Global AI Investment Boom Widens Digital Divide and Threatens Least Developed Nations, Ministers Warn

While investments in artificial intelligence and future technologies remain a top priority for most nations, the heavy concentration of funding in the sector is creating significant challenges for poorly resourced countries. Speaking at the AIM Congress in Dubai on Tuesday, ministers and policymakers stressed that investors need to coordinate better to distribute investment flows across different sectors and geographies, particularly in less developed regions.

“More than 40 per cent of global investment is going to a very few sectors like AI and digital economy, while in traditional manufacturing it is declining,” said James X Zhan, executive chairman of the World Investment Conference. Speaking at a ministerial round-table, Mr. Zhan—the former chief adviser to the secretary general of UN Trade and Development (Unctad)—noted that even within the advanced technology sector, the share captured by developing countries is merely a fraction of what flows into developed economies.

Global investment in AI and advanced technologies has surged to record levels in 2026. Goldman Sachs reported in August that AI-related capital expenditure and venture funding are set to exceed $1 trillion this year. While US tech giants are largely driving this investment push, venture capital deal activity has also accelerated, reaching over $430 billion in the first half of 2026 alone, according to EY. Furthermore, PwC estimated earlier this month that investment in AI data centre infrastructure will hit an aggregate of $31.6 trillion through to the middle of this century.

Despite this massive capital surge, Unctad warned in May that the growing concentration of investments in fewer countries constitutes a major global developmental divide. Even within foreign direct investment flows to developing economies, about 75 per cent are concentrated in just 10 countries—including large economies such as China, Brazil, Mexico, Indonesia, and India—leaving most other developing nations and nearly all least developed countries struggling to attract capital.

Addressing the AIM Congress, Fahad Al Gergawi, undersecretary of the UAE Ministry of Foreign Trade and former chief executive of Dubai FDI, emphasized that while the UAE is building its future economy on manufacturing and advanced technologies, it strongly supports efforts to avoid “digital colonisation.” As the Arab world's second-largest economy, the UAE is investing heavily domestically while also forming global partnerships to democratize AI and advanced tech for resource-poor countries. “It is vital that the benefits of AI are distributed evenly and not concentrated among a handful of capital-rich nations,” Mr. Al Gergawi stated.

Dr. Ahmed Rostom, Egypt’s Minister of Planning and Economic Development, noted that these disparities are exacerbated by uncertain global economic conditions and fluctuating interest rates. These factors present challenging prospects for emerging and developing economies, requiring targeted policy incentives, private sector participation, and broad regional and global collaboration. While Egypt aims for two-thirds of its investments to originate from the private sector, Dr. Rostom added that the country is also focused on attracting high-quality foreign direct investment through dedicated incentives.