The Middle East’s artificial intelligence (AI) landscape is undergoing transformative growth, with the United Arab Emirates, (UAE) – specifically Abu Dhabi, emerging as a central hub of innovation, investment, and global influence. Recent data from the Abu Dhabi Chamber paints a picture that the emirate is no longer merely participating in the AI race, but  is setting the pace.

Explosive Sector Growth:

Between June 2023 and June 2024, Abu Dhabi’s AI sector expanded by 61%, reaching a total of 673 AI companies. While this number might seem modest against the global total of 90,904 AI companies (2024), it represents a concentration far above regional averages and signals the emirate’s ability to attract and incubate cutting-edge AI enterprises.

Key comparative perspective:

• Abu Dhabi’s share of global AI companies: ~0.74%, which is impressive considering its small population compared to AI-heavy economies like the U.S. and China.

• MENA position: Fastest-growing AI centre in the region, outpacing traditional tech hubs in Israel, Saudi Arabia, and Egypt.

Sector Composition: Innovation-First Ecosystem

The AI ecosystem in Abu Dhabi is research-heavy. 58% of AI firms are dedicated to innovation, research, and consultancy, signaling that growth is not just numerical but qualitative, with companies positioned at the upstream end of the technology value chain.

This positions Abu Dhabi not just as a consumer of AI but as a producer of proprietary models, frameworks, and intellectual property, the most valuable elements in the AI economy.

Recent Acceleration: 

From January to June 2025, Abu Dhabi launched 150 AI companies, a pace that, if sustained, could see the emirate cross the 1,000-company mark by mid-2027. This rapid creation rate is fueled by:

• Strategic investments from both sovereign wealth funds and private capital.

• Cross-sector adoption, with applications spanning finance, health tech, energy optimisation, defence, and space technology.

• World-class infrastructure, including data centres, R&D hubs, and 5G+ connectivity.

Institutional Strength: 

• The emirate’s AI ecosystem is supported by a dense cluster of specialised institutions:

• Artificial Intelligence and Advanced Technology Council (AIATC) – Policy and strategy leadership.

• Advanced Technology Research Council (ATRC) – Oversees long-term research roadmaps.

• Technology Innovation Institute (TII) – Applied R&D in quantum, robotics, and cryptography.

• AI71 & Hub71 – Startup accelerators with global reach.

• G42 – Regional AI giant with global partnerships.

• Space42 GIQ – Space-based data and AI analytics.

This integrated structure mirrors Silicon Valley’s innovation ecosystem but with stronger government-business alignment and sovereign-backed capital.

Economic Impact & Market Potential

AI’s economic contribution to the UAE is projected to reach US$96 billion by 2030, according to PwC, around 13.6% of GDP. Abu Dhabi, with its high per-capita AI density, will likely account for 40–45% of this contribution, making it the economic engine of the UAE’s AI ambitions.

Sectoral growth potential:

• Healthcare AI: Estimated CAGR of 35% in the UAE by 2030.

• Energy optimisation AI: Projected to save US$3–5 billion annually in operational efficiency.

• Fintech AI: Expected to exceed US$1.5 billion market value by 2028.

Policy Edge: Strategic Roadmap 2025–2028

The Abu Dhabi Chamber’s new strategic roadmap focuses on:

• Ease of doing business — Reducing regulatory friction for startups.

• Policy advocacy — Ensuring AI governance balances innovation with ethical safeguards.

• Ecosystem connectivity — Linking researchers, investors, and enterprises in a frictionless network.

The creation of a dedicated Advocacy Working Group on AI gives Abu Dhabi a first-mover advantage in shaping both local regulations and regional AI policy frameworks.

Middle East AI Geopolitics:

While countries like Saudi Arabia and Qatar have announced multi-billion-dollar AI strategies, Abu Dhabi’s advantage lies in its execution capability and deep integration of AI across industries. Its collaborative model between government entities, academia, private enterprise, and sovereign funds could set the blueprint for MENA-wide AI harmonisation.

With a growth rate that is already outpacing many Western tech hubs, Abu Dhabi is on track to transform from a regional leader to a global AI policymaker, investor, and exporter over the next decade.

 

Written By:

Chloe Maluleke 

Associate at The BRICS+ Consulting Group 

Russian & Middle Eastern Specialist

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