“To succeed, you need to be the most innovative”: Dubai’s path to tech dominance

To much fanfare, the United Arab Emirates (UAE) Vice President and Prime Minister, Sheikh Mohammed bin Rashid Al Maktoum, unveiled the Dubai Economic Agenda ‘D33’  in early 2023.

An ambitious, 10-year strategy, D33 aims to double the size of Dubai’s economy and “consolidate its position among the three global cities,” according to Sheikh Mohammed- referencing the global hubs of London, New York, and Tokyo.

As a traditionally oil-dependent economy, Dubai intends to turn itself into a global capital of innovation and entrepreneurship. Central to this transition is investment in a booming technological sector.

The D33 Agenda includes 100 transformational projects across biotech, digital trade, and green technologies, among others. For high-impact sectors like artificial intelligence (AI) and fintech, D33 aims to supercharge development by offering funding and policy support.

This pattern of public-private collaboration has a long track record in Dubai and has fundamentally transformed the tech sector.

The key to growth lies in Dubai’s Free Zones, which offer ample business incentives with minimal bureaucracy. The epicentre of the city’s tech startup scene is Dubai Silicon Oasis, home to over 2,500 tech companies and known for its cutting-edge research and development (R&D) facilities. Others include Dubai Internet City and Dubai Science Park.

Underpinning the strategy is the city’s advanced digital infrastructure, made up of widespread 5G connectivity and vast data centres. With this foundation, the government hopes to build a mature tech ecosystem where business innovation thrives.

“The most significant support we’ve received from the government is the acceleration of all processes,” said Mila Smart Semeshkina, CEO of Dubai-based edtech company Lectera.

“The quality of services has improved tremendously, and all procedures are much faster and clearer,” she added.

One trend that has eased this transition is the shift towards blockchain technology. The Dubai Land Department, for example, recently launched a real estate tokenisation platform on the XRP Ledger network, part of the government’s effort to digitise $16 billion of Dubai’s real estate market by 2033. These moves have a tangible impact for tech entrepreneurs on the ground.

“Seeing these changes at the state level and in fundamental processes, you are motivated to keep up with the digital transformation,” said Semeshkina. “The integration of blockchain […] saves time, resources, and streamlines operations significantly.”

According to Wamda Research Lab, a research platform for entrepreneurship across the MENA region, the proof of Dubai’s policy success lies in numbers. As signaled in its 2024 report, the UAE is the top-funded country in the region, making up 50% of MENA investments- with tech venture capital (VC) leading the way.

In the first half of 2025 alone, UAE tech funding reached $1 billion USD.

“I’ve seen Dubai’s transformation firsthand over the past 10 years,” says Daniel Domingues, founder at Planno, an AI-powered software for solar C&I prospecting based in Dubai.

As the Portuguese founder combines his passion for sustainable energy and technology for positive change, he credits his time in the Middle East for having supported his entrepreneurial growth.

“Dubai is prioritizing an AI-first future and, for startups, it's one of the few places where innovation moves from idea to reality at the speed it needs. Initiatives combined with the networking opportunities are what make building here so exciting.”

This pattern does not show signs of slowing down. With government backing, investment is increasingly veering towards emerging technologies like blockchain and AI.

For 2024, the UAE was ranked 10th in foreign direct investment (FDI) inflow, amassing $45.6 billion USD and $270.6 billion in FDI stock throughout the year, as per the country’s Ministry of Investment.

In Dubai alone, the tech ecosystem has reached a combined market valuation of $43 billion, according to a 2025 report by Founders Forum Group and Dubai’s Department of Economy and Tourism.

Researchers found that five pillars form the foundation of the city’s thriving tech scene: a robust innovation framework; corporate-startup collaboration; talent; capital; and access to growth markets.

Yet, the Emirati economy’s plans face sustainability challenges that might undermine its goals. Risks related to climate change include increased sea levels across all locations in Dubai’s coast by 2030, posing a peril to its artificial islands and coastal developments.

The city’s property market also shows signs of volatility, fueled by oversupply, speculative buying, and easy credit. And, despite the economy’s successful diversification, it remains vulnerable to global economic shocks, as per the Foreign Affairs Forum.

Instead of having their ambitions dampened by challenges, stakeholders have taken more proactive approaches. Emirati officials established the Dubai Environment  & Climate Change Authority in March 2024 to promote sustainable practices across sectors, preserve biodiversity, and expand natural reserves and green spaces.

The government’s bet on economic diversification and regulation- including the Loan To Value Ratios – has also addressed housing volatility, while its goal of pushing its way into the world’s top-three cities aims to curtail unexpected global economic downfalls. 

To achieve D33’s ambitions, however, perhaps what is most important is adopting a zealous mindset.

“Working and development in Dubai makes it clear that to succeed, you need to be the most innovative, powerful, and groundbreaking,” said Semeshkina.

“This energy is contagious.”

Alfie Rowe is a contributing writer at many media publications, such as Latin America Reports, and has an interest in covering politics, minority rights, and the environment.