Dubai Future Foundation launches an AI sandbox through Sandbox Dubai

Dubai Future Foundation has launched an AI sandbox. The foundation introduced the program through Sandbox Dubai in late October 2026 to help local and international companies test AI-native solutions in real-world environments and address regulatory barriers that can keep promising applications from reaching commercial use. Applications are open until 18 December 2026. Eligible solutions must be at the minimum viable product stage or beyond, show readiness for commercialization and have the potential to generate evidence that can inform policy and regulation. Priority sectors include education, healthcare, transport and mobility, logistics, tourism, media and government services. Participating companies will work with relevant government entities, including the Dubai Center for Artificial Intelligence, and receive technical, policy and commercial expertise along with tailored regulatory guidance. Khalifa Al Qama, Chief of Research, Development and Innovation at Dubai Future Foundation, said the next priority is ensuring promising technologies move beyond testing into practical use, which requires addressing the regulatory challenges companies face. Depending on the application, companies may explore regulatory exemptions subject to approval by the relevant authorities. The sandbox sits inside Sandbox Dubai, a platform that has previously been applied to the gig economy, healthcare and real estate. Dubai Future Foundation has not published the number of applications received or the number of companies already selected. Those details would show the initial uptake. The foundation has not published the commercial terms that will apply to participating companies or any fees. It has not published the specific regulatory exemptions that have already been granted or the measurable outcomes from previous Sandbox Dubai programs. No timeline has been given for when the first cohort will begin testing or how long each trial is expected to run. For technology companies the practical change is access to a structured testing environment that pairs real-world trials with regulatory guidance. The value depends on whether the sandbox generates published evidence that leads to regulatory changes and whether participating companies move solutions into commercial deployment. The launch is framed as supporting deployment and does not include any announced capital commitment or external investment. Companies outside the UAE can apply, but the testing and regulatory engagement take place with Dubai entities. Other regulators have also created AI testing environments. Dubai Future Foundation pairs an open application process with government entity involvement and a December deadline. The foundation has not published a comparison of its AI sandbox with other regional programs or the number of previous sandboxes it has run. Microsoft’s Global AI Diffusion Report ranks the UAE first globally in AI use among the working-age population, at 73.3 per cent against a global average of 18.8 per cent. The sandbox is positioned against that backdrop. The announcement does not list the specific technical infrastructure or data access that will be provided. Those details would show the operational starting points. Without them the sandbox remains a description of a process and a set of eligibility criteria rather than a fully specified testing environment. Applicants must also demonstrate that their projects could generate evidence useful for future policy. If Dubai Future Foundation publish the number of selected companies, the regulatory outcomes and any commercial deployments within the next six months, the launch has a measurable follow-through. If the next update is only a restatement of the program, the change for the market remains the same as the initial announcement. The figures missing are application numbers and commercial terms. The sandbox is one element in a wider set of Sandbox Dubai activities aimed at regulatory modernization under the D33 Agenda. Companies will be assessed on innovation, market readiness, the regulatory challenge and potential impact. Submitting an application does not guarantee selection.