US TECH MAJORS CONTRIBUTE BILLIONS TO UAE ECONOMY AS AI TRANSFORMS USER HABITS

US tech giants are contributing billions of dirhams to the UAE economy, with Google alone contributing about 1 per cent of the Emirates' gross domestic product according to the global tech company, reinforcing the country’s ambition to become a global hub for innovation.

Google contributed Dh21.8 billion ($5.93 billion) to the UAE's economy in 2024, the tech major said in its Economic Impact Report for the Emirates, released on Thursday. Google’s platforms, which include Search, Ads, Play, YouTube and Maps, support businesses, content creators, developers and government entities.

However, as their presence expands, a behavioural shift led by artificial intelligence tools is quietly reshaping how people work, search and consume information.

From cloud infrastructure and AI tools to payment platforms and productivity apps, companies such as Google, Microsoft and Apple are playing an increasingly central role in the UAE’s digital transformation.

Their growing footprint aligns with the country’s broader digital economy strategy, which aims to diversify income sources and position the country as a global leader in artificial intelligence.

Newly released economic impact reports from Google and Microsoft highlight the scale of this investment.

Google's report shows widespread adoption, with 94 per cent of adults in the UAE using Google Search at least once a month to compare prices, and 97 per cent of public sector workers crediting Google's AI tools with improving their productivity.

Microsoft’s projections take a longer view. A study released by the International Data Corporation during Dubai’s long-running technology exhibition, Gitex, last year, estimated that Microsoft and its partners will generate Dh273 billion in new revenue for the UAE by 2028. This is supported by Dh18.7 billion in data centre spending and the creation of more than 152,000 jobs.

This includes more than 41,800 skilled IT roles, further solidifying the UAE’s position as a hub for advanced digital services and innovation.

Attracting strategic investment

This surge in tech investment aligns with the UAE’s National Artificial Intelligence Strategy 2031, which aims to position the country among the top AI nations globally and have the technology contribute 20 per cent to non-oil GDP by 2031.

“This ambition has attracted US tech giants. In this regard, Microsoft has invested $1.5 billion in AI champion G42 and signed an agreement to implement a ‘sovereign cloud’ system for the Abu Dhabi government,” Louis Napoletani, founder and chief executive of Mottli, told The National.

Apple, while less prominent in cloud infrastructure and enterprise software, has invested more than Dh6 billion in the UAE over the past five years. The company now supports more than 38,000 jobs, with a growing focus on services such as Apple Pay and the iOS app ecosystem.

Changing user behaviour

While these legacy platforms continue to fuel economic growth and digital capacity-building, they are also operating in a changing landscape.

Users, particularly older generations, are increasingly adopting AI-powered assistants such as OpenAI’s ChatGPT for tasks traditionally performed through search engines.

OpenAI chief executive Sam Altman acknowledges that ChatGPT is used differently across age groups.

When asked recently at a Sequoia Capital AI Ascent event how young people use ChatGPT, he said: “Gross oversimplification, but older people use ChatGPT as a Google replacement. People in their twenties and thirties use it like a life adviser. And then people in college use it as an operating system.”

From answering questions and generating content to coding and research, ChatGPT has become a go-to tool for many professionals and students in the region.

Shift in how we search

This behavioural shift is beginning to challenge long-standing habits. Google’s report notes that 63 per cent of adults in the UAE have used Gemini, its own generative AI assistant.

While adoption is growing, various industry estimates suggest ChatGPT maintains a broader global user base, with about 500 million monthly app users compared to about 22 million for Gemini.

On the search side, “conversational AI could become a challenge” for the traditional search model, according to Mr Napoletani. “While Google still commanded 98.78 per cent of the UAE’s mobile search market as of May 2025, platforms like ChatGPT are gaining significant traction. User behaviour is shifting from link-based searches to direct, synthesised answers.

“The UAE is seeing strong adoption of AI on the user level as well, as shown by the 344 per cent year-on-year rise in generative AI course enrolments in 2025.”

Looking ahead

Microsoft has responded by integrating OpenAI’s technology into its products, including Bing and Copilot. Google is doing the same with Gemini across its suite.

The growing reliance on conversational AI tools suggests a more profound shift in how people seek and consume information, one that could reshape the future of search, discovery and workplace productivity.

As AI adoption accelerates and US tech companies cement their presence in the region, the UAE finds itself at the intersection of infrastructure, innovation and behavioural transformation.

2025-06-19T08:06:29Z