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UAE Artificial Intelligence in Retail Market By AI Technology (Machine Learning, Computer Vision, Natural Language Processing, Predictive Analytics, Others); By Application (Customer Analytics, Virtual Assistants, Inventory Management, Pricing Optimization, Fraud Detection); By Retail Format (Supermarkets & Hypermarkets, Specialty Stores, Convenience Stores, Online Retail); By Deployment (Cloud-Based, On-Premise); By End-User (Large Retail Chains, Mid-Sized Retailers, Small Retailers) – Growth, Share, Opportunities & Competitive Analysis, 2024 – 2032

Name: UAE Artificial Intelligence in Retail Market - Demand, Size and Competitive Analysis
Creator: Credence Research Inc.
Published: 2025-12-19
License: https://www.credenceresearch.com/info/privacy-policy
Keywords: UAE Artificial Intelligence in Retail Market

Summary
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Market Overview:

The UAE AI in Retail Market size was valued at USD 99.10 million in 2018 to USD 212.15 million in 2024. The market is anticipated to reach USD 850.25 million by 2032. The forecast period reflects a CAGR of 17.67%.

REPORT ATTRIBUTE	DETAILS
Historical Period	2020-2023
Base Year	2024
Forecast Period	2025-2032
UAE AI in Retail Market Size 2024	USD 212.15 million
UAE AI in Retail Market, CAGR	17.67%
UAE AI in Retail Market Size 2032	USD 850.25 million

Retailers adopt AI to improve customer experience and operational speed. Smart analytics helps predict demand and reduce stock gaps. Computer vision supports cashier-less stores and faster checkouts. Personalization engines raise conversion through tailored offers. AI chatbots handle service queries with faster response times. Pricing tools adjust rates in real time. Fraud detection improves payment security. Cloud access lowers deployment costs. Government digital programs support adoption. Strong smartphone use boosts data-driven retail. Omnichannel strategies rely on unified AI platforms.

Dubai leads adoption due to large malls and global brands. Abu Dhabi follows with smart city retail programs. Sharjah shows steady uptake among mid-sized chains. Northern emirates are emerging with value-focused deployments. Urban areas lead due to data access and scale. Tourist hubs adopt AI to manage peak demand. Free zones attract retail technology pilots. Cross-border retailers test models locally. Regional leadership links to infrastructure readiness. Emerging areas grow through franchising expansion.

UAE AI in Retail Market size

Market Insights:

The UAE AI in Retail Market stood at USD 99.10 million in 2018, reached USD 212.15 million in 2024, and is projected to hit USD 850.25 million by 2032, growing at a 17.67% CAGR, driven by rapid digital retail adoption and AI-led automation.
Dubai (~50%), Abu Dhabi (~30%), and Sharjah & Northern Emirates (~20%) lead regional shares due to mall density, smart city programs, strong cloud infrastructure, and high enterprise retail concentration.
Sharjah & Northern Emirates represent the fastest-growing region with around 20% share, supported by franchise expansion, cloud-based AI adoption, and rising penetration among mid-sized retailers.
By AI technology, Machine Learning accounts for ~32% of segment share, driven by demand forecasting, personalization, and customer analytics, while Computer Vision holds ~24% due to checkout automation and store analytics use.
Predictive Analytics (~18%) and NLP including chatbots (~16%) form the mid-tier share, while other AI technologies including generative and edge AI contribute ~10%, reflecting early-stage but rising adoption.

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Market Drivers:

Strong Government Push Toward Digital Retail Transformation And AI Adoption

The UAE AI in Retail Market gains momentum from national digital strategies. Federal and emirate programs promote AI use across commerce. Retailers align operations with smart economy goals. Policy support reduces uncertainty for long-term investments. Public entities encourage data-driven retail systems. Regulatory clarity supports enterprise-scale deployment. Innovation hubs connect retailers with AI vendors.

For instance, Dubai’s Smart Dubai initiative enabled AI pilots across retail services, where government-backed platforms processed millions of anonymized consumer interactions annually to support data-driven retail planning.

Rising Demand For Hyper-Personalized Customer Shopping Experiences

Retailers seek deeper customer engagement across physical and digital channels. AI enables tailored product recommendations at scale. Loyalty programs use predictive insights for targeted rewards. Customer data helps refine assortments by location. Brands improve basket size through personalization engines. Experience-led retail strengthens repeat visits. Competition pushes rapid adoption across formats.

For instance, Majid Al Futtaim reported that AI-driven personalization across its Carrefour UAE digital channels analyzed millions of customer transactions yearly to optimize offers and improve repeat purchase frequency.

Need For Operational Efficiency And Real-Time Decision Support

Retail margins face pressure from rising operating costs. AI tools support demand forecasting and inventory accuracy. Retailers reduce stockouts through predictive analytics. Automated pricing improves response to demand shifts. Workforce planning improves through traffic prediction. Decision speed improves across store networks. Cost control remains a core priority.

Growth Of Omnichannel Retail Models And Data Integration Needs

Retailers unify online and offline operations through AI platforms. Data integration supports seamless customer journeys. Unified dashboards improve supply chain visibility. AI supports click-and-collect models. Retailers track behavior across touchpoints. Omnichannel execution raises service consistency. Platform scalability drives investment decisions.

Market Trends:

Expansion Of Computer Vision Systems Across Physical Retail Stores

Retailers deploy vision systems for store analytics. Footfall tracking improves layout decisions. Shelf monitoring reduces manual audits. Theft detection improves store security. Checkout automation gains traction in urban stores. Vision data supports staffing plans. Adoption grows across large retail chains.

For instance, Majid Al Futtaim reported that AI-driven personalization across its Carrefour UAE digital channels analyzed millions of customer transactions yearly to optimize offers and improve repeat purchase frequency.

Growing Use Of Conversational AI And Virtual Shopping Assistants

Retailers adopt AI assistants for customer interaction. Chatbots handle queries across apps and websites. Voice assistants support product discovery. Response quality improves customer satisfaction. AI reduces load on service teams. Multilingual support fits the local market. Deployment scales across sectors.

For instance, Microsoft Azure AI-powered chatbots used by UAE retailers support Arabic and English queries and handle tens of thousands of customer conversations per month without human escalation.

Shift Toward Cloud-Based AI Platforms And SaaS Models

Retailers favor cloud delivery for faster deployment. SaaS models reduce upfront costs. Updates roll out without system disruption. Cloud access supports multi-store operations. Data storage scales with demand growth. Vendors offer modular AI services. Flexibility drives platform preference.

Rising Focus On Ethical AI And Data Governance Practices

Retailers prioritize responsible AI use. Data privacy rules shape system design. Transparency builds customer trust. Retailers audit algorithms for bias. Secure data handling gains importance. Governance frameworks guide AI deployment. Compliance influences vendor selection.

Market Challenges Analysis:

High Implementation Costs And Integration Complexity Across Legacy Systems

The UAE AI in Retail Market faces cost-related barriers. AI deployment requires skilled teams and system upgrades. Legacy POS systems limit integration speed. Customization raises project timelines. Small retailers face budget constraints. Integration risks disrupt store operations. Vendor coordination adds complexity. ROI visibility remains uneven during early stages.

Data Privacy Concerns And Shortage Of AI-Skilled Retail Workforce

Retailers manage sensitive consumer data at scale. Compliance requirements increase operational oversight. Data breaches raise reputational risk. Talent shortages slow advanced AI adoption. Retailers depend on external consultants. Training programs need time to mature. Skill gaps affect model accuracy. Workforce readiness remains uneven.

Market Opportunities:

AI Adoption Across Mid-Sized Retailers And Franchise Networks

The UAE AI in Retail Market offers growth among mid-tier retailers. Scalable AI tools suit franchise operations. Cloud platforms reduce entry barriers. Regional chains seek analytics for expansion. Standardized tools improve rollout speed. Vendors target affordable AI solutions. Market penetration can widen rapidly.

Integration Of AI With Smart City And Tourism-Focused Retail Ecosystems

Retail aligns with smart city initiatives. Tourist-heavy zones adopt AI for demand spikes. Language-aware systems serve global visitors. AI supports dynamic merchandising in malls. Event-driven retail gains accuracy. Partnerships with city platforms create new use cases. Long-term ecosystem growth supports innovation.

Market Segmentation Analysis:

By AI Technology

Machine Learning leads adoption through demand forecasting and customer behavior modeling. Computer Vision supports store analytics, loss prevention, and checkout automation. Natural Language Processing enables chatbots and voice-based search. Predictive Analytics improves planning accuracy across supply chains. Others include recommendation engines and anomaly detection tools that support niche retail use cases. Technology choice depends on data maturity and retail scale.

For instance, SAP MENA’s AI-enabled retail planning tools process millions of historical sales records to generate demand forecasts with automated daily refresh cycles.

By Application

Customer Analytics drives personalization and loyalty management. Virtual Assistants handle service queries and product discovery across channels. Inventory Management uses AI to reduce stock gaps and overstock risks. Pricing Optimization supports dynamic pricing based on demand signals. Fraud Detection protects digital payments and reduces chargebacks. Application focus varies by retail format and digital presence.

For instance, Oracle Retail AI solutions deployed in the UAE analyze transaction-level data across thousands of daily purchases to flag anomalous payment behavior and reduce digital fraud incidents.

By Retail Format

Supermarkets and hypermarkets deploy AI for volume-driven efficiency. Specialty stores use AI to refine assortments and customer targeting. Convenience stores adopt lightweight AI tools for demand planning. Online retail relies heavily on AI for personalization and automation. Format size shapes deployment depth.

By Deployment

Cloud-based deployment dominates due to scalability and lower upfront costs. It supports multi-store operations and rapid updates. On-premise deployment serves retailers with strict data control needs. Deployment choice reflects security priorities and IT capacity.

By End-User

Large retail chains lead adoption due to scale and data access. Mid-sized retailers adopt modular AI tools to support expansion. Small retailers use limited AI features through SaaS platforms. The UAE AI in Retail Market reflects varied adoption maturity across user groups.

UAE AI in Retail Market segmentation

Segmentation:

By AI Technology
- Machine Learning
- Computer Vision
- Natural Language Processing
- Predictive Analytics
- Others
By Application
- Customer Analytics
- Virtual Assistants
- Inventory Management
- Pricing Optimization
- Fraud Detection
By Retail Format
- Supermarkets & Hypermarkets
- Specialty Stores
- Convenience Stores
- Online Retail
By Deployment
- Cloud-Based
- On-Premise
By End-User
- Large Retail Chains
- Mid-Sized Retailers
- Small Retailers
By Region
- Dubai
- Abu Dhabi
- Sharjah
- Northern Emirates

Regional Analysis:

Dubai

Dubai holds the largest share of the UAE AI in Retail Market at about 50%. The emirate leads due to high mall density and global retail brands. Retailers deploy AI for personalization and store analytics. Smart retail aligns with Dubai’s digital economy agenda. Tourist-driven demand supports advanced customer insights. Large retailers test AI innovations at scale. Strong cloud infrastructure accelerates adoption.

Abu Dhabi

Abu Dhabi represents roughly 30% of the market share. Government-backed digital programs support AI adoption. Retailers focus on secure data platforms and compliance. Mall operators adopt AI for demand planning and pricing control. Smart city initiatives encourage automation. Enterprise retailers lead technology investments. Adoption expands steadily across formats.

Sharjah And Northern Emirates

Sharjah and the Northern Emirates together account for around 20% of the market share. Cost-focused retailers adopt modular AI tools. Franchise expansion supports analytics demand. Cloud platforms lower entry barriers for smaller chains. Retailers prioritize inventory accuracy and pricing tools. Urban centers lead adoption. Growth potential remains strong.

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Key Player Analysis:

IBM Middle East
Microsoft Azure AI
SAP MENA
Oracle Middle East
Majid Al Futtaim

Competitive Analysis:

The UAE AI in Retail Market shows moderate to high competition among global technology firms and regional retail leaders. Large vendors compete on cloud scale, analytics depth, and security features. Retail groups gain advantage through proprietary data and pilot programs. Partnerships shape deployment speed and customization. Cloud platforms reduce switching barriers for retailers. Innovation cycles remain short due to rapid AI upgrades. Competitive strength depends on ecosystem support and integration capability.

Recent Developments:

In November 2025, Microsoft and G42 announced a major 200-megawatt datacenter expansion through Khazna Data Centers, a G42 subsidiary, as part of Microsoft’s $15.2 billion investment announcement in the UAE. This expansion is expected to come online before the end of 2026 and will provide additional world-class AI and cloud infrastructure, strengthening Microsoft Azure’s secure and scalable services for the nation’s digital economy. The partnership is grounded in the highest standards of cybersecurity, data protection, and ethical AI, with the Responsible AI Future Foundation serving as a global model for responsible AI development and governance.
Most recently, in November 2025, Oracle announced a major expansion of the Oracle Cloud Abu Dhabi Region with the deployment of the first Oracle Cloud Infrastructure (OCI) Supercluster powered by NVIDIA Blackwell GPUs in the Middle East. Powered by more than 4,000 NVIDIA Blackwell GPUs, this supercluster supports sovereign AI initiatives and helps customers across smart government, energy, financial services, healthcare, logistics, and retail accelerate AI adoption while meeting data sovereignty requirements.
In October 2025, Oracle expanded its presence in Dubai Internet City with the opening of a state-of-the-art Customer Experience Centre. On October 6, 2025, the center was inaugurated with the introduction of a reimagined Zayed Innovation Hub, one of the first AI-dedicated hubs launched in the UAE. This hub showcases Oracle’s enterprise-ready AI solutions through immersive demonstrations and real-world use cases, featuring over 200 Oracle Cloud Infrastructure (OCI) and industry-focused Oracle Fusion Cloud Applications infused with AI and Generative AI capabilities.
In October 2025, IBM Middle East announced a significant collaboration with Deloitte Middle East at GITEX 2025. On October 14, 2025, Saad Toma, General Manager of IBM Middle East and Africa, and Muhannad Tayem, Technology & Transformation Chief Operating Officer at Deloitte Middle East, signed an agreement to advance generative AI adoption across Gulf Cooperation Council (GCC) organizations. This partnership aims to deliver AI-led and technology-driven services across multiple sectors including banking and finance, government, oil and gas, and energy and utilities, enabling organizations to unlock new opportunities for innovation and growth while maintaining responsible AI practices at scale.
Additionally, in October 2025, eSolutions, a subsidiary of MDS System Integration Group, hosted successful events in Abu Dhabi and Dubai showcasing “Driving Asset Lifecycle with IBM AI Infused Technology.” These two-day sessions brought together industry leaders and enterprise decision-makers to explore how AI, automation, and data-driven insights are transforming asset management and operational efficiency across Middle Eastern industries.

Report Coverage:

The research report offers an in-depth analysis based on AI technology, application, retail format, deployment, end-user, and region. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.

Future Outlook:

Retailers expand AI-led personalization across physical and digital channels.
Cloud-based AI platforms gain wider adoption among mid-sized retailers.
Computer vision use increases in checkout and store analytics.
Data governance becomes a core deployment criterion.
Omnichannel AI integration strengthens customer engagement.
Smart city programs support retail automation initiatives.
Franchise networks adopt scalable AI tools.
AI-driven pricing tools gain wider acceptance.
Workforce upskilling improves AI utilization.
Partnerships accelerate innovation and deployment speed.

CHAPTER NO. 1 : INTRODUCTION 22

1.1. Report Description 22

Purpose of the Report 22

USP & Key Offerings 22

1.2. Key Benefits for Stakeholders 23

1.3. Target Audience 23

CHAPTER NO. 2 : EXECUTIVE SUMMARY 24

CHAPTER NO. 3 : UAE AI IN RETAIL MARKET FORCES & INDUSTRY PULSE 26

3.1. Foundations of Change – Market Overview 26

3.2. Catalysts of Expansion – Key Market Drivers 28

3.3. Momentum Boosters – Growth Triggers 29

3.4. Innovation Fuel – Disruptive Technologies 29

3.5. Headwinds & Crosswinds – Market Restraints 30

3.6. Regulatory Tides – Compliance Challenges 31

3.7. Economic Frictions – Inflationary Pressures 31

3.8. Actionable Insights & Market Opportunity 32

3.9. Market Trends 33

3.10. Market Equilibrium – Porter’s Five Forces 34

3.11. Ecosystem Dynamics – Value Chain Analysis 36

3.12. Macro Forces – PESTEL Breakdown 38

CHAPTER NO. 4 : COMPETITION ANALYSIS 40

4.1. Company Market Share Analysis 40

4.1.1. UAE AI in Retail Market Company Revenue Market Share 40

4.2. Strategic Developments 42

4.2.1. Acquisitions & Mergers 42

4.2.2. New Deployment Launch 43

4.2.3. Agreements & Collaborations 44

4.3. Competitive Dashboard 45

4.4. Company Assessment Metrics, 2024 46

CHAPTER NO. 5 : UAE MARKET ANALYSIS, INSIGHTS & FORECAST, BY AI TECHNOLOGY 47

CHAPTER NO. 6 : UAE MARKET ANALYSIS, INSIGHTS & FORECAST, BY APPLICATION 52

CHAPTER NO. 7 : UAE MARKET ANALYSIS, INSIGHTS & FORECAST, BY RETAIL FORMAT 57

CHAPTER NO. 8 : UAE MARKET ANALYSIS, INSIGHTS & FORECAST, BY DEPLOYMENT 61

CHAPTER NO. 9 : UAE MARKET ANALYSIS, INSIGHTS & FORECAST, BY END-USER 65

CHAPTER NO. 10 : UAE MARKET ANALYSIS, INSIGHTS & FORECAST, BY REGION 69

CHAPTER NO. 11 : COMPANY PROFILE 73

11.1. IBM Middle East 73

11.2. Microsoft Azure AI 76

11.3. SAP MENA 76

11.4. Oracle Middle East 76

11.5. Majid Al Futtaim 76

11.6. Company 6 76

11.7. Company 7 76

11.8. Company 8 76

11.9. Company 9 76

11.10. Company 10 76

List of Figures

FIG NO. 1. UAE AI in Retail Market Revenue Share, By AI Technology, 2024 & 2032 47

FIG NO. 2. Market Attractiveness Analysis, By AI Technology 48

FIG NO. 3. Incremental Revenue Growth Opportunity by AI Technology, 2024 – 2032 49

FIG NO. 4. UAE AI in Retail Market Revenue Share, By Application, 2024 & 2032 52

FIG NO. 5. Incremental Revenue Growth Opportunity by Application, 2024 – 2032 53

FIG NO. 6. Incremental Revenue Growth Opportunity by Application, 2024 – 2032 54

FIG NO. 7. UAE AI in Retail Market Revenue Share, By Retail Format, 2024 & 2032 57

FIG NO. 8. Market Attractiveness Analysis, By Retail Format 58

FIG NO. 9. Incremental Revenue Growth Opportunity by Retail Format, 2024 – 2032 59

FIG NO. 10. UAE AI in Retail Market Revenue Share, By Deployment, 2024 & 2032 61

FIG NO. 11. Market Attractiveness Analysis, By Deployment 62

FIG NO. 12. Incremental Revenue Growth Opportunity by Deployment, 2024 – 2032 63

FIG NO. 13. UAE AI in Retail Market Revenue Share, By End-User, 2024 & 2032 65

FIG NO. 14. Market Attractiveness Analysis, By End-User 66

FIG NO. 15. Incremental Revenue Growth Opportunity by End-User, 2024 – 2032 67

FIG NO. 16. UAE AI in Retail Market Revenue Share, By Region, 2024 & 2032 69

FIG NO. 17. Market Attractiveness Analysis, By Region 70

FIG NO. 18. Incremental Revenue Growth Opportunity by Region, 2024 – 2032 71

List of Tables

TABLE NO. 1. : UAE AI in Retail Market Revenue, By AI Technology, 2018 – 2024 (USD Million) 50

TABLE NO. 2. : UAE AI in Retail Market Revenue, By AI Technology, 2025 – 2032 (USD Million) 51

TABLE NO. 3. : UAE AI in Retail Market Revenue, By Application, 2018 – 2024 (USD Million) 55

TABLE NO. 4. : UAE AI in Retail Market Revenue, By Application, 2025 – 2032 (USD Million) 56

TABLE NO. 5. : UAE AI in Retail Market Revenue, By Retail Format, 2018 – 2024 (USD Million) 60

TABLE NO. 6. : UAE AI in Retail Market Revenue, By Retail Format, 2025 – 2032 (USD Million) 60

TABLE NO. 7. : UAE AI in Retail Market Revenue, By Deployment, 2018 – 2024 (USD Million) 64

TABLE NO. 8. : UAE AI in Retail Market Revenue, By Deployment, 2025 – 2032 (USD Million) 64

TABLE NO. 9. : UAE AI in Retail Market Revenue, By End-User, 2018 – 2024 (USD Million) 68

TABLE NO. 10. : UAE AI in Retail Market Revenue, By End-User, 2025 – 2032 (USD Million) 68

TABLE NO. 11. : UAE AI in Retail Market Revenue, By Region, 2018 – 2024 (USD Million) 72

TABLE NO. 12. : UAE AI in Retail Market Revenue, By Region, 2025 – 2032 (USD Million) 72

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Frequently Asked Questions

What is the current market size for UAE AI in Retail Market, and what is its projected size in 2032?

The UAE AI in Retail Market reached USD 212.15 million in 2024. It is projected to reach USD 850.25 million by 2032.

At what Compound Annual Growth Rate is the UAE AI in Retail Market projected to grow between 2024 and 2032

The UAE AI in Retail Market is expected to grow at a CAGR of 17.67% during the forecast period.

Which UAE AI in Retail Market segment held the largest share in 2024?

Cloud-based deployment held the largest share within the UAE AI in Retail Market due to scalability benefits.

What are the primary factors fueling the growth of the UAE AI in Retail Market?

The UAE AI in Retail Market grows due to digital retail strategies, personalization demand, and omnichannel expansion.

Who are the leading companies in the UAE AI in Retail Market?

Key players in the UAE AI in Retail Market include IBM Middle East, Microsoft Azure AI, SAP MENA, Oracle Middle East, and Majid Al Futtaim.

Which region commanded the largest share of the UAE AI in Retail Market in 2024?

Dubai commanded the largest share of the UAE AI in Retail Market due to advanced retail infrastructure and high adoption.

About Author

Sushant Phapale

ICT & Automation Expert

Sushant is an expert in ICT, automation, and electronics with a passion for innovation and market trends.

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