Key industry verticals in Dubai - AI investment

Introduction

several key sectors in the UAE are seeing significant AI investments:

Major Sectors for AI Investment

1. Software Development
The software segment led the UAE AI market in 2023, accounting for 35.9% of revenue share. This includes investments in AI-powered software for various applications across industries.

2. Healthcare
Significant investments are being made in AI for healthcare applications. For example, Cleveland Clinic Abu Dhabi has integrated multiple AI systems to improve complex care offerings and assist in diagnosing and treating stroke.

3. Financial Services
The BFSI (Banking, Financial Services, and Insurance) sector is a key area for AI investment. The Central Bank of the UAE has issued guidelines for financial institutions adopting enabling technologies, including AI.

4. Government Services
The UAE government is heavily investing in AI for public services, particularly in areas such as healthcare, public safety, and transportation.

5. Energy and Resources
This is one of the priority sectors identified by the UAE’s AI Office for AI application and investment.

6. Logistics and Transport
Another priority sector for AI application in the UAE, with companies like Lyve providing AI-powered logistics solutions.

7. Tourism and Hospitality
The UAE government has identified this as a priority sector for AI investment and application.

8. Cybersecurity
Given its importance in the digital age, cybersecurity is a key area for AI investment in the UAE.

9. Media and Entertainment
This sector is specifically mentioned in the market outlook for AI investment in the UAE.

10. Retail
Companies like Infoarc are specializing in AI solutions for retail, including image recognition and eCommerce analytics.

Investment Trends

• The UAE artificial intelligence market was valued at $3.47 billion in 2023 and is projected to grow at a CAGR of 43.9% between 2024 and 2030.

• Private sector AI investments are expected to reach AED 335 billion (approximately $91.28 billion) by 2031, significantly boosting the country’s economy.

• The UAE government has announced a $500 million program to accelerate research and development into AI and other emerging technologies.

Conclusion

These investments across various sectors demonstrate the UAE’s commitment to becoming a global leader in AI by 2031, aligning with their Centennial 2071 Vision. The focus spans from research and development to practical applications in both public and private sectors.