How the UAE is leading the AI revolution: From smart government to global tech leadership

Business Tech 02-01-2026 | 15:20

How the UAE is leading the AI revolution: From smart government to global tech leadership

With ambitious national strategies, cutting-edge initiatives like K2 Think, and a focus on human-centered AI, the UAE is shaping the future of technology, education, and economic growth in the Arab world and beyond.
How the UAE is leading the AI revolution: From smart government to global tech leadership
UAE looks ahead to the future of Artificial Intelligence. (Websites)
Smaller Bigger

“The United Arab Emirates is taking decisive steps to boost investment in modern technology and artificial intelligence, leveraging these tools to achieve developmental goals and stay aligned with global advancements, all within the country’s vision for a better future for generations,” affirmed Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, during the launch of the K2 Think Model.

 

As the nation enters 2026, it does so with a proactive strategy for adopting future technologies. But what does this approach entail, and what is the projected scale of the UAE’s AI investment for 2026?

 

The UAE’s approach to the future of artificial intelligence focuses on adopting advanced technologies to benefit both society and humanity. The country has launched a national strategy that emphasizes investing in talent, boosting infrastructure competitiveness, and introducing the Artificial Intelligence Readiness Index to evaluate how prepared federal entities are to lead in the AI era. In addition, the compatibility index for large language models with Emirati culture measures the accuracy and cultural alignment of AI outputs - such as those from the K2 Think Model, one of the world’s most advanced open-source inference models. These initiatives place Emirati culture at the center of the nation’s vision for AI and its future.

 

Proactivity in integrating artificial intelligence

Omar bin Sultan Al Olama, UAE Minister of State for Artificial Intelligence, highlighted the government’s forward-looking vision, emphasizing its proactive approach to emerging technologies. “The primary goal is to empower citizens and government employees with artificial intelligence skills,” he stated in September 2025, as reported by WAM.


Al Olama noted, “The UAE was an early adopter in moving into the artificial intelligence era, taking pioneering steps 12 years ago to build a better future for new generations. Under the guidance of Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, the country transitioned from traditional to electronic government, then to digital, and finally to a smart government. Today, we see the peak of this transformation, as AI applications are used to enhance government performance. This demonstrates that the UAE government and leadership have a proactive vision, anticipating new horizons and charting a roadmap for development that meets human needs in the most innovative and precise ways.”


According to KPMG Middle East’s latest report, released in November 2025, UAE leaders are among the most proactive globally in integrating artificial intelligence to enhance human capabilities rather than replace them. The report highlights efforts to strengthen digital culture within work teams and invest in employee retraining programs, preparing the workforce for next-generation technologies. By focusing on the human element, this approach underscores the nation’s priorities for future skills and long-term competitiveness.


The global financial consulting firm also notes that artificial intelligence remains a central pillar of strategic investment in the UAE. More than half of the UAE CEOs surveyed by KPMG consider AI integration a top strategic priority - well above the global average of 34%. Confidence in the responsible deployment of AI is equally strong, with 92% expressing readiness to implement it within clear governance frameworks.


The UAE’s move toward efficient inference-based models is supported by national initiatives such as "K2 Think", developed by Mohamed bin Zayed University of Artificial Intelligence in collaboration with G42, emphasizing the country’s focus on measurable impact and smart innovation over sheer scale.

 

The report further indicates that 74% of CEOs expect returns on their AI investments within one to three years, underscoring a solid commercial approach to digital transformation.


Dubai: A global capital for the digital economy

Dubai’s Crown Prince, Deputy Prime Minister, Minister of Defense, and Chairman of the Executive Council, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, stated during his meeting with American billionaire Elon Musk on Sunday, December 21, 2025, that Dubai continues to foster a supportive environment for innovation. Through flexible regulations, strong partnerships, and investment in talent, the city nurtures its growing tech community while contributing to a more sustainable and prosperous future.

 

The Crown Prince of Dubai states, "The next phase requires an integrated partnership between the public and private sectors... In Dubai, we work to establish the emirate's position as a global capital for the digital economy, through a sustainable futuristic system that places humans at the core of development and creates promising opportunities for future generations in the UAE and worldwide."

 

Dr. Abdel Wahab Ghoneim, Vice President of the Arab Federation for Digital Economy (under the League of Arab States) and advisor at the Cambridge International College, told Annahar that the UAE surpasses other Arab nations by “starting big” in advanced technology and artificial intelligence - picking up where others have yet to begin. For over fifteen years, the UAE has been developing fiber optics infrastructure, still largely absent in many major Arab countries, highlighting the nation’s leadership and proactive approach to technological development.

 

Ghoneim emphasizes that the UAE’s leadership extends beyond digital transformation to the sustainable development of advanced technologies. Each year, the country prepares thousands of students, equipping them with artificial intelligence and programming skills, taking steady steps toward a brighter digital future amid intense regional and global competition to strengthen non-oil economic resources.