New industry survey reveals that 80% of respondents confirm venture capital firms in Dubai are actively seeking AI-driven startups, reinforcing the city’s position as a global hub for AI investment and technological innovation.
The findings are part of the newly released Practical Guide to Dubai’s AI Ecosystem 2025, developed by Duamentes Global Alliance in collaboration with Dubai Silicon Oasis (DSO). The guide provides key insights into investment trends, AI adoption, and regulatory advancements, equipping businesses and investors with essential market intelligence.
A Strategic Partnership Driving AI Growth
The collaboration between Duamentes and Dubai Silicon Oasis is aimed at accelerating AI adoption and connecting global investors with high-potential AI startups in Dubai. This initiative provides businesses with structured guidance on navigating Dubai’s regulatory framework, securing funding, and leveraging the city’s world-class AI infrastructure.
“We support business growth in 35 countries and recognize the importance of government-backed initiatives. Dubai is a great example of how state support works efficiently. To raise awareness of these opportunities, we developed this guide in partnership with DSO,” said Kristina Marinović, Chief Operating Officer, Duamentes.
“Central to our mission at Dubai Silicon Oasis is fostering knowledge and innovation across industries with the highest economic impact. A dedicated cluster of AI businesses is established to ensure collaboration and access to resources, including talent, infrastructure, and research, to facilitate innovation in emerging tech,” said Dr. Juma Al Matrooshi, Director General, Dubai Silicon Oasis.
Survey Highlights: AI Growth and Investment Trends
The report outlines key factors shaping Dubai’s AI ecosystem:
- 80% of respondents confirm that VCs in Dubai are actively seeking AI-driven startups.
- 88% report increasing market demand for AI-powered projects and solutions.
- 76% agree that Dubai’s AI regulations are now more structured and supportive.
- 51% of executives cite demand for industry-specific AI solutions as the biggest growth driver.
- 66% of AI companies operating in Dubai have chosen it as their global headquarters.
- 70% of CEOs in the Middle East are prioritizing AI investments, up from 40% last year.
“AI acts as a radar for businesses, helping them identify where they can benefit—whether it’s saving time, money, or resources. In Dubai, companies are actively looking for opportunities to automate processes, improve citizen services, and integrate AI into operations. AI is no longer optional; it’s a requirement, and the focus is now on how to extract real business value from it,” said Usman Wattoo, Vice President Sales, Kore.ai.
CEO Confidence Index: AI Investments on the Rise
The CEO Confidence Index from the report highlights a strong shift in AI investment sentiment, with:
- 70% of Middle East CEOs now prioritizing AI, up from 40% last year.
- 63% believe AI integration is the most important trend shaping business growth.
- More than half of CEOs plan to increase AI spending in 2025 to enhance automation, efficiency, and customer experience.
“Over 70% of CEOs in the Middle East are looking to invest in AI now, a massive jump from last year which was circa 40%. In the next six months, I believe we’ll start to see some truly groundbreaking use cases emerge, as companies move beyond the early stages of their initiatives and move beyond the pilot phase,” said Richard Kennedy, Director, AI for Business Institute.
Industries Leading AI Adoption in Dubai
The top five industries actively integrating AI include:
- Smart Cities & Infrastructure – AI-driven traffic management and urban planning.
- Retail & E-Commerce – AI-powered automation and predictive customer analytics.
- Real Estate & Proptech – AI-backed property intelligence and digital transformation.
- Public Sector & Governance – AI-driven automation in government services.
- Robotics & Automation – AI-led industrial innovation and logistics optimization.
“At Nota AI Middle East, we focus on AI-driven traffic solutions, helping cities reduce congestion through intelligent traffic management. Our system detects incidents in real time, reports them automatically, and integrates with relevant organizations to speed up response times and improve urban mobility,” said Dooyeon Kim, Regional President & Director, Nota AI.
Investment Trends: VCs Driving AI Growth
Dubai’s venture capital ecosystem continues to expand, with Oraseya Capital – one of Dubai’s most active AI investors, emphasizing AI and SaaS solutions.
“The investment landscape is evolving rapidly, with venture capital and government initiatives driving AI growth. Unlike other regions where AI adoption is cautious, here, investors see AI as a major opportunity,” said Derek Watson, Founder, Fusion 42.
About the Study
Duamentes delivers data-driven insights and practical strategies to help companies navigate new markets. Duamentes conducted an in-depth study for the Practical Guide to Dubai’s AI Ecosystem 2025, combining quantitative and qualitative research, desk research, and expert interviews in January 2025. This multi-layered approach ensures a comprehensive analysis of investment trends, AI adoption, and regulatory frameworks in Dubai’s AI landscape.
The Practical Guide to Dubai’s AI Ecosystem 2025 is now available for download at www.duamentes.com and www.dso.ae.
Also published on Medium.
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