UAE Aims to Become Global Leader in Artificial Intelligence (AI)

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UAE AI Industry 2025: Growth Forecasts, Market Value & Impact

The UAE strives to establish itself as the leading country in artificial intelligence (AI). According to the Minister of AI, Omar Sultan Al Olama, the UAE is integrating AI into everyday life and taking initiatives to promotethe  AI industry in 2025. The minister made this remark at the Oracle Cloud Summit held on January 22 in Dubai. Furthermore, he cited an example of Dubai Airport (DXB), which facilitated the passengers’ movement through smart tunnels and gates without interacting with humans. 

UAE Ranked 1st in the Gulf and 18th Globally for AI Adoption 

According to the Government AI Readiness Index 2023 by Oxford Insights, the UAE is ranked first in the Gulf region and 18th globally out of 160 countries. The report assessed the country’s readiness to adopt AI in three pillars: government, infrastructure, and the technology sector. It ranked the UAE ahead of countries like Taiwan, Switzerland, Malaysia, Italy, and Spain. 

Latest Market Trends in UAE’s AI Industry – 2025

In 2025, the UAE continues to accelerate its transformation into an AI-driven economy. The UAE’s AI industry is forecasted to grow at a CAGR of 35%, supported by strong government backing and private sector innovation. By 2026, the AI market value in the UAE is expected to reach AED 20 billion (US$5.4 billion). 

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AI to Impact on the UAE Economy

A recent report published by the Abu Dhabi Chamber of Commerce and Industry states that many sectors in the UAE will benefit from adopting AI strategies. In the financial sector, AI adoption is expected to increase GDP contribution by 14% by 2035. Likewise, the healthcare market is projected to grow at a CAGR of 42%, reaching Dh 3 billion by 2029. Similarly, the hospitality and tourism sector is likely to expand and reach a market value of Dh 3 billion by 2030. Along similar lines, the UAE’s construction industry is set to contribute an additional Dh 39 billion. 

By incorporating AI technologies, the UAE is positioning itself as a future global leader in AI. A report published by PwC estimates that AI could contribute US$320 billion to the Middle East market by 2030, with the UAE projected to have the largest impact, accounting for nearly 14% of its GDP in 2030.

In 2024, Dubai launched the Global Blueprint for AI to harness technology for quality-of-life-focused outcomes, contributing AED 100 billion to the economy and further bolstering Dubai’s digital economy. Along similar lines, Microsoft announced a US$1.5 billion investment in the UAE’s G42 to expedite AI adoption. The UAE has further elevated its position as a global hub for AI innovation. In GITEX Global’s 2024 edition, the UAE signaled its intention to make the country AI and tech-ready. Furthermore, AI adoption will help Dubai achieve its Economic Agenda D33 while supporting the country to grow its digital economy to US$174 billion by 2031.

Read: Consumer spending in UAE set to grow the most globally in 2025