AI to Drive 20% of UAE’s GDP: A New Economic Era Begins

The United Arab Emirates is swiftly positioning itself as a global leader in artificial intelligence. With ambitious government strategies, significant state-backed investments, and a fast-evolving tech ecosystem, AI is becoming a key pillar of the country’s long-term economic transformation. Experts estimate that artificial intelligence could contribute up to 20% of the UAE’s non-oil GDP by 2031 — a clear indicator of how central this technology is to national planning.

Explosive Market Growth

In 2023, the UAE’s AI market was valued at approximately AED12.7 billion ($3.5 billion). Driven by a robust compound annual growth rate (CAGR) of nearly 44%, the market is projected to surge to AED170.1 billion ($46.3 billion) by 2030, according to TRENDS Research & Advisory. This extraordinary growth highlights not only vast economic potential but also the UAE’s unwavering commitment to becoming a technology-first nation.

Tarek Kabrit, a leading voice in the tech space, commented:

“AI is not just a market or a technology to be chased for growth’s sake. It’s a fundamental shift in how businesses, governments, and individuals relate to data, decisions, and automation. The real value lies in how AI integrates seamlessly to empower people and create new human-centric experiences.”

Strategic Foundations: From Policy to Infrastructure

Much of this momentum can be traced back to the UAE’s National Strategy for Artificial Intelligence, launched in 2017. The strategy outlined a roadmap for embedding AI across key sectors including healthcare, education, energy, and transportation, with a vision for full-scale integration by 2031.

But vision alone is not enough. The government has committed billions in infrastructure investment, recognizing that sustainable AI growth depends on far more than just software. In Abu Dhabi, the newly launched MGX sovereign fund is expected to manage over AED367 billion in AI-focused assets. Meanwhile, strategic partnerships with global tech giants like Nvidia, AMD, and OpenAI are enabling the UAE to accelerate investments in chip manufacturing and advanced data centers.

Kabrit adds:

“Sustainable AI growth demands more than algorithms. It requires a full ecosystem - infrastructure, research institutions, and capital -that gives innovators the space to scale.”

Talent, Education, and Human-Centered Development

At the heart of the UAE’s AI ambitions is a focus on people. Recognizing that AI success depends on both innovation and ethics, the government is training over one million residents in AI competencies. The number of AI professionals has also surged, reaching nearly 120,000 as of 2024.

To support this talent pipeline, the UAE has established world-class institutions such as the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) and the Technology Innovation Institute, both of which are attracting global talent and conducting cutting-edge research.

The Road Ahead

The UAE’s journey to becoming a global AI powerhouse is not just a story of technological innovation - it’s about long-term vision, human potential, and inclusive growth. From smart infrastructure to policy foresight and talent development, the country is laying down the building blocks for a future defined by intelligence, agility, and global leadership.

As digital transformation continues to reshape industries around the world, the UAE is setting the standard - not just by keeping up, but by leading the way.