The Dubai Digital Authority (DDA) has launched a groundbreaking AI Regulatory Sandbox, enabling companies to test artificial intelligence products and services in a controlled environment before full market launch. The program offers a 6-month testing period, access to an AED 100 million innovation fund, and fast-track licensing for successful participants. Over 200 AI startups have already been approved, making Dubai the region's leading AI innovation hub.
This guide covers eligibility, application process, testing parameters, and how AI companies can establish operations in Dubai through our Free Zone comparison tool.
Dubai AI Sandbox 2026 — Key Features
6-month testing, AED 100M fund, 200+ startups approved, fast-track licensing. Covers generative AI, autonomous systems, fintech AI. Golden Visa for AI founders.
AI Categories Covered
The sandbox accepts AI solutions across multiple sectors:
Generative AI
LLMs, image generation, content creation, AI assistants. Special provisions for Arabic language models.
Autonomous Systems
Self-driving vehicles, drones, robotics. Integration with RTA for testing on Dubai roads.
AI in Finance
Algorithmic trading, credit scoring, fraud detection. DFSA coordination for fintech applications.
Healthcare AI
Diagnostics, drug discovery, patient care. DHA collaboration for clinical validation.
Sandbox Benefits
Participants receive comprehensive support. Compare AI-friendly Free Zones using our Business Setup Tool:
- Regulatory Flexibility: Test without full compliance burden during sandbox period
- Government Data Access: Anonymized datasets from Dubai government entities
- Mentorship: Access to AI experts, regulators, and industry leaders
- Funding: Priority access to AED 100M AI innovation fund
- Fast-Track Licensing: 14-day full license approval post-sandbox
- Golden Visa: 10-year residency for AI company founders
Eligibility Requirements
- AI-First Solution: AI must be core to the product, not just a feature
- Innovation: Novel application or significant improvement over existing solutions
- Viability: Clear path to commercialization and market need
- Team: Technical team with AI/ML expertise
- Stage: MVP ready for testing (prototype minimum)
- Commitment: Willingness to establish Dubai operations
Application Process
- Step 1: Online application at ai.dubai.ae with product documentation
- Step 2: Technical review by DDA AI committee (7 days)
- Step 3: Demo presentation to evaluation panel
- Step 4: Approval notification and sandbox onboarding (14 days total)
- Step 5: 6-month testing period with regulatory guidance
- Step 6: Graduation to full license or extension for further testing
Setting Up Your AI Company
Best Free Zones for AI companies. Compare all options with our Free Zone Comparison Tool:
- Dubai Silicon Oasis: Tech-focused, 3-year free license program, innovation labs
- DIFC Innovation Hub: Fintech AI focus, DFSA sandbox integration, premium network
- Dubai Internet City: Tech giants ecosystem, established AI community
- DMCC: Flexible activities, crypto-AI intersection, competitive pricing
- Area 2071: Government innovation hub, direct government partnerships
"The AI Regulatory Sandbox positions Dubai as the global leader in responsible AI innovation. We're not just attracting AI companies — we're shaping how AI will be regulated worldwide. Our sandbox graduates have gone on to deploy solutions across government, healthcare, finance, and transport. Dubai is building the world's most AI-integrated city, and this sandbox is the foundation."
— HE Hamad Obaid Al Mansoori, Director General, Dubai Digital Authority, February 2026Success Stories
- ArabGPT: Arabic language model — Now powers 50+ government services
- DriveAI Dubai: Autonomous delivery — Operating 100 vehicles on Dubai roads
- HealthScan AI: Medical imaging — Deployed in 20 DHA hospitals
- FinanceBot: Investment advisory — Licensed by DFSA, 10,000+ users
- RetailMind: Demand forecasting — Serving Dubai Mall and MOE
Launch Your AI Company in Dubai
Apply to the AI Sandbox at ai.dubai.ae. Compare AI-friendly Free Zones for setup, check Golden Visa eligibility as an AI founder, and explore Dubai properties for your relocation.
