Dubai has launched an AI Sandbox to help companies test new technologies in collaboration with regulators and government entities. The initiative aims to address regulatory barriers that often keep promising AI solutions from moving from experimentation to commercial use.
Launched by the Dubai Future Foundation (DFF) through Sandbox Dubai, the program will help startups, small and medium-sized enterprises (SMEs), and established technology companies test AI applications under controlled conditions.
Participating businesses will receive technical, policy, and commercial support, along with regulatory guidance tailored to their products. Depending on the application, companies may also explore regulatory exemptions, subject to approval from the relevant authorities.
The initiative seeks to address a key challenge in AI adoption: Translating experimental projects into commercially viable products. Research cited by the World Economic Forum indicates that 74% of companies have yet to move their AI initiatives beyond the experimentation stage.
Businesses developing AI solutions often face regulatory uncertainty, limited data access, and difficulty applying existing rules to emerging technologies. The sandbox will provide a setting for companies and regulators to work together, test applications, and identify potential obstacles.
The testing process will also help regulators assess emerging technologies, identify risks, and gather evidence to inform future policy decisions. The broader objective is to ensure regulations keep pace with technological developments while maintaining appropriate safeguards.
Khalifa Al Qama, Chief of Research, Development and Innovation at Dubai Future Foundation, said the UAE's next priority is helping promising technologies progress beyond testing and into practical use. He highlighted the need to address regulatory challenges alongside technological development.
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The AI Sandbox is open to companies developing AI-native solutions across sectors such as healthcare, education, transport and mobility, logistics, tourism, media and government services.
Applicants must have a minimum viable product (MVP) or a more advanced solution, demonstrate readiness for commercialization, and show that testing could generate evidence relevant to regulatory or policy development. Applications are open until December 18, 2026.
The launch comes as the UAE strengthens its position in artificial intelligence adoption. According to Microsoft's Global AI Diffusion Report, the country ranked first globally, with 73.3% of its working-age population using AI, compared with 18.8% worldwide.
The initiative builds on Sandbox Dubai's wider regulatory innovation efforts, which have covered sectors including healthcare, real estate and the gig economy.
By bringing companies and regulators together, Dubai aims to give businesses a clearer path to testing emerging technologies and taking viable AI products to market.