UAE Artificial Intelligence Market Analysis, Size, and Forecast by Type, Deployment Model, Industry, and Organization Size: 2019-2033

UAE Artificial Intelligence Market Outlook

The UAE Artificial Intelligence (AI) market is undergoing an extraordinary transformation, poised to exceed $10.5 billion by 2033, driven by a convergence of visionary policy leadership, sovereign wealth backing, open-source AI advancements, and deep global tech partnerships. As per David Gomes, Manager – IT, the country is experiencing a compounded annual growth rate (CAGR) of over 28.7% during the forecast period—signaling an aggressive scale-up in public and private AI deployments across sectors such as government, urban planning, finance, healthcare, and energy.

What sets the UAE apart is not just its ambition but its execution. In 2017, the appointment of Omar Sultan Al Olama as the world’s first Minister of State for Artificial Intelligence marked a pivotal shift in policy. It was a deliberate move to embed AI as a foundational pillar of national strategy. This foresight has since materialized into Falcon, a large language model (LLM) developed by the UAE’s Advanced Technology Research Council (ATRC), which has surpassed benchmarks set by Meta’s LLaMA and Google’s PaLM upon release. Falcon’s open-source nature positions the UAE as a democratizing force in global AI, challenging traditional closed-source Western dominance.

Backing this momentum is the UAE’s $1.5 trillion sovereign wealth commitment toward AI infrastructure, making it one of the most financially mobilized nations in the world in this domain. Strategic partnerships with NVIDIA, OpenAI, and Microsoft are not merely transactional—they form the backbone of the UAE’s high-performance AI ecosystem. For example, a recent agreement between Microsoft, Core42, and the Department of Government Enablement (DGE) in Abu Dhabi will see the emirate become the world’s first AI-native government by 2027. This project, supported by a $3.54 billion investment, will automate 100% of government processes, powered by sovereign cloud computing systems that manage over 11 million daily interactions.

The TAMM 3.0 government services app, which has already reduced offline visits by 90%, exemplifies the country’s commitment to frictionless citizen experiences. Over 200 AI-powered services are in development, prioritizing environmental sustainability, predictive governance, and operational transparency.

Meanwhile, Abu Dhabi is also taking a bold step into AI geopolitics through the launch of a 10-square-mile AI megacampus in partnership with the United States—the largest of its kind outside North America. This campus, equipped with 500,000 NVIDIA chips annually and powered by 5 gigawatts of clean energy (nuclear, solar, and gas), is engineered to serve low-latency AI needs for half the global population. It's not just an infrastructure story—it’s a strategic play to become the AI compute hub for regulated industries in finance, healthcare, and energy.

From a corporate standpoint, local innovation is thriving. G42, headquartered in Abu Dhabi, has emerged as a central player, not just through its co-investment in the AI-native government but also via ecosystem enablement across healthtech and fintech domains. Another example is the AI-driven logistics optimizations by Etihad Cargo and DP World, improving supply chain resiliency through machine learning. Meanwhile, Careem, originally a ride-hailing app, has integrated generative AI to personalize transport services, showcasing AI’s commercial impact at scale.

The UAE’s strategic balancing act between U.S. technology partnerships and navigating Chinese chip influence places it in a unique geopolitical posture. While Western governments restrict AI chip exports to the Middle East, the UAE’s multilateral diplomacy and regulatory transparency allow it to secure waivers and fast-track innovation—offering lessons in how small, agile states can become AI superpowers.

As global business leaders reassess their AI strategies, the UAE represents not just an emerging market but a testing ground for next-gen policy, scalable compute, and open-source leadership. Silicon Valley executives now view Abu Dhabi not as a client but as a collaborator, underscoring the nation’s shift from technology adopter to strategic contributor.

Authors: David Gomes (Manager – IT)

*Research Methodology: This report is based on DataCube’s proprietary 3-stage forecasting model, combining primary research, secondary data triangulation, and expert validation. [Learn more]

UAE Artificial Intelligence Market Scope