The UAE's AI directive
In April 2026, the UAE Cabinet approved a plan to move half of all federal government sectors, services and operations to agentic AI within two years. The initiative was backed by President Sheikh Mohamed bin Zayed Al Nahyan and announced by Vice President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum.
Agentic AI refers to systems that can plan and complete tasks with limited human involvement.
The Cabinet approved an implementation framework the following month, including a first group of services for citizens, residents and businesses. The government also launched a training programme for 80,000 federal employees.
Licensing, permits, compliance checks and taxation are among the areas being considered for AI integration. These processes often follow set rules and involve large numbers of similar transactions, making them suitable for automation.
An early example in Ras Al Khaimah
Innovation City, a Ras Al Khaimah free zone focused on technology and AI businesses, has already tested this approach for company registration.
In May 2026, the free zone began issuing registered companies a digital identity recorded on OPN Chain, a blockchain developed by IOPn. The digital identity replaces the standard business licence document.
A company's registration is stored as a digital record on the blockchain and can be checked directly. Innovation City says this could make verification faster for banks, regulators and other institutions while making company records harder to falsify.
For now, the system is limited to Innovation City's own registration and services. There is no confirmation that banks, regulators or other institutions outside the free zone recognise or accept these digital identities.
For businesses
The changes do not currently affect how companies register or renew licences outside Innovation City. Most government services continue to operate through existing systems while federal agencies gradually introduce AI over the next two years.
Businesses setting up or operating in the UAE do not need to take any action at this stage.
