As Dubai consolidates its position as a global financial hub, advanced technologies like artificial intelligence are significantly shaping innovations in the city. AI firmly stands at the centre of this transformation, spearheading growth as global firms eye a growth trajectory in the Middle East.
The Dubai International Financial Centre (DIFC) has been pushing this innovation further ahead, integrating it with the financial ecosystem in the region. Growing firms in the UAE are increasingly seeking AI consulting services from established teams to stay ahead of the curve.
The Integration of AI in DIFC Operations
Speaking at the Dubai AI Festival, the Governor of DIFC revealed that AI is currently being used in 26 categories of service requests within the centre. It accounts for nearly 15% of all interactions between businesses and tenants.
This trend is not just about digitization, but the institutionalization of AI across core service delivery systems.
The Dubai AI Campus, a hub for innovation in the DIFC, also supports this trend. Interestingly, the Campus has attracted more than 180 AI-driven startups in the last one year. It has been shouldering a crucial responsibility in accelerating AI-oriented growth in the economy.
A Global Business Hub with a Digital Advantage
The appeal of the DIFC extends beyond infrastructure. It is home to a professional community of over 44,000 and offers a tax-free environment. The DIFC also conducts business in English and is consolidated by a stable currency based on dollars. All these elements make the international environment for businesses highly competitive in the Middle East.
The financial implications of this transformation are significant. In 2023, the AI sector in Dubai was valued at $3.5 billion, and is projected to reach $46 billion by 2030. It marks a tremendous annual growth rate of 44%. This figure marks the rise of intelligent systems that have been:
- Reshaping operations
- Enhancing risk analysis
- Improving customer service
- Improving operational efficiency
Key Factors Driving Policies Behind the Growth of AI
The AI-oriented vision of Dubai is not solely about expanding its economy. Structural requirements are a crucial factor in this growth trajectory. A large proportion of the Emirati workforce remains concentrated in public sector roles. This employment model has been flagged as unsustainable by the International Monetary Fund (IMF) considering that the demand for oil might decline in the long term as the world switches to renewable energy. Therefore, the adoption of AI serves both a financial and a strategic goal.
Interestingly, in Dubai, both digitization and longstanding traditions find a balanced coexistence. For instance, paper cheques remain common for rental and leasing transactions. Cash continues to dominate the famous gold souk of the city. However, gradual changes are under the way, with top real estate developers now accepting Bitcoin.
