UAE cements its position in digital finance and PropTech

• The UAE central bank reported progress on the digital dirham.
• PropTech is expanding: by 2030 the market is set to grow from $0.61bn to $1.55bn.
• The UAE and Saudi Arabia are scaling talent and investment, building a Web3/smart‑city ecosystem.

The United Arab Emirates is pressing ahead with the digital overhaul of its economy, advancing two pillars in tandem: fintech and PropTech.

Together they sketch out an integrated digital architecture meant to cement the UAE’s standing as a global leader in Web3, smart cities and technology infrastructure.

Finance: the digital dirham

The Central Bank of the UAE (CBUAE) published a report on progress toward issuing a CBDC—the digital dirham. It will be usable for online and offline payments, P2P transfers and commercial settlements. The project aims to boost financial inclusion for the unbanked and non‑residents, and to speed up transactions.

Features include support for smart contracts and cross‑border operations. The regulator is aligning development with standards from the International Monetary Fund and the Bank for International Settlements.

According to CBUAE governor Khaled Mohamed Balama, the digital dirham will help create secure financial infrastructure, raise payment‑system efficiency, support monetary stability and broaden financial access. It should also strengthen the dirham’s international standing.

The CBDC launch is part of the Financial Infrastructure Transformation (FIT) programme unveiled in 2023. The CBUAE has already tested the digital dirham in cross‑border settlements and conducted a retail pilot with real transactions.

Property and smart cities

Property technology is advancing in parallel. The market is projected to grow from $0.61bn in 2024 to $1.55bn by 2030, a 17.49% compound annual rate.

Government programmes include Dubai’s 2040 plan and smart‑city projects in Abu Dhabi. Authorities are pushing adoption of AI, blockchain, IoT, and VR and AR solutions. These tools raise efficiency and transparency in property transactions, building management and urban planning.

Dubai already hosts a PropTech Hub under the Land Department. Its goal is to reach a market value of $1.22bn by 2030. The hub plans to back more than 200 startups, attract over $270m in investment and launch upwards of 20 venture funds.

High‑end development projects employ VR and AR property tours, building automation and blockchain‑based transactions. Residential platforms Bayut, Property Finder and Dubizzle offer AI‑driven recommendations, virtual tours and automated listings.

PropTech adoption is also reshaping the UAE’s construction sector, which is expected to exceed $52bn by 2030.

Talent and technology

A focus on artificial intelligence underpins these shifts. According to the Global AI Competitiveness Index, the UAE ranks in the world’s top 20 for AI‑talent concentration, ahead of Italy and Russia. The UAE and Saudi Arabia account for 0.7% and 0.4% of the global AI‑talent pool, respectively.

A key driver has been King Abdullah University of Science and Technology (KAUST). It ranks among the global top 150 universities for AI talent and is the highest‑rated institution in the Middle East.

This was enabled by a national strategy with $20bn in investments and partnerships with leading global institutions, including Stanford University. The funding helped KAUST build one of the region’s most advanced research labs.

Saudi Arabia is rolling out the “10,000 Programmers” initiative to train young people in coding and machine learning.

The kingdom and the UAE are deploying national AI strategies to drive future economic growth. Under Vision 2030, the kingdom has named artificial intelligence one of seven priority levers for economic transformation, aiming to rank among the world’s top ten in AI by decade’s end.

To deliver this, the Saudi Data and Artificial Intelligence Authority (SDAIA) coordinates national efforts and speeds AI‑project approvals, often within 30 days.

Sovereign funds are pivotal, too. The PIF has launched a $1.5bn AI‑focused vehicle. More than 30% of NEOM’s $500bn budget is earmarked for AI infrastructure.

The UAE is also positioning itself as a leader in AI governance and policy. In 2017 it named the world’s first minister of state for artificial intelligence.

“AI talent, in terms of human capital, is the most valuable asset for all future economies. Saudi Arabia and the UAE are taking bold steps to become leaders in this field thanks to strong education systems, regulatory support and investments in infrastructure,” said Dmitry Kaminsky, general partner of Deep Knowledge Group.

Saudi Arabia offers some of the world’s highest pay for AI specialists. Leading researchers can earn up to $420,000 a year tax‑free, while senior executives at NEOM receive signing bonuses of up to $5m. Benefits include subsidised schooling for children and fast‑tracked residency.

NEOM envisions building The Line, the first city designed for AI‑based governance. Core services, including transport and energy, will be managed by autonomous systems.

Saudi Arabia is burnishing its image as a bridge between East and West, enhancing its appeal. Active partnerships with China and the United States present the kingdom as a politically neutral platform for technological development and international AI collaboration.

AI family

Digital Dubai unveiled the first AI‑generated “Emirati family”. The initiative is designed to convey government messages in an accessible format to different segments of society.

The virtual family is created using AI and data‑processing technologies. It is conceived as an interactive digital interface that reflects the UAE’s values and aspirations.

The first member is a Girl, introduced in a short video on social media. The character wears traditional Emirati clothing.

Digital Dubai has launched the first-ever virtual ‘Emirati Family’ created using artificial intelligence (AI). The initiative serves as an innovative platform for delivering government messages in a relatable, engaging, and accessible manner to all segments of society.… pic.twitter.com/FEqcotuvvZ

— Dubai Media Office (@DXBMediaOffice) July 31, 2025

Digital Dubai asked users to choose her name from three options: Dubai, Mira or Latifa. The remaining family members—the mother, father and brother—will follow.

Taken together, the UAE is building a comprehensive ecosystem in which infrastructure projects are underpinned by human capital and public support.

In May, the Dubai Department of Finance announced a partnership with the crypto exchange Crypto.com to accept digital assets as payment for government services.

In July, the UAE authorities denied reports of “golden visas” for staking Toncoin. The TON Foundation clarified that the project is a private initiative.