The UAE is rapidly advancing its status as a global artificial intelligence (AI) hub, supported by significant state investments, strategic partnerships, and a burgeoning ecosystem of AI startups and institutions. As both public and private sectors intensify their focus on digital transformation, analysts project that AI will contribute an astonishing 20 percent to the country’s non-oil GDP by 2031.
In 2023, the UAE’s AI market was valued at approximately AED12.743 billion ($3.5 billion). With a compound annual growth rate (CAGR) of nearly 44 percent, the market is expected to grow to around AED170.143 billion ($46.3 billion) by 2030, according to a report by independent research institution ‘TRENDS Research & Advisory.’
Tarek Kabrit, CEO of Dubai-based automotive technology company Seez, notes that while the figures are highly promising, it is equally essential to look beyond them. “AI is not just a market or a technology to be chased for growth’s sake,” Kabrit states. “It’s a fundamental shift in how businesses, governments, and individuals relate to data, decisions, and automation. The real value lies in how AI integrates seamlessly to empower people and create new human-centric experiences.”
Major investments in AI infrastructure
The UAE’s success story is grounded in visionary government initiatives. Launched in 2017, the UAE National Strategy for Artificial Intelligence established an ambitious roadmap for AI to permeate all sectors by 2031, with a focus on health, transport, energy, and education.
The government is not only providing frameworks but also investing billions in funding and infrastructure. Abu Dhabi’s MGX sovereign fund aims for AED367 billion in AI-related assets. Additionally, a separate billion-dollar fund is promoting chip fabrication and data center construction through strategic alliances with Nvidia, AMD, and OpenAI.
Kabrit emphasizes the importance of this bold investment: “Sustainable AI growth demands more than software and algorithms. It requires a robust ecosystem with advanced infrastructure, research institutions, and capital. That’s what gives startups and enterprises the freedom to innovate and scale.”
Developing human capital in AI
Technology alone cannot drive transformation. The UAE is also investing heavily in human capital. Government-led training programs aim to equip over one million residents with AI skills, while the number of AI professionals has quadrupled to nearly 120,000 in recent years. Institutions like the Mohamed bin Zayed University of Artificial Intelligence and the Technology Innovation Institute position the Emirates as a hub for research and talent.
However, with great power comes great responsibility. The UAE is advancing ethical AI through its AI Ethics Charter, federal data protection laws, and ongoing efforts to balance innovation with privacy and security.
The UAE is already experiencing the tangible benefits of AI. Healthcare AI solutions, growing at over 40 percent annually, are enhancing diagnostics and personalized care. Smart transport initiatives leverage AI for predictive traffic management and emissions reduction in Dubai and Abu Dhabi.
