The United Arab Emirates is rapidly emerging as a global powerhouse for artificial intelligence (AI), Web3 and frontier technologies. With visionary leadership, strategic investments and world-class infrastructure, Dubai and Abu Dhabi are attracting tech entrepreneurs, investors and innovators from across the globe.
Today, let’s take a look at the factors powering this transformation, the practical steps for establishing a tech business in key free zones, and the implications of recent high-level partnerships underscoring the UAE’s commitment to leading the next wave of digital innovation.
Why Dubai Is Becoming the Next AI & Web3 Startup Hub
Dubai’s rise as a technology hub is the culmination of deliberate policy choices and large-scale investment programmes. In 2022, the UAE launched the National Strategy on Artificial Intelligence, setting the goal of positioning the country among the top five global AI leaders by 2031. This was followed by the launch of the Dubai Economic Agenda (D33), an initiative to double the emirate’s GDP by 2033, with digital innovation at its core. Key measures include zero corporate tax for qualifying businesses, full foreign ownership in most sectors, and a fast-track licensing system that reduces setup time to as little as 24 hours.
Complementing these policies is a commitment to world-class digital and physical infrastructure. The recently launched Dubai Metaverse Strategy aims to capture 1% of the global GDP of the metaverse industry by 2030, supported by Dubai’s 5G network, smart city platforms and data-sharing frameworks.
Public and private investment in fibre-optic connectivity, cloud computing facilities and edge computing nodes has created an ecosystem where startups can scale rapidly without infrastructure bottlenecks. In addition, Dubai’s cosmopolitan environment, world-class universities and international events such as Expo 2020 have cultivated a diverse talent pool and fostered cross-border collaboration.
Setting Up a Tech Business in Dubai Silicon Oasis, DIFC Innovation Hub or ADGM
For entrepreneurs ready to establish a presence in the UAE, three free zones stand out for their focus on technology and innovation. Each offers unique benefits in terms of licensing, incentives and ecosystem support.
Dubai Silicon Oasis (DSO)
– Business model licence tailored for tech enterprises, allowing for software development, e-commerce, IoT, AI and blockchain activities.
– Access to the Dubai Technology Entrepreneur Campus (Dtec), the largest technology incubator in the Middle East, providing mentorship, investor networks and co-working facilities.
– Competitive office and warehousing rates with flexible lease terms, alongside 100 per cent repatriation of capital and profits.
DIFC Innovation Hub
Operates under the legal framework of the Dubai International Financial Centre, regulated by the Dubai Financial Services Authority (DFSA).
– Ideal for FinTech, InsurTech and RegTech startups seeking capital markets connectivity; offers specialised accelerator programmes in partnership with leading banks and funds.
– Co-working spaces, innovation labs, and access to DIFC’s broad network of professional services firms, legal experts and potential clients.
Abu Dhabi Global Market (ADGM)
The ADGM Tech Start-up Licence enables rapid company incorporation with minimal share capital requirements and no corporate tax for 50 years.
– Hub71 Incentive Programme offers qualifying startups up to three years of 100 per cent subsidies on office space, housing and health insurance for employees, plus a US$20 million fund to co-invest in eligible companies.
– Proximity to Abu Dhabi’s sovereign wealth funds and strategic sectors such as energy, aerospace and healthcare, creating opportunities for high-value pilot projects and partnerships.
Each free zone provides straightforward online setup processes, dedicated relationship managers and a one-stop shop for visa and immigration services. By selecting the zone that aligns most closely with a startup’s sector focus and growth stage, founders can optimise both cost structures and access to relevant mentors, investors and corporate partners.
Trump’s Visit and Deal Signing with the UAE
Earlier this month in May 2025, former U.S. President Donald Trump made a landmark visit to the UAE, resulting in a series of strategic agreements and investment pledges. Among the headline announcements was a US$1.4 trillion commitment by UAE sovereign and private investors to U.S. infrastructure and technology projects over the next decade. In return, U.S. firms will support the establishment of the largest AI data centre outside North America, to be built in Abu Dhabi’s Masdar City.
This partnership has several implications. First, it guarantees access to best-in-class AI hardware, software and research collaboration, accelerating local capabilities in machine learning, big data analytics and autonomous systems.
Second, it strengthens the UAE’s position as a hub for trans-Atlantic technology exchange, opening new channels for talent mobility and joint R&D initiatives. Finally, deal-signing ceremonies underscored the shared interest in developing governance frameworks for AI ethics, data privacy and digital asset regulation—critical factors for sustainable growth in Web3 and beyond.
Ready to Launch Your Tech Venture in the UAE?
Dealing with the regulatory landscape, choosing the optimal free zone and securing partnerships can be challenging. At SetHub, we specialise in guiding founders through every step of the process. Our services include:
• Strategic advisory on jurisdiction and licensing
• Company formation and compliance management
• Visa and immigration support for founders and employees
• Introduction to local investors, mentors and corporate partners
• Ongoing back-office and accounting services
Whether you are launching an AI startup focused on healthcare diagnostics, a blockchain protocol for financial inclusion or a Web3 platform for virtual commerce, SetHub has the expertise and network to make your UAE venture a success.
Contact us today to schedule a consultation and take the first step towards joining the UAE’s vibrant innovation ecosystem.
