Dubai Future Foundation launched an AI Sandbox through its Sandbox Dubai initiative on 28 October, bringing technology companies and government entities together to test AI products in real-world settings, the Emirates News Agency reported. Sandbox Dubai is a platform for testing products and business models under adaptive regulatory supervision. The new programme offers companies guidance on rules that may hinder deployment and gives regulators a setting in which to examine applications before considering changes to existing frameworks.
Key points
- Startups, smaller businesses and established technology companies can apply with AI-native products at minimum viable product stage or beyond.
- Participants will test with government entities, including the Dubai Centre for Artificial Intelligence, and receive technical, policy and commercial support.
- Regulatory exemptions may be explored, depending on the application and requirements, but require approval from the relevant authorities.
- Applications can be submitted until 18 December 2026.
AI Sandbox starts with products ready to test
The programme is open to local and international startups, small and medium-sized enterprises, and established technology companies developing AI-native products. Applicants must have reached at least minimum viable product stage. Their solutions must also be ready for commercialisation and capable of producing evidence that could inform policy and regulatory development. The entry requirement places the programme beyond an early research exercise: applicants need something that can be put to a practical test.
Companies working in education, healthcare, transport and mobility, logistics, tourism, media and government services are invited to apply, alongside those in other industries. Participants will get help with technology, policymaking and business, plus advice on requirements specific to each product. Fast Company Middle East reported that limited access to data and uncertainty about how existing policies apply to emerging technologies are among the obstacles the foundation identifies for commercial deployment.
The foundation is addressing a problem that extends beyond whether a product works. Research cited by the World Economic Forum puts the share of companies that have yet to take their AI initiatives beyond experimentation at 74 percent. Khalifa Al Qama, the foundation’s chief of research, development and innovation, said companies need a way to deal with regulatory challenges if promising technologies are to move into practical use. That is the purpose he gave for bringing innovators and regulators into the same testing programme.
Dubai authorities retain approval of exemptions
Participating companies will work with relevant government entities, including the Dubai Centre for Artificial Intelligence, in real-world environments. The tests are intended to let regulators examine emerging applications, identify possible risks and collect evidence for future policy. They will also give officials a basis for deciding where existing regulatory frameworks may need to change while maintaining safeguards.
The programme permits companies to explore regulatory exemptions, depending on the use case and applicable requirements. Any such exemption is subject to approval by the relevant authorities. Entry to the sandbox therefore offers a route to seek regulatory flexibility, while the decision on an exemption remains with the authority responsible for the rule in question.
That distinction matters for a company planning a commercial trial. The sandbox brings tailored guidance and access to officials into the development process, but a proposal that needs an exemption still has to pass the relevant authority’s approval. For regulators, the same trial offers a chance to examine a product and its risks before deciding whether the applicable framework needs adjustment.
Sandbox Dubai has used this approach to regulatory modernisation in the gig economy, healthcare and real estate. The AI Sandbox extends it to applications that may encounter different rules according to the sector in which they are deployed. Its invitation spans both public services and commercial markets, rather than prescribing a single type of AI product for the tests.
Sandbox Dubai sets a December application deadline
Sandbox Dubai belongs to the first package of 100 transformative projects under the D33 Agenda, which aims to double Dubai’s economy over the next decade. Its wider remit covers artificial intelligence, real estate technology, healthcare and green technologies. The AI Sandbox applies that programme’s model of supervised testing to companies trying to move AI products from experimentation towards deployment.
Microsoft’s Global AI Diffusion Report puts AI use among the UAE’s working-age population at 73.3 percent, against a global figure of 18.8 percent. The foundation’s programme addresses a different part of adoption: whether companies can deploy products under the rules that govern their intended use. On 5 October, the foundation also announced an agentic AI accelerator for 33 government entities focused on government services.
Dubai Future Foundation will accept applications for the AI Sandbox until 18 December 2026.
