Dubai to Lead National AI Governance Under New Unified Framework

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai, has approved the establishment of the Artificial Intelligence and Data Authority, designed to bring the nation’s public data, artificial intelligence and digital government capabilities under a single national framework. The announcement marks a significant step in the UAE’s efforts to accelerate AI-powered digital transformation and strengthen its position as a global leader in digital innovation and the digital economy.

CONSOLIDATION OF GOVERNMENT TECHNOLOGY AGENDA

The new authority will report directly to the UAE Cabinet and will be led by Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications. The establishment represents a significant consolidation of the UAE’s technology infrastructure and governance approach.

The authority will combine responsibilities previously managed by three separate government entities: the Office of Artificial Intelligence, Digital Economy and Remote Work Applications, the Digital Government Sector at the Telecommunications and Digital Government Regulatory Authority, and the UAE Data Office. This consolidation is intended to create a unified ecosystem capable of driving national digital priorities while reducing fragmentation across government functions.

STRATEGIC MANDATE AND RESPONSIBILITIES

The newly established authority will serve as the central national body responsible for overseeing data, artificial intelligence and digital government initiatives across the country, reporting directly to the UAE Cabinet. Key responsibilities include:

1. Developing legislation, strategies and national programmes related to artificial intelligence and data governance
2. Coordinating national AI priorities and policies across federal and local entities
3. Ensuring alignment between federal and local entities on AI strategy and implementation.
4. Overseeing the design and delivery of integrated digital government services
5. Managing government data platforms and establishing governance frameworks
6. Improving data quality, accessibility and sharing across the public sector
7. Advancing the UAE’s national artificial intelligence strategy to increase the sector’s contribution to national GDP

ACCELERATING DIGITAL TRANSFORMATION

Half of UAE government services will be delivered using cutting-edge AI agents within two years, as part of the broader digital transformation strategy. The authority is expected to play a central role in advancing the UAE’s long-term vision for digital governance, helping federal entities adopt innovative technologies while ensuring greater coordination across government services and digital initiatives.

Sheikh Mohammed bin Rashid emphasized the government’s commitment to building a more efficient, flexible and proactive system. “We are continuing to develop the government of the future,” he stated, noting that data and AI-powered tools would enable faster decision-making, stronger government performance and improved services for citizens and residents.

BROADER AI ECOSYSTEM INITIATIVES

The establishment of the Federal Authority aligns with broader UAE initiatives to position the country as a global AI leader. The UAE has also teamed up with the US to develop an AI campus, which will include 5GW of capacity for AI data centres, in Abu Dhabi.

Additionally, in May 2025, Sheikh Mohammed announced that AI would be introduced as a subject across all stages of government education in the UAE, fostering a “deep understanding of AI from a technical perspective” from an early age.

APPLICABLE LEGAL AND REGULATORY FRAMEWORK

Businesses operating in the UAE must navigate a layered regulatory framework governing AI development and deployment. Key legislation includes:

Federal Level Legislation:

1. Federal Decree-Law No. 45 of 2021 on the Protection of Personal Data (PDPL) — The cornerstone of UAE data protection law, applicable to all AI systems processing personal data of individuals in the UAE. Effective from 2 January 2022, it mandates lawful basis for data processing and content filters to prevent generation of unlawful outputs. AI practitioners must ensure compliance with PDPL requirements for data mapping, retention policies, and breach response protocols.
2. Federal Decree-Law No. 34 of 2021 on Countering Rumors and Cybercrimes — Requires IT systems, including AI applications, to prevent spread of false information and incorporate robust cybersecurity measures to protect against unauthorized access.
3. Federal Decree-Law No. 38 of 2021 on Copyright and Neighbouring Rights (and implementing regulation Cabinet Decision No. 47/2022) — Critical for AI systems relying on vast datasets and pre-existing content. Governs ownership and protection of AI algorithms, input data, and outputs.
4. Federal Decree-Law No. 25 of 2018 on Projects of Future Nature — Provides the legal basis for the “Legislation Lab” model, enabling the UAE Cabinet to grant interim licenses and temporary exemptions for innovative AI projects lacking existing regulation. This mechanism allows pilot and R&D initiatives to proceed while bespoke legislation is drafted.
5. Federal Decree-Law No. 6 of 2025 (Central Bank Law) — Effective 16 September 2025, broadens Central Bank licensing to include open finance, virtual-asset payments, and technology-enabled services, embedding cybersecurity requirements into primary legislation in ways that reach AI systems used by regulated financial entities.

UAE Charter for the Development and Use of Artificial Intelligence (June 2024):

Non-binding but highly influential, the Charter articulates 12 principles for responsible AI development: –

1. Strengthening human-machine ties
2. Safety and security
3. Mitigation of algorithmic bias
4. Data privacy and protection
5. Transparency and explainability
6. Human oversight and control
7. Governance and accountability
8. Technological excellence
9. Human commitment and values
10. Peaceful coexistence with AI
11. Inclusive access
12. Compliance with applicable laws and treaties
13. The Charter functions as the country’s authoritative ethical framework and is increasingly being integrated into government procurement processes and licensing requirements.

Emirate-Level Legislation:

1. Abu Dhabi Law No. 3 of 2024 — Formally established the Artificial Intelligence and Advanced Technology Council (AIATC) in Abu Dhabi, tasked with regulating and overseeing AI and advanced technology projects, research, infrastructure, and investment within the emirate. Free Zone Frameworks:
2. DIFC Data Protection Law No. 5 of 2020 (as amended 2023) — Amendments focus on autonomous and semi-autonomous systems and AI’s impact on personal data processing. DIFC Regulation 10 on autonomous and semi-autonomous systems entered full enforcement as of January 2026 and applies to financial sector AI applications.
3. ADGM frameworks similarly regulate AI deployment in financial services through independent legal frameworks.

Supporting National Policy Instruments:

1. UAE National Strategy for Artificial Intelligence 2031 (launched 2017, updated 2023) — Sets overarching goals for AI adoption and positions the UAE as a global AI leader.
2. AI Ethics Guide (December 2022, UAE AI Office) — Establishes national framework for fairness, accountability, transparency, and explainability in AI development.
3. AI Adoption Guideline in Government Services (2023) — Provides practical manual for federal and local entities integrating AI into public services, emphasizing maturity models and risk assessments.
4. The Deepfake Guide (2021) — Addresses synthetic media risks with detection and reporting frameworks.
5. Regulatory Intelligence Office (established April 2025) — Created a technical ecosystem using AI tools integrating all federal and local laws, judicial rulings, executive procedures, and public services. Notably, the UAE announced it will be the first nation to deploy AI to draft new legislation and amend existing laws.
   
   IMPLICATIONS FOR LEGAL AND BUSINESS PRACTITIONERS

The establishment of this unified Federal Authority for Artificial Intelligence and Data signals important developments for businesses operating in the UAE:

Regulatory Clarity — A single authority will streamline regulatory requirements and provide consistent guidance on AI governance across federal entities, reducing fragmentation that previously existed between the Office of Artificial Intelligence, the Digital Government Sector, and the UAE Data Office.

Compliance Framework — The authority will establish standardized guidelines and compliance frameworks for organizations deploying AI systems. Practitioners should expect formal codification of principles currently contained in the UAE Charter into binding regulations, particularly for “critical” AI systems.

Data Governance & PDPL Integration — Enhanced data management and sharing protocols across government will create new frameworks affecting private sector data handling. The authority must work in coordination with existing PDPL requirements. AI systems processing personal data remain subject to Federal Decree-Law No. 45 of 2021 regardless of sector.

Licensing & Authorization Requirements — AI-related activities may require licenses from various authorities. The authority will likely clarify licensing pathways currently fragmented across sector-specific regulators (e.g., Department of Health for health AI, CBUAE for fintech AI, TDRA for telecom/digital services AI).

Investment Opportunity — The acceleration of AI adoption across government services (50% of services on AI agents within 2 years) creates contracting and service delivery opportunities for technology providers and consultants. Businesses should monitor the authority’s upcoming RFP processes.

Intellectual Property Considerations — Businesses developing AI in the UAE should ensure compliance with Federal Decree-Law No. 38 of 2021 on Copyright and Neighboring Rights, particularly regarding training datasets and output ownership.

Sectoral Implications — Different sectors face distinct regulatory overlays.

Financial sector AI (DIFC/ADGM) must comply with DIFC Regulation 10 (in full force January 2026) and respective data protection amendments. Healthcare AI requires authorization from Abu Dhabi Department of Health or Dubai Department of Health. Central Bank Law (2025) embeds cybersecurity into fintech AI regulation.

Future Legislation Lab Opportunities — Businesses developing innovative AI projects in areas lacking existing regulation can leverage Federal Decree-Law No. 25 of 2018 to seek interim licenses and temporary exemptions, enabling controlled R&D while formal regulation is drafted.

Strategic Planning — Businesses should monitor the authority’s upcoming legislation, strategies, and regulatory guidance. The shift toward binding frameworks (anticipated move from current “soft law” to formal regulation) will create compliance obligations beyond current ethical guidelines. Organizations should conduct AI Ethics Self-Assessments using UAE AI Office tools to prepare for future certification or “AI Seal” schemes under development.

GLOBAL POSITIONING

The announcement marks a significant step in the UAE’s efforts to accelerate AI powered digital transformation and strengthen its position as a global leader in digital innovation and the digital economy. By creating a unified governance framework and accelerating AI adoption across government, the UAE continues to establish itself as a forward-thinking jurisdiction for technology-driven businesses.

For legal advice on AI governance, data compliance, and regulatory considerations for your business, contact Alketbi Law Firm.