Abu Dhabi’s AI sector booms with 41.3% annual surge in new companies

The Abu Dhabi Chamber of Commerce and Industry reported that it registered over 400 AI companies in Abu Dhabi by the end of the second quarter of 2024, showcasing a rapid growth and increasing interest in AI and its applications in the Emirate.

A recent study by the Abu Dhabi Chamber revealed that, on average, one AI company was established every two days in Abu Dhabi during the first half of 2024. This remarkable pace positioned AI as one of the fastest-growing sectors in new company formations, underscoring Abu Dhabi’s unwavering commitment to establishing itself as a global hub for innovation and AI.

Furthermore, approximately 90 AI companies were established in just six months, marking a substantial 41.3% growth in the sector during H1 2024 compared to the previous year.

An earlier study published in February by the Chamber highlighted that the number of registered AI companies in the Emirate grew at a compound annual growth rate (CAGR) of 67% between 2021 and 2023.

The new study highlighted that the rapid growth of AI companies in the Emirate underscores the sector’s swift expansion locally and Abu Dhabi’s increasing attractiveness as a leading hub for technological innovation and business on both regional and global scales.

The study also revealed that commercial activities related to innovation and AI research and consultancies were the most prevalent among companies during the second quarter of 2024, accounting for 69% of all activities. This indicates the growing interest from both the government and private sectors in advancing technology and promoting economic growth by focusing on high-level, value-added research and consulting services.

AI training activities ranked second, comprising 11%, followed by the management and operation of AI robotic systems at 10%. Wholesale trading of AI training accounted for 8%, and retail of AI robots made up 2%.

The study emphasised that the Abu Dhabi Chamber plays a pivotal role in supporting AI companies in the Emirate by providing a platform for communication and collaboration, facilitating commercial exchange, and developing policies that create an ideal environment for the growth of AI companies.

Through its initiatives, programmes, and events, the Chamber acts as a bridge between AI companies and regulatory bodies within the Emirate and across the UAE, ensuring that the current and future needs of the sector are met.

The study also highlighted the crucial role of the Abu Dhabi Chamber in advancing the AI landscape in Abu Dhabi and promoting the adoption of innovation and digital transformations, aligning with the Chamber’s current strategy, which aims to position Abu Dhabi as the number one choice for in the Middle East and North Africa (MENA) region for business and talent by 2025.

To achieve this, the Chamber offers comprehensive digital services tailored to the needs of AI companies, enabling them to access the resources, information, market insights, and support necessary for success in Abu Dhabi’s competitive business environment.

Among the Chamber’s leading global initiatives is the ChamberGPT AI platform, which has garnered over 6,000 interactions from 85 countries, reflecting a 39% growth in the number of messages received during the second quarter of 2024 and a 166% increase in the number of countries from which these messages originated in H1 2024.

WAM