Middle East Transforming Into Capitalists' Silicon Valley: Ray Dalio
Dalio believes investors should not hurry to exit the sector as he expresses an optimistic view of the technology and sector performance in the long-term.
Billionaire Investor and Bridgewater Associates Founder Ray Dalio said that the Middle East is transforming into capitalists' Silicon Valley as the region is emerging as the world's most powerful artificial-intelligence hub.
The United Arab Emirates and other Gulf nation are conducting large-scale investments in AI to attract talent from across the globe. He compared the momentum to the rise of Silicon Valley. Dalio was speaking in an interview, Mint reported.
Talented people are coming to the Middle East, followed by money. There is a buzz like there is a buzz in San Francisco about AI and technology, he said.
Dalio does not consider the AI bubble as a big concern. He believes investors should not hurry to exit the sector as he expresses an optimistic view of the technology and sector performance in the long-term.
All bubbles arise at the time of the change. "You don't want to get out of it just because of the bubble. You want to look for the pricking of the bubble," he said in the interview.
Investors are capable of pin-pointing the pricking of the bubble during the tightening of the money or the force need to sell wealth to meet obligations.
Dalio warned about a possible stress in the commercial real estate, private equity, venture capital. He also expressed concern about the global economy over the next two years as three dominant cycles — debt, geopolitics, and US political conflict converge.
Dalio warns of more political conflict in the US. As the US goes into the election in 2026, more conflicts will likely rise different ways. Every country cannot continue to accumulate debt, yet they cannot politically raise taxes and cut benefits. Hence, they are stuck. "We now have populism of left and populism of right, which means irreconcilables differences."
