The UAE is forecast to achieve the highest CAGR for AI through 2035, about 45%, driven by MGX, G42, and Stargate UAE initiatives and a strong focus on AI infrastructure and sovereign investments.

The UAE leads global AI adoption, with roughly seven in ten working-age residents using AI in 2025, far ahead of the U.S., and AI is projected to contribute about USD 96–97.8 billion (roughly 13.6–14% of GDP) by 2030–31, the highest in the GCC.

The UAE AI market is projected to grow from USD 5.5 billion in 2025 to USD 213.06 billion by 2035, a CAGR of about 44%, representing roughly a 39-fold expansion over the decade.

Software and cloud-led AI are driving change, with Generative AI expected to be the largest category by 2035 (about 29%), while ML remains mature and slips to around 18%, and cloud deployment rises to 57% by 2035.

The UAE aims to move half of government services to autonomous Agentic AI within two years, backed by the Abu Dhabi AI-native government strategy and a UAE AI Fund of USD 500 million.

AI-enabled government services and interactions are expanding, with more than 11 million daily interactions anticipated under the AI infrastructure and sovereign cloud initiatives developed with partners like Microsoft and G42.

Stargate UAE plans a five-gigawatt AI data-center campus in Abu Dhabi, starting with 200MW by 2026, plus a framework enabling access to up to 500,000 Nvidia chips annually under a U.S.–UAE agreement.

Market concentration is rising toward Dubai and Abu Dhabi, with Sharjah at about 7% and smaller emirates contributing modest shares, while the Rest of UAE declines from 2% to 1% by 2035.

In 2025, AI startup funding reached USD 519 million, and UAE startups accounted for about 60% of AI startup investments in the MENA region, signaling strong capital velocity and regional leadership.