Abu Dhabi's AI sector sees surge in new companies

The Abu Dhabi Chamber of Commerce and Industry reported that it registered over 400 AI companies in Abu Dhabi by the end of the second quarter of 2024.

A recent study by the Abu Dhabi Chamber revealed that, on average, one AI company was established every two days in Abu Dhabi during the first half of 2024. 

Approximately 90 AI companies were established in just six months, in the UAE capital, marking a substantial 41.3 per cent growth in the sector during H1 2024 compared to the previous year.

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

The study also revealed that commercial activities related to innovation and AI research and consultancies were the most prevalent among companies during the second quarter of 2024, accounting for 69 per cent of all activities. This indicates the growing interest from both the government and private sectors in advancing technology and promoting economic growth by focusing on high-level, value-added research and consulting services.

AI training activities ranked second (11 per cent), followed by the management and operation of AI robotic systems (10 per cent). Wholesale trading of AI training (eight per cent), and retail of AI robots (two per cent).

The study emphasised that the Abu Dhabi Chamber plays a pivotal role in supporting AI companies in the Emirate by providing a platform for communication and collaboration, facilitating commercial exchange, and developing policies that create an ideal environment for the growth of AI companies.

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

Among the Chamber's leading global initiatives is the ChamberGPT AI platform, which has garnered over 6,000 interactions from 85 countries, reflecting a 39 per cent growth in the number of messages received during the second quarter of 2024 and a 166 per cent increase in the number of countries from which these messages originated in H1 2024.