Musk said governments must pay close attention to artificial intelligence, create sustainable transport and be wary of mass unemployment.
"The time seems to be good to really make a significant debut in this region starting from Dubai", Musk told the World Government Summit under way in the emirate.
During this week's announcement, Tesla CEO Elon Musk also pledged to invest "tens of millions of dollars" in charging and service infrastructure.
One of the main advantages computers have over humans is the speed at which they can send out information, Musk said.
The Luddite reference stems from the 19th century, when a group of English workers stormed the country side, smashing cotton mills and lumber mills, claiming the then-new technologies were destroying their jobs.
The rise of the autonomous vehicle is likely to drive us to a universal basic income says, Elon Musk - and we're going to need it soon.
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The speaking engagement at the Summit wasn't Musk's only reason for being in Dubai - he was also in the city for the official launch of Tesla in the UAE. "I think that the second version is incredibly exciting and inspiring and it gives you reasons to get up in the morning", Musk told the audience.
The emirate, seen as the most diversified in the Gulf, has a population of 2.5 million people, a lot of them expatriates.
This isn't the first time that Musk has suggested that humans will one day merge with robots. He believes that there are now more than two billion cars on the road and the average life of a auto is about 20-25 years.
The Tesla CEO also discussed autonomous driving as a specific example of AI, noting that driving might represent "the single largest employer of people", in general terms. Driving in various forms. "I think we need to be very careful in how we adopt artificial intelligence and that we make sure that researchers don't get carried away", he stated. This evolutionary process, he speculated, requires high bandwidth interfaces that connect the brain directly to that of a machine to solve the "control problem and the usefulness problem".
In the last decade, we have all become more attached to our tech devices than ever before, but the prospect of a world filled with cyborgs is still (thankfully) the thing of science fiction.