TLDR: The United Arab Emirates (UAE) is aggressively pursuing its ambition to become a global leader in artificial intelligence (AI), with plans to increase its number of AI companies from 1,500 to 10,000 within the next five years. This initiative is spearheaded by HE Omar Sultan Al Olama, the UAE’s Minister for AI, who outlined government frameworks and a new AI certification and ranking program at the Expand North Star event in Dubai. The strategy is a core component of the UAE Centennial 2071 initiative, aiming to diversify the economy beyond oil and gas and boost performance across both public and private sectors.
The United Arab Emirates (UAE) has set an ambitious target to significantly expand its artificial intelligence (AI) sector, aiming to host 10,000 AI companies within the next five years, a substantial increase from its current 1,500. This bold vision was articulated by HE Omar Sultan Al Olama, the UAE’s Minister for AI, during his address at the Expand North Star event in Dubai. Al Olama emphasized the nation’s commitment to becoming an AI superpower, a goal underscored by its pioneering appointment of an AI minister in 2017.
“We’re trying to have a balanced approach where we understand what the end game is, and we’re doing it with very active steps,” stated Al Olama. He further elaborated on the government’s proactive measures to attract top talent and leading AI enterprises. “We’re doing a lot to try to attract the best brains and the best companies here. We have over 1,500 companies that are pure AI companies, and that’s the highest in the region. We believe this is a starting point, and our goal is to reach 10,000 in the next five years.”
This strategic push is integral to the broader UAE Centennial 2071 initiative, a long-term plan designed to mark the country’s 100th year of independence by establishing it as a world leader across various fields, including AI. The initiative seeks to enhance public and private sector performance through widespread AI adoption, thereby facilitating the UAE’s successful diversification away from its traditional reliance on oil and gas revenues.
A key element of this strategy is the introduction of an AI certification and ranking program. This program will evaluate companies based on their AI competency and their integration into the UAE economy. Al Olama explained the practical implications of this system: “So, as a government agency, if someone comes to pitch, if there are two players that are exactly the same, one has an S-ranking and the other has a C-ranking, the government agency is required to go with the S-ranking company.” The minister indicated that this ranking system would extend beyond startups to incentivize all UAE companies, including established traditional industries, to embrace AI for competitive advantage. “There are companies that have been here for decades – companies that are not startups, which have to prove their AI worth to you,” said Al Olama, highlighting the incentive for these firms to seek certification and engage with the government’s AI agenda.
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This concerted effort reflects a broader regional trend. McKinsey research indicates that generative AI alone could generate between $21 billion and $35 billion annually in Gulf Cooperation Council (GCC) countries, in addition to the $150 billion from other AI technologies. The Middle East is projected to invest significantly in AI compute capacity, with IT spending in the MENA market forecasted to reach $169 billion by 2026, driven by investments in AI, cloud strategies, and cybersecurity. Major infrastructure projects, such as the Stargate UAE in Abu Dhabi, a large-scale AI infrastructure project in partnership with OpenAI, Oracle, Nvidia, Cisco, and SoftBank, further underscore the region’s commitment to leading the global AI race.
