Atlantic Council report: UAE builds AI edge through state-led strategy, but faces talent and governance gaps

The United Arab Emirates has emerged as a notable player in artificial intelligence development and adoption, using state coordination and long-term strategic planning to accelerate capabilities, according to a recent Atlantic Council report.

The report assesses the UAE using a five-pillar framework that examines strategic vision, governance capacity, human capital, the innovation ecosystem, and industrial capacity.

It says the country’s “long-horizon” national vision, institutional agility, and investment-led model have helped it move quickly on AI deployment, infrastructure build-out, and ecosystem formation—positioning the UAE as a global hub for AI investment and a regional gateway linking advanced economies with the Global South.

Strengths highlighted in the assessment

The Atlantic Council analysis argues that the UAE’s progress is driven by coordinated national direction and capital-backed execution, enabling rapid deployment of AI-related infrastructure and the formation of a broader innovation ecosystem.

Trade-offs and policy challenges

The report also flags areas for improvement. It cites a continued reliance on expatriate talent, still-developing regulatory coherence, and the need for stronger ethical safeguards. It adds that rising pressure on energy and water infrastructure will require policy development to support long-term sustainability.

Geopolitics and regional risk

Geopolitically, the report says the UAE’s balancing strategy between the United States and China has expanded its strategic options but introduced uncertainty around supply chains and political trust. It also notes that the UAE’s AI infrastructure is exposed to regional instability, pointing to threats from Iran during the conflict that erupted in the region in February 2026.

The Atlantic Council says the five-pillar approach is designed to be replicable, offering a way to benchmark AI readiness across countries and identify priority areas for intervention.