Friday, 05 December, 2025


With Steady Confidence, the UAE Charts the Course of the AI Economy
ar
03 December 2025
AI

As countries around the world race to claim the tools of tomorrow, the United Arab Emirates stands out for its proactive, ambitious embrace of artificial intelligence (AI). Since last year, national investments in AI have surged past AED 543 billion — an unprecedented boom that reflects a deliberate shift toward an economy built on data and advanced computing.

Global technology giants are reinforcing that shift. Many have selected the UAE as their regional or global headquarters, attracted by a business-friendly regulatory environment and a digital infrastructure that ranks among the finest worldwide. These decisions signal growing confidence in the UAE’s technological readiness and long-term vision.

Analysts estimate that by 2030, AI could contribute as much as USD 96 billion (approximately AED 352 billion) to the UAE economy — roughly 14 % of the nation’s projected GDP. These projections, from leading accounting and advisory firms, underscore a profound transformation: the UAE’s economy is evolving into one driven by knowledge, smart data analytics, and technology.

A strong digital backbone underlies this shift. The UAE has emerged as the top regional performer, and among the global top 20 countries, on the “Government AI Readiness” index compiled by Oxford Insites. Nearly 99 % of government services have now been digitized, while coverage of 5G networks exceeds 97 %, giving the UAE one of the world’s highest levels of readiness for next-generation networks — vital for powering AI and advanced applications.

At the heart of this digital revolution is a series of massive technology initiatives that are reshaping the country’s economic infrastructure. Leading the way is the “Stargate” project — a visionary technological alliance designed to build a hyper-powerful AI computing ecosystem that further strengthens the UAE’s capabilities and cements its status as a global center for advanced innovation.

Meanwhile, multinational powerhouses such as Microsoft have poured more than USD 15.2 billion into cloud infrastructure and AI technologies within the UAE, reflecting international faith in the country’s advanced tech environment.

The Dubai Internet City has emerged as one of the key pillars of this digital economy. Today, it hosts over 4,000 clients — including many of the world’s biggest companies. Members span global and regional leaders, from top Fortune 500 firms such as Google, Meta, PayPal, NVIDIA, to Oracle — alongside hundreds of innovative start-ups.

The impact of AI in the UAE is already being felt across vital sectors. In transportation, Dubai is making strides toward autonomous driving and smart traffic systems. In energy, intelligent systems are helping optimize consumption. In the financial sector, AI and blockchain solutions are powering a wave of digital transformation.

With such sweeping developments, the UAE is not merely keeping pace with the global digital shift — it is leading it. By investing boldly, building resilient infrastructure, and attracting global tech talent, the country is reshaping its economy on the backbone of artificial intelligence.