Abu Dhabi has witnessed a surge in the artificial intelligence (AI) sector in recent years, registering over 400 AI companies by the end of the second quarter of 2024.
During the first half of 2024, the emirate registered 90 AI companies, marking a substantial 41.3 percent growth in the sector compared to the first half of 2023.
Abu Dhabi’s AI sector surges
The Abu Dhabi Chamber of Commerce and Industry recently reported that the emirate witnessed the establishment of one AI company every two days during the first half of 2024. This remarkable pace positioned AI as one of the fastest-growing sectors in new company formations, underscoring Abu Dhabi’s unwavering commitment to establishing itself as a global hub for innovation and AI.
In an earlier study, the chamber revealed that the number of registered AI companies in the emirate grew at a compound annual growth rate (CAGR) of 67 percent between 2021 and 2023. The rapid growth of AI companies in Abu Dhabi underscores the sector’s swift expansion locally and the emirate’s increasing attractiveness as a leading hub for technological innovation and business on both regional and global scales.
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Innovation and AI research flourishes
Commercial activities related to innovation and AI research and consultancies were the most prevalent among companies during the second quarter of 2024, accounting for 69 percent of all activities. This signals the growing interest from both the government and private sectors in advancing technology and promoting economic growth by focusing on high-level, value-added research and consulting services.
In second place came AI training activities, comprising 11 percent of AI companies in Abu Dhabi. Following closely came management and operation of AI robotic systems at 10 percent, wholesale trading of AI training at 8 percent, and retail of AI robots made at 2 percent.
Abu Dhabi Chamber plays a major role in advancing the AI landscape in the emirate and promoting the adoption of innovation and digital transformations. These efforts align with the chamber’s current strategy which seeks to position Abu Dhabi as the number one choice in the Middle East and North Africa (MENA) region for business and talent by 2025.
To achieve this target, the chamber offers comprehensive digital services tailored to the needs of AI companies, enabling them to access the resources, information, market insights, and the necessary support for success in Abu Dhabi’s competitive business environment.
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