UAE ranks among top rising economies in AI readiness
The UAE is charging toward the forefront of the global AI revolution, emerging as a top contender among the world's rising economies, according to a study from Boston Consulting Group (BCG).
Unveiled at the Dubai AI Assembly during Dubai AI Week on April 23, the study positions the UAE as a regional beacon of AI readiness, with Saudi Arabia by its side. Yet, as the GCC nations collectively accelerate their AI ambitions, the UAE's journey from regional leader to global pioneer hinges on boosting private investment, expanding its talent pool, and supercharging research and development, said the study 'GCC AI pulse: Mapping the region's readiness for an AI-driven future'
BCG's 2024 AI Maturity Matrix, the backbone of the report, sorts economies into four archetypes: Emergents, Practitioners, Contenders, and Pioneers. The UAE, alongside Saudi Arabia, secures its place among 31 global AI Contenders, outpacing GCC peers like Qatar, Kuwait, Oman, and Bahrain, which rank as Practitioners.
While no GCC nation yet claims the coveted Pioneer status — held by powerhouses like the US, the UK, and China — the UAE's trajectory is striking. Its National AI Strategy 2031, the world's first AI Minister appointed in 2017, and a $100 billion MGX fund for global AI investments signal a bold vision. With 35 data centers and $228 per employee in public cloud spending — the highest in the GCC — the UAE's digital infrastructure is a robust springboard for AI innovation.
Dr. Akram Awad, managing director and partner at BCG, underscores the UAE's forward-thinking approach: 'The UAE is poised to lead regionally and compete globally by leveraging its digital foundation and strategic initiatives.' However, the report highlights critical areas for growth.
With 7,000 AI specialists, the UAE boasts a solid talent base, but scaling this pool is vital to sustain innovation. Similarly, its 700 AI-related research publications mark regional leadership, yet bridging the gap to globally recognized breakthroughs remains a priority. Private-sector investment, while above the Contender average, must deepen to propel the UAE toward Pioneer status.
Studies like the 2024 PwC Middle East AI Report echo this, noting that 70 per cent of UAE executives plan to increase AI investments, particularly in generative AI, to drive economic diversification.
The UAE's AI playbook mirrors global leaders in many ways. Its sovereign investment prowess and early governance moves rival those of Pioneers, while initiatives like the Dubai AI Campus and Falcon, a homegrown large language model, showcase ambition.
Rami Mourtada, partner and director at BCG, emphasises the need for more. 'Advancing private-sector engagement, elevating R&D to global innovation levels, and growing the domestic talent pool will solidify the UAE's path to AI Pioneer status.'
The 2023 Deloitte Global AI Governance Report supports this, highlighting the UAE's ethical AI frameworks as a model but urging stronger academia-industry ties to accelerate innovation.
Beyond the UAE, the GCC is riding a wave of AI transformation. Saudi Arabia, also a Contender, is advancing through the Saudi Data and AI Authority (SDAIA) and its goal to rank among the top 15 AI nations by 2030. A 2024 McKinsey report notes Saudi Arabia's $40 billion AI investment fund as a game-changer. Qatar's national AI strategy and Oman's Makeen Nanodegree programme are building modern ecosystems, while Bahrain's fintech-driven AI adoption and Kuwait's foundational strategies lay critical groundwork.
Dr. Lars Littig, managing director and partner at BCG, sees a region-wide opportunity: 'The GCC's collective momentum could position it as a global hub for AI innovation, especially in sector-specific applications like optimising oil production or supply chains.'
For the UAE, the path forward involves aligning governance with evolving AI ethics, a point reinforced by the 2024 World Economic Forum's AI Governance Alliance, which praises the UAE's responsible AI stance but calls for global standardisation. Upskilling programmes, like those under the UAE's AI Summer Camp, and attracting international talent are critical to broadening expertise.
Intensifying R&D investments, as seen in Singapore's $1 billion AI innovation fund per a 2024 Reuters report, could inspire the UAE to foster stronger academia-industry collaborations, driving cutting-edge advancements, AI experts said.
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