The UAE is among the fastest-growing AI markets globally, with businesses across key sectors significantly expanding their adoption of artificial intelligence and cloud technologies, according to new research from Amazon Web Services (AWS) launched in collaboration with the UAE’s Artificial Intelligence Office.
The “Unlocking the UAE’s AI Potential 2026” report, developed by global research firm Strand Partners as part of a collaboration between the UAE Artificial Intelligence Office and AWS shows that AI adoption in the UAE has surged to 72% of businesses, up from 53% one year ago, representing 36% year-on-year growth.
Dr. Abdelrahman Al Mahmoud, Director at the UAE Artificial Intelligence Office, said: “The UAE has long recognised AI as a key driver of economic growth, better services and future competitiveness. Our focus is on creating the right environment for organisations to innovate, scale new solutions and translate the potential of AI into meaningful outcomes for society.”
Dr. Abdelrahman Al Mahmoud added: “With 72% of businesses in the UAE now adopting AI, we are seeing the impact of a model built on turning ambition into action. This progress reflects how the UAE has moved from setting a clear national vision for AI to enabling adoption at scale, creating a success story with global relevance and delivering tangible impact across the economy.”
Chris Erasmus, Managing Director for AWS, UAE & MENA Growth Markets, said: “In the UAE, leadership doesn’t wait for perfect conditions – it acts. What we’re seeing in this research reflects that: businesses are adopting AI at speed, moving beyond ‘can we use this?’ to ‘how do we scale it responsibly?’ Our investments in regional infrastructure, collaborations, and skills exist to answer that question – equipping organisations with the sovereign controls and technical capability to turn experimentation into real-world impact.”
AI is also accelerating innovation across the UAE, with 85% of AI adopters reporting a faster pace of digital change and expectations that this will increase further in the coming years.
Cloud computing continues to underpin this transformation, giving UAE businesses access to world-class AI infrastructure, tools, and solutions at scale.
To power this expansion, AWS is investing up to AED 20.1 billion ($5.47 billion) in the AWS Middle East (UAE) Region through 2037, estimated to contribute AED 41 billion ($11.16 billion) to national GDP. To give government entities and enterprise organizations total data control and compliance confidence, AWS and e& enterprise launched the AWS UAE Sovereign Launchpad, endorsed by the UAE Cybersecurity Council.
Leading UAE organisations – including Property Finder, Virgin Mobile UAE, The ENTERTAINER, and Careem – are leveraging AWS cloud and generative AI solutions to drive operational performance and transform customer experiences at scale.
The report underscores how the UAE’s investments in digital infrastructure, talent, and innovation ecosystems are paving the way for an AI-driven economy aligned with the national strategies. To sustain this momentum, more businesses must move beyond incremental AI gains by building on world-class infrastructure, a strong local talent pool, and a trusted regulatory environment to unlock deep innovation at scale.
AWS is backing this momentum with a $1 billion investment with e& to deliver sovereign cloud and AI capabilities. The company is also investing in local talent through the AI Nation – Afaaq Program, aiming to equip 30,000 people across the UAE with free access to AWS training. Furthermore, AWS maintains a collaboration with Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) and supports initiatives like Qudwatech, a mentorship program designed to nurture Emirati women in technology across all career stages.,
The road ahead
The report identifies four priorities to sustain and accelerate the UAE’s AI leadership, each aligned with the national goals of the UAE:
- Accelerate responsible AI adoption supported by secure, scalable cloud infrastructure
- Ensure policy and regulation enable rather than slow innovation
- Address skills shortages to build the UAE’s knowledge economy
- Increase access to funding for businesses of all sizes, with a focus on AI-first startups and SMEs
With these enablers in place, the UAE is well-positioned to convert strong AI momentum into enduring global competitiveness and the full economic transformation at the heart of its national vision and goals.
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