The UAE’s tech industry is on track to achieve unprecedented growth in 2025, fueled by remarkable advancements in digital innovation and the embrace of state-of-the-art technologies. This surge in growth further cements the UAE’s reputation as a global center for innovation and a prominent hub for technology firms.
Strengthening global position
The UAE has enhanced its standing on the world stage as an innovation-centric environment and a prime location for the expansion of both established and emerging tech companies. This progress is attributed to substantial investments in digital infrastructure development and the implementation of favorable regulations and policies that promote a thriving climate for innovation and growth.
Continued growth projections
International reports indicate that the technology sector will continue to expand in key areas such as artificial intelligence (AI), cloud computing, and emerging technologies, including blockchain and the Internet of Things.
A recent report by Statista, a renowned German platform specializing in data collection and visualization, projects that revenues from the technology services market in the UAE will rise by approximately $3.8 billion by 2025.
The findings of the report highlight that this anticipated growth showcases the UAE’s ongoing advancement in developing its tech sector and increasing dependence on digital services. Additionally, it forecasts a steady annual growth rate of 6.24 percent from 2025 to 2029, which will elevate the market size to $4.79 billion by the conclusion of the forecast period.
Key attraction for emerging tech companies
Officials from various emerging tech firms have affirmed in statements to the Emirates News Agency (WAM) that the UAE is a major draw for these businesses, thanks to its sophisticated infrastructure and supportive business climate. They emphasized that the UAE market presents exceptional opportunities for technological innovation, particularly with the extensive adoption of AI.
Harsh Sajnani, founder & CEO of Kingpin, expressed that the UAE—especially Abu Dhabi—serves as a beacon for startups due to its world-class infrastructure. This environment facilitates the growth and success of such companies and encourages them to expand globally with innovative technological solutions.
He further noted that the UAE provides a competitive landscape for businesses across various sectors, including technology, due to the rapid pace of digital transformation and the burgeoning tech industry. This landscape aids companies in integrating advanced technologies to boost their operational efficiency and competitiveness.
In a similar vein, Alex Zito, strategic COO of CapeCade, mentioned that the company is shifting its operations to the UAE to seize promising opportunities and substantial government support that enables businesses to flourish.
He added that the company perceives Abu Dhabi as an ideal setting to convert its current regional user base into long-term clients, offering a comprehensive ecosystem that aligns with the goals of both startups and investors alike.
