Dubai: The Mohammed Bin Rashid School of Government (MBRSG), with support from Google.org, has released a new report titled 'The Artificial Intelligence SMEs Ecosystem in the UAE: Overcoming Challenges, Expanding Horizons', which delves into the artificial intelligence (AI) small and medium businesses sector and examines the unique strengths and constraints shaping its AI ecosystem.
According to Emirates News Agency, the research is based on fieldwork involving 81 UAE-based small and medium-sized enterprises (SMEs) active in the burgeoning AI ecosystem, drawn from a larger list of 327 MENA-wide firms. The study offers a comprehensive analysis of AI ecosystems across the GCC, North Africa, and the Levant, with a particular focus on the UAE.
Dr. Ali bin Sebaa Al Marri, MBRSG's Executive President, emphasized the School's commitment to empowering future leaders in key government sectors within the UAE and the broader Arab world. He stated, 'As AI continues to transform economies and societies, this report particularly platforms small and medium-sized enterprises, who have been the real trailblazers in AI adoption and innovation.'
The report highlights Dubai and Abu Dhabi's emerging roles as pivotal centers of AI innovation and underscores the necessity for collaborative efforts to unlock AI's full potential and drive economic and social progress. Rasha El Hallak, Head of Government Affairs and Public Policy UAE at Google, remarked on the report's value, noting its emphasis on local entrepreneurs' innovation and the potential to shape the future of AI across MENA.
Key findings from the report indicate that the UAE is developing one of the most cohesive and advanced AI ecosystems in the MENA region. This development is supported by government-driven infrastructure, data maturity, and regulatory reforms. SMEs in Dubai and Abu Dhabi benefit from an enabling environment that fosters the adoption of advanced technologies, including generative AI. The UAE's regulatory clarity and strategic approach to AI development set it apart from other MENA countries, where foundational gaps remain.
The report also reveals that UAE businesses demonstrate advanced capabilities in deploying AI technologies, such as machine learning, natural language processing (NLP), and computer vision, while regional peers are in earlier adoption stages. Additionally, stronger private-sector capital access supports UAE's AI startups, whereas other regional economies rely more heavily on public or foreign support.
Despite the progress, challenges such as talent shortages in AI governance, including ethics assurance, compliance, and safety, persist. While UAE firms fare better in intellectual property protection due to stronger enforcement, they remain cautious about expanding IP portfolios regionally or internationally. With a significant portion of MENA survey responses coming from UAE-based companies, the country leads the region in per capita AI startup activity, setting benchmarks for maturity, scale, and regional influence.
The report calls attention to the widening AI gap in the MENA region and suggests that the UAE could serve as a regional growth accelerator. With the region expected to capture over US$320 billion of economic value from AI by 2030, the report stresses the urgency of closing digital and AI capability gaps.
The Mohammed Bin Rashid School of Government is dedicated to advancing government excellence in the UAE and the Arab region through education, research, and initiatives that facilitate knowledge exchange among government institutions. As a policy research center, the School leads projects on AI governance, safety, and ecosystem enablement.