Dubai Future Foundation Launches AI Sandbox to Help Companies Navigate Regulation

Dubai Future Foundation (DFF),  through Sandbox Dubai, has launched the AI Sandbox to help local and international technology companies overcome regulatory and policy barriers that can prevent promising artificial intelligence (AI) solutions from moving beyond experimentation into real-world deployment.

The initiative will bring together startups, SMEs, established technology companies and relevant government entities, including the Dubai Centre for Artificial Intelligence (DCAI), to test AI-native solutions in real-world environments. Participating companies will benefit from technical, policy and commercial expertise, alongside tailored regulatory guidance to address challenges that may limit deployment. Depending on the use case and applicable requirements, this may include exploring regulatory exemptions, subject to approval by the relevant authorities.

The launch addresses a persistent challenge in AI development. Despite growing investment and adoption, 74% of companies have yet to move their AI initiatives beyond experimentation, according to research cited by the World Economic Forum. Beyond technological readiness, companies face challenges relating to regulatory requirements, data access and the application of existing policies to emerging technologies.

The AI Sandbox will allow innovators and regulators to work together to address these challenges. Through practical testing, regulators will be able to assess emerging applications, identify potential risks and gather evidence to inform future policies. This will help determine where existing regulatory frameworks may need to evolve while maintaining appropriate safeguards.

“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. This requires us to look beyond the technology itself and address the regulatory challenges that companies face. Through the AI Sandbox, we are bringing innovators and regulators together to test new applications, understand where existing frameworks may need to adapt and identify practical solutions. Our aim is to create an environment where companies can develop and deploy AI technologies with greater regulatory clarity, while ensuring that policy development keeps pace with innovation.”

– Khalifa Al Qama, Chief of Research, Development & Innovation, Dubai Future Foundation

The AI Sandbox welcomes applications from companies developing AI-native solutions across sectors including education, healthcare, transport and mobility, logistics, tourism, media and government services, as well as other industries. Eligible solutions must be at minimum viable product (MVP) stage or beyond, demonstrate readiness for commercialisation and have the potential to generate evidence that can inform policy and regulatory development.

The launch builds on the UAE’s growing AI adoption. According to Microsoft’s Global AI Diffusion Report, the UAE ranks first globally, with 73.3% of its working-age population using AI, compared with 18.8% globally. The initiative will complement Dubai’s wider research, development and innovation (RDI) ecosystem by helping companies address the practical challenges involved in bringing new AI technologies to market.

The AI Sandbox also builds on Sandbox Dubai’s wider approach to regulatory modernisation, which brings innovators and regulators together to test emerging technologies and business models. This approach has been applied across sectors including the gig economy, healthcare and real estate, helping identify where regulatory frameworks may need to adapt to new developments.