In the UAE, there are numerous opportunities for exporters in the ICT and digital sectors.
The Middle East and North Africa (MENA) region’s primary hub for international trade and business, this nation, is a fiercely competitive market for the information and communication technology (ICT) sector. A competitive knowledge economy and a free, efficient, and globally integrated business environment are the goals of government initiatives. This is to lessen reliance on oil revenue and expand the private sector. To promote the growth of the knowledge-based economy, the government is implementing some actions.
This government has developed a variety of free trade zones, including Dubai Silicon Oasis and Dubai Internet City, which are industry clusters for high technology and innovation in the sector.
The UAE, and Dubai in particular, are attractive sites for enterprises serving the entire MENA region. This is due to the low trade barriers, which also increase demand for IT software and services within the UAE.
The investment raises demand for ICT goods and services in healthcare, space, aviation, aerospace, defense, transportation, retail, financial services, hospitality, and businesses related to economic diversification.
Leading sub-sectors
The top sub-sectors are listed below.
Cloud computing
This country is one of the largest hubs for data centers in the Middle East, and more are planned. Further investments of up to $1 billion are expected by 2026. Microsoft Azure introduced two cloud regions in Dubai and Abu Dhabi in 2019. Three availability zones will make up the new region, which is scheduled to debut in 2022. Oracle announced the launch of its second cloud region in Abu Dhabi in November 2021, following its cloud region in Dubai. Etisalat and G42 Cloud, both controlled by the government, also have sizable data centers.
The UAE government’s aggressive cloud computing investments, the country’s business-friendly regulations, and its robust technological infrastructure all point to the ICT sector’s continued growth in the coming years. Through highly specialized solutions, public cloud hosting in the UAE has effectively addressed variances in resources and skills. Despite these large developments, there is still a sizable amount of room for growth, which will necessitate the skills and know-how of American businesses.
Cybersecurity
The UAE is vulnerable to cyberattacks. This is due to its geopolitical location and significance to the global economy in the energy and aviation sectors, which is fueling the market for cybersecurity to grow quickly. The UAE reported the highest number of consumer malware incidents in the GCC. A set of guidelines for governmental organizations in crucial industries is known as the UAE Information Assurance Standards. They were created by the government to secure the important data information infrastructure in the UAE and enhance national cybersecurity. All government agencies and companies that are recognized in the UAE as essential infrastructure must adhere to these requirements. To capitalize on the growing need, some local competitors have been enhancing their cybersecurity skills, while foreign IT security companies are growing their footprint in the nation.
Internet of Things
Smart services, the industrial internet, and machine-to-machine connections are examples of Internet of Things (IoT) prospects. Smart cities and telehealth have been used in the public sector, whereas smart meters, asset tracking, and production optimization are examples of enterprise applications. In particular, Dubai, which intends to become a leading smart city, has emerged as a key global destination for the implementation of IoT technology to improve public infrastructure. Across Dubai and the United Arab Emirates, there is a strong foundation for collaboration in a variety of industries, including ICT, power, transportation, infrastructure, healthcare, and government.
Artificial Intelligence
This country places a high premium on artificial intelligence (AI). By 2030, AI is anticipated to contribute $96 billion, or about 14% of the country’s GDP. Also, between 2018 and 2030, it is anticipated to increase at a rate of 33.5% annually. The nation’s AI Strategy 2031 was introduced to increase productivity in the transportation, health, space, technology, education, environment, and traffic sectors as part of the government’s UAE Centennial 2071 goals. AI integration into sectors like education, healthcare, space, transportation, and aviation has already started in this nation.
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