UAE supercharges AI drive with multi-billion-dollar agenda

The UAE is rapidly reinforcing its status as a global powerhouse in artificial intelligence, propelled by an ambitious multi-billion-dollar agenda.

The agenda aligns cutting-edge infrastructure with deep-rooted government strategy, strategic alliances, and a bold push to build homegrown talent and innovation, according to leading analysts.

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 As AI becomes a central pillar of the country’s non-oil diversification drive, its impact is expected to be transformational — potentially contributing up to 20 per cent of the UAE’s non-oil GDP by 2031, they argue.

The scale of ambition is matched by the scale of investment. From a market valued at roughly Dh12.74 billion in 2023, AI in the UAE is forecast to grow at an extraordinary compound annual growth rate of 44 per cent to reach an estimated Dh170.14 billion by 2030, according to TRENDS Research & Advisory. This meteoric rise is being enabled by a fast-maturing ecosystem of AI-focused startups, research institutions, training programmes, and robust policy frameworks that collectively make the UAE one of the most AI-progressive nations globally.

Since launching its National Strategy for Artificial Intelligence in 2017, the UAE has made AI a centrepiece of its national development agenda, targeting full integration into key sectors such as healthcare, transport, education, energy, and logistics by 2031. The strategy is backed by sovereign funds, including Abu Dhabi’s MGX, which alone is targeting Dh367 billion in AI-related assets. Complementing this are billion-dollar initiatives dedicated to semiconductor fabrication, data centre infrastructure, and AI training, developed through high-profile collaborations with global tech giants such as Nvidia, AMD, and OpenAI.

Tarek Kabrit, CEO of Dubai-based AI startup Seez, believes the UAE’s approach goes far beyond financial incentives. “AI is not just a market or a technology to be chased for growth’s sake,” he says. “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.”

This people-first approach is evident in the UAE’s human capital strategy. Government-led initiatives aim to upskill more than one million residents in AI-related competencies. The number of AI professionals in the country has grown nearly fourfold to 120,000 in just a few years. Dedicated institutions such as the Mohamed bin Zayed University of Artificial Intelligence and the Technology Innovation Institute are playing a pivotal role in anchoring the UAE’s growing reputation as an AI research and development hub.

At the same time, the government is setting global benchmarks in ethical AI governance. The UAE’s AI Ethics Charter, federal data protection laws, and responsible innovation frameworks ensure that rapid progress does not come at the expense of individual privacy, security, or societal trust.

The benefits of AI are already tangible across various sectors. In healthcare, AI-powered diagnostics and personalised treatment plans are helping transform patient care, with the segment growing at over 40 per cent annually. In transport, cities like Dubai and Abu Dhabi are deploying AI to optimise traffic flow, reduce emissions, and enhance safety through predictive analytics and smart mobility platforms.

Companies such as Seez are demonstrating how AI can redefine the customer experience. Its flagship product, Seezar, is an AI-powered conversational agent that assists automotive dealerships with proactive customer engagement. “The future of AI-powered software is proactive, not reactive,” says Kabrit. “Our goal is to reduce friction by having AI anticipate needs and deliver outcomes before users even ask. That’s where AI truly unlocks value.”

Large enterprises are also leveraging AI for operational excellence. State energy giant Adnoc reported saving over $500 million in 2023 through AI-driven efficiency gains and emissions reductions. Emirates NBD, a pioneer in digital banking, was one of the first in the region to launch an AI chatbot— Eva — for customer service as far back as 2017.

 Importantly, the region is also cultivating its own generative AI capabilities. The UAE-based G42 group, in collaboration with academic partners, developed “Jais,” a large language model tailored to Arabic, while Saudi Arabia’s SDAIA has launched its own model, “Bayan.” Abu Dhabi’s Technology Innovation Institute has introduced the second generation of its flagship Falcon 2 model, pushing the envelope on Arabic AI development and regional autonomy in the GenAI race.

As the AI race intensifies globally, the UAE’s model of coupling large-scale investments with deep institutional alignment and a forward-thinking talent strategy is positioning the country as a serious contender for global AI leadership. With neighbouring Gulf countries also advancing their AI agendas, the region is poised to play an increasingly influential role in shaping the future of artificial intelligence, analysts said.

Issac John

Staff Writer

issacjohn@khaleejtimes.com

Issac John is Managing Editor at Khaleej Times and has over 45 years of experience in top-tier newspapers across UAE. A seasoned business writer and economic analyst, he brings unmatched insight into the geopolitics and geoeconomics shaping the Gulf and India.