Source: Observer Research Foundation (ORF)

The Observer Research Foundation (ORF) explores how the United Arab Emirates (UAE) is leveraging AI-specific regulatory sandboxes to drive innovation while ensuring legal compliance. These controlled environments allow AI companies to experiment with new technologies under regulatory supervision, striking a balance between fostering innovation and mitigating risks. The UAE has emerged as a leader in AI governance, with regulatory sandboxes acting as a tool to refine policies before full-scale implementation.

The report highlights how AI regulation in the UAE aligns with its national strategy, promoting investment in AI-driven industries while maintaining ethical and legal oversight. Key sectors benefiting from this approach include finance, healthcare, and smart cities. By allowing startups and established firms to test AI applications in a controlled setting, the UAE ensures that regulations evolve alongside technological advancements.

The discussion also touches on global implications, suggesting that other nations could adopt similar regulatory sandbox models to create a structured yet flexible AI governance framework. Experts argue that the UAE’s model can serve as a reference for balancing AI regulation with technological progress.