Top 10 AI Startups in the UAE: Driving Innovation in 2025
- Talha A.
- 3 minutes ago
- 8 min read
The United Arab Emirates (UAE) has positioned itself as a frontrunner in the global artificial intelligence (AI) landscape. With ambitious national strategies like the UAE National Artificial Intelligence Strategy 2031, the country is leveraging AI to diversify its economy beyond oil, enhance public services, and foster innovation across sectors. In this blog, we'll explore the UAE AI market overview, including growth rates and challenges, before diving into the top 10 AI startups making waves in Dubai, Abu Dhabi, and beyond. Whether you're an investor, entrepreneur, or tech enthusiast, this guide highlights the companies revolutionizing industries with cutting-edge AI solutions.
Overview of the UAE AI Market
The UAE AI market is experiencing explosive growth, driven by strong government support, strategic investments, and a commitment to digital transformation. As of 2024, the market size stands at approximately USD 578.10 million, fueled by initiatives such as the appointment of the world's first Minister of State for Artificial Intelligence and the development of smart cities like Dubai's Smart Dubai and Abu Dhabi's digital agenda.
Growth Rate
Projections indicate robust expansion ahead. The market is expected to reach USD 4,247.10 million by 2033, exhibiting a compound annual growth rate (CAGR) of 22.07% from 2025 to 2033. This growth is even more pronounced in specific segments; for instance, the UAE AI chip market is forecasted to grow at a CAGR of 43.9% through 2030, reaching USD 46.33 billion. Regionally, AI's contribution to the Middle East's GDP is projected to hit USD 320 billion by 2030, with the UAE and other Gulf nations accounting for around USD 260 billion of that figure. Sectors like machine learning are set to expand at a CAGR of 32.04% from 2025 to 2031, potentially reaching USD 2.73 billion by 2031.
Key drivers include:
Government Initiatives: The UAE AI Strategy 2031 aims to integrate AI into healthcare, education, transportation, and energy, supported by R&D investments and public-private partnerships.
Smart City Projects: AI is enhancing urban infrastructure, from traffic management to public safety.
Industry Adoption: Sectors like healthcare (predictive analytics), finance (fraud detection), and logistics (autonomous systems) are rapidly adopting AI for efficiency and cost savings.
Talent and Infrastructure: Abu Dhabi's Hub71 and Dubai's AI hubs are attracting global talent and startups, with over 13 new AI-focused companies joining Hub71 in the first half of 2025 alone.
This growth aligns with broader trends, such as the shift to data-informed governance and FinTech innovations, as outlined in the UAE's 2025 federal strategic framework.
The Pillars of Growth: Ecosystem Enablers and Government Backing
The success of the UAE's AI startups isn't happening in a vacuum. It is actively nurtured by a robust ecosystem of government bodies, investment funds, and innovation hubs dedicated to fostering technological advancement. ⚙️
Hub71 (Abu Dhabi): A global tech ecosystem that provides startups with access to a network of partners, investors, and talent. As mentioned, its consistent attraction of new AI companies underscores its central role in Abu Dhabi's tech scene.
Dubai Future Foundation (DFF): This organization spearheads Dubai's innovation agenda through initiatives like the Dubai Future Accelerators, which pairs promising startups with government entities to solve real-world challenges.
Mohamed bin Zayed University of Artificial Intelligence (MBZUAI): As the world’s first graduate-level, research-based AI university, MBZUAI is a critical engine for developing the specialized talent needed to overcome the local skill shortage. It ensures a steady pipeline of AI researchers and engineers for the growing market.
Sovereign Wealth Funds: Major players like Mubadala Investment Company and the Abu Dhabi Investment Authority (ADIA) are increasingly channeling capital into AI and deep tech, both directly and indirectly, providing the significant funding required for long-term, R&D-intensive projects.
Challenges in the UAE AI Market
Despite its momentum, the UAE AI market faces several hurdles that could impact startups and broader adoption:
Talent Shortage: There's a constrained pool of AI specialists, with demand outpacing supply. A 2025 PwC report notes rapid growth in AI skill demand in tech and professional sectors, but slower adoption in traditional industries due to skill gaps.
Data Privacy and Cybersecurity: Strict regulations and concerns over data localization laws pose compliance challenges, especially for startups handling sensitive information.
Ethical and Regulatory Frameworks: Balancing innovation with ethics, such as bias in AI algorithms, and navigating competition requires robust governance.
Scaling and Funding Issues: Many AI initiatives stall post-pilot due to misalignment with business strategies or lack of internal maturity. Startups also face regulatory hurdles and funding access, despite a vibrant ecosystem.
Competition and Implementation: High competition from global players and the need for seamless integration into existing systems add complexity.
Addressing these through education, policy reforms, and international collaborations will be crucial for sustained growth.
Emerging Frontiers: Future AI Trends in the UAE
Beyond the current landscape, several emerging trends are set to define the next phase of AI innovation in the UAE:
Generative AI and Large Arabic Models: Following G42's lead with models like Jais, there is a significant push towards developing and refining Large Language Models (LLMs) that deeply understand the nuances of Arabic dialects and culture. This will unlock new applications in customer service, content creation, and education.
AI in Sustainability and Energy Transition: With the UAE's commitment to Net Zero by 2050, AI will be pivotal in optimizing energy grids, monitoring carbon emissions, and developing climate-resilient agriculture. Expect a surge in 'Green AI' startups. ♻️
Personalized Healthcare and Genomics: AI startups are moving beyond administrative efficiency (like KLAIM) into predictive and personalized medicine. Leveraging genomic data and AI, companies will offer tailored health diagnostics and treatment plans, a key goal of the UAE's healthcare strategy.
AI Ethics and Regulation Tech (RegTech): As the market matures, there will be a growing demand for startups that specialize in AI governance, bias detection, and compliance, helping businesses navigate the complex ethical and regulatory landscape.
Top 10 AI Startups in the UAE
Here’s a curated list of the top 10 AI startups in the UAE, selected based on innovation, funding, impact, and market presence as of 2025. Each entry includes a brief overview, founding year, key products/services, and notable achievements.
1. G42 (Abu Dhabi)
Industry Focus: AI & Cloud Computing, Public Sector, Healthcare
Founded in 2018, G42 is a leading AI and cloud computing powerhouse, focusing on scalable solutions for healthcare, finance, and public services. Backed by significant investments, including a USD 2.3 billion round from Microsoft, G42 drives national-scale AI projects.
Key Products/Services: Generative AI models, cloud computing platforms, computer vision tools, and cybersecurity solutions like Arabic AI models and smart city automation.
Achievements: Subsidiaries like Core42 and M42 have pioneered early disease detection and enterprise AI for governments. G42's partnerships position it as a key player in the UAE's AI Strategy 2031.
2. Saal.ai (Abu Dhabi)
Industry Focus: Cognitive AI, Big Data, Enterprise Solutions
Established in 2018, Saal.ai specializes in cognitive AI and data-driven solutions for industries like defense, healthcare, and smart cities, emphasizing Arabic AI and decision-making enhancements.
Key Products/Services: Generative AI, big data analytics, NLP, speech processing, machine learning, and cloud-native engineering.
Achievements: Developed AI-powered sports management systems and supports digital growth with over 51-200 employees. Recognized for automation in energy and finance sectors.
3. Derq (Dubai)
Industry Focus: Mobility, Automotive Tech, Road Safety
Derq, a seed-stage startup based in Dubai, focuses on AI for connected and autonomous vehicles, aiming to improve road safety through predictive technology.
Key Products/Services: V2X solutions, driver-assistance platforms with collision prediction, dashboards, analytics, and third-party integrations.
Achievements: Raised USD 700K in 2024 funding. Its tech prevents collisions regardless of vehicle type, contributing to UAE's smart transportation goals.
4. Prop AI (Dubai)
Industry Focus: PropTech, Real Estate, Investment Analytics
Founded in 2023, Prop AI is a PropTech startup using AI to streamline real estate investments, providing insights for buyers and professionals.
Key Products/Services: AI-driven property evaluation tools, B2C investment identification, B2B data insights for brokers and developers.
Achievements: Secured USD 6 million in funding from Daman Investments. Enhancing efficiency in Dubai's booming real estate market.
5. Verofax (Dubai)
Industry Focus: MarTech, Supply Chain, Retail
Launched in 2024, Verofax transforms digital marketing and supply chains with AI, turning product packaging into consumer engagement channels.
Key Products/Services: B2B SaaS for supply chain transparency, patented product twinning, customer engagement tools.
Achievements: Funded by Shorooq Partners. Reduces acquisition costs and boosts conversions for brands in retail and logistics.
6. FACEKI (Dubai)
Industry Focus: FinTech, RegTech, Identity Verification
Since 2021, FACEKI has been revolutionizing data handling with deep tech for onboarding and fraud prevention.
Key Products/Services: AI models for document processing, customer onboarding, risk scoring, and fraud detection.
Achievements: Backed by Nama Ventures. Serves industries needing secure, efficient verification, aligning with UAE's fintech growth.
7. NextLevel AI (Dubai)
Industry Focus: Enterprise AI, Customer Service, Automation
Founded in 2021, NextLevel AI excels in voice-first AI for enterprise automation, supporting over 100 languages.
Key Products/Services: Omnichannel AI voice agents, mobile chatbots, call-center solutions.
Achievements: Raised USD 666.1K, including from Y Combinator. Enables rapid deployment for global enterprises.
8. KLAIM (Dubai)
Industry Focus: HealthTech, FinTech, Revenue Cycle Management
Established in 2020, KLAIM is a health-fintech startup using AI for billing and claims management in healthcare.
Key Products/Services: SaaS tools for claim submission, analytics, and liquidity solutions for receivables.
Achievements: Funded by Dar Ventures. Streamlines operations for providers, addressing UAE's healthcare digitization.
9. Verbatica (Dubai)
Industry Focus: EdTech, Language Learning
Verbatica is an AI-powered educational platform specializing in language learning, with a focus on English and Arabic.
Key Products/Services: AI-driven foreign language learning tools.
Achievements: Seed-stage startup contributing to UAE's education sector, leveraging AI for personalized learning.
10. Kaso (Dubai)
Industry Focus: FoodTech, Supply Chain, B2B Marketplace
Founded in 2022, Kaso connects restaurants and suppliers with AI-enabled procurement platforms.
Key Products/Services: On-demand ordering, stock management ecosystem.
Achievements: Raised USD 760K from Joa Capital. Optimizes F&B supply chains in the UAE's vibrant hospitality industry.
Frequently Asked Questions (FAQs)
What is driving the growth of the AI market in the UAE?
The growth is driven by strong government supportthrough initiatives like the UAE AI Strategy 2031, major investments in smart city projects, rapid adoption across sectors like finance and healthcare, and a supportive ecosystem including Hub71 and Mohamed bin Zayed University of Artificial Intelligence (MBZUAI).
Who are the leading AI companies in the UAE in 2025?
Leading AI companies include G42, a powerhouse in AI and cloud computing; Derq, which focuses on road safety for autonomous vehicles; Prop AI, transforming real estate investment; and KLAIM, a health-fintech company streamlining medical billing.
What challenges do AI startups face in the UAE?
The main challenges include a shortage of specialized AI talent, navigating strict data privacy and cybersecurity regulations, overcoming difficulties in scaling projects beyond the pilot stage, and facing high competition from global tech players.
How is the UAE government supporting AI development?
The UAE government is a key enabler of AI. It appointed the world's first Minister of State for AI, launched the comprehensive UAE AI Strategy 2031, and funds innovation hubs like the Dubai Future Foundation and Hub71 to attract and nurture top AI companies and talent.
What is the forecasted growth for the UAE's AI market?
The UAE AI market is projected to experience explosive growth, expanding from approximately USD 578.10 million in 2024 to USD 4,247.10 million by 2033, reflecting a compound annual growth rate (CAGR) of 22.07%.
Conclusion
The UAE's AI startups are not just participating in the global tech race; they are setting the pace in key sectors. Backed by a market poised for exponential growth and a government committed to a digital-first future, these companies exemplify how strategic vision can overcome challenges like talent shortages and regulatory hurdles.
As the nation progresses toward its 2031 vision, the fusion of capital, talent, and ambition promises to keep the UAE at the forefront of the AI revolution. The ten companies listed here are just the beginning. The real story is the ecosystem they are building—one that is resilient, innovative, and fundamentally reshaping the future.
What are your thoughts? Which of these startups do you believe will have the biggest impact by 2030? Are there any rising stars we missed? Share your insights in the comments below! For more updates on the UAE's dynamic AI ecosystem, subscribe to AI News Hub.
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