In line with its ambitious vision to establish itself as a global leader in technology and innovation, the UAE is making significant investments in artificial intelligence (AI). It is projected that AI’s contribution to the nation’s economy could reach approximately $96 billion (over 350 billion dirhams) by 2030, constituting around 14% of the GDP. This forecast comes from various global reports, including those from Dell Technologies and PricewaterhouseCoopers. Additionally, Kernel has announced an investment of 100 million dirhams to build the region’s first advanced AI and high-performance computing server factory in Dubai.
Furthermore, research from Mordor Intelligence estimates the information and communication technology market to be valued at $52.23 billion (191.68 billion dirhams). The Mohammed bin Rashid Innovation Fund has allocated 2 billion dirhams to support local innovators.
In an interview, representatives from four technology companies discussed the impact of the AI revolution across various sectors and how company leaders and employees are accepting this shift.
Generative AI
Tejas Mehta, the Executive Vice President and General Manager at Click, expressed admiration for the UAE’s proactive approach in this critical area. He highlighted that spending on generative AI in the UAE is anticipated to surge to $7 billion by 2026, indicating the government’s focus on technologies that can revolutionize vital sectors such as healthcare, energy, and manufacturing. Trust in AI is pivotal for companies to adopt these technologies swiftly and widely.
Building confidence among leaders and employees is increasingly important as AI continues to evolve. Organizations need AI systems that are transparent, reliable, and easy to understand, which will facilitate better integration into daily operations and maximize their potential.
Addressing these challenges paves the way for AI to become a trusted tool for fostering innovation, enhancing efficiency, and improving decision-making. Although trust in AI is still in its infancy, clarifying its capabilities and reliability is essential for expanding its applications in the business environment.
Holistic Vision
Federico Binovi, CEO of Globant’s Business and New Markets, remarked that the UAE’s investments in AI are not only bold but also reflect a comprehensive and insightful vision for the future. Through its AI Strategy 2030, the UAE is establishing global standards for integrating AI across critical sectors such as healthcare, education, mobility, and sustainability. The $1 billion allocated for AI and emerging technologies sends a strong signal that the UAE is not only adopting AI but also helping to shape its future.
He added that what distinguishes the UAE is not just the volume of investment in AI but also its ability to foster a thriving innovation ecosystem, with notable research centers like the Mohammed bin Zayed University of Artificial Intelligence, alongside robust policies that encourage global collaboration. He sees vast potential for partnerships with UAE-based organizations to responsibly unlock the full value of AI on a broad scale, thereby ensuring that the solutions developed align with the nation’s ambitious technological advancement vision.
Regarding executive and employee confidence in the effectiveness and reliability of AI, Binovi noted a significant shift in the conversation about AI, with business leaders no longer questioning whether to invest in it, but rather how quickly to expand it responsibly and effectively. Nevertheless, trust remains a crucial factor in this equation.
According to a Gartner study conducted in 2024, 85% of executives anticipate an increasing need to reskill due to AI and digital transformation. This indicates strong confidence in the capabilities of AI, while also revealing a broad readiness gap that organizations must address.
Tangible Impact
Andreas Hasselhof, CEO of Umburry, pointed out that the UAE has experienced a surge in spending on AI, with total investments reaching $3.2 billion this year, reflecting an annual growth rate of 35%. This trend positions the UAE among the fastest adopters of AI globally, a notable achievement considering its size.
He further explained that the distinctive aspect of this progress is its transition from investment into tangible outcomes, as key sectors like government, healthcare, and finance have moved from initial trials to widespread implementation.
Widespread optimism surrounds AI, with 82% of business leaders considering it a fundamental component of their future success. Employees, too, are becoming more accepting of its use, with 70% expressing comfort in using AI-powered tools in their daily tasks.
It’s evident that the UAE is not just testing AI; it is effectively operationalizing it, making it one of the crucial global markets for genuine AI innovation, driven by a clear vision, strong investments, and strategic implementation.
Core Technology
Prem Anand Philomani, Associate Director of Strategic Alliances at Zoho for the Middle East and Africa, stated that the adoption of AI is growing at over 50% across all companies. However, the focus should be on the core technologies that will help businesses manage their operations and integrate AI, rather than the other way around. Although business leaders are optimistic about AI, some employees remain skeptical due to concerns over job security and the effectiveness of these tools.
A recent survey indicated that nearly half of executives believe AI causes internal conflicts, and 94% are dissatisfied with their AI applications. Employees still require more support to build trust in AI’s effectiveness. Overall, there exists a gap between the potential of AI and its actual impact in the workplace.