UAE Artificial Intelligence Market (2026-2036)
The UAE has pursued AI as a national priority for nearly a decade. It launched its National Strategy for Artificial Intelligence in 2017 with goals for 2031, appointed the world's first Minister of State for Artificial Intelligence the same year, and established the Mohamed bin Zayed University of Artificial Intelligence in Abu Dhabi in 2019. Abu Dhabi's Technology Innovation Institute developed the Falcon series of open large language models, and G42's Inception, together with MBZUAI and Cerebras, developed Jais, an Arabic-English large language model. Sovereign capital has flowed into AI, with Microsoft investing USD 1.5 billion in G42 in 2024 and the Abu Dhabi-backed investment company MGX, established in 2024 with Mubadala and G42 as founding shareholders, investing in global AI infrastructure and companies.
- Published
- Sep 2026
- Pages
- 216
- Format
- PDF + Excel
- Report ID
- MR-2209
- Base year
- 2025
- 2026 · ESTIMATED
- $9.80B
- 2036
- $51.29B
- CAGR 2026–2036
- 18.0%
2025 baseline · 2026–2036 forecast at 18.0% CAGR · hover a bar for the value
Key highlights
The UAE Artificial Intelligence Market is projected to reach USD 51.29 billion by 2036, driven by national strategy, sovereign investment, and large-scale AI infrastructure.
Abu Dhabi is expected to account for the largest market share in 2026, while Dubai is projected to register the fastest growth during the forecast period.
The UAE is building one of the world's largest AI compute clusters. Stargate UAE, a 1-gigawatt AI cluster built by G42 in partnership with OpenAI, Oracle, NVIDIA, Cisco, and SoftBank, is part of a planned 5-gigawatt UAE-US AI Campus spanning 10 square miles in Abu Dhabi, with the first 200 megawatts, using NVIDIA Grace Blackwell GB300 systems, scheduled for 2026.
By component, AI Infrastructure is expected to account for the largest market share, whereas Software & Platforms are projected to witness the fastest growth through 2036.
Access to advanced chips has been secured through diplomacy. Under the U.S.-UAE AI Acceleration Partnership announced in May 2025, the UAE was reported to be allowed to import up to 500,000 advanced NVIDIA chips annually, and in late November 2025 the U.S. approved export licenses allowing G42 to purchase advanced chips after providing security assurances to the U.S. government.
Capacity is planned to scale rapidly. G42's chief executive stated that after the first 200 megawatts, the company plans to add between 200 and 500 megawatts of AI capacity per quarter on an ongoing basis toward the 5-gigawatt campus, using chips mostly from NVIDIA as well as AMD and Cerebras Systems.
Report summary
| Particulars | Details |
|---|---|
| Forecast Period | 2026-2036 |
| Base Year | 2025 |
| Estimated Year | 2026 |
| CAGR (Value) | 18.0% |
| Format | PDF, Excel & Cloud Portal · 216 pages |
| Market Size (Value) in 2026 | USD 9.80 Billion |
| Market Size (Value) in 2036 | USD 51.29 Billion |
| Segments Covered | By Component: AI Infrastructure (Compute, Networking & Storage, AI Data Centers), Software & Platforms (Foundation Models & LLMs, AI Platforms, AI Applications), Services (Consulting & Integration, Managed AI Cloud, Training). By Technology: Generative AI & Large Language Models, Machine Learning, Computer Vision, Natural Language Processing & Arabic AI, Robotics & Autonomous Systems. By Deployment: Sovereign & Hyperscale Cloud, On-Premises, Edge. By End-Use Sector: Government & Public Services, Energy & Utilities, BFSI, Healthcare & Life Sciences, Transportation & Logistics, Real Estate & Retail, Telecommunications, Education. By Enterprise Size: Large Enterprises & Government Entities, SMEs. |
| Emirates Covered | Abu Dhabi, Dubai, Sharjah, Northern Emirates (Ajman, Ras Al Khaimah, Fujairah, Umm Al Quwain). |
| Key Companies | G42, Core42, Presight AI, AIQ, M42, Space42, Khazna Data Centers, MGX, e&, du, Technology Innovation Institute, Microsoft, OpenAI, Oracle, NVIDIA, Cerebras Systems, and Amazon Web Services. |
Report overview
Segments covered: component, technology, deployment, end-use sector, enterprise size, emirate.
The UAE Artificial Intelligence Market comprises spending on AI infrastructure, software, platforms, and services by government entities, enterprises, and organizations in the United Arab Emirates. The market covers AI infrastructure, including AI-optimized data centers, accelerated compute, networking, and storage; AI software and platforms, including foundation models, large language models, machine learning platforms, and AI applications; and AI services, including consulting, integration, managed AI cloud, and training. Technologies include generative AI, machine learning, computer vision, natural language processing, including Arabic-language AI, and robotics and autonomous systems. The market covers deployments in all seven emirates across government, energy, finance, healthcare, transportation, real estate, telecommunications, education, and other sectors. Consumer electronics with embedded AI and general IT spending not related to AI are excluded. The ecosystem spans national AI companies, sovereign investment funds, global technology and cloud companies, chip makers, data center operators, research institutions, universities, regulators, and end users.
Infrastructure investment has accelerated. In May 2025, the UAE and the U.S. announced a 5-gigawatt UAE-US AI Campus in Abu Dhabi spanning 10 square miles and powered by a mix of nuclear, solar, and natural gas, and G42 announced Stargate UAE, a 1-gigawatt cluster within the campus built in partnership with OpenAI, Oracle, NVIDIA, Cisco, and SoftBank, with the first 200 megawatts, using NVIDIA GB300 systems, scheduled for 2026 and the full build-out expected over about three years. OpenAI described the project as the first milestone in its OpenAI for Countries initiative and stated that the UAE would enable nationwide access to ChatGPT. The U.S.-UAE AI Acceleration Partnership was reported to allow the UAE to import up to 500,000 advanced NVIDIA chips annually, and after months of review, the U.S. approved export licenses in late November 2025, with G42 providing security assurances that chips would not be diverted or accessed by unapproved parties.
The market also faces constraints. Access to advanced chips depends on U.S. approvals, which were reportedly delayed in mid-2025 amid concerns about G42, and the UAE relies heavily on international talent. Large AI data centers require significant energy and cooling in a hot climate, and data governance frameworks differ between federal law and financial free zones. At the same time, the UAE is positioning itself as an AI hub for the Middle East, Africa, and South Asia, with OpenAI stating that Stargate UAE could serve users within a 2,000-mile radius, potentially reaching half of the world's population.
Sharjah is expected to account for a moderate share of the market.
The emirate is home to universities, including the American University of Sharjah and the University of Sharjah, that conduct AI research and training, and the Sharjah Research, Technology and Innovation Park supports technology startups.
Sharjah's government is digitizing public services, and its manufacturing, logistics, and education sectors are adopting AI, supported by federal initiatives such as the introduction of AI education in public schools from the 2025-2026 academic year.
The Sharjah Research, Technology and Innovation Park, established in 2016, hosts technology companies and research centers, and Sharjah's universities contribute AI graduates to the national talent pool alongside the Mohamed bin Zayed University of Artificial Intelligence, founded in 2019.
The Northern Emirates of Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain are expected to register strong growth from a smaller base.
Fujairah is a major landing point for international subsea cables, supporting connectivity for data centers and AI services, and Ras Al Khaimah has developed free zones for technology and digital asset companies.
Federal programs, including nationwide access to generative AI tools and AI education in public schools, are extending AI adoption beyond the largest emirates, and industrial, logistics, and tourism sectors in the Northern Emirates are adopting AI-enabled solutions.
Ras Al Khaimah launched its Digital Assets Oasis free zone in 2023 for digital and virtual asset companies, and the introduction of AI education in public schools from the 2025-2026 academic year extends AI skills development across all seven emirates.
Market dynamics
18 factors across 5 forcesNational AI Strategy and Government Leadership
Long-standing national AI strategy and government leadership are a major factor driving the UAE Artificial Intelligence Market. The UAE launched its National Strategy for Artificial Intelligence in 2017 with targets for 2031, becoming one of the first countries with a national AI strategy, and appointed the world's first Minister of State for Artificial Intelligence the same year. The government established the Mohamed bin Zayed University of Artificial Intelligence in 2019 as a graduate research university dedicated to AI, and government entities have appointed chief AI officers and integrated AI into public services. In 2025, OpenAI stated that the UAE would become the first country to enable nationwide ChatGPT access as part of the Stargate UAE partnership, and the UAE introduced AI as a subject in public schools. This top-down commitment creates sustained demand for AI across government and signals long-term policy stability to investors and technology partners.
Sovereign Capital and Strategic Partnerships
Large-scale sovereign capital and strategic partnerships with global technology companies are significantly accelerating the market. Microsoft invested USD 1.5 billion in Abu Dhabi's G42 in 2024, forming a strategic partnership that included G42 moving its AI workloads to Microsoft Azure and divesting from Chinese hardware suppliers, and MGX, established in 2024 with Mubadala and G42 as founding shareholders, has invested in global AI infrastructure and leading AI companies and joined a global AI infrastructure investment partnership with BlackRock, Global Infrastructure Partners, and Microsoft. In May 2025, G42 partnered with OpenAI, Oracle, NVIDIA, Cisco, and SoftBank on Stargate UAE, the first international deployment of OpenAI's Stargate infrastructure, as part of the U.S.-UAE AI Acceleration Partnership. These partnerships give the UAE access to leading models, chips, and expertise, and bring global companies' investment into the country.
Build-Out of Large AI Compute Infrastructure
The build-out of large AI compute infrastructure, led by Stargate UAE, is creating substantial demand for AI hardware, data centers, and services. The planned 5-gigawatt UAE-US AI Campus in Abu Dhabi, spanning 10 square miles, is intended to be the largest AI infrastructure development outside the U.S., and its first phase, the 1-gigawatt Stargate UAE cluster, is scheduled to bring its first 200 megawatts of NVIDIA GB300 capacity online in 2026, with G42's chief executive stating plans to add 200 to 500 megawatts per quarter thereafter. The U.S.-UAE AI Acceleration Partnership was reported to allow the import of up to 500,000 advanced NVIDIA chips annually, and the U.S. approved export licenses in late November 2025. This infrastructure positions the UAE to host AI workloads for domestic and international customers.
Table of contents
13 chapters · 140 sections · 216 pages · click to expandSegmental analysis
| Segment | Largest share (2026) | Fastest growth (2026–2036) |
|---|---|---|
| By Component | AI Infrastructure | Software & Platforms |
| By Technology | Machine Learning | Generative AI & Large Language Models |
| By Deployment | Sovereign & Hyperscale Cloud | Edge |
| By End-use Sector | Government & Public Services | Healthcare & Life Sciences |
| By Enterprise Size | — | Rapid growth of this |
| Other segments | — | Dubai |
By Component
- The AI Infrastructure segment is expected to account for the largest share of the market.
- The large share of this segment is mainly due to investment in the Stargate UAE cluster, whose first 200 megawatts of NVIDIA GB300 capacity is scheduled for 2026, and other AI data centers.
- However, the Software & Platforms segment is projected to register the highest CAGR during the forecast period.
- The rapid growth of this segment is attributed to growing adoption of generative AI platforms, AI agents, and industry applications across government and enterprises.
- Abu Dhabi is expected to account for the largest share of the UAE Artificial Intelligence Market.
- The emirate's dominance is supported by its concentration of AI infrastructure, sovereign capital, and research institutions.
- Abu Dhabi hosts the planned 5-gigawatt UAE-US AI Campus spanning 10 square miles, including the 1-gigawatt Stargate UAE cluster whose first 200 megawatts are scheduled for 2026, and is home to G42 and its subsidiaries, MGX, the Mohamed bin Zayed University of Artificial Intelligence, and the Technology Innovation Institute, developer of the Falcon models.
- ADNOC is deploying AI through its AIQ joint venture with G42, Abu Dhabi Global Market provides a financial free zone with its own data protection framework, and the 5.6-gigawatt Barakah nuclear plant supports power supply.
By Technology
- The Machine Learning segment is expected to account for the largest share of the market.
- The large share of this segment is mainly due to its established use in predictive analytics across energy, finance, and government.
- However, the Generative AI & Large Language Models segment is projected to register the highest CAGR during the forecast period.
- The rapid growth of this segment is attributed to nationwide access to generative AI tools and the development of models such as Falcon and Jais.
By Deployment
- The Sovereign & Hyperscale Cloud segment is expected to account for the largest share of the market.
- The large share of this segment is mainly due to the growth of sovereign AI cloud providers and hyperscale infrastructure such as Stargate UAE.
- However, the Edge segment is projected to register the highest CAGR during the forecast period.
- The rapid growth of this segment is attributed to AI in smart cities, autonomous transport, and industrial operations.
By End-use Sector
- The Government & Public Services segment is expected to account for the largest share of the market.
- The large share of this segment is mainly due to government leadership in AI adoption since the 2017 National AI Strategy.
- However, the Healthcare & Life Sciences segment is projected to register the highest CAGR during the forecast period.
- The rapid growth of this segment is attributed to AI in diagnostics, genomics, and personalized medicine.
By Enterprise Size
- The Large Enterprises & Government Entities segment is expected to account for the larger share of the market.
- The large share of this segment is mainly due to large investments by government, state-owned enterprises, and major companies.
- However, the Small & Medium-Sized Enterprises segment is projected to register the higher CAGR during the forecast period.
- The rapid growth of this segment is attributed to the availability of cloud-based AI tools and nationwide access to generative AI services.
Other segments
- However, Dubai is projected to register the highest CAGR during the forecast period.
- The rapid growth of the emirate is attributed to its large base of enterprises, financial institutions, and global companies adopting AI and its government's AI programs.
- Dubai launched the Dubai Universal Blueprint for Artificial Intelligence in 2024, appointing chief AI officers across government entities, established the Dubai Centre for Artificial Intelligence, and hosts the Dubai AI Campus in the Dubai International Financial Centre, which has its own data protection law.
- Dubai aims for 25% of trips in the emirate to be autonomous by 2030, and major companies in aviation, logistics, real estate, and retail, such as Emirates and DP World, are deploying AI.
Geographic analysis
Middle East & Africa
The UAE Artificial Intelligence Market was valued at USD 4.60 billion in 2025. This market is expected to reach USD 51.29 billion by 2036 from an estimated USD 9.80 billion in 2026, registering a CAGR of 18.0% during the forecast period (2026-2036). The growth of this market is mainly driven by long-standing national AI strategy and government leadership, large-scale sovereign capital and strategic partnerships with global technology companies, and the build-out of large AI compute infrastructure, led by Stargate UAE. However, dependence on U.S. export approvals and geopolitical scrutiny, a shortage of specialized AI talent, the energy and cooling demands of large data centers, and evolving and fragmented data governance frameworks restrain the growth of this market. Furthermore, the UAE's role as a regional AI hub, Arabic language and sovereign AI models, and AI applications in energy, healthcare, and government are expected to offer growth opportunities for the stakeholders in this market. However, the scarcity of high-quality Arabic data, demonstrating enterprise returns on AI investment, cybersecurity risks, and managing technology alignment and supply chain concerns remain major challenges impacting the growth of this market. Additionally, sovereign AI and national models, deep partnerships with global AI leaders, AI-first government services, and AI education and talent development are prominent trends in this market. UAE Artificial Intelligence Market Size
Competitive landscape
The UAE Artificial Intelligence Market includes national AI champions and their subsidiaries, sovereign investment vehicles, telecommunications operators, data center operators, global cloud, model, and chip companies, research institutes, and a growing startup ecosystem. Competition and collaboration center on access to compute and chips, model capabilities, including Arabic language performance, sovereign and secure deployment, sector expertise, partnerships with global technology leaders, and compliance with export controls and data regulations.
Leading companies are building sovereign AI infrastructure, developing Arabic and open models, forming joint ventures with major UAE enterprises, and partnering with global technology companies, as illustrated by G42's partnerships with Microsoft and OpenAI and the Stargate UAE project.
The report provides a comprehensive competitive assessment of the leading companies operating in the UAE Artificial Intelligence Market. The key players profiled in the report include G42 (UAE), Core42 (UAE), Presight AI Holding PLC (UAE), AIQ (UAE), M42 (UAE), Space42 PLC (UAE), Khazna Data Centers (UAE), MGX (UAE), e& (Emirates Telecommunications Group Company PJSC) (UAE), Emirates Integrated Telecommunications Company PJSC (du) (UAE), Technology Innovation Institute (UAE), Microsoft Corporation (U.S.), OpenAI (U.S.), Oracle Corporation (U.S.), NVIDIA Corporation (U.S.), Cerebras Systems Inc. (U.S.), and Amazon Web Services, Inc. (U.S.).
- G42
- Core42
- Presight AI
- AIQ
- M42
- Space42
- Khazna Data Centers
- MGX
- Technology Innovation Institute
- Microsoft
- OpenAI
- Oracle
- NVIDIA
- Cerebras Systems
- Amazon Web Services
Expert perspectives
The UAE has made AI a pillar of national strategy and is now translating ambition into infrastructure at a scale few countries can match. The planned 5-gigawatt UAE-US AI Campus and the 1-gigawatt Stargate UAE cluster, with its first 200 megawatts scheduled for 2026, together with partnerships with Microsoft, OpenAI, Oracle, and NVIDIA and sovereign capital from MGX, position the UAE as a leading AI hub outside the U.S. and China.
Three structural changes are expected to shape the market through 2036. First, AI infrastructure will expand rapidly, with G42 planning to add 200 to 500 megawatts per quarter, making the UAE a regional compute hub. Second, software, generative AI, and AI agents will spread across government and enterprises, supported by nationwide access and AI education. Third, sovereign and Arabic AI models will serve domestic and regional markets, while alignment with U.S. technology frameworks remains a condition of access to advanced chips.
For companies planning entry or expansion, the most attractive positions over the forecast period are likely to be found in AI infrastructure and data center services, sovereign AI cloud, Arabic language AI, AI applications for government, energy, and healthcare, and AI training and talent services. The principal risks are dependence on export approvals, talent constraints, energy and cooling requirements, and evolving data governance.
Customer perspectives
Insights gathered during primary interviews with government technology leaders, enterprise chief data officers, data center executives, and AI startup founders highlight where purchasing priorities are shifting. The following perspectives reflect recurring themes raised across these discussions.
“This reflects government leadership and the importance of sovereign and Arabic AI.”
“This indicates enterprise adoption and the challenges of governance and ROI.”
“This points to infrastructure scale-up constraints.”
Frequently asked questions
The UAE Artificial Intelligence Market is estimated at USD 9.80 billion in 2026.
Cite this report
Meticulous Research. (2026). UAE Artificial Intelligence Market - Opportunity Analysis and Industry Forecast (2026-2036) (Report No. MR-2209). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/reports/uae-artificial-intelligence-market-6892