Telangana Joins Hands with UAE for AI Growth

 Hyderabad: Telangana is determined to position itself as a global digital and innovation hub and has invited the UAE to be a vital partner in this journey, said Duddilla Sridhar Babu, the IT and industries minister, during a special meeting with Omar Bin Sultan Al Olama, UAE minister of state for AI, digital economy and remote work applications, in Dubai on Thursday.

Sridhar Babu highlighted Telangana’s vision to emerge as the AI capital of the world through projects such as AI City, AI University and AI Innovation Hub. He also showcased India’s first AI-driven Telangana Data Exchange (TGDeX) and its transformative role across healthcare, education, agriculture and governance.

Extending an invitation for stronger UAE collaboration, he urged minister Al Olama to consider establishing a joint AI R&D centre in Hyderabad.

Sridhar Babu noted that Telangana is India’s fourth-largest UPI economy, recording digital transactions worth `1.26 lakh crore by July 2025. With its FinTech Sandbox fostering innovation in payments, blockchain and digital commerce, Hyderabad offers a strategic entry point for UAE enterprises in the digital economy, he said. He encouraged UAE companies to explore setting up Nano-Global Capability Centres (Nano-GCCs) and Digital Hubs in Telangana, leveraging the state’s infrastructure, talent pool and policy framework.

Sridhar Babu also underlined the scope for UAE Sovereign Funds and Venture Capital firms to invest in deep-tech and AI startups. He proposed a joint AI and Startup Summit between Telangana and the UAE to strengthen innovation ecosystems and invited UAE firms to participate in Telangana’s Future City projects, with investments in smart mobility, logistics, green energy, housing and e-governance. To enhance talent collaboration, he suggested setting up a Telangana–UAE Future Skills Academy in gaming and digital technologies.

Minister Al Olama expressed readiness for collaboration in AI, digital economy, cloud computing, quantum computing, cyber security and gaming. He also shared details of the UAE’s flagship Stargate Project — an AI-driven $100 billion initiative — and said he looked forward to Telangana becoming a key partner. He further confirmed that Telangana-based companies would be invited to the upcoming FinTech Startups Summit in the UAE.