The Emirates is the hot spot for attracting thousands of startups, especially tech ones. Though, what is the reason behind this sudden rise?
Economic diversification is a leading driver of the AI revolution of the UAE startups. In this blog, we will discuss how AI is changing the startup ecosystem for the better, and how investors and innovative startups can benefit by expanding their business in the UAE.
The Origin of the AI Revolution in the UAE
The roots of the AI revolution in the UAE startups lie in the vision of diversifying the UAE’s economic landscape and reducing the reliance on oil. Therefore, in 2017, the government launched its visionary strategy, to support AI-driven businesses, driving innovation and boosting the growth of AI-based startups. The aim of the National Strategy for Artificial Intelligence 2031 is simple: to incorporate AI technology in UAE startups in diverse industries to become the AI powerhouse and the leader globally by 2031.
Change in the Startup Ecosystems in UAE
Government and a favorable environment are the key drivers of industrial growth. Therefore, when it comes to the adoption of AI and supporting a digital transformation using AI, the startup ecosystem plays a vital role. The AI-driven startup ecosystem in the UAE depends on two pillars: government policies and supporting institutions for AI-driven startups.
Government Policies
The government has used its resources to boost innovation in AI-driven business. They are more focused on supporting local startups and attracting foreign investors and startups. Following are a few government policies to create a healthy startup ecosystem in the UAE:
National Strategy 2031 is focused on creating a research and innovation platform to facilitate startups to develop AI products and services. They offer financial aid to promising projects to boost growth. Falcon AI is a fine example of the government supporting startups and driving the AI revolution in the UAE.
- National Strategy 2031 is focused on creating a research and innovation platform to facilitate startups to develop AI products and services. They offer financial aid to promising projects to boost growth. Falcon AI is a fine example of the government supporting startups and driving the AI revolution in the UAE.
- The UAE has started offering startup visas to innovative businesses to help them settle in the UAE hassle-free and focus on developing their business. There is no need to join with local businesses. Anyone with a promising startup idea can apply and work in the UAE.
- Free zones are being created, they are industry-specific areas with access to relevant resources. It offers the startups a support system to rely on and find investors and customers easily. They provide complete ownership to the businesses in the free zone to attract global entrepreneurs and investors.
Establishing Institutions to Support the AI Revolution
Investment and mentorship matter the most in supporting AI technology at an early stage. Therefore, the UAE has taken some active steps to establish incubators, accelerators, and policies to drive angel investment. Thus, the startup can access the initial support needed to achieve success with its AI-driven business in the UAE.
Incubators are the core of driving the AI revolution in the UAE, by supporting startups in ideation or early stages. The incubators provide the space, guidance, and resources needed to research and develop the startup from the ground up. A few government-recognized incubators in the UAE are MBZ Incubation and Entrepreneurship Center (MIEC), Area 2071, and Hub71.
On the other hand, accelerators are focused on driving growth for AI-driven businesses. They provide financial support and guidance to adapt to market trends. A few well-known startup accelerators in the UAE are DIFC, TURN8, and FasterCapital.
Leading Sectors Adopting AI in The UAE
In the National Strategy 2031, the government stressed that R&D in the following three industries will make a significant impact in revolutionizing AI.
Resources And Energy
Energy has been the powerhouse of the UAE economy. Therefore, they want to utilize dominance and enhance its utilization and allocation to maximize profitability. Using AI technology, we can optimize resource consumption and improve production capacity to maximize ROI. A few AI startups in the Energy industry are Astron, Hitek AI, and AIQ.
Logistics and Transportation have been focused on AI transformation to enhance delivery and supply management. The AI predictive mechanism helps us optimize the routes for traveling, overlook if the traffic rules are adhered to on the drive, and automate a few warehouse operations. A few startups in the Transportation and Logistics industry thriving with AI innovation are Trukker, Fero, and IQ Robotics.
Tourism and Hospitality:
Tourism and hospitality are critical sectors of the UAE. They are a special target of strategy to improve it using AI. The focus is on streamlining the process of finding relevant hotels, places, and rides to enhance the traveling experience and boost the travel economy. A few AI-driven companies in the tourism and hospitality industry are Turpal, GuestLink, and TPConnects.are critical sectors of the UAE. They are a special target of strategy to improve it using AI. The focus is on streamlining the process of finding relevant hotels, places, and rides to enhance the traveling experience and boost the travel economy. A few AI-driven companies in the tourism and hospitality industry are Turpal, GuestLink, and TPConnects.
Other sectors, such as Fintech, Edtech, and innovative city development, are also reaping the benefits of the AI revolution in the UAE.
So, if you are an investor looking for promising startups or a startup looking to expand in any place in the UAE, we have some good news for you!
We are organizing an International Investors Summit 2024 in Abu Dhabi on 28-29 November. The International Investor Summit will house global delegates, industry experts, investors, and startup entrepreneurs to help them network with one another. Book your pass and take part in the UAE’s startup digital transformation and benefit from AI innovation. Check our website for more information.
Conclusion
There is an AI revolution in UAE startups thanks to their supportive ecosystem. The startup ecosystem in the UAE has reshaped with the launch of their visionary National Strategy 2031 of becoming an AI leader by 2031.
Following the strategy, they have built supportive policies to support local startups with free zones, tax benefits, and more. On the other hand, they want to attract foreign investment and startups with startup visas and authority to start self-owned startups in the UAE. Startup-supportive institutes like incubators and accelerators have been thriving, with the government backing them up to promote research and develop AI-driven businesses in the UAE.
If you want to explore AI technology in UAE startups to start your startup or invest in one, the International Investors Summit is the perfect place for you. Check out our website for more information.
FAQ
Why is there a surge in AI-driven business in the UAE?
UAE has become a hotspot for AI-driven businesses due to its supportive environment. Following their National Strategy of AI 2031, they have created many policies and supported institutes, leading to the growth of AI startups in diverse industries. Thus, through this, they want to achieve their goal of becoming AI leaders by 2031.
How does the startup ecosystem in the UAE support entrepreneurs?
UAE offers startup visas, tax benefits, and access to advanced infrastructure through free zones to support AI startups. Additionally, they have created supportive strategies to develop startup institutes like incubators and accelerators to help the startup grow and adapt in the UAE market.
How do I find AI-driven business in the UAE?
You can connect with startup institutes like incubators to find promising startups in the early stages. However, if you want to invest in an established startup, networking events like the International Startup Summit can help you find AI-driven business in the UAE.
