Abu Dhabi's G42 Launches 'Agent Factory' to Govern Autonomous AI Systems at National Scale

Abu Dhabi is building infrastructure to mass-produce autonomous AI agents. At the World Government Summit 2026, G42 CEO Peng Xiao announced the company's plan to construct a national-scale "agent factory" that will automate the creation and governance of self-running AI systems across critical sectors.

This isn't about chatbots or simple automation. This is about deploying autonomous AI systems that can make decisions and take actions independently across healthcare, education, legal services, and energy—all governed by a centralized intelligence grid aligned to national ethical standards.

What the Agent Factory Actually Does

The agent factory represents a fundamental shift in how AI systems are deployed. Rather than individual organizations building custom AI solutions, G42 is creating centralized infrastructure that mass-produces autonomous agents with built-in governance and ethical alignment.

Peng Xiao explained the vision during a panel at the World Government Summit in Dubai:

"The agent factory will automate the creation and orchestration of AI agents across healthcare, education, legal services and energy, with safeguards aligned to national ethical standards."

Two-Layer Architecture

G42's infrastructure operates on two parallel layers:

• Token production layer - A computing center producing up to 100 trillion tokens daily (raw AI processing power)
• Agent orchestration layer - The agent factory that converts this processing power into functional, autonomous AI agents

The token production provides the computational foundation, while the agent factory handles creation, deployment, and ongoing governance of autonomous systems.

Already Deployed in Healthcare

This isn't theoretical. Agentic AI systems from G42 are already operating in Abu Dhabi's healthcare sector.

The deployment focuses on primary care, where AI agents support doctors in:

• Patient diagnosis - Analyzing symptoms and medical history to suggest potential diagnoses
• Treatment planning - Recommending evidence-based treatment options
• Care coordination - Managing patient schedules, follow-ups, and referrals
• Administrative tasks - Handling documentation, insurance processing, and record-keeping

G42 reports these systems improve care quality while reducing costs, allowing doctors to focus on complex decision-making rather than routine administrative work.

The Sovereign AI Strategy

G42's agent factory is part of Abu Dhabi's larger sovereign AI initiative. Rather than relying on foreign AI systems, the UAE is building complete AI infrastructure under national control.

Key Components

The strategy includes:

• Stargate UAE - World's largest AI campus outside the US, 26 sq km site with 5 GW capacity
• Microsoft partnership - $8 billion investment in UAE AI and cloud infrastructure through 2029
• Agent factory - National infrastructure for autonomous AI deployment
• Ethical framework - National standards for AI agent behavior and decision-making

Why Sovereign AI Matters

Control over AI infrastructure determines who controls critical systems. By building sovereign AI capabilities, Abu Dhabi ensures:

• Data remains within national jurisdiction
• AI systems align with local cultural and ethical standards
• No dependence on foreign technology providers for critical infrastructure
• Ability to set AI development priorities based on national interests

Integration with Government Services

Abu Dhabi's government is investing AED 13 billion ($3.5+ billion) to automate all government services between 2025 and 2027. The G42 agent factory directly supports this transformation.

The Department of Government Enablement's strategy aims to:

• Contribute over AED 24 billion to Abu Dhabi's GDP by 2027
• Generate more than 5,000 new jobs
• Reduce manual workloads in government ministries by 30%
• Enable full-scale AI rollout across all government departments

AI agents from the factory will handle routine government processes, from permit applications to service requests, operating 24/7 with consistent decision-making frameworks.

What Makes This Different

G42's approach differs fundamentally from how most organizations deploy AI. Instead of individual companies or agencies building separate AI systems, the agent factory provides standardized, governed infrastructure for the entire nation.

Traditional AI Deployment

• Each organization builds custom AI solutions
• Inconsistent ethical standards and governance
• Duplicated effort and infrastructure
• Limited scale and coordination

Agent Factory Model

• Centralized infrastructure produces agents at scale
• Consistent ethical alignment across all agents
• Shared computational resources and capabilities
• National-scale coordination and governance

The Competitive Context

G42's agent factory is part of an escalating AI infrastructure race across the Middle East. The UAE and Saudi Arabia are competing to establish AI supremacy in the region, with both nations committing massive capital to AI development.

Gulf nations collectively pledge over $2 trillion for AI infrastructure, positioning the Middle East as a third pole in the global AI race alongside the US and China.

Regional AI Investments

• UAE: $8B Microsoft partnership, 5 GW Stargate campus, agent factory infrastructure
• Saudi Arabia: $90B in US tech partnerships, NEOM smart city development
• Qatar: $20B QAI national AI company, sovereign AI infrastructure

Implications for the Global AI Landscape

G42's agent factory represents a new model for AI deployment that could reshape how nations approach AI infrastructure. Rather than relying on commercial AI services from US tech giants, countries can build sovereign AI capabilities with national governance.

What This Signals

• Decentralization of AI power - The US/China AI duopoly is being challenged by well-funded Middle Eastern initiatives
• National AI strategies - More countries will pursue sovereign AI infrastructure rather than commercial dependencies
• Governance innovation - New models for AI ethics and oversight at national scale
• Accelerated automation - National-scale agent factories dramatically accelerate AI deployment across entire economies

The Road Ahead

G42's agent factory is scheduled to begin operations in 2026, with the initial 200 MW Stargate cluster going live this year. As the infrastructure scales to full 5 GW capacity, the volume of autonomous AI agents deployed across Abu Dhabi's economy will increase exponentially.

The success or failure of this approach will be closely watched globally. If G42 demonstrates that centralized agent production with strong governance can deliver better outcomes than fragmented commercial AI deployment, other nations will likely adopt similar models.

This isn't just about Abu Dhabi building AI infrastructure. It's about establishing a new paradigm for how societies integrate autonomous AI systems at scale—with national control, consistent ethics, and coordinated deployment across critical sectors.