AI

TikTok Boosts UAE Economy with AED 1.1 Billion Contribution, Report Finds

Mohammed Fathy
Mohammed Fathy

4 min

TikTok-using small firms added around “AED 1.

1 billion” and supported more than 7,000 UAE jobs.

Over “10,000 SMBs” reportedly started on TikTok, with 70,000 local businesses now active.

The platform is seen as “a functional layer” of the UAE’s digital economy, beyond entertainment.

One in four creators began because of TikTok, turning side hustles into steady incomes.

Tourism, skills and cultural discovery are also shaped, making TikTok “increasingly hard to ignore”.

TikTok’s growing footprint in the UAE economy is starting to look, well… hard to ignore. According to a new economic impact report shared during the recent World Government Summit in Dubai, small and medium-sized businesses using the platform added around AED 1.1 billion to the national economy and helped support more than 7,000 jobs. Not bad for an app many people still think is all about dance trends.

The report, titled *The TikTok Effect: Enabling the UAE’s Dynamic Digital Economy*, takes a wide view of the platform’s role, from entrepreneurship and the creative economy to skills building and even tourism. It was launched in the presence of Omar Sultan Al Olama, the UAE’s Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications, during a summit that drew over 6,000 global leaders under the banner of “Shaping the Governments of the Future”.

One stat that really sticks out is the number of businesses that owe their start to the platform. Estimates from Redseer Strategy Consultants, who developed the report with TikTok, suggest more than 10,000 SMBs in the UAE began because of TikTok, with over 70,000 local small businesses now actively using it. I’ve lost count of how many founders around the region have told me they found their first customers through a scrappy video shot on a phone — seeing that reflected in hard numbers feels spot on.

Al Olama pointed to the UAE’s broader digital push, saying the country’s strong regulatory base and business-friendly set-up have helped global platforms contribute meaningfully to economic growth and creative industries. Advanced technologies, he noted, are becoming central to competitiveness and day-to-day wellbeing, not just headline innovation.

From TikTok’s side, Jenan Mohamed Alhashili, Head of Public Policy for the GCC, said the platform has moved beyond entertainment into “a functional layer” of the UAE’s digital economy. She highlighted its role in lowering barriers for Emirati entrepreneurs and helping local brands and creators reach global audiences — a big deal if you’re a small team trying to punch above your weight.

The creative economy is another area where TikTok seems to be pulling its weight. One in four creators surveyed said the platform was the main reason they started creating content, with many turning what began as a side hustle into a sustainable income. Fashion, music, media — it’s all in the mix, and it aligns neatly with the UAE’s push to diversify beyond traditional sectors. I reckon this shift towards new digital professions is only just getting going.

Tourism gets a look-in too. The report estimates that about 10% of tourist spending in the UAE is influenced by TikTok, while in key markets like the UK and US, half of users say they discovered the country as a travel destination through the app. Closer to home, nearly 40% of users say it’s nudged them towards new places, restaurants or events. On the flip side, I’m not a fan of calling every viral clip “nation branding”, but there’s no denying short, locally made videos can turn discovery into real-world spending.

Beyond pounds and dirhams, the report digs into human development and social connection. Learning is a big driver: 26% of users say it’s their main reason for opening the app, and a large majority report picking up professional and personal skills there. In a country with more than 200 nationalities, users also say TikTok helps them express cultural identity, with national hashtags like #UAENationalDay racking up billions of views.

There’s also a nod to trust and wellbeing. TikTok says it combines AI tools with human moderation and local digital literacy efforts, and 71% of users surveyed feel the platform is taking meaningful steps to protect privacy and safety. Whether that’s enough will always be up for debate, but it’s clearly part of the conversation now.

For readers at Arageek who’ve spent years watching MENA startups graft for visibility, this report lands at an interesting moment. TikTok isn’t just a shiny marketing channel anymore; it’s becoming infrastructure of sorts. A bit messy, sometimes a faff to figure out… but increasingly hard to ignore, even if you’re still sceptcal.

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