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ABU DHABI (ALETIHAD)
The UAE’s Artificial Intelligence (AI) market is projected to surge to Dh170 billion ($46.3 billion) by 2030, according to new data from Grand View Research (GVR), reflecting the country’s fast-growing role in driving the Middle East and North Africa’s broader Dh610 billion ($166 billion) AI boom.
The study forecasts that the MENA AI market — valued at Dh43.7 billion ($11.9 billion) in 2023 — will expand almost fifteen-fold by the end of the decade, growing at an annual rate of 44.8%. The report comes as the UAE consolidates its position as a regional AI leader, following the launch of its first Arabic-language AI model earlier this year.
Swayam Dash, Managing Director at Grand View Research, said: “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. With sovereign funds backing innovation, and policies like the UAE’s new Strategic Plan 2031 leading the way with a focus on utilising artificial intelligence to achieve greater financial efficiency for the federal government, the region is becoming a laboratory for how AI can drive both governance and growth.”
According to the study, nearly three-quarters of UAE companies have either maintained or increased their AI investments over the past year. Machine learning and deep learning continue to underpin much of this transformation, particularly in healthcare, logistics, and financial services.
In the healthcare sector, the report estimates that the AI market in the Middle East and Africa, valued at Dh709 million ($193 million) in 2023, will reach Dh5.39 billion ($1.47 billion) by 2030 — a compound annual growth rate of 33.6%. The legal AI sector, meanwhile, currently worth Dh159 million ($43.3 million), is forecast to nearly triple to Dh446 million ($121.5 million), growing at 18% annually.
“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.
Dash said that while the healthcare and legal AI sectors are still small, they represent first-mover opportunities for the Middle East to define its own benchmarks in governance, compliance, and digital transformation, rather than follow global templates.
The study emphasised that government-led digital transformation, rapid urbanisation, and the rollout of enabling technologies such as 5G, cloud computing, and the Internet of Things (IoT) are accelerating the region’s AI adoption.
“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,” Dash said.
Headquartered in San Francisco with operations in the US and India, GVR is a global leader in market intelligence and consulting, delivering syndicated and custom research reports across more than 45 industries.
