30 September 2026
72% of businesses in the UAE have adopted artificial intelligence, up from 53% a year earlier, according to Unlocking the UAE’s AI Potential 2026, a report developed by Strand Partners as part of a collaboration between the UAE Artificial Intelligence Office and Amazon Web Services (AWS). That is 36% growth year on year, against 29% in Europe, where adoption stands at 54%. The report, released in Dubai on 30 September 2026, finds that 85% of AI adopters see faster innovation timelines, but only 31% of businesses use AI’s most advanced applications and 48% name the shortage of digital skills as a barrier.
What the report measured
The fieldwork was carried out by the research team of Strand Partners for AWS, following the guidance of the UK Market Research Society and ESOMAR. The study combines a survey of business leaders with a survey of the public, and the results were weighted to match the structure of each group.
| Parameter | Value |
|---|---|
| Report | Unlocking the UAE’s AI Potential 2026 |
| Partners | UAE Artificial Intelligence Office and AWS |
| Research firm | Strand Partners |
| Business survey | 1,000 business leaders (founders, CEOs and C-suite), representative by size, sector and region |
| Public survey | 1,000 residents, nationally representative by age, gender and region |
| Release | 30 September 2026, Dubai |
Key figures
| Indicator | Value |
|---|---|
| Businesses that have adopted AI | 72% (53% a year earlier) |
| Growth year on year | 36% (Europe: 29%, with adoption at 54%) |
| AI adopters reporting faster innovation timelines | 85% |
| AI adopters expecting AI to speed innovation further | 86% |
| Businesses using AI’s most advanced applications | 31% (28% a year earlier) |
| Businesses calling AI adoption a top or high priority | 74% |
| Businesses saying AI is critical or important to their strategy | 47% |
Adoption by industry
| Industry | Have adopted AI | Use advanced AI | Launched new AI products in the last year |
|---|---|---|---|
| Media and entertainment | 82% | 41% | 58% |
| Financial services | 79% | 45% | 54% |
| Retail | 76% | 36% | 47% |
| Hospitality | 69% | 27% | 33% |
Financial services also lead in readiness for next-generation AI, with 38% of firms saying they feel ready, followed by professional services (36%), media and entertainment (34%) and healthcare (25%).
Startups, SMEs and large companies
The gap between company types is wide. 88% of startups have adopted AI, and 53% of those use its most advanced applications; 42% of startups describe themselves as AI-first. Among small and medium-sized enterprises adoption is 68%, slightly below the national average, and among large businesses it is 51%. Of the startups that use AI, 61% report transformative or significant productivity gains and a further 27% report moderate gains.
Three stages of adoption
The report splits businesses by how deeply they use AI:
- Basic adoption, 47%: public chatbots for routine tasks or ready-made AI tools, aimed at incremental efficiency gains.
- Intermediate adoption, 19%: AI integrated across several business functions.
- Transformative adoption, 31%: advanced AI systems, several models combined, custom AI systems or agentic and autonomous AI.
Agentic AI is at an early stage. 32% of businesses say they have heard of it. Among those familiar with the technology, 9% have fully deployed it and another 9% are experimenting or piloting. When the technology was explained, a further 57% said they plan to use it or are considering it, while 30% have no plans. Only 21% of businesses feel fully or very ready for next-generation AI such as agentic AI, physical AI and advanced robotics, against 62% of startups.
What holds companies back
The report lists the barriers that businesses name most often:
- 48% cite a lack of digital skills as a major obstacle to adoption, and 45% say the skills gap directly hinders their ability to innovate;
- it takes 5.8 months on average to find an employee with the right digital skills, and 40% struggle to attract local talent with the necessary expertise;
- only 31% of employees have received digital skills training;
- 81% of businesses would raise salary offers for candidates with the right digital skills, by 39% on average;
- 34% cite a lack of clarity around data control, access and governance;
- 31% say insufficient internal financial resources prevent them from expanding AI use;
- 72% say public incentives such as grants and tax incentives are crucial or very important to their decision to adopt AI.
On data sovereignty, 66% of businesses put robust data protection, privacy and cybersecurity standards first, 58% say local laws should apply to data regardless of the nationality of the technology provider, and 55% want clear rules on who can access data and on what terms. At the same time, 87% say access to global technology companies is important for AI adoption, and only 4% would support more public investment in AI and cloud infrastructure if it raised their own costs. The report also notes that interpretations of data rules differ between Abu Dhabi, Dubai and federal institutions.
The cloud infrastructure behind the numbers
AWS says it is investing up to AED 20.1 billion in its AWS Middle East (UAE) Region through 2037, with an estimated contribution of AED 41 billion to the UAE economy. The same AED 20.1 billion and AED 41 billion figures appeared in the economic impact study AWS published in 2022, when the Region opened with three Availability Zones; that study estimated an average of 5,984 full-time jobs a year.
Other initiatives named in the release and the report:
- UAE Sovereign Launchpad, a cloud offering from e& powered by AWS and endorsed by the UAE Cybersecurity Council, commercially available since November 2025: government agencies and regulated customers can run all workloads except those classified as Secret and Top Secret, in line with the National Cloud Security Policy;
- a USD 1 billion strategic partnership between AWS and e& to deliver sovereign cloud and AI capabilities;
- the AI Nation Afaaq programme, which aims to give 30,000 people across the UAE free access to AWS training, expert coaching and sponsored certifications;
- a multi-year collaboration with Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) and the Qudwatech mentorship programme for Emirati women in technology;
- the top Tier S certification for AWS under the Dubai AI Seal, the verification framework for AI providers developed by the Dubai Centre for Artificial Intelligence.
Among the UAE companies named as users of AWS cloud and generative AI are Property Finder, Virgin Mobile UAE, The ENTERTAINER and Careem. According to the report, Dubizzle Group, which runs Dubizzle and Bayut, operates 78 AI models that generate up to half a million predictions a minute.
Four priorities named in the report
- Accelerate responsible AI adoption on secure, scalable cloud infrastructure.
- Make sure policy and regulation enable innovation rather than slow it, including clearer and more consistent requirements on data governance, localisation and compliance across the emirates.
- Close the skills gap to build the UAE’s knowledge economy.
- Widen access to funding for businesses of all sizes, with a focus on AI-first startups and SMEs.
Dr. Abdelrahman Al Mahmoud, Director at the UAE Artificial Intelligence Office, said: “With 72% of businesses in the UAE now adopting AI, we are seeing the impact of a model built on turning ambition into action.” The report places the results in the context of the UAE National Strategy for Artificial Intelligence 2031 and Abu Dhabi’s goal to become the world’s first fully AI-native government by 2027.
What this means for companies in the UAE
The report is a survey: it changes no licensing rules, fees or deadlines. Its figures are still useful when planning an AI project or a technology business here:
- Hiring takes time. With 5.8 months on average to find a specialist with the right digital skills, the hiring plan and the work visa for that person belong at the start of the project.
- Data questions come early. 34% of businesses name unclear data governance as a barrier: before choosing a cloud or AI provider, check where the data will be stored and processed and which rules apply to your sector.
- Training needs a budget line. Only 31% of employees have received digital skills training, and a tool without training tends to stay at the basic stage where 47% of businesses remain.
- Structure matters for an AI-first company. The licence activities, the choice between a free zone and the mainland, and the corporate bank account determine where a technology company can operate and trade.
How Atlant Capital can help
Atlant Capital supports entrepreneurs and companies that build or scale technology businesses in the UAE:
- choosing the jurisdiction and licence activities for an AI, software or data company and handling the company setup in the UAE;
- arranging work visas and residency for founders and hired specialists;
- preparing the documents for a corporate bank account.
Our guide to company formation in the UAE covers the steps, documents and structures in detail. For more on AI skills in the country, read our article on the UAE’s 6th place in the AI-Human Skills Synergy Index.
Conclusion
AI use among UAE businesses grew from 53% to 72% in a year, faster than in Europe, but depth lags behind breadth: 47% of companies remain at the basic stage, only 31% use advanced AI, and large businesses (51%) trail startups (88%). The constraints the companies themselves name are skills, data governance and money. The AWS investment figures quoted in the release, AED 20.1 billion and AED 41 billion, repeat those published when the AWS UAE Region opened in 2022.
Source: Zawya, Unlocking the UAE’s AI Potential 2026.
FAQ
What share of UAE businesses use AI in 2026?
72% of UAE businesses have adopted artificial intelligence, up from 53% a year earlier, according to the Unlocking the UAE’s AI Potential 2026 report by Strand Partners for the UAE Artificial Intelligence Office and AWS. That is 36% growth year on year, against 29% in Europe, where adoption is 54%. The survey covered 1,000 business leaders and 1,000 residents.
Which industries in the UAE use AI the most?
Media and entertainment leads with 82% of businesses using AI, followed by financial services with 79%, retail with 76% and hospitality with 69%. Financial services have the highest share of advanced use at 45%. Among startups 88% use AI, against 68% of SMEs and 51% of large businesses.
What stops UAE companies from scaling AI?
48% of businesses cite a lack of digital skills, 34% unclear rules on data control, access and governance, and 31% insufficient internal funds. Finding an employee with the right digital skills takes 5.8 months on average, and only 31% of employees have received digital skills training.
How much is AWS investing in the UAE?
AWS says it is investing up to AED 20.1 billion in its AWS Middle East (UAE) Region through 2037, with an estimated contribution of AED 41 billion to the UAE economy. The same figures were first published in 2022, when the Region opened with three Availability Zones. AWS also has a USD 1 billion strategic partnership with e& on sovereign cloud and AI.
