Unlocking the future: Why Dubai is becoming a launchpad for AI startups globally

The UAE — especially Dubai — has made significant strides in AI. The Minister for AI and other key leaders have been driving adoption and creating an environment where companies can thrive. That’s what today’s discussion is all about.

The UAE has achieved a remarkable position among the top 10 countries with the most AI companies per million people. It ranks among the leading nations globally for AI firms per capita.

Read-Want to set up a business in Dubai? This new startup guide will help

This recognition, highlighted in the Global AI Competitiveness Index, underscores the UAE’s ambitions to become a global leader in AI and digital transformation.

What makes Dubai a place to build a next-generation AI company

A growing number of AI companies are shifting their base to Dubai. One such company is Huspy, an entity that empowers all stakeholders in the home-buying process through cutting-edge technology.

Two years ago, Huspy moved its headquarters to Dubai.

For those building the next frontier, Dubai isn’t just a place to scale. It’s the starting line. Hear it from Lin Kayser, Co-founder of Leap 71 on why the UAE is uniquely positioned as a global hub for innovation—neutral, future-driven, and open.#DubaiAssemblyforAI… pic.twitter.com/5Z7AYh3W9P

— Dubai Future Foundation (@DubaiFuture) April 21, 2025

“The move was driven primarily by the local market opportunities and the stability we saw here. For us, the Middle East — particularly the UAE — presented massive demand for what we were building. We could land here and hit the ground running. We also appreciated the regulatory clarity. When expanding into a new region like the Middle East, it’s critical to know you can operate under stable policies that aren’t changing frequently. That gave us a lot of confidence,” said Jad Antoun, founder and CEO of Huspy.

“We started selling in the region about two years ago, and I moved here in August of last year. At the beginning of last year, we also brought some of our senior leadership here. What’s really impressive is how open the government and leadership are to building AI-powered platforms. They’re not just open to innovation — they’re actively supporting it with legislation and enterprise-level engagement,” Antoun added.

In fact, it takes Huspy about 19 days to land a large enterprise account in the UAE — a process that could take up to a year in the US. For them, the UAE is a strategic location: stable, accessible, and an excellent launchpad for global expansion.

Where will Dubai be in five years?

Based on the city’s energy and vision, Dubai is expected to be recognized as a top 5 AI hub globally, not by size but by impact and innovation density. It is becoming the go-to jurisdiction for founders building global AI products who want neutrality, speed, and minimal friction.

“More than anything, it’ll attract people who want to build the next thing — not iterate on the last. Because Silicon Valley used to be apple orchards. Dubai? It’s still planting its seeds. But the ground is fertile, and the climate is ready,” said Lin Kayser,  founder and CEO of Leap71.

Cost of living and real constraints

The cost of living in Dubai is high — yes — but it’s comparable to cities like Munich. The tax-free income and quality of life often make up for it. Still, salaries are intense, especially for deep tech roles.

But if the biggest challenge is compensating talent in an incredible place to live, that’s not a bad place to be.

Why Dubai works for startups

What sets Dubai apart from other hubs is the feeling of being welcomed. That emotional response—“finally, someone said yes”—is something many entrepreneurs don’t talk about enough. The sense that an ecosystem is rooting for you, not just tolerating you, is a big deal — especially after dealing with bureaucracy or skepticism elsewhere.

Then there’s the strategic side:

• Pro-business tax environment
• Government alignment with tech and industrialization
• Clear leadership vision
• Abundant energy and compute resources
• Geographic neutrality

This makes Dubai not just a hub, but a platform — a base to reach global markets, not just local ones.