UAE emerges as AI hub with strong policy support and innovation

The United Arab Emirates is accelerating its efforts to become a global center for artificial intelligence and is expected to derive 14% of its GDP from AI by 2030.

The country has introduced AI-focused initiatives to bolster the sector, such as FSRA’s RegLab and ADGM’s Digital Sandbox in addition to the Stargate AI Campus project.

As a result, adoption across strategic sectors is advancing rapidly.

In healthcare, startups like AppliedAI, backed by G42, Palantir, and Bessemer, are streamlining claims processing and administrative tasks using AI.

In financial services, Sarwa leverages machine learning to provide retail investors with low-cost, algorithm-driven wealth management tools, part of a broader move toward democratized financial planning.

Transport and logistics firms, including Derq and Fero.AI, are developing predictive traffic systems and autonomous freight routing, often in collaboration with government entities such as Dubai’s Roads and Transport Authority. The education sector is also transforming, with Alef Education partnering with the Ministry of Education to implement its solutions in schools. Meanwhile, enterprise IT providers like Bespin Global MEA are deploying AI-driven automation to optimize cloud operations for both public and private sector clients.

The funding environment has evolved in tandem. Early-stage capital is coming from angel investors, sovereign-backed accelerators, and government grants, while growth rounds are increasingly led by a mix of local and international institutions. AppliedAI’s USD 55 million Series A round ranks among the largest in the region, reflecting the ambition of both founders and funders. Global capital is being drawn by the UAE’s regulatory clarity and competitive tax regime.