Ireland have won their second medal in five World Rugby Sevens Series tournaments by finishing second in Dubai.
South Africa scored three first-half tries to win the final 21-5.
Jack Kelly crossed for Ireland's only try in the decider as James Topping's side finished in second place despite missing Terry Kennedy, World Rugby's Sevens Player of the Year.
Ireland earlier beat Argentina and the USA to reach the final.
The silver medal adds to Ireland's second-place finish in Toulouse last season and their stunning bronze medal at the Rugby Sevens World Cup in September.
They are fourth in the World Series standings after two events, with the top four teams earning qualification for the 2024 Olympics in Paris.