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AI spending by businesses on Pemo’s expense platform rose about fivefold in the third quarter from a year earlier, while advertising spending fell by about a third, according to the first Pemo SME Spend Index from the UAE spend management company. The index is based on nearly 3.5 million anonymised, settled card transactions between October 2025 and September 2026.
Key Takwaways
Pemo’s first SME Spend Index, based on nearly 3.5 million card transactions from October 2025 to September 2026, found AI spending among its customers rose about fivefold in Q3 from a year earlier. Advertising spending fell by about a third.
It found 29% of businesses paid for at least one AI tool in Q3, with typical monthly AI spend of AED 268 among those paying. AI was about 1% of card spending and roughly a quarter of software spending.
The data covers Pemo’s own customers, which Pemo says isn’t representative of all UAE SMEs, and excludes AI bundled into Microsoft and Google suites.
Key Findings of the Pemo SME Spend Index
AI was the fastest-growing spending category. Overall card spending rose 9% year on year, with utilities up about a third and software up 19%. AI made up about 1% of total card spending but roughly a quarter of software spending.
29% of businesses paid for at least one AI tool in Q3. Among those paying, typical monthly AI spend was AED 268. Businesses were more likely to pay for AI tools than for hotel stays or flights, Pemo says.
Ayham Gorani, Pemo’s co-founder and chief executive, said the findings showed AI “had become a budget item” for a growing number of businesses as they reconsidered spending priorities.
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By sector and provider
Technology companies led adoption: 50% paid for AI, with a median of AED 880 a month. Marketing agencies followed at 46%, with AI making up 6% of their card spending against 5% for tech firms. Real estate was at 38% and professional services at 35%. Construction (17%) and hospitality (16%) were lowest.
Anthropic, maker of Claude, was the largest AI provider by spend in most sectors. OpenAI led in media, events, healthcare and construction.
What the data covers
The index reflects spending by Pemo’s own customers and isn’t representative of all UAE SMEs, Pemo says. Its AI figures exclude AI tools bundled into Microsoft and Google software suites. Communicate Online doesn’t report how many businesses sit behind the data.
Pemo’s earlier snapshot, reported by Arabian Post in April, used transactions from more than 6,000 businesses and more than AED 1.4 billion in annual spend. It found about 12% of businesses in the sample actively using AI tools and AI spending up 521% over 13 months. The two reports use different samples and measures, so the 12% and 29% figures aren’t directly comparable.
What’s next
Pemo plans to publish the index quarterly. The Q4 2026 edition is due in January 2027.
FAQs
What is Pemo’s SME Spend Index?
A quarterly analysis of anonymised card transactions by businesses using Pemo’s expense platform. The first edition covers October 2025 to September 2026.
How many UAE SMEs pay for AI tools?
29% of the businesses in Pemo’s data paid for at least one AI tool in Q3 2026. Pemo says the data isn’t representative of all UAE SMEs.
How much do businesses spend on AI?
Among those paying, typical monthly AI spend was AED 268. Technology firms’ median was AED 880 a month.
Which AI providers do they pay for?
Anthropic was the largest by spend in most sectors, and OpenAI led in media, events, healthcare and construction.
When is the next edition?
Pemo plans the Q4 2026 edition for January 2027.
Editor’s Take: Pemo’s index shows AI becoming a recurring line in UAE card spending, with advertising falling over the same period. It describes Pemo’s own customers and excludes AI bundled into Microsoft and Google software, so it measures paid standalone tools only. Pemo’s April snapshot put adoption at 12% on a different sample, which means the jump to 29% can’t be read as growth. The number of businesses behind the index, and the dirham value Pemo cites for the dataset, are the details to confirm before comparing it with other surveys.