Dubai Opens an AI Sandbox
Dubai Future Foundation (DFF) has launched an AI Sandbox that lets technology companies test artificial intelligence products in real-world conditions while working directly with regulators. Announced on 29 October 2026 through the Sandbox Dubai platform, the programme is open to both local and international firms, and applications close on 18 December 2026.
For companies considering a move or expansion to the GCC, the initiative offers a structured route into one of the region's most active technology markets.
How the sandbox works
The programme targets startups, SMEs and established companies building AI-native products. Priority sectors include education, healthcare, transport and mobility, logistics, tourism, media and government services, although other industries can also apply.
To qualify, a solution must have reached at least the minimum viable product (MVP) stage, be ready for commercialisation, and be able to generate evidence that could inform future policy.
Participants receive technical, policy and commercial support, along with tailored regulatory guidance. They will work alongside relevant government bodies, including the Dubai Centre for Artificial Intelligence (DCAI). Depending on the use case, companies may also be able to explore regulatory exemptions, subject to approval by the relevant authorities.
Why it matters for companies expanding to the GCC
The sandbox is designed to close the gap between AI experimentation and commercial deployment. Research cited by the World Economic Forum suggests that 74% of companies have not yet moved their AI initiatives beyond the experimental phase. DFF points to regulatory requirements, data access and the application of existing rules to new technologies as common obstacles.
The UAE market itself is a strong draw. Microsoft's Global AI Diffusion Report ranks the country first worldwide, with 73.3% of its working-age population using AI, against a global figure of 18.8%.
For international firms, regulatory uncertainty is often one of the main barriers to entering a new market. A framework that offers direct dialogue with regulators, and potentially tailored exemptions, can reduce that uncertainty. It also builds on Sandbox Dubai's earlier regulatory work in areas such as the gig economy, healthcare and real estate.
Points to consider
Companies weighing an application should assess whether their product meets the MVP and commercial-readiness criteria, and how participation fits with their wider market entry plan, including licensing, entity setup and local partnerships. With the deadline set for 18 December 2026, preparation time is limited.
OGMC supports companies planning their entry into the UAE and the wider GCC. If you are exploring how initiatives like the Dubai AI Sandbox could fit into your expansion strategy, our team is available to discuss your options.
