Abu Dhabi’s AI sector is booming, with new businesses growing by 41.3% year-on-year

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The Abu Dhabi Chamber of Commerce and Industry said that more than 400 AI companies had been registered in Abu Dhabi by the end of the second quarter of 2024, demonstrating the rapid growth and increasing interest in AI and its applications in the emirate.

A recent study by the Abu Dhabi Chamber of Commerce found that, on average, one AI company was created in Abu Dhabi every two days in the first half of 2024. This remarkable pace has made AI one of the fastest-growing sectors in new business, underlining Abu Dhabi’s unwavering commitment to establishing itself as a global hub for innovation and AI.

What’s more, around 90 AI companies were created in just six months, which means an increase of as much as 41.3% in this sector in the first half of 2024 compared to the previous year.

An earlier study published by the Chamber in February showed that the number of registered AI companies in the Emirates grew at a compound annual growth rate (CAGR) of 67% between 2021 and 2023.

A new study highlights that the rapid growth of AI companies in the emirates confirms the rapid expansion of the sector in the local market and the growing attractiveness of Abu Dhabi as a leading hub for technological innovation and business on a regional and global scale.

The study also found that commercial activity related to AI innovation, research and consulting was the most common among companies in Q2 2024, accounting for 69% of all activities. This indicates a growing interest from both government and private sectors in developing technologies and promoting economic growth by focusing on advanced research and value-added consulting services.

AI training came second (11%), followed by management and operation of AI robotic systems (10%). Wholesale trade in AI training accounted for 8%, and retail trade in AI robots 2%.

The study highlighted that the Abu Dhabi Chamber of Commerce plays a key role in supporting AI companies in the emirate by providing a platform for communication and collaboration, facilitating trade and developing policies that create an ideal environment for AI companies to thrive.

Through its initiatives, programmes and events, the Chamber serves as a bridge between AI companies and regulatory bodies within the Emirates and across the UAE, ensuring that the current and future needs of the sector are met.

The study also highlighted the Abu Dhabi Chamber of Commerce’s key role in promoting the development of AI in Abu Dhabi and driving innovation and digital transformation, which is in line with the Chamber’s ongoing strategy to make Abu Dhabi the number one choice in the Middle East and North Africa (MENA) region for business and talent by 2025.

To achieve this, the Chamber offers comprehensive digital services tailored to the needs of AI companies, enabling them to access the resources, information, market intelligence and support necessary to succeed in Abu Dhabi’s competitive business environment.

One of the Chamber’s leading global initiatives is its AI platform ChamberGPT, which collected over 6,000 interactions from 85 countries, reflecting a 39% increase in the number of messages received in Q2 2024 and a 166% increase in the number of countries from which these messages originated in H1 2024.

WAM