The United Arab Emirates has transcended its role as merely a participant in the field of artificial intelligence, establishing itself as a global powerhouse and backbone of the AI industry on both regional and international fronts. This transformation is underpinned by investments exceeding 543 billion AED (148 billion USD) in AI projects and solutions, with anticipated contributions to the country’s GDP surpassing 352 billion AED (96 billion USD) by 2031, alongside an expected annual growth rate between 20% and 30%.
In terms of infrastructure, the UAE operates 35 data centers and has launched the “UAE Stargate” project with a capacity of 1 gigawatt, positioning the nation among the world’s leading advanced computing platforms. Additionally, major tech investments have flowed into the region, including a significant investment of 15.2 billion USD from Microsoft.
Overall, AI in the UAE has emerged as a key driver of economic growth, productivity, and global competitiveness, with the country leading the world in AI adoption at a rate of 59.4%, according to a Microsoft report. Furthermore, it ranks among the top governments globally in readiness to embrace AI, as noted by the Boston Consulting Group’s 2025 report.
GDP Contributions
According to PwC, AI is projected to account for 13.6% of the UAE’s GDP, the highest share among the Gulf Cooperation Council (GCC) countries, compared to 12.4% in Saudi Arabia and 8.2% in other GCC states.
This year, OpenAI announced the launch of the “UAE Stargate,” marking its first international expansion of the Stargate AI infrastructure platform in partnership with UAE-based Group 42, supported by the U.S. government. This strategic partnership aims to foster innovation and economic growth in the region.
The project entails a reciprocal investment that includes establishing a state-of-the-art computing center with a capacity of 1 gigawatt, and Emirati funding for advanced computing facilities in the United States. This broader partnership is expected to accelerate the deployment of AI applications between the two nations, with “UAE Stargate” set to provide infrastructure and computing capabilities extending over a radius of 2,000 miles, covering up to half of the world’s population.
The anticipated facility will be the largest of its kind outside the United States and will be located within a UAE-U.S. AI complex in Abu Dhabi. This complex will provide AI data centers and regional computing resources with a capacity of up to 5 gigawatts, spread over a 10-square-mile area, utilizing a mix of nuclear, solar, and natural gas energy sources to operate, aiming to reduce the project’s carbon footprint.
The first computing cluster with a capacity of 200 megawatts is expected to commence operations in 2026, with OpenAI and Oracle managing operations and Group 42 overseeing construction. The capabilities of the state-owned Khazna Data Centers have reached approximately 650 megawatts of capacity, encompassing both existing and under-construction projects.
Data Centers
The UAE boasts the highest number of operational data centers in the region, with 35 centers, compared to 12 in Oman and 11 in Saudi Arabia. The spending per employee on public cloud services amounts to 228 USD, the highest in the region, according to data from the Boston Consulting Group. Meanwhile, Khazna continues its implementation of a 100-megawatt data center project in Ajman, designated for AI computing and processing. Additionally, Alibaba Cloud announced this year the opening of a second data center in Dubai, with an investment of 380 billion Chinese yuan (53 billion USD) over the next three years to enhance AI infrastructure and cloud computing capabilities.
Smart Legislative Framework
This year, the UAE launched the world’s first comprehensive smart legislative framework designed to develop laws and regulations aligned with AI ideas and solutions. This pioneering system redefines how legislation is created and structured, establishing a next-generation governance model that merges human intelligence with AI efficiency to issue more effective and timely laws, thereby enhancing investment attraction and talent acquisition in the promising field of legislative AI. The framework was approved by the Cabinet in April 2025.
Internet City
Dubai Internet City serves as the core of the digital economy in the emirate, contributing approximately 65% of Dubai’s technology GDP. It hosts around 4,000 companies, employing 31,000 individuals, with investments nearing 2 billion AED in top-tier office infrastructure. Start-up investments there total 9 billion AED. Over the past 15 years, the city added 100 billion AED to Dubai’s GDP, with occupancy rates hitting 90%.
In a related initiative, the Mohammed bin Zayed University of Artificial Intelligence partnered with Group 42 to launch the “K2 Think” open-source advanced reasoning model in September, signifying a new approach in building more intelligent and efficient AI systems. Despite having only 32 billion parameters, it surpasses leading reasoning models that are 20 times its size. This efficiency breakthrough positions “K2 Think” as a formidable alternative in advanced reasoning, redefining the capabilities of smaller integrated models.
In Abu Dhabi alone, data from the Abu Dhabi Chamber of Commerce indicates that the sector now includes 673 companies specializing in artificial intelligence, achieving a growth rate of 61% from June 2024 to June 2025, with 150 new companies established in the first half of 2025 alone. Over 58% of these firms focus on innovation, research, and consulting.
Workforce Readiness
Amidst ongoing investment and infrastructure growth, the UAE places people at the heart of its AI strategy by training thousands of government employees, integrating AI into school and university curricula, and reskilling the workforce with relevant AI skills, linking training to labor market readiness.
For instance, the “Million Experts” initiative aims to empower one million individuals of various nationalities with AI and digital skills in the coming years. The proportion of companies regularly utilizing AI for at least one job function has increased to 88%, up from 78% in 2024 (according to McKinsey’s mid-2025 study). Moreover, it has been established that 88% of employees in the UAE are using AI tools in their daily tasks (according to Kaspersky’s 2025 study), with 97% of employees in government positions affirming the positive impact of generative AI, reflecting the workforce’s readiness for digital transformation.
Schneider Electric also recently launched a 100 million AED initiative aimed at talent empowerment in the UAE, coinciding with the official opening of its new headquarters, “The Nest,” in Dubai. This facility is the first of its kind under the company’s global “Impact” initiative and represents a strategic investment in a sustainable economic future, serving as a center for innovation, collaboration, progress, and excellence.
Investments Abroad
The UAE’s investments in the United States have exceeded 1 trillion USD, contributing to growth and job creation. Recently, it announced a commitment of 1.4 trillion USD to the American economy over the next decade, focusing on AI, infrastructure, energy, advanced manufacturing, technology, innovation, and aerospace.
Damac Holding has invested over 20 billion USD in U.S. data centers, with its initial phase covering facilities with a capacity of 500 megawatts across states like Texas, Arizona, and Ohio. Additionally, it has invested 852 million USD in three cities in Saudi Arabia: Riyadh, Dammam, and King Abdullah Economic City. The firm is also active in various European nations, including Greece, Spain, Turkey, and Ireland, as well as Asian countries such as Malaysia, Indonesia, and Jordan.
The UAE’s investments in AI projects and solutions have exceeded 543 billion AED since 2024, reflecting the country’s commitment to transforming its economy into a model based on advanced technology.
Internally, the United States leads in investments in the UAE’s digital infrastructure and information and communication technology, with a total capital investment of 2.86 billion USD allocated across 20 projects. Switzerland follows as part of European investments, while the UK has invested around 466 million USD in three projects, with India contributing approximately 356 million USD and Germany around 245.8 million USD in one project, showcasing the diverse sources of foreign investment in the UAE’s digital infrastructure sector.
Conference Hub
In 2025, the UAE solidified its position as a global destination for technology conferences by hosting the annual “GITEX Global” exhibition. This event has become the world’s largest platform connecting innovators and investors, leading to the announcement of numerous significant technology partnerships and enhancing Dubai’s status as an innovation hub.
Similarly, “Dubai AI Week” took place in April 2025, featuring major events such as the Dubai AI Forum, where His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defense, and Chairman of the Dubai Future Foundation, announced a government assessment based on the integration of AI, marking a pivotal moment in governance.
Large-scale Implementation
The UAE has also transitioned to a phase of “large-scale implementation” of AI solutions across vital sectors, enhancing quality of life and economic diversification. The nation has adopted smart city and sustainability approaches, swiftly utilizing AI solutions for resource management, such as integrating machine learning technologies into smart traffic management and improving energy consumption efficiency and municipal services. This initiative has propelled UAE cities up global smart city rankings and contributed to lowering operational costs for governments while providing more efficient services for investors and residents.
In healthcare, a growing number of initiatives focused on AI-enhanced diagnostics have been launched, particularly for early disease detection through medical imaging and genetic data analysis. This strategy aims to attract investments in the health technology sector and elevate the quality of healthcare services.
UAE Leadership
According to various international reports, notably from Microsoft, the UAE stands out globally in adopting and utilizing AI by individuals, with 59.4% of the working-age population employing this technology—the highest percentage worldwide, ahead of countries like Singapore (58.6%), Norway (45.3%), and Ireland (41.7%). This achievement is attributed to long-term investments in digital infrastructure, coordinated government policies, and workforce training programs in AI.
A global study conducted by McKinsey in mid-2025 revealed that the percentage of companies regularly employing AI for at least one job function increased to 88%, compared to 78% in 2024.
Furthermore, a Boston Consulting Group report highlighted that the UAE is the most advanced nation in the Gulf region regarding AI readiness, based on robust digital infrastructure, investment scale, mature government policies, and available competencies. The report indicated that the UAE has moved from a phase of “experimentation” to “large-scale implementation,” especially in government, energy, financial services, and smart city sectors.
According to the Government AI Readiness Index from Oxford Insights, the UAE ranks among the best governments globally in AI adoption readiness among nearly 190 countries. This ranking is based on the strength of the national AI strategy, the integration of digital governance, the development of data infrastructure, and the maturity of smart government services.
Additionally, a LinkedIn report in the Global AI Talent Density Index indicated that the UAE is among the fastest-growing countries globally in attracting and developing specialized AI talent. This growth reflects the nation’s success in policies aimed at attracting digital minds, expanding golden residency programs, and linking education to the job market, particularly in fields like data science, machine learning, and advanced computing.
Number of Programmers Exceeds 450,000
In 2025, the UAE achieved strategic milestones in AI, confidently advancing towards creating one of the world’s strongest digital infrastructures and solidifying its status as a pivotal nation in shaping the new global economy. The usage rate of AI tools in the country reached 97%, the highest worldwide, with the number of programmers exceeding 450,000.
The initiative of “AI Assistants for Every Faculty Member” at Hamdan Bin Mohammed Smart University marked a new transition in higher education systems, resulting in a 95% reduction in workload and a 40% increase in student performance.