MBRSG and Google.org unveil report on UAE’s AI startup ecosystem

MBRSG and Google.org Unveil Key Report on the UAE’s Thriving AI SME Ecosystem

Dubai, UAE –
Mohammed Bin Rashid School of Government (MBRSG), in collaboration with Google.org, has published a major new paper titled “The Artificial Intelligence SME Ecosystem in the UAE: Overcoming Challenges, Expanding Horizons.” The paper takes an in-depth look at the changing landscape of small and medium-sized enterprises (SMEs) operating in the UAE’s artificial intelligence (AI) sector.

The study is based on field studies of 81 AI-driven SMEs in the UAE, selected from a larger pool of 327 companies across the MENA region. While the research covers a broad geographic scope, including the GCC, North Africa and the Levant, the UAE is a key focus, demonstrating its leadership in AI adoption and innovation.
His Excellency Dr. Ali bin Sebaa Al Marri, Executive President of MBRSG, spoke about the event and stressed the School’s commitment to empowering future Arab leaders in various government areas. He emphasized that SMEs have played an important role as early adopters and innovators of AI, considerably contributing to the UAE’s success in this field.

“The UAE’s AI ecosystem is becoming more robust, with Dubai and Abu Dhabi emerging as significant locations for AI innovation. This report emphasizes the necessity of joint initiatives to realize AI’s full potential in promoting economic and societal progress,” H.E. Al Marri stated.

Rasha El Hallak, Head of Government Affairs and Public Policy UAE at Google, praised the study, stating, “The UAE’s startup ecosystem is brimming with innovation, and this report showcases the potential of local entrepreneurs to shape the future of AI, both regionally and globally.”

The findings reveal that the UAE has developed one of the MENA region’s most cohesive and advanced AI environments, driven by strategic government initiatives, mature data infrastructure, and proactive regulatory reforms. SMEs, particularly in Dubai and Abu Dhabi, benefit from a supportive environment that promotes the use of modern technologies such as machine learning, natural language processing (NLP), and computer vision.

Compared to other MENA countries, where many still have significant structural deficiencies, the UAE stands out for its regulatory clarity and investor-friendly policies. The report also highlights strong private-sector financing in the UAE, contrasting with neighboring countries that largely depend on public or external funding.

Nonetheless, the study identifies persistent challenges, particularly the shortage of skilled AI professionals, especially in governance fields such as AI ethics, compliance, and safety. Intellectual property protection, while greater in the UAE than elsewhere in the region, remains a worry for SMEs looking to expand abroad.

With UAE enterprises accounting for more than 25% of MENA survey responses—and Dubai alone accounting for more than half of these companies—the UAE is establishing regional norms for startup maturity, scale, and innovation impact.

The report also warns of a growing AI gap in the MENA area, highlighting the UAE as a potential driver of regional digital growth. With MENA’s AI sector expected to create more than $320 billion in economic value by 2030, the report advocates for immediate action to close the digital and capability gaps in the area.
As a leading institution in government administration and public policy education, MBRSG continues to spearhead research into AI governance, AI safety, and ecosystem development, contributing to the broader mission of advancing government excellence throughout the Arab world.