The UAE is rapidly establishing itself as a regional hub for artificial intelligence (AI) and robotics, driven by a robust demand for advanced tech solutions and an evolving digital infrastructure. This growth is further supported by an attractive business environment and the swift adoption of AI applications across various sectors. Experts estimate the size of the AI market in the UAE to be around $20 billion annually, with promising growth prospects in the coming years as the applications expand into education, finance, healthcare, government services, and industry.
A Thriving Investment Landscape
Adli Dahileh, Executive Director of the “Ankabut” network, highlighted that the momentum in the use of AI and robotics aligns with the UAE’s broader plans to integrate these technologies across diverse sectors. “The scale of the market and the opportunities available accentuate the country’s attractiveness to major global companies in the specialised fields,” he remarked.
He indicated that the education sector stands out as a particularly promising area. The Ankabut network provides a technical infrastructure that connects universities and supports the delivery of world-class services. This accumulated expertise in providing technological solutions allows for commercial expansion, benefiting educational institutions and continuous learning programmes in the local market.
Dahileh explained that the next phase focuses on leveraging AI to enhance operational efficiency and accelerate processes, paving the way for locally developed solutions to enter global markets rather than solely catering to UAE demands. Furthermore, the investment opportunity spans across finance, healthcare, government, and industrial sectors as automation applications proliferate within production operations. This shift necessitates continuous investments in cybersecurity to protect systems and data, bolstering the reliability of digital solutions.
UAE as a Central Market for Global Enterprises
Suleiman Joudah, Regional Vice President for Asia and the Middle East at IFS, stated that the UAE stands as a pivotal market in the region, owing to its robust assets and infrastructure capable of accommodating advanced tech applications, particularly in asset management and major project oversight. “These attributes create vast investment opportunities and position the country as a suitable platform for businesses aiming to enter and expand within regional markets,” he added.
Joudah mentioned that IFS’s investment activities in the UAE are valued at approximately AED 500 million, linked to vital sectors such as energy—including nuclear energy—aviation, defence, telecommunications, space, natural resources, construction, and transportation. The company aims to enhance its presence in other sectors, including manufacturing, which offers significant potential for robotic systems and automation, particularly with the country’s commitment to achieving climate neutrality and employing technology to improve resource efficiency and operational performance.
The Impact on Employment and Skill Development
With the transition towards AI, Joudah noted that it is not merely about changing existing job roles but also about enabling workforce upskilling and new job creation linked to technological demands. The ability of these technologies to reshape professions and boost the need for advanced skills is a critical factor enhancing the UAE market’s appeal to global enterprises.
Expanding Security Solutions and Smart Services
Ashraf Arafa, Director of Artificial Intelligence, remarked that the burgeoning AI projects in the UAE have enabled the company to engage in initiatives that provide technical solutions and operational systems, especially within the security sector. He stated that the company is keen to expand its operations in the security field, leveraging its expertise in providing operational systems and solutions for relevant authorities, including smart security glasses systems for the Federal Customs Authority. They are also exploring opportunities in other service sectors, such as education, in collaboration with local institutions.
Arafa emphasised that the increasing reliance on smart solutions creates opportunities to broaden the scope of applications and services, particularly as the importance of advanced technologies to enhance operational efficiency and enrich services continues to rise.
Robotics Paves the Way for Local Manufacturing Opportunities
Ilona Shoukina, Vice President of Operations at the German robotics firm Serix, stated that the UAE is an attractive destination for tech companies seeking to penetrate Middle Eastern markets, buoyed by the abundance of opportunities for AI and robotic systems and the requisite infrastructure to implement them. This has driven the company to select the UAE as its regional base.
Serix has commenced delivering robotic solutions for food preparation, targeting the restaurant, hospitality, and airport sectors—essentially any facilities that can benefit from automation in operational processes. Shoukina noted the diversity of sectors ready to adopt these solutions, coupled with the market readiness and digital infrastructure, signifies opportunities to expand the customer base, aiming for an annual production capacity of 6,000 units.
Furthermore, Serix’s plans in the UAE extend beyond commercial activities and market access to the neighbouring regions; they may evolve into transferring some expertise and production technologies back to the UAE, harnessing its industrial and logistical infrastructure alongside its network of ports and airports.
This strategic approach marks the potential for a more advanced stage in sector growth, transitioning investments from importing solutions to fostering local expertise and possibly localising some aspects of robot manufacturing, thereby enhancing the economic value and supporting the establishment of a cohesive tech innovation and industry framework.