 2030. Initial GDP gains will be driven by improvements in labour productivity as firms augment their workforce with AI technologies and automate certain tasks and roles. By 2030, 45% of total economic gains will come from product enhancements, stimulating consumer demand through greater product variety, increased personalisation, and enhanced affordability.
The greatest economic gains from AI will be seen in China, with a 26% boost to GDP, and in North America, with a 14.5% boost. Together, these regions will account for almost 70% of the global economic impact, equivalent to a total of $10.7 trillion.
In addition to its AI investments, DAMAC Group is heavily focusing on technological transitions and diversification, particularly in the data centres sector. Recognising the growing demand for digital infrastructure worldwide, DAMAC has been expanding its presence in this critical area.
One key milestone in DAMAC's diversification vision was the launch of EDGNEX Data Centres in 2021. This strategic move has positioned the Group to capitalise on the increasing need for robust digital infrastructure. In May 2024, DAMAC announced its entry into the Indonesian market with plans to build a data centre in Jakarta. The 15MW facility, located along MT Haryono, is scheduled to complete its first construction phase in the fourth quarter of 2025.
Global Strides
EDGNEX is also making significant strides in Saudi Arabia, with facilities under construction in Dammam and Riyadh that will deliver 55MW by 2025. Additionally, plans are underway for a data centre in Amman, Jordan, and another in Turkey in partnership with Vodafone.
"DAMAC plans to invest up to $1 billion in the data centres industry over the next couple of years," said Sajwani. "This substantial investment reflects our commitment to advancing digital infrastructure and supporting the technological transitions that are essential for future growth and innovation."
DAMAC Group's increased focus on AI and technological infrastructure is expected to bolster its existing portfolio and pave the way for new strategic partnerships and collaborations. By investing in AI and data centres, the Group aims to leverage advanced technologies to create value and drive sustainable growth.
