AI to drive 20% of UAE GDP by 2031
The UAE is swiftly positioning itself as a global AI powerhouse. Thanks to substantial state investments, strategic partnerships, and a dynamic startup scene, artificial intelligence is poised to reshape the nation’s economic landscape. As digital transformation accelerates, AI is projected to contribute 20% to the UAE’s non-oil GDP by 2031.
In 2023, the country’s AI market stood at around AED12.743 billion ($3.5 billion). With a remarkable compound annual growth rate (CAGR) of nearly 44%, that figure is expected to surge to AED170.143 billion ($46.3 billion) by 2030, according to TRENDS Research & Advisory. This growth underscores not just economic opportunity, but a national commitment to technological leadership.
Tarek Kabrit, CEO of Seez, emphasized the deeper meaning of this evolution. “AI is not just a market or a technology to be chased for growth’s sake,” he stated. “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.”
Building an Ecosystem from the Ground Up
Launched in 2017, the UAE’s National Strategy for Artificial Intelligence laid the groundwork for cross-sector AI integration by 2031. This vision extends across health, energy, education, and transport, where real-world applications are already emerging.
However, frameworks alone are not enough. To support its ambitions, the government is pouring billions into AI infrastructure. Abu Dhabi’s MGX sovereign fund aims to manage AED367 billion in AI-focused assets. At the same time, major alliances with Nvidia, AMD, and OpenAI are enabling new investments in chip production and data centers.
“Sustainable AI growth demands more than software and algorithms. It requires a robust ecosystem with advanced infrastructure, research institutions, and capital,” Kabrit explained. “That’s what gives startups and enterprises the freedom to innovate and scale.”
Clearly, the UAE’s investment strategy is both comprehensive and forward-looking. While financial resources are crucial, the country also recognizes the foundational importance of knowledge and talent.
Human-Centered Innovation and Ethical Development
Although technology drives innovation, people remain central to AI success. That’s why the UAE is training over one million residents in AI competencies. Moreover, the number of AI professionals in the country has quadrupled, reaching nearly 120,000. Institutions such as the Mohamed bin Zayed University of Artificial Intelligence and the Technology Innovation Institute are helping attract and cultivate global talent.
At the same time, the UAE is committed to ethical AI development. The introduction of a federal AI Ethics Charter and robust data protection laws shows a clear intent to guide innovation responsibly. These initiatives aim to strike a balance between progress, privacy, and accountability.
Meanwhile, real-life applications are already showing positive outcomes. Healthcare AI is growing at over 40% annually, transforming diagnostics and personalized medicine. In urban planning, smart transportation systems in Dubai and Abu Dhabi are using AI to improve traffic flow and reduce emissions.
While challenges remain, the UAE’s clear focus on infrastructure, regulation, and education signals a future where AI is not only transformative but also inclusive and responsible.
