The Global Artificial Intelligence Competitiveness Index Report, a groundbreaking study compiled by the International Finance Forum and Deep Knowledge Group, has been making waves across the globe since its release last November, during the IFF’s annual meeting.

The United Arab Emirates in particular has received significant attention for its growing prominence in the realm of artificial intelligence, with the report identifying the country as a region of burgeoning AI enterprise density.

Local media outlets including Entrepreneur Middle East, Salaam Gateway, and Gulf Business were quick to highlight the UAE's impressive standing in the AI space, recognizing the nation’s unwavering commitment to fostering an AI-driven economy.

The Global AI Competitiveness Index Report, which analyzed over 55,000 AI companies worldwide, revealed that the UAE is one of the top 10 countries with the highest number of AI companies per million people. This ranking places the UAE alongside innovation leaders such as Finland and Hong Kong SAR, further cementing the region’s place on the global AI stage.

According to the Global AI Competitiveness Index, the UAE ranks ninth in the world for AI enterprise density, with 49.5 AI firms per million people. This positions the UAE as a hotspot for AI innovation, demonstrating not only the country’s enthusiasm but also its growing potential for AI development.

Additionally, the UAE holds the 19th spot globally in terms of the total number of AI companies, with 490 AI firms registered, including two unicorns—companies valued at over USD1 billion. The rapid growth and expansion of the sector signal a robust ecosystem that is primed for continued growth.

The UAE’s commitment to building a thriving AI ecosystem is further highlighted by its impressive financial investment in AI startups. The country ranks 11th globally in terms of the financing of AI startups, with a total investment of USD22.8 billion. Notably, the average financing amount per unicorn in the UAE is the highest in the world, at USD1 billion per company, reflecting the capital market's optimism and confidence in the UAE’s AI sector.

Dmitry Kaminskiy, General Partner of Deep Knowledge Group, remarked, "The UAE's ranking among the top 10 countries for AI companies per capita demonstrates how targeted investments are creating an ecosystem where AI innovation thrives. This is a blueprint for how nations can transform strategic vision into measurable impact."

Proactive Approach

The Global AI Competitiveness Index Report identifies three main factors which have contributed to the UAE’s emergence as a leader in the AI sector:

i) Government Strategic Support and Investment: The UAE government’s proactive approach has succeeded in positioning the country as a global AI leader. In 2017, the UAE made history by appointing the world’s first-ever AI Minister. This pioneering move was part of the UAE’s broader efforts to integrate AI at the highest levels of governance.

The UAE's Artificial Intelligence Strategy 2031 aims to contribute AED335 billion (USD91 billion) to the country’s GDP by 2031. In addition, the strategy envisions a significant reduction in government operational costs by 50 percent through AI-driven innovation.

The UAE also provides an extremely attractive business environment for AI firms, including zero corporate tax and personal income tax policies, as well as 100 percent foreign investment rights for companies after establishment. These policies have positioned the UAE as an attractive hub for AI startups and tech giants alike.

One of the most compelling aspects of the UAE’s AI journey is its commitment to research and development. The government has implemented a wide range of initiatives to support the growth of AI in the country, including the establishment of the Dubai Future Accelerator Fund, which has a dedicated budget of AED10 billion (USD2.7 billion) to support AI innovation projects. These initiatives, combined with the country’s rapidly expanding digital infrastructure, have played a key role in placing the UAE at the forefront of the global AI race.

2. Talent Attraction and Training: The UAE has placed a strong emphasis on attracting and developing AI talent. Through initiatives such as the golden visa program, which offers 10-year residency to AI industry experts, and the establishment of the Mohamed bin Zayed University of Artificial Intelligence, the country is fostering a vibrant ecosystem for AI professionals. Additionally, the UAE collaborates with top global universities to establish research centers and provide generous scholarships, making it a magnet for AI talent from around the world.

3. Infrastructure Advantages: The UAE boasts world-class digital infrastructure, which plays a crucial role in enabling the development of AI technologies. With over 90 percent 5G network coverage, a 97.1 percent internet penetration rate, and the largest data center cluster in the Middle East, the UAE provides the ideal environment for testing and deploying AI applications. Furthermore, the country’s smart city infrastructure offers a real-world testing ground for AI innovations, making the UAE a hub for AI development.

One of the standout examples of AI success in the UAE is G42, an AI solutions company headquartered in Abu Dhabi. G42 has become a key player in the UAE’s AI landscape, with a focus on AI solutions in sectors such as healthcare, finance, and smart cities. In April 2024, Microsoft made a significant investment of USD1.5 billion in G42, cementing the company's position as a major player in the global AI space. The two firms have also announced a partnership to establish an AI research institute in Abu Dhabi, further solidifying the UAE's reputation as a global AI leader.

G42 has already made significant strides in developing AI-powered solutions. Notably, the company unveiled Jais, an open-source Arabic AI language model with 30 billion parameters, which represents a groundbreaking achievement in Arabic natural language processing. Jais was trained using vast amounts of Arabic data and English computer code, marking a major step forward in AI development for the Arab world.

Widespread Coverage

The release of the Global AI Competitiveness Index Report has prompted widespread coverage in the UAE's media landscape, highlighting the UAE’s impressive AI rankings and its future potential in the sector and showcasing how the country is rapidly becoming one of the world’s leading AI hubs. Notable reports can be found in leading publications such as Entrepreneur Middle East (link), Fast Company (link), Salaam Gateway (link), and Gulf Business (link).

The UAE’s rise as a global leader in AI is a testament to the country’s visionary approach to technology and innovation. By focusing on strategic investments, attracting global talent, and fostering a conducive business environment, the UAE has created an ecosystem where AI companies can thrive. The Global AI Competitiveness Index Report has not only highlighted the UAE's impressive rankings but also identified its key strengths in AI, such as its high AI enterprise density, substantial financial backing, and strong government support.