UAE Ranks Among Top Emerging Economies in AI Readiness: BCG Study
As found in BCG's inaugural AI Maturity Matrix, the UAE has earned the designation of AI Contender alongside 31 economies worldwide, including Saudi Arabia. The maturity matrix identified four economic archetypes based on their AI readiness, ranging from AI Emergents at the low end of the scale, followed by Practitioners, then Contenders, and Pioneers at the high end. Other GCC countries, including Qatar, Kuwait, Oman, and Bahrain, have ranked in the AI Practitioners' category. With GCC countries yet to achieve AI Pioneer status, that includes the likes of US, UK, and China, the report highlights substantial opportunities for advancing AI readiness and leadership in the region, with the UAE making notable progress on that path.
'The UAE is poised to be a regional leader amongst other global AI Pioneers by capitalizing on its established digital infrastructure and formulating strategic initiatives that support AI integration into its economic visions,' said Dr. Akram Awad, Managing Director and Partner at BCG. "Key indicators collectively illustrate a forward-thinking approach to AI by the UAE and outline clear pathways for improvement. As entities forge ahead, these insights are key in the drive towards AI maturation.'
Inside the UAE's Playbook: From Regional Leader to Global Contender
As a first-mover on AI governance and the leading nation globally in sovereign investment, the UAE mirrors many benchmarks set by established AI Pioneers, reflecting its success at integrating AI technologies at a national scale. The country's vision, reflected in robust policy initiatives such as the National AI Strategy 2031 and the appointment of the world's first AI Minister in 2017, demonstrate a strong direction towards AI-centric economic and social value.
The human capital aspect, with nearly 7,000 AI specialists in the country, highlights a robust base, yet expanding this talent pool is essential for sustaining innovation, economic transformation and keeping pace with AI advancements. The UAE is also among the regional leaders in AI-related research, with approximately 700 AI-related publications. However, there remains a palpable need to bridge the gap toward achieving globally recognized innovations.
While the UAE surpasses the average investment level within its peer group (AI Contenders), focusing on mobilizing further private sector capital and deeper involvement in AI ventures would allow the UAE to be positioned at the AI Pioneer level. The country has also demonstrated global ambition through significant foreign investments, including the $100 billion MGX fund, which reflects its strategic commitment to shaping the future of AI beyond its borders. On the infrastructure front, the UAE is well-positioned, with 35 data centers and the highest public cloud expenditure per employee in the GCC at USD 228, creating a robust foundation for AI technologies and platforms to thrive.
'Our research findings reveal that advancing private sector engagement and investment, improving R&D outcomes to global innovation levels, and expanding the homegrown AI talent pool, will further solidify the UAE's position as a global AI leader. These imperatives will accelerate the UAE's journey towards a clear status as an AI Pioneer, multiplying economic and social benefits at the national level.' said Rami Mourtada, Partner and Director at BCG.
A Region on the Rise: GCC's Unified Push Toward AI Maturity
Beyond the UAE, the broader GCC region is witnessing an accelerated push toward AI maturity. Saudi Arabia, also an AI Contender, has made major strides with a robust digital foundation, regulatory leadership through the Saudi Data and AI Authority (SDAIA), and the ambitious goal to be among the top 15 AI nations by 2030. Qatar and Oman are building modern infrastructure and upskilling initiatives like Qatar's national AI strategy and Oman's Makeen Nanodegree program. Meanwhile, Bahrain and Kuwait are laying the groundwork for AI readiness through fintech-driven ecosystems and foundational strategies, respectively.
'The UAE stands out as a beacon of advanced leadership and execution in AI — but what makes this moment remarkable is the broader wave of transformation across the GCC,' said Dr. Lars Littig, Managing Director and Partner at BCG. 'We're witnessing a region-wide momentum that, if harnessed collectively, has the potential to position the GCC as one of the most future-ready clusters for AI innovation globally. This includes the growing trend of countries leveraging AI in sector-specific ways—for instance, applying AI to optimize oil production or enhance supply chains—enabling practitioners to deliver real-world impact while advancing their AI maturity."
Approaches to Foster AI Maturity in the Gulf
BCG's GCC AI Pulse report supports the strategic advancement of national visions aimed at enhancing countries' global competitiveness. The expansion of AI capabilities through dedicated upskilling programs and the acquisition of global talent will broaden the existing talent pool and infuse the regional market with international expertise and perspectives, critical for innovative leaps in AI.
In addition, governance structures must be realigned to better adhere to evolving AI ethics frameworks and international standards, ensuring responsible and sustainable AI development. Advancements in policies will solidify the UAE's reputation as a leader in ethical AI practices, a benchmark against which global counterparts are measured.
Moreover, there is significant room for intensifying research and development investments to foster stronger academia-industry collaborations. This will spur innovation and cement the UAE's position as a hub for cutting-edge technological advancements, matching and potentially surpassing global AI leaders such as the US, China, Singapore, the UK, and Canada in certain areas.
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