Jointly released by Harici and Trends Research & Advisory
The UAE’s homegrown AI model, Falcon, is making waves across the global tech landscape, challenging industry giants like OpenAI’s ChatGPT and China’s DeepSeek. But Falcon isn’t just another competitor in the AI race; it’s a bold testament to the UAE’s ambition to lead the future of artificial intelligence with security, reliability, and innovation at its core.
First unveiled in March 2023, Falcon was developed in the heart of Abu Dhabi, within the cutting-edge labs of the city’s leading global scientific research center, known as the Technology Innovation Institute (TII), as one of the most advanced open-source large language models (LLMs) not bound by the limitations of others but one that proudly stands among the world’s greatest models.[1]
With a strategic goal and ambition, drawing on a highly skilled team of 25 computer scientists, researchers, and AI specialists from various parts of the world,[2] Falcon was designed to push the boundaries and propel the UAE to the forefront of global innovation.
Through long hours of rigorous development, relentless work, and dedicated research, these experts worked on turning the goal into reality. They trained the model on vast amounts of data, ensuring that it could speak not just in the language of algorithms but in the language of culture, diplomacy, and progress.[3]
With every line of code, parameter, and test, these experts combined their knowledge of machine learning, neural networks, and computational efficiency to craft something truly exceptional that would position the UAE as a leader in AI, not just a consumer of technology. By pushing the boundaries of what was thought feasible, they crafted Falcon to be smarter, quicker, and more adaptive than anything that came before.
Thankfully, their tireless efforts paid off.
When Falcon was first released, it was nothing short of groundbreaking. AI researchers, engineers, developers, and specialists worldwide were enthralled with Falcon the minute it was released.
With its sophisticated design and outstanding performance, Falcon not only entered the scene but also swiftly established itself as a significant contender, ascending to the forefront of Hugging Face’s Large language model leaderboard.[4] This benchmarking platform evaluates and ranks AI models based on their performance in natural language understanding, generation, and efficiency.
But beyond the technical mastery, what really sets Falcon apart from its peers in the realm of large language models (LLMs) attracting the attention of industry experts from San Francisco to Beijing? What makes it stand out in the ever-evolving landscape of AI? And why should the world pay attention to the UAE’s approach to AI development?
Well, what gives Falcon its distinct edge is pretty simple: it’s the revolutionary shift it represents in AI accessibility, efficiency, and cost-effectiveness, along with the UAE’s unique vision and ambition behind it. At a time when cutting-edge AI models are becoming increasingly expensive and exclusive, the UAE set Falcon to take a different approach, one that is open, adaptable, and well-positioned to challenge the dominance of AI giants.
Perhaps the most dominant and outstanding feature of Falcon, which sets it apart from its competitors, is its open-source nature. While DeepSeek has been celebrated for its cost efficiency and ChatGPT for its advanced conversational abilities, Falcon came to prominence for its open-source framework, reflecting the UAE’s strategic intent to foster global collaboration while asserting its own technological leadership.
Unlike most advanced LLMs, which are locked behind corporate walls and accessible only to a select few, Falcon challenged the norm by making its capabilities accessible to all. This is because it’s rooted in the UAE’s belief that AI should be a shared asset that drives global innovation and progress rather than a privileged resource controlled by a few.
Yet, being an open-source model is not Falcon’s only strength. The model is also known for its cost-effectiveness and efficiency. Operating and training AI models can often be an expensive endeavor, with some models demanding large sums of money and massive computing resources. However, that is not the case with Falcon.
Consisting of just 680 million parameters, the model is designed to do more with less, exhibiting exceptional performance while employing less resources at a fraction of the cost.[5] This in fact not only makes Falcon more reasonably priced but also helps the UAE to uphold its commitment to accessible and sustainable AI.
The model’s distinctiveness does not end here. Falcon’s multilingual capabilities especially its strong focus on Arabic natural language processing stands as another outstanding feature. Unlike its peers in the realm of LLMs, Falcon was developed with a profound comprehension of Arabic, understanding and generating Arabic text in different dialects, with high accuracy, making it one of the few AI systems capable of really bridging cultures.[6]
But perhaps the most compelling reason the world should pay attention to Falcon is because of the UAE’s forward-thinking vision and ambition put behind it. The UAE’s advancement in AI has illustrated that success in this domain relies not just on financial assets or technical legacy but on vision, strategy, and inclusivity.
However, the question that lingers in the minds of many is how a nation renowned for its oil reserves carved out a new identity and emerged as a powerhouse in cutting-edge AI technology, let alone surpassing AI giants in performance.
The answer lies not in coincidence but in the UAE’s forward-thinking leadership. Unlike many rich-resource economies, the UAE leaders recognized early on that a country’s future and true power would not be built on oil alone but on innovation, knowledge, intellectual capital, and technological advancement.
They understood that to remain competitive in a rapidly evolving world, they had to invest in the industries of tomorrow, and AI was at the heart of this future and transformation. With this vision in mind the country took bold steps to position itself as a leader in the global AI landscape rather than just adopting AI technologies.
In 2017, it made history by becoming the world’s first country to establish a Ministry of Artificial Intelligence and appoint its first AI minister.[7] This move was not symbolic but deeply strategic, signaling that AI would be central to its long-term vision.
Shortly after, the country unveiled its national AI strategy for 2031, a comprehensive roadmap which it designed to integrate AI across key sectors from healthcare and education to security and economic development.[8] Within this strategy, the UAE ensured that AI governance was incorporated into the highest levels of decision-making, providing a cohesive and strategic approach to implementing AI, unlike other countries where policies on the matter surface from several departments.
To further position the UAE as a global leader in AI applications, turn the vision into reality, and ensure that the AI adoption was not just a policy on paper, the country created the role of Chief Executive Officer for Artificial Intelligence in the ministers and federal entities, an uncommon yet highly effective approach.[9] This meant AI wouldn’t just be talked about or confined to the private sector; it would be integrated into the government, actively shaping how government services and policies are designed.
In order to stay ahead and harness the AI’s transformative potential the country also formed the UAE Council for Artificial Intelligence (AI) where its mandate includes developing AI policy, encouraging research, and establishing collaborations among public and commercial entities as well as foreign organizations.[10]
Unlocking the full potential of AI is no easy feat. Though many nations depend on outside specialists, the UAE went in a different direction. Recognizing that genuine leadership needs a strong foundation of native talent, the UAE has made strategic investments in AI education and research, something even AI powerhouses like the U.S. and China often struggle with, relying heavily on imported talent.
In 2019, the country established the world’s first university dedicated to AI and named it after His Highness Sheikh Mohamed bin Zayed Al Nahyan (MBZUAI), aiming to drive the development of transformative AI technologies, empower the next generation of AI leaders and position the UAE as a global center for AI research and thought leadership.[11]
Complementing this vision is G42, a homegrown AI development holding company based in Abu Dhabi. In 2018, the UAE founded G42 as part of its vision to lead in AI and turn AI research into real-world applications in healthcare, energy, and national security.[12] This public-private collaboration gave the UAE an edge, allowing it to rapidly develop and deploy AI solutions at a pace unmatched by many global counterparts.
The UAE’s efforts to enforce its AI leadership did not stop here. Over the years, the country hosted global AI summits, like the AI Everything Summit and the Global AI Summit, turning these platforms into hubs for knowledge exchange, international collaboration, and shaping global discussions.[13] It seized the opportunity to lead the conversations on ethics, policy, and responsibility, positioning itself as a key player in setting the global AI agenda. While other countries hesitated, the UAE moved forward not with fear of the unknown but with the belief that the future belonged to those who dared to create it,
Hence, the UAE’s ascent in AI is no coincidence; it is the result of a strategic vision, bold investments, and an unwavering commitment to technological leadership. While many countries debated how to integrate AI, the UAE made it a reality.
Today, the country stands at the forefront of the AI revolution. It is one of the leading nations that saw the potential of AI early on and took the necessary steps to turn the ambition into reality, proving that with the right strategy, any nation, regardless of its past, can reinvent itself and lead in the industries of tomorrow.
[1] Ben Wodecki. “Inside Falcon: The UAE’s Open Source Model Challenging AI Giants.” Capacity Media. February 5, 2025. https://www.capacitymedia.com/article/2ednrsm6eglrmfzs429ds/long-reads/article-inside-falcon-the-uaes-open-source-model-challenging-ai-giants.
[2] Billy Perrigo. “The UAE Is on a Mission to Become an AI Power.” Time, March 22, 2024. https://time.com/6958369/artificial-intelligence-united-arab-emirates/.
[3] Saha, Rohit, Angeline Yasodhara, Mariia Ponomarenko, and Kyryl Truskovskyi. 2023. “The Practical Guide to LLMs: Falcon.” Medium. August 31, 2023. https://medium.com/georgian-impact-blog/the-practical-guide-to-llms-falcon-d2d43ecf6d2d.
[4] “Falcon 3: UAE’s Technology Innovation Institute Launches World’s Most Powerful Small AI Models That Can Also Be Run on Light Infrastructures, Including Laptops.” 2024. Technology Innovation Institute. December 17, 2024. https://www.tii.ae/news/falcon-3-uaes-technology-innovation-institute-launches-worlds-most-powerful-small-ai-models.
[5] “Falcon LLM vs. Other Language Models: A Comparative Analysis.” BotPenguin. May 14, 2024. https://botpenguin.com/blogs/falcon-llm-vs-other-language-models.
[6] Hasan, Suha. 2024. “The Middle East Scores Big in Building Arabic AI Models despite Challenges—What’s Next?” Fast Company Middle East. https://fastcompanyme.com. August 8, 2024. https://doi.org/10c3369/b9b7d4cb412ec452dc997a75f
[7] “How Is AI Regulated in the UAE? What Lawyers Need to Know – TR – Legal Insight MENA.” 2024. Thomson Reuters . June 13, 2024. https://insight.thomsonreuters.com/mena/legal/posts/how-is-ai-regulated-in-the-uae-what-lawyers-need-to-know
[8] “The U.A.E.’S Big Bet on Artificial Intelligence.” 2024. U.S. – U.A.E Business Council. https://usuaebusiness.org/wp-content/uploads/2024/02/SectorUpdate_AIReport_Web.pdf
[9] Emirates News Agency WAM. “UAE Cabinet Approves National Youth Agenda 2031; Introduces ‘Blue Residency’ for Sustainability Experts,” May 15, 2024. https://www.wam.ae/en/article/b35yptd-uae-cabinet-approves-national-youth-agenda-2031
[10] “Artificial Intelligence in Government Policies | the Official Portal of the UAE Government.” n.d. The United Arab Emirates’ Government Portal U.AE. https://u.ae/en/about-the-uae/digital-uae/digital-technology/artificial-intelligence/artificial-intelligence-in-government-policies
[11] “Abu Dhabi Launches First Dedicated AI University (and Consultancy).” Consultancy-Me. October 18, 2019. https://www.consultancy-me.com/news/2413/abu-dhabi-launches-first-dedicated-ai-university-and-consultancy.
[12] Hart, Robert. 2024. “What to Know about G42—the Emirati AI Giant That Just Got a $1.5 Billion Investment from Microsoft.” Forbes, April 16, 2024. https://www.forbes.com/sites/roberthart/2024/04/16/what-to-know-about-g42-the-emirati-ai-giant-that-just-got-a-15-billion-investment-from-microsoft/.
[13] “Abu Dhabi to Host Ai Everything Global 2026.” 2025. The Emirates News Agency WAM. February 4, 2025. https://www.wam.ae/en/article/bi17ems-abu-dhabi-host-everything-global-2026.
“Abu Dhabi to Host Ai Everything Global 2026”. The Emirates News Agency WAM. February 4, 2025. https://www.wam.ae/en/article/bi17ems-abu-dhabi-host-everything-global-2026
