The Middle East is fast emerging as one of the world's most powerful AI hubs, Bridgewater Associates' founder Ray Dalio said Monday, comparing the region's rise to Silicon Valley's pull for all things tech.

Speaking to CNBC, Dalio said the United Arab Emirates and its neighbors have combined vast pools of capital with an influx of global talent, creating a magnet for investment managers and AI innovators alike.

The UAE and Saudi Arabia have this year launched multibillion-dollar initiatives to build cloud, data centers and other AI infrastructure, underpinned by sovereign-wealth capital and global tech partnerships.

A $10 billion agreement between Google Cloud and Saudi Arabia's Public Investment Fund announced this year aims to create a "global AI hub" in the country, as part of a b

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