Today's Edition
A.SREENIVASA REDDY (ABU DHABI)
The UAE has solidified its position as a global leader in artificial intelligence (AI), ranking 9th worldwide in AI enterprise density, according to the latest IFF Global Artificial Intelligence Competitiveness Index Report.
The report, released by the International Finance Forum (IFF), evaluates countries based on the number of AI companies, investment levels, and innovation potential.
The UAE is home to 490 AI companies, placing it 19th globally in absolute numbers. However, when measured per capita, the country ranks 9th, with 49.5 companies per million of population, underscoring the UAE’s rapid AI adoption and strong focus on digital transformation.
The report highlights the UAE’s national AI strategy, launched in 2017, as a key driver of growth. The UAE was the first country in the world to appoint an AI Minister, reflecting its commitment to becoming a global AI hub. The Artificial Intelligence Strategy 2031 aims to increase AI’s contribution to GDP to Dh335 billion ($91 billion) and reduce government operational costs by 50%.
Additionally, the Dubai Future Accelerator Fund, with a Dh10 billion ($2.7 billion) allocation, has played a crucial role in attracting AI-driven startups. AI investment in the UAE is growing at an annual rate of 20%, further strengthening its position in the global AI ecosystem.
The report identifies Singapore, Israel, and Switzerland as the top three countries with the highest AI company density. Singapore leads with 162.8 AI firms per million residents, followed by Israel (135.2) and Switzerland (73.6). Other countries in the top 10 include the US (61.2), Canada (58.3), the UK (56.5), Ireland (50.8), Finland (50.0), the UAE (49.5), and Hong Kong (47.1). These rankings highlight the growing concentration of AI enterprises in smaller but highly digitalised economies, where government policies, infrastructure, and investment have fuelled AI sector growth.
One of the standout AI enterprises in the UAE is G42, an Abu Dhabi-based AI solutions company that received a $1.5 billion investment from Microsoft in April 2024. G42 is known for its open-source Arabic AI language model, Jais, which features 30 billion parametres and supports advanced AI applications in Arabic and English. The company is valued at over $10 billion, according to the report.
The UAE ranks 11th globally in AI startup funding, with total AI investments reaching $28.2 billion. It is also home to two AI unicorns, with an average financing amount of $1.3 billion per company, among the highest in the world. The country’s investment climate, low tax policies, and 100% foreign ownership rules make it an attractive destination for AI entrepreneurs.
The report listed several measures adopted by the UAE to attract talent. It has launched a 'golden visa' programme to provide 10-year residency for AI industry experts, founded the world's first AI professional research university MBZUAI, and cooperated with top universities around the world to set up research centers and provide scholarships and research funds.
The report also highlights the UAE’s world-class digital infrastructure, with 5G network coverage exceeding 90%, an internet penetration rate that reaches 97.1%, and also has the largest data centre cluster in the Middle East, offering an ideal testing scenario for AI applications.
The report also highlights Saudi Arabia’s AI expansion, with 292 AI companies ranking 24th globally. Saudi Arabia has committed $50 billion in AI investments and aims to increase AI’s contribution to GDP to 12.4% by 2030 as part of its Vision 2030 strategy.
As of October 2024, according to the report, there were about 55,000 AI companies in the world with the US at the top position with 20,298 AI enterprises—more than 36% of the world’s total.
India with 4,044 AI firms and the UK with 3,795 AI firms are in the second and third position, respectively.
