The UAE and Kazakhstan have signed a preliminary agreement to explore investment opportunities for data centres and artificial intelligence in Central Asia's largest economy.
The partnership between the UAE Ministry of Investment, Kazakhstan's Ministry of Digital Development, Innovations and Aerospace Industry and the $70 billion sovereign wealth fund Samruk-Kazyna aims to create a framework for co-operation, the UAE ministry said in a statement on Friday.
It aims to develop Kazakhstan's technological capabilities and promote digitisation in its society, which, in turn, will help its wider ambition of attracting more foreign investment and inviting international companies set up their base in the nation, it said.
The collaboration will see the bodies developing bilateral ties between public and private organisations, introducing incentives to support relevant projects and enabling the exchange of knowledge.
This is in addition to the expected boost it will give to the economic relationship between the two countries.
The agreement was signed by Mohamed Alsuwaidi, Minister of Investment, Bagdat Mussin, Kazakhstan's Minister of Digital Development, Innovations and Aerospace Industry, and Nurlan Zhakupov, chairman of Samruk-Kazyna's management board.
“The agreement reflects our commitment to further strengthening relations between our two nations and working together to realise a shared vision for economic advancement," Mr Alsuwaidi said.
"The planned investments in data centre and AI projects in Kazakhstan will help enhance the nation’s expanding digital infrastructure, offering businesses more opportunities to embrace and gain advantages from digitisation.”
Data consumption has increased over the past years as remote work trends, largely set off by the Covid-19 pandemic, have fuelled the adoption of cloud services.
In Kazakhstan, revenue in its data centre market is projected to hit nearly $417 billion by 2028, from an estimated $320 billion this year, expanding at a compound annual growth rate of 6.8 per cent, data from Statista shows.
AI, meanwhile, is a technology, which is registering sustained demand, with Kazakh businesses increasingly looking to improve their processes, costs and competitiveness, it said.
The establishment and growth of data centres is "pivotal" for Kazakhstan’s technological advancement, Mr Zhakupov said.
"They serve as the backbone of innovation, fostering economic development and propelling the nation into the forefront of the global digital landscape," he said.
The latest partnership is part of the UAE's continuing efforts to support Kazakhstan's economy.
Last year, Presight AI, a unit of Abu Dhabi's G42 group, said it had entered into a joint venture with Samruk-Kazyna to accelerate digital transformation in Kazakhstan.
Abu Dhabi's clean energy company Masdar and Emirates Nuclear Energy Corporation have also signed up for a wind energy project and a uranium supply deal, respectively.
Kazakhstan’s exports to the UAE were estimated at $560.34 million in 2022, while the Emirates' exports to the Central Asian country hit $1.69 billion, according to latest government data.
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Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
How to vote in the UAE
1) Download your ballot https://www.fvap.gov/
2) Take it to the US Embassy
3) Deadline is October 15
4) The embassy will ensure all ballots reach the US in time for the November 3 poll
Student Of The Year 2
Director: Punit Malhotra
Stars: Tiger Shroff, Tara Sutaria, Ananya Pandey, Aditya Seal
1.5 stars
MATCH INFO
Fixture: Thailand v UAE, Tuesday, 4pm (UAE)
TV: Abu Dhabi Sports
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
SERIES INFO
Cricket World Cup League Two
Nepal, Oman, United States tri-series
Tribhuvan University, Kathmandu
Fixtures
Wednesday February 5, Oman v Nepal
Thursday, February 6, Oman v United States
Saturday, February 8, United States v Nepal
Sunday, February 9, Oman v Nepal
Tuesday, February 11, Oman v United States
Wednesday, February 12, United States v Nepal
Table
The top three sides advance to the 2022 World Cup Qualifier.
The bottom four sides are relegated to the 2022 World Cup playoff
1 United States 8 6 2 0 0 12 0.412
2 Scotland 8 4 3 0 1 9 0.139
3 Namibia 7 4 3 0 0 8 0.008
4 Oman 6 4 2 0 0 8 -0.139
5 UAE 7 3 3 0 1 7 -0.004
6 Nepal 0 0 0 0 0 0 0
7 PNG 8 0 8 0 0 0 -0.458
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