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The UAE’s Artificial Intelligence (AI) market is forecast to reach Dh170bn ($46.33bn) by 2030, according to data from Grand View Research (GVR), underscoring the country’s growing role in the Middle East’s $166bn (Dh610bn) AI boom.
The California-headquartered firm said the MENA AI market, valued at $11.92bn (Dh43.7bn) in 2023, is projected to expand almost fifteen-fold to $166.33bn (Dh610bn) by 2030, growing at an annual rate of 44.8 per cent.
The report follows the UAE’s rollout of its first Arabic-language AI model earlier this year.
“The Middle East, and especially the UAE, is no longer just an adopter of global AI technologies – it’s, in fact, shaping its own playbook,” said Swayam Dash, MD at Grand View Research. “With sovereign funds backing innovation, and policies like the UAE’s new Strategic Plan 2031 leading the way with focus on utilising artificial intelligence in achieving greater financial efficiency for the federal government, the region is becoming a laboratory for how AI can drive both governance and growth.”
The study found that nearly three in four UAE companies have maintained or increased their AI investments in the past year. Machine learning and deep learning are driving growth, particularly in healthcare, logistics, and financial services.
The MEA AI market is growing at a CAGR of 33.6 per cent
According to the report, the AI in healthcare market in the Middle East and Africa, valued at $193.1m (Dh709m) in 2023, is projected to reach $1.47bn (Dh5.39bn) by 2030, growing at a compound annual growth rate (CAGR) of 33.6 per cent. The region’s legal AI sector, currently at $43.3m (Dh159m), is expected to nearly triple to $121.5m (Dh446m) at a CAGR of 18 per cent over the same period.
“The release of region-specific AI metrics for the first time quantifies what many have sensed – that the UAE and its neighbours are at the tipping point of a generational transformation,” Dash said.
“And the next wave of opportunity will come from specialisation. Sectors like healthcare and legal technology are still emerging here and hence the potential is immense. With the AI in regional healthcare market alone projected to touch $8.39bn (Dh30.8bn) by 2033, we’re looking at a decade of exponential growth. Likewise, the legal AI space, though currently small, represents a first-mover opportunity in digitising governance, compliance, and regulatory frameworks – areas where the Middle East can define its own benchmarks rather than follow global ones,” Dash added.
The report noted that the MENA region is emerging as one of the world’s most dynamic AI frontiers, fuelled by government-led digital transformation agendas, rapid urbanisation, and the rollout of AI-enabling technologies such as 5G, cloud, and IoT.
“Machine learning and deep learning continue to dominate adoption across smart-city initiatives, healthcare, and urban management – with the UAE leading the charge in real-world integration,” said Dash.
Grand View Research, headquartered in San Francisco with operations in the US and India, provides market intelligence and consulting across more than 45 industries and 150,000 markets globally.
