Is Dubai the Future of AI in the Middle East?
If you've been watching the AI space closely in the Middle East, you’ve probably noticed something remarkable: the UAE is fast becoming the region’s powerhouse for artificial intelligence – and SMEs are at the heart of this transformation.
This week, a major new report titled “The Artificial Intelligence SMEs Ecosystem in the UAE: Overcoming Challenges, Expanding Horizons” was released by the Mohammed Bin Rashid School of Government (MBRSG), with support from Google.org. And it paints a fascinating picture of how AI startups are flourishing in the UAE, especially in Dubai and Abu Dhabi, while many parts of the wider MENA region are still trying to catch up.
The report is based on deep-dive research, including fieldwork with 81 UAE-based SMEs actively engaged in AI, selected from a broader pool of 327 companies across the GCC, North Africa, and the Levant. Through the lens of these companies, MBRSG explored what’s driving the UAE’s AI momentum – and where the cracks still lie.
His Excellency Dr. Ali bin Sebaa Al Marri, Executive President of MBRSG, described SMEs as the real trailblazers of AI innovation. “As AI continues to transform economies and societies,” he said, “this report particularly platforms small and medium-sized enterprises, who have been the real drivers of AI adoption.”
So what’s behind the UAE’s standout progress? According to the report, a lot of it comes down to government support – the kind that goes beyond policy and into infrastructure, regulatory clarity, and an openness to experimentation. The enabling environment in Dubai and Abu Dhabi has given SMEs the confidence to push the boundaries of AI, whether through machine learning, natural language processing, or computer vision.
Rasha El Hallak, Head of Government Affairs and Public Policy UAE at Google, called the report a “truly valuable look” into what local AI entrepreneurs are building. “It highlights the incredible innovation being driven by local entrepreneurs,” she said. “Understanding this helps us empower these innovators further.”
The study doesn’t shy away from challenges either. Despite all the progress, UAE-based startups – like many of their regional peers – are still grappling with a shortage of AI talent, especially in governance roles like AI ethics, compliance, and safety. There are also lingering concerns around intellectual property rights, though the UAE ranks well above its neighbours in enforcement and protections.
And while access to private capital is more robust in the UAE than in much of the region, startups are still cautious when it comes to scaling internationally or expanding their IP portfolios beyond borders.
One eye-catching stat? Out of all the MENA-based companies surveyed, more than 25 percent were from the UAE – and over half of those were based in Dubai. That’s a strong signal that the country is leading per capita AI startup activity in the region, setting benchmarks not only for growth and scale but also for ambition.
The report ends on a forward-looking note. With MENA projected to generate more than USD 320 billion in economic value from AI by 2030, the authors stress the urgency of bridging the AI gap between more mature and emerging ecosystems. And here, the UAE is seen not just as a leader, but as a potential growth accelerator for the entire region.
MBRSG – already a respected hub for public policy and government leadership research – is increasingly positioning itself as a key force in shaping the future of AI governance and innovation across the Arab world.
So if you’re keeping an eye on AI in the Middle East, the message is clear: look to the UAE. Because right now, it’s not just adapting to AI – it’s defining what AI success looks like for the region.
