UAE Generative AI Market

UAE Generative AI Market Overview:

The UAE generative AI market size reached USD 73.05 Million in 2024. Looking forward, the market is expected to reach USD 321.42 Million by 2033, exhibiting a growth rate (CAGR) of 15.97% during 2025-2033. The market is driven by ambitious government-led strategies fostering AI integration across public and private sectors, positioning the UAE as a technology leader. Financial institutions and legal service providers are utilizing generative AI for automation and multilingual processing, enhancing operational efficiency. Additionally, dedicated AI education programs and robust ethical governance frameworks are ensuring sustainable innovations, further augmenting the UAE generative AI market share.

UAE Generative AI Market Trends:

Strategic Government Initiatives Driving AI Adoption

The UAE government’s strategic emphasis on artificial intelligence positions the country as a leader in the adoption of generative AI technologies. According to a recent survey, over 80% of MENA organizations are experiencing Generative AI-driven impacts across strategy, business, and workforce. Nearly 50% of respondents have already initiated Generative AI through Proofs of Concept or industrialized use cases, showcasing strong early adoption, and 33% of organizations confirmed employee readiness for AI integration. Initiatives such as the UAE National Strategy for Artificial Intelligence 2031 aim to embed AI across economic sectors, emphasizing efficiency, innovation, and global competitiveness. Generative AI applications are being actively explored within government agencies for language translation, document automation, and citizen service interfaces. Additionally, Dubai and Abu Dhabi are becoming regional hubs for AI innovation, supported by dedicated free zones and startup accelerators focused on emerging technologies. Collaborative programs between universities, private enterprises, and public sector bodies are strengthening the research base and technological expertise required for advanced AI deployment. Moreover, the UAE’s proactive regulatory framework, balancing innovation with responsible governance, ensures a supportive environment for generative AI experimentation. These developments are enabling both the public and private sectors to integrate generative AI solutions across workflows. Together, these factors are creating robust momentum for UAE generative AI market growth in alignment with the nation’s technological vision.

Development of AI Talent and Ethical Governance

The UAE’s commitment to cultivating AI expertise and establishing responsible usage frameworks is fostering sustainable generative AI adoption. Educational institutions such as Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) are at the forefront of generative AI research, focusing on advanced model development and real-world applications. Simultaneously, the government is prioritizing ethical AI governance through initiatives like the UAE’s Ethical AI Guidelines, which emphasize transparency, accountability, and privacy protection in AI deployments. On May 15, 2024, Abu Dhabi’s Technology Innovation Institute (TII) launched the Falcon 2 series, featuring Falcon 2 11B and Falcon 2 11B VLM, open-source generative AI models designed to rival global tech giants. Supported by sovereign wealth funds valued at approximately USD 1.5 trillion, the UAE’s AI push also includes a USD 1.5 billion investment from Microsoft to strengthen its AI ecosystem. Collaboration between local AI startups and multinational technology companies supports the development of practical generative solutions tailored to the UAE’s market needs. Additionally, the UAE’s participation in international forums on AI ethics strengthens its position as a responsible innovator on the global stage. By aligning talent development with clear ethical standards, the country is ensuring that the deployment of generative AI technologies benefits businesses, institutions, and society. This strategic balance of innovation and governance is central to shaping the UAE’s role in the global AI ecosystem.

UAE Generative AI Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on offering type, technology type, and application.

Offering Type Insights:

• Image
• Video
• Speech
• Others

The report has provided a detailed breakup and analysis of the market based on the offering type. This includes image, video, speech, and others.

Technology Type Insights:

• Autoencoders
• Generative Adversarial Networks
• Others

The report has provided a detailed breakup and analysis of the market based on the technology type. This includes autoencoders, generative adversarial networks, and others.

Application Insights:

• Healthcare
• Generative Intelligence
• Media and Entertainment
• Others

The report has provided a detailed breakup and analysis of the market based on the application. This includes healthcare, generative intelligence, media and entertainment, and others.

Regional Insights:

• Dubai
• Abu Dhabi
• Sharjah
• Others

The report has also provided a comprehensive analysis of all major regional markets. This includes Dubai, Abu Dhabi, Sharjah, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UAE Generative AI Market News:

• On May 16, 2025, Qualcomm Technologies, Inc. and UAE-based e& entered into a strategic collaboration to accelerate digital transformation by leveraging 5G, edge computing, and generative AI across government, enterprise, and industrial sectors in the UAE. The partnership will introduce edge AI devices powered by Snapdragon platforms, integrating large language models (LLMs) to support on-device generative AI for enhanced security and efficiency.
• On June 17, 2025, G42 and US-based Liquid AI announced a strategic partnership to co-develop private and efficient generative AI solutions for enterprises across regions including the Middle East, Africa, and the Global South. The collaboration will leverage Liquid Foundation Models alongside G42’s AI infrastructure to build enterprise-ready, multimodal generative AI models for sectors such as banking, biotech, and telecommunications. This partnership further strengthens UAE generative AI market growth by promoting sovereign, scalable AI tailored for global enterprise needs.

UAE Generative AI Market Report Coverage:

Key Questions Answered in This Report:

• How has the UAE generative AI market performed so far and how will it perform in the coming years?
• What is the breakup of the UAE generative AI market on the basis of offering type?
• What is the breakup of the UAE generative AI market on the basis of technology type?
• What is the breakup of the UAE generative AI market on the basis of application?
• What is the breakup of the UAE generative AI market on the basis of region?
• What are the various stages in the value chain of the UAE generative AI market? 
• What are the key driving factors and challenges in the UAE generative AI market?
• What is the structure of the UAE generative AI market and who are the key players?
• What is the degree of competition in the UAE generative AI market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UAE generative AI market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UAE generative AI market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UAE generative AI industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.