UAE Emerges as Regional Powerhouse in AI Readiness and Governance

UAE Emerges as Regional Powerhouse in AI Readiness and Governance

BCG study places UAE among top rising AI economies, strategic AI governance and talent growth fuel global ambitions

AuthorPavitra ShettyApr 25, 2025, 10:53 AM

The UAE has cemented its position as a regional leader in AI readiness, earning the title of a top AI Contender in a global study by Boston Consulting Group (BCG). Presented during the Dubai AI Assembly, the report underscores the nation's robust digital foundation, visionary leadership, and commitment to becoming a global AI pioneer.

 

UAE's AI Momentum: Infrastructure, Investment, and Vision

According to BCG’s 2024 AI Maturity Matrix, the UAE and Saudi Arabia lead the GCC as AI Contenders, surpassing Qatar, Oman, Kuwait, and Bahrain. With 35 data centres and the region’s highest cloud spending ($228 per employee), the UAE's AI infrastructure is primed for scalability.

Key initiatives include:

  • National AI Strategy 2031

  • Appointment of the world’s first Minister for AI in 2017

  • $100 billion MGX fund for global AI investment

  • Homegrown innovations like the Falcon large language model

  • Development hubs like the Dubai AI Campus

 

Talent and AI Governance: Driving Sustainable Innovation

With 7,000 AI specialists and over 700 AI research publications, the UAE leads the region, but experts stress the need to expand the talent pool and intensify R&D. Ethical and forward-thinking AI governance remains a cornerstone of the country’s strategy, praised in global forums like the World Economic Forum’s AI Governance Alliance.

 

GCC-Wide AI Transformation

While the UAE and Saudi Arabia spearhead the region's push, other GCC nations are innovating too:

  • Saudi Arabia: $40B AI fund via SDAIA; aims for global top 15 ranking

  • Qatar: Expanding through national AI strategy

  • Oman: Makeen nanodegree programme

  • Bahrain & Kuwait: Laying foundational AI frameworks

 

What’s Next for the UAE?

To advance from Contender to AI Pioneer, the UAE must:

  • Scale private-sector investment

  • Strengthen academia-industry R&D collaboration

  • Expand AI upskilling programmes and attract global talent

  • Lead in AI governance by aligning with global ethical standards

 

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