The UAE has emerged as a frontrunner in artificial intelligence (AI) readiness among emerging economies, according to a new report by Boston Consulting Group (BCG). Featured in the firm’s latest study, GCC AI Pulse: Mapping the Region’s Readiness for an AI-Driven Future, the UAE is classified as an ‘AI Contender’—a tier that includes 31 nations, such as Saudi Arabia—highlighting the country’s growing stature in global AI development.

Unveiled at the Dubai AI Assembly, BCG’s 2024 AI Maturity Matrix segments countries into four tiers: Emergents, Practitioners, Contenders, and Pioneers.

While the UAE and Saudi Arabia lead regional efforts in the ‘Contender’ category, no Gulf nation has yet reached the ‘Pioneer’ tier—a level currently occupied by the US, UK, and China. Other GCC states, including Qatar, Kuwait, Oman, and Bahrain, are ranked as ‘Practitioners’.

“The UAE is poised to be a regional leader amongst other global AI Pioneers by capitalizing on its established digital infrastructure and formulating strategic initiatives that support AI integration into its economic visions,” said Dr. Akram Awad, Managing Director and Partner at BCG.

The report praises the UAE’s notable achievements in AI governance, highlighted by the launch of its National AI Strategy 2031 and the historic appointment of the world’s first Minister of AI in 2017. The country is home to nearly 7,000 AI professionals and has contributed around 700 AI-related publications—metrics that reflect its growing AI ecosystem.

Despite outperforming its peer group in public investment, BCG notes that greater mobilization of private sector capital is crucial for the UAE to achieve Pioneer status.

Flagship initiatives such as the $100 billion MGX fund highlight the UAE’s ambition to shape the future of AI on a global scale. Regarding infrastructure, the UAE has 35 data centres. It leads the GCC in public cloud spending per employee, with BCG calling this “a robust foundation for AI technologies and platforms to thrive.”

To solidify its ascent, the UAE must deepen private sector engagement, enhance R&D performance to match global innovation standards, and expand its domestic talent pipeline, said Rami Mourtada, Partner and Director at BCG. “ These imperatives will accelerate the UAE’s journey towards a clear status as an AI Pioneer, multiplying economic and social benefits at the national level.”

The broader GCC region is also making strides. Saudi Arabia aims to rank among the world’s top 15 AI nations by 2030. Meanwhile, Qatar and Oman are investing in infrastructure and workforce development, while Bahrain and Kuwait are laying the groundwork with national AI strategies.

To accelerate progress, the report calls for more upskilling initiatives, international talent recruitment, governance reform aligned with AI ethics, and increased R&D collaboration between academia and industry.