UAE Launches Falcon Arabic AI Model as Gulf States Intensify Tech Race

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The United Arab Emirates (UAE) has unveiled Falcon Arabic, a new artificial intelligence (AI) model designed to process and understand the full linguistic diversity of the Arabic language. The announcement marks a strategic step in the Gulf region’s rapidly intensifying pursuit of AI dominance.

Developed by Abu Dhabi’s Advanced Technology Research Council (ATRC), Falcon Arabic is trained on a native Arabic dataset, rather than relying on translated content — a key distinction that positions it as a culturally and linguistically authentic tool for the Arab world.

“Today, AI leadership is not about scale for the sake of scale. It is about making powerful tools useful, usable, and universal,” said Faisal Al Bannai, Secretary General of ATRC.

The model is said to match the performance of others up to ten times its size, making it not only efficient but also more accessible in terms of computing power and deployment.

A Regional Arms Race in AI

The launch comes as Gulf states, particularly the UAE and Saudi Arabia, compete to establish themselves as AI powerhouses. Both countries are investing heavily in research, infrastructure, and partnerships to capitalize on the transformative potential of AI.

The UAE’s advantage lies in its strong ties with the United States. During a recent visit, former U.S. President Donald Trump highlighted a new AI agreement with the UAE that would facilitate its access to advanced AI semiconductors — a critical factor in developing high-performance AI systems.

Alongside Falcon Arabic, the UAE also introduced Falcon H1, a model designed to reduce the high computational and technical barriers typically associated with running large AI systems. ATRC claims it outperforms competitors like Meta and Alibaba, both in power consumption and required expertise.

Saudi Arabia’s Parallel Push

Meanwhile, Saudi Arabia is developing its own Arabic-language AI initiatives. Earlier this month, the kingdom launched a new state-backed company tasked with creating and managing AI infrastructure. It plans to release one of the world’s most powerful multimodal Arabic language models, signaling its ambition to lead in AI not just regionally, but globally.

AI was a dominant theme during Trump’s recent visit to Riyadh as well, reinforcing the strategic priority both countries now place on technology and digital sovereignty.

With the Gulf nations now prioritizing linguistic, cultural, and technological self-sufficiency, Falcon Arabic represents more than a software release — it is part of a larger geopolitical and digital transformation strategy playing out across the region.

Zoom Raises Annual Forecasts as AI Integration Drives Growth

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Zoom Communications has raised its full-year revenue and profit outlook, citing strong demand for its hybrid work solutions and the integration of AI-powered tools across its platform.

The company now expects fiscal 2026 revenue to reach between $4.80 billion and $4.81 billion, slightly above its earlier forecast and consensus estimates of $4.79 billion. Adjusted profit per share is projected between $5.56 and $5.59, a significant increase from the previous range of $5.34 to $5.37 and well ahead of analyst expectations of $5.41.

The upgrades come as Zoom expands its AI capabilities, particularly through its AI Companion, which saw major updates in March. The platform now supports functions like meeting summaries, shift overviews, and automated clip generation, enhancing productivity and collaboration for users in hybrid and remote settings.

“Across online and enterprise, the majority of the business in the first quarter saw no change in buying behavior, still strong demand,” said CFO Michelle Chang.

Chang also noted that despite increased scrutiny on deal terms among some large U.S. clients, Zoom did not suffer any significant losses during the quarter.

Q1 Performance and Strategic Momentum

For the first fiscal quarter ended April 30:

  • Revenue stood at $1.17 billion, in line with Wall Street expectations.

  • Adjusted earnings were $1.43 per share, exceeding forecasts of $1.31.

The results indicate that Zoom’s pivot from a pandemic-era video calling staple to a more diversified enterprise communications platform is gaining traction.

Industry analysts responded positively to the company’s evolution.

“With a beefed-up buyback program and AI Companion upgrades now spanning everything from shift summaries to clip generation, Zoom finally has the makings of a new story to tell,” said Jeremy Goldman, senior director at Emarketer.

Zoom’s increased focus on enterprise customers, AI-driven enhancements, and broader collaboration tools is helping it stay relevant amid fierce competition from platforms like Microsoft Teams and Google Meet.

Shopify Unveils AI Tool to Build Entire Online Stores from Simple Keywords

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Shopify has launched a powerful new generative AI feature called the “AI Store Builder”, which enables merchants to create complete online storefronts simply by entering descriptive keywords. The feature, announced on Wednesday, marks a major leap in e-commerce automation and user experience.

The AI Store Builder generates three fully designed store layouts — complete with images, product descriptions, and site structure — based on the keywords provided by the user. This allows sellers to bypass the traditionally time-consuming design process, significantly lowering the barrier to launching an online business.

“Instead of just having a merchant click and drag and fill out text fields… we thought, why not ask them more open-ended questions and set up their store in the best likeness we can imagine, using AI,” said Vanessa Lee, Shopify’s Vice President of Product.

First Fully Automated Store Creation Tool

While Shopify has previously offered AI-powered tools — including text generation, image tools, and third-party integrations — the AI Store Builder is the first native feature to fully automate the entire setup of a merchant’s storefront.

The rollout reflects Shopify’s increasing investment in AI-driven services aimed at attracting a broader range of sellers, especially first-time entrepreneurs or small business owners who may not have the resources or technical expertise to build e-commerce sites from scratch.

Strategic Bet on AI

Shopify is positioning AI as a core component of its product ecosystem, offering features that span:

  • AI image generation,

  • Automated product descriptions,

  • Inventory management, and now

  • End-to-end website creation.

This aligns with the broader industry trend of integrating generative AI into consumer-facing platforms to simplify workflows, reduce costs, and personalize user experiences.

The feature is expected to boost merchant onboarding and streamline time-to-launch, especially for users looking to quickly test new product ideas or markets.