The Economic Impact of Artificial Intelligence -Driven Digital Transformation in Abu Dhabi Emirate

Abstract

This study examines the transformative role of Artificial Intelligence (AI) in accelerating the digital transformation of Abu Dhabi Emirate (ADE) and its implications for economic growth, public sector performance, and societal development. Guided by Abu Dhabi Government Digital Strategy 2025–2027 and aligned with Abu Dhabi Economic Vision 2030 and the UAE Centennial 2071, the research highlights how AI-driven technologies, such as machine learning, natural language processing, computer vision, and predictive analytics, are enabling process automation, enhancing operational efficiency, and improving citizen-centric service delivery.  Using a descriptive-analytical approach, this study synthesizes secondary data from government reports, strategic plans, and international research to evaluate AI’s impact on GDP growth, job creation, foreign direct investment (FDI), and economic diversification. According to the Statistics Centre Abu Dhabi (SCAD), the Emirate’s GDP has shown consistent growth across key sectors such as technology, industry, and services, which aligns with projections that AI will contribute over AED 24 billion (≈ USD 6.53 billion) to Abu Dhabi’s GDP by 2030. Additionally, the Center’s data on employment trends supports the forecast of creating more than 5,000 high-skilled jobs in AI-related fields, reinforcing Abu Dhabi’s strategic vision to diversify its economy and strengthen its position as a regional innovation hub. These insights collectively underscore the pivotal role of AI as both an economic driver and a catalyst for sustainable growth in Abu Dhabi. The study also underscores the importance of developing robust digital infrastructure, advancing AI-focused education, and establishing ethical and regulatory frameworks to ensure responsible AI adoption. By integrating technology, policy, and human capital development, Abu Dhabi is setting a global benchmark for leveraging AI to achieve sustainable digital and economic transformation.

Keywords: Abu Dhabi Emirate (ADE), Artificial Intelligence (AI), Digital Transformation (DT), Economic Impact (EI), Smart Government (SG), Innovation, Sustainability.

DOI: 10.7176/JESD/16-8-05

Publication date: November 30^th 2025