It’s no secret that the UAE has made AI a national priority. In fact, it led the world by appointing a Minister for Artificial Intelligence as far back as 2017, before expanding the role to encompass AI, the digital economy and remote work in 2020. This signals how the country is embedding AI into its national priorities – whether that is the ‘National Strategy for Artificial Intelligence 2031’, the ‘We the UAE 2031 Vision’ and even the ‘UAE Centennial 2071’.
So, the UAE made its intentions clear from the start — to become a regional and global centre for AI development and implementation. Each week, new regulations or initiatives push the country further in this direction, including the creation of a new visa category for AI specialists. The UAE is also making strong international connections central to its plan – for example, the Dubai Centre for Artificial Intelligence (DCAI) has just formed a partnership with its counterpart in South Africa to create new opportunities across the EMEA region.
The UAE already hosts some of the world’s largest and most prestigious events, an increasing number of which now focus on AI, drawing in global expertise. In education, universities and research centres form a central part of this growing ecosystem, including the Mohamed bin Zayed University of Artificial Intelligence, launched in 2019.
While this is exciting news for entrepreneurs, it also means competition is fierce. This means that startups need to differentiate themselves by offering niche solutions and leveraging unique cultural insights to create products that are specific to the region but have the potential to serve a wider global audience.
This piece examines in detail exactly how the UAE is making AI a key priority and what this means for entrepreneurs.
Building a national strategy based on AI
As discussed, the UAE’s commitment to AI started with its appointment of a government minister to oversee its implementation, along with various visions and roadmaps for the future of tech in the country. However, the government is not only encouraging AI innovation – it is also actively funding and regulating the environment to support business success.
These strategies have identified priority industries that entrepreneurs need to be aware of, including healthcare, logistics, renewable energy, education and smart cities. Startups should evaluate their ideas against these prioritised sectors to ensure alignment with the UAE's strategic focus.
Creating a complete AI ecosystem
The UAE’s network of accelerators and incubators, along with funding schemes focused on AI, represent the most tangible benefits for entrepreneurs. Among the most prominent initiatives are Hub71, Future Tech Lab, and Dubai Future Accelerators. In fact, according to Tracxn, the UAE is home to over one hundred accelerator and incubator programmes that have channelled billions of dollars into hundreds of companies at seed-stage, early-stage and late-stage rounds.
International investors are taking notice, with venture capital firms from Silicon Valley, Europe, and Asia becoming increasingly active in the region. As a result, AI-related investments in the Middle East are expected to grow at one of the fastest rates globally.
For the entrepreneur, this means that when entering the UAE market, you gain not only potential access to local funding but also a wider global investment network.
Looking at opportunities across industries
Having touched on some of the key industries where entrepreneurs can align their startup with national visions, let’s examine them in more detail:
- Healthcare: The UAE has made it clear that it aims to become a world-class centre for healthcare, not just for its own population but also as a centre for medical tourism. As a growing sector, AI will play an increasingly significant role – from diagnostics to personalising treatment and managing health data. Startups in these areas that develop AI-driven solutions can do so with the knowledge that their work aligns with the UAE’s national objectives.
- Supply chain: We have seen what happens to supply chains when there is a major disruption – this was evident during the COVID-19 pandemic. Today, AI is transforming the way supply chains operate – from how they are monitored to how they are optimised. With its location between three continents, as well as the globe’s busiest international airport (Dubai) and world-leading ports, the UAE has real opportunities in this sector. Entrepreneurs can play a key role in reshaping this sector with AI, optimising shipping processes and streamlining warehousing and customs operations.
- Finance: Fintechs are among the most popular tech startup sub-sectors in the UAE. What a fintech can offer is constantly changing, whether it is innovative Islamic finance products or finding ways to reach previously unbanked populations. AI is playing a central role in how financial services are being revolutionised.
- Sustainability: Sustainability is at the core of the UAE’s national vision, which creates numerous opportunities for entrepreneurs. AI is being used in everything from new farming techniques to smart city design. The high priority of this sector means startups in this area will benefit from aligning with the country’s national objectives.
- Retail: Everyone knows the UAE is one of the world’s most popular shopping destinations. Increasingly, AI is changing customer experiences – from making shopping more personalised to automated smart delivery systems. Startups in this space have the chance to tap into one of the UAE’s most vibrant sectors.
Navigating regulation and competition
As with any emerging technology, AI raises complex regulatory and ethical questions. To that end, the UAE is developing new frameworks that can strike a balance between innovation and responsibility. In addition, the UAE has launched several initiatives (including the AI Ethics Advisory Board) to ensure that AI applications serve the public.
Entrepreneurs also need to understand that while the opportunities are considerable, the competition is intense. There are now many global AI companies which have established regional bases in the UAE. While this can make it more difficult for smaller players to flourish, it does create a vibrant ecosystem.
Ultimately, none of these challenges means that startups can’t succeed. They need to leverage the fact that they have greater agility than the big players, and the fact that they can innovate faster means they have the potential to tailor their solutions to local needs.
Going beyond the UAE
AI solutions developed in the UAE can be exported to neighbouring countries. The focus on healthcare and sustainability, for example, is not limited to the UAE – the GCC countries more generally are all prioritising these areas. For entrepreneurs, this regional scalability is a major advantage – they can test and refine their models in the UAE before expanding them regionally.
The road ahead
As we have seen, AI is transforming the UAE’s economy, and the country has fully embraced it. By embedding AI into national strategy and investing in talent – both local and international – it has built a supportive ecosystem where entrepreneurs have the potential to succeed. Challenges remain, but for those ready to navigate them, the rewards are substantial.
The message for entrepreneurs is clear: the UAE sees AI as a central part of its future, and for those ready to innovate, it’s a place of huge potential.
