Dubai Opens an AI Sandbox as Its AI Campus Doubles Its Target: What Founders Should Know

DUBAI — A good AI product can still get stuck before launch. The model works, but the company doesn’t know which rules apply, can’t get the data it needs, or can’t find a regulator to talk to. Dubai is now offering a formal route through that problem. Dubai Future Foundation (DFF), through Sandbox Dubai, has launched an AI Sandbox where companies can test AI products in real-world settings alongside regulators, according to the Emirates News Agency (WAM).

Applications are open until December 18, 2026.

The launch came days after Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, approved a new target for Dubai AI Campus: more than 1,000 AI companies and over 5,000 highly skilled jobs by 2030, according to DIFC. Put together, the two announcements mean more AI companies are coming to Dubai, and there is now a clearer way to take their products from pilot to market.

What the AI Sandbox Offers

WAM says the sandbox brings together startups, SMEs, established technology companies and government entities, including the Dubai Centre for Artificial Intelligence (DCAI). Companies that are accepted get:

• Real-world testing environments for AI-native products.
• Technical, policy and commercial expertise.
• Regulatory guidance tailored to their use case.
• Possible regulatory exemptions, depending on the use case and subject to approval by the relevant authorities.

Economy Middle East reports that where data access is a major barrier, Sandbox Dubai may help companies talk to the relevant data owners. Any data access still needs the owner’s approval and is not guaranteed.

DFF says it wants to tackle problems beyond the technology itself. WAM cites World Economic Forum research finding that 74% of companies have yet to move their AI initiatives beyond experimentation, often because of regulatory requirements, data access and uncertainty over how existing policies apply.

“The UAE has made significant progress in AI adoption, but the next priority is ensuring that promising technologies can move beyond testing and into practical use,” Khalifa Al Qama, Chief of Research, Development and Innovation at DFF, told Entrepreneur Middle East.

Who Can Apply

This is not an idea-stage program. According to WAM, eligible products must:

• Be at minimum viable product (MVP) stage or beyond.
• Show readiness for commercialisation.
• Be able to generate evidence that can inform policy and regulation.

The sandbox is open to AI-native companies in education, healthcare, transport and mobility, logistics, tourism, media, government services and other sectors. Economy Middle East adds that companies in real estate, retail, industry and public safety can also apply. So can developers of enabling technologies, such as foundation models and hyperscaler services, where they face serious regulatory, policy or data-access problems.

It is open to companies worldwide, including firms already in Dubai or elsewhere in the UAE and those planning to set up locally. Selection will weigh innovation, market readiness, how relevant the regulatory problem is, and potential impact. An application does not guarantee a place.

The AI Campus Is Growing Fast

DIFC says the Dubai AI Campus, which opened in May 2024, has attracted more than 500 AI companies. Those companies have raised over AED1 billion from private equity and venture capital funds, and the campus has helped create more than 2,000 specialised technology jobs. That means it reached its original company and investment targets two years early.

“Dubai AI Campus has already achieved its 2028 target of attracting 500 AI companies two years ahead of schedule,” Arif Amiri, Chief Executive Officer of DIFC Authority, said, according to Khaleej Times.

The new target was announced at the third Dubai AI Festival at Dubai World Trade Centre on October 26–27. DIFC says the festival drew more than 20,000 attendees from over 100 countries. During his visit, Sheikh Hamdan reviewed plans for a new campus building in DIFC’s Zabeel District. Fintech News UAE reports that the building will cover 100,000 sq ft and include GPU-ready systems, secure development zones, AI Labs where public bodies and private firms can test tools before wider rollout, and a public AI Experience Centre.

What It Means for Founders

This is our editorial reading of the announcements.

• If regulation is your blocker, apply. The sandbox is built for products that already work but sit in a grey area, such as healthcare triage, autonomous logistics or AI in government services. A spot gives you direct access to the regulators who will decide how your product can be used.
• Bring evidence, not a pitch deck. The criteria favour companies that can produce data regulators can use. Plan your pilot metrics with that in mind.
• The window is short. Applications close on December 18, which overlaps with year-end fundraising and holidays. Start early.
• The ecosystem is getting crowded. Doubling the campus target means more AI companies competing for talent, office space and customers in DIFC. It also means a bigger pool of potential partners and buyers.

More information and the application are on the Sandbox Dubai website.

Details come from WAM, DIFC, Entrepreneur Middle East, Economy Middle East, Khaleej Times and Fintech News UAE as of October 29, 2026. Eligibility and support depend on each selected use case.