TLDRs;
- Dubai is pursuing AI partnerships with South Korean startups to strengthen its role as a global tech hub.
- The Dubai Future Foundation and Korea’s KOTRA are building frameworks for cross-border startup collaboration.
- Dubai offers 0% tax and low-cost business licenses to attract foreign AI firms until 2026.
- Analysts say Dubai must show measurable results from its global AI partnerships to prove long-term impact.
Dubai is intensifying efforts to attract artificial intelligence (AI) startups from South Korea as part of a broader strategy to cement its global tech leadership.
Saeed Al Falasi, Executive Director of the Dubai Future Foundation (DFF), announced the city’s interest in fostering partnerships during the Expand North Star startup exhibition, which opened in Dubai on October 12.
The DFF, a government-backed entity tasked with connecting the public sector to cutting-edge innovators, has been leading the charge in developing Dubai’s AI ecosystem. Al Falasi emphasized that cooperation with South Korean institutions, notably the National Research Foundation of Korea, is a key part of Dubai’s technology diplomacy and innovation agenda.
Strengthening Global Innovation Bridges
The collaboration between Dubai and South Korea is not new. In September, DFF signed an agreement with the Korea Trade-Investment Promotion Agency (KOTRA) to encourage cross-border innovation exchanges between Korean startups and UAE government agencies.
This partnership seeks to create a bridge for Korean entrepreneurs looking to expand in the Middle East, offering them access to Dubai’s fast-growing AI and technology infrastructure.
“Our aim is to create a global testbed for ideas that can solve future challenges,” Al Falasi said during the event. “South Korea’s leadership in robotics, semiconductor technology, and AI research makes it a natural partner for Dubai’s vision.”
Dubai’s outreach to Korean innovators underscores the city’s ambition to attract top global talent, build high-value partnerships, and position itself as a regional AI gateway between Asia and the Middle East.
Incentives for AI Startups
Dubai’s strategy to attract foreign AI companies includes a range of economic incentives. Startups generating less than AED 3 million in annual revenue enjoy 0% corporate tax until 2026.
Meanwhile, business-friendly “free zones”, special regulatory areas designed to attract international enterprises, offer licenses starting at around $1,500 annually with minimal red tape.
Institutions such as Hub71 in Abu Dhabi and the Mohammed bin Rashid Innovation Fund complement these incentives by supporting early-stage startups with funding, mentorship, and connections to government-backed innovation programs.
Despite these benefits, analysts have noted that Dubai’s AI startup pitch could be more transparent about the practical outcomes of such programs. Critics say measurable results, such as successful pilots, investment volumes, or startup survival rates, remain underreported.
Building an AI-Ready Ecosystem
As Dubai opens its doors to more foreign AI companies, a secondary market is emerging for localization, compliance, and cloud infrastructure services. Korean AI firms entering the UAE will require Arabic data sets, regulatory guidance, and government procurement support to navigate the region’s unique business landscape.
System integrators, compliance consultancies, and localization partners are now positioning themselves as market-entry specialists, offering bundled services that include data translation, legal compliance, and access to tender opportunities. The UAE’s federal procurement channels, which include projects in AI infrastructure, data warehousing, and cybersecurity, present a lucrative frontier for companies bridging the gap between foreign innovation and local implementation.
By leveraging its role as a “commercial diplomat,” the Dubai Future Foundation aims to convert diplomatic outreach into tangible economic value. Whether this results in lasting partnerships or symbolic alliances remains to be seen, but the city’s proactive stance signals a long-term commitment to becoming the AI capital of the Arab world.
