UAE’s AI market set to soar to Dhs170b by 2030

DUBAI: The UAE’s Artificial Intelligence (AI) market is forecast to hit Dhs170 billion ($46.33 billion) by 2030, according to new data from Grand View Research (GVR) in a study that underscores the country’s accelerating dominance in the region’s $166 billion (Dhs610 billion) AI boom.

Close on the heels of the UAE unveiling its first Arabic-language AI model earlier this yea, the new research by the California headquartered- firm reveals that the MENA AI market, valued at $11.92 billion (Dhs43.7 billion) in 2023, is set to expand almost fifteen-fold to $166.33 billion (Dhs610 billion) by 2030, growing at an annual rate of 44.8 per cent.

“The Middle East, and especially the UAE, is no longer just an adopter of global AI technologies – it’s, in fact, shaping its own playbook,” said Swayam Dash, Managing Director at Grand View Research. “With sovereign funds backing innovation, and policies like the UAE’s new Strategic Plan 2031 leading the way with focus on utilising artificial intellegence in achieving greater financial efficiency for the federal government, the region is becoming a laboratory for how AI can drive both governance and growth.”

GVR’s report further highlights that nearly three in four UAE companies have maintained or increased their AI investments in the past year. Machine learning and deep learning remain the backbone of this transformation, particularly in healthcare, logistics, and financial services.

According to the report, the AI in Healthcare market in the Middle East and Africa, valued at $193.1 million (Dhs709 million) in 2023, is projected to reach $1.47 billion (Dhs5.39 billion) by 2030 growing at a CAGR of 33.6 per cent, while the region’s legal AI sector – currently at $43.3 million (Dhs159 million) – is expected to almost triple to $121.5 million (Dhs446 million) at a CAGR of 18 per cent over the same period.

“The release of region-specific AI metrics for the first time quantifies what many have sensed – that the UAE and its neighbours are at the tipping point of a generational transformation,” Dash added. “And the next wave of opportunity will come from specialisation. Sectors like healthcare and legal technology are still emerging here and hence the potential is immense. With the AI in regional healthcare market alone projected to touch $8.39 billion (Dhs30.8 billion) by 2033, we’re looking at a decade of exponential growth. Likewise, the legal AI space, though currently small, represents a first-mover opportunity in digitising governance, compliance, and regulatory frameworks – areas where the Middle East can define its own benchmarks rather than follow global ones.”

The study also notes how the MENA region is further emerging stronger as one of the world’s most dynamic AI frontiers driven particularly by government-led digital transformation agendas, rapid urbanisation, and the rollout of AI-enabling technologies such as 5G, cloud, and IoT,

“Machine learning and deep learning continue to dominate adoption across smart-city initiatives, healthcare, and urban management – with the UAE leading the charge in real-world integration,” said Dash.

The full Grand View Research MENA AI Market Report offers an in-depth analysis of these evolving trends, uncovering how data, policy, and innovation are converging to redefine the region’s digital economy.

Headquartered in San Francisco with operations in the US and India, Grand View Research (GVR) is a global leader in market intelligence and consulting, delivering syndicated and custom research reports across more than 45 industries and covering 150,000 markets worldwide.

With a robust reach spanning North America, Europe and Asia, GVR serves Fortune 1000 companies, investors, governments, startups, and academic institutions seeking data-driven insights and growth strategies, having published close to 20,000 market intellegence studies worldwide, supported by a global team of 450 analysts and consultants. Its advisory arm, Brainshare, supports organisations in the Middle East and beyond with data-driven strategies and growth insights.