(MENAFN- Khaleej Times)

The Global AI Competitiveness Index by the International Finance Forum (IFF), Deep Knowledge Group (DKG), positions the UAE as one of the strongest emerging AI powers, particularly because of its fast-growing enterprise ecosystem and deepening talent pool.

The latest findings resonate with a series of global indexes released over the past year - including Stanford University, Oxford Insights and other research bodies, painting a consistent picture of a nation moving quickly and strategically to consolidate its position in the AI era by accelerating its ascent as one of the world's most advanced artificial intelligence hubs, with a growing body of international research placing the country among the top performers in AI talent, enterprise activity and government readiness.

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The IFF-DKG report ranks the UAE ninth worldwide in AI enterprise density, with 49.5 AI firms per million people - a level that outpaces many advanced economies and highlights the country's growing appeal for AI startups and scale-ups. It also places the UAE 16th globally in terms of its share of the world's AI talent, and among the top 20 in talent density, surpassing countries such as Italy and Russia.

Much of this rise is attributed to the UAE's proactive governance approach. While the index does not assign a single consolidated“AI governance ranking,” it highlights the UAE's strong performance in governance-related categories, driven by the National Strategy for Artificial Intelligence 2031 and the government's steady rollout of ethical frameworks. The introduction of a non-binding AI Charter in 2024 and the recognition of Dubai's General Directorate of Residency and Foreigners Affairs with a“Best AI Governance Strategy” award in 2025 underscore the country's efforts to embed responsible AI throughout its public sector.

Investment activity also strengthens the UAE's global profile. The IFF–DKG assessment ranks the country 11th globally for AI startup financing, reflecting the scale of capital flowing into AI-driven ventures. According to DKG, the UAE serves as a“blueprint” for how a national vision, when backed by targeted investment and a supportive regulatory environment, can be rapidly translated into measurable outcomes.

These outcomes are increasingly visible across the public sector. At the UAE Government Annual Meetings, officials announced that federal entities have reached an unprecedented 97 per cent utilisation of AI tools - one of the highest known levels of government AI adoption worldwide. To accelerate progress further, the UAE launched its own Artificial Intelligence Readiness Index to measure how prepared each federal institution is to scale AI across its operations.

International benchmarks validate these accomplishments. The Stanford AI Index lists the UAE among the world's top five countries for overall AI vibrancy, capturing factors such as research activity, talent, infrastructure and deployment. Meanwhile, Oxford Insights places the UAE first in the Arab world and within the top 20 globally in its Government AI Readiness Index, highlighting the country's strength in digital capability, policy maturity and institutional readiness. Together, these rankings confirm that the UAE's rapid progress is substantiated by independent global assessments rather than self-reported claims.

The private sector is advancing in parallel. A study by the Harris Poll, cited by Dataiku's head of AI strategy Kurt Muehmel, found that UAE organisations are implementing AI with governance discipline that exceeds global norms. About 77 per cent of UAE respondents said their AI workflows were“always traceable”, indicating strong oversight and transparency - crucial components of responsible AI deployment. While adoption is scaling quickly, experts caution that continuous improvements in governance will be essential to maintain trust and mitigate risks.

The economic implications are substantial. PwC estimates that AI could contribute around $96 billion to the UAE economy by 2030, equivalent to more than 13 per cent of national GDP - one of the highest projected contributions in the region. With government services already using AI at an advanced level, the next wave of expansion will come from industries such as finance, retail, logistics, healthcare and energy, where AI is expected to transform operations and generate new commercial models.

For analysts at DKG, the UAE is not only keeping pace with leading AI nations but shaping how policy, governance and technology can converge to create a new model for national competitiveness in the age of artificial intelligence.“As the UAE positions itself as a global testbed for AI-powered business innovation, the country's mix of strong infrastructure, progressive regulation and high-speed adoption is drawing international investors and major AI companies.'

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