| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 52.23 Billion |
| Market Size (2030) | USD 85.24 Billion |
| CAGR (2025 - 2030) | 10.29 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UAE ICT Market Analysis
The UAE ICT Market size is estimated at USD 52.23 billion in 2025, and is expected to reach USD 85.24 billion by 2030, at a CAGR of 10.29% during the forecast period (2025-2030).
The UAE market's growth is propelled by its increasing focus on digital technology, cyber security, artificial intelligence, robotics, healthcare, and IT. The UAE's tech-savvy population, coupled with its robust and high-coverage network, has consistently fostered a favorable environment for ICT operators.
- The United Arab Emirates, serving as the MENA region's key center for global trade and commerce, stands out as a highly competitive landscape within the information and communication technology (ICT) sector. The UAE government's strategic initiatives are designed to pivot toward a knowledge-based economy, fostering a business environment that is not just efficient and effective but also globally interconnected. The government's commitment to digital transformation and initiatives like the UAE Vision 2021 and the National Strategy for Artificial Intelligence 2031 are fostering an environment conducive to ICT innovation and investment.
- The governments of Dubai and the United Arab Emirates are steadfast in their ambition to establish themselves as global IT leaders. Initiatives such as Smart Dubai, the Dubai Internet Future Foundation, and the Ministry for Artificial Intelligence, alongside the appointment of a Minister for the Future, underscore the Emirate's dedication to this vision.
- The increasing demand for cloud computing, big data analytics, and cybersecurity solutions is fuelling growth as businesses seek to augment operational efficiency and protect against emerging cyber threats. Additionally, the rapid adoption of Internet of Things (IoT) devices across sectors, including smart cities and healthcare, is creating new opportunities for ICT providers in the country.
- Moreover, the country’s strategic location as a regional hub for technology and commerce attracts multinational companies and startups alike, further stimulating the market. The rising trend of remote work and digital services accelerated by the COVID-19 pandemic shifted consumer behavior, leading to increased reliance on technology across industries. These combined factors position the country as a leading player in the ICT landscape, fostering innovation and driving sustained growth in the sector.
- In August 2023, the UAE Artificial Intelligence, Digital Economy & Remote Work Applications Office inked a memorandum of understanding with Mastercard. The agreement aims to bolster the region's artificial intelligence preparedness and capabilities. The initial focus of the effort will prioritize combating financial crime, securing the digital ecosystem, and fostering inclusive growth in the country and its neighboring regions.
- However, the growing concerns about data security and privacy-related issues, the high cost of digitalization, and the heavy CAPEX associated with advanced telecom infrastructure are some factors that may restrain market growth during the forecast period.
UAE ICT Market Trends
Artificial Intelligence to Drive the Market
- The rising growth of AI is significantly enhancing the ICT market in the United Arab Emirates. The UAE government has been a major proponent of AI adoption, launching initiatives like the UAE Artificial Intelligence Strategy 2031 to make the country a global AI player. These initiatives have spurred investments in AI research and development, attracting global tech companies to establish operations in the country.
- The country places a significant priority on artificial intelligence (AI). According to the International Trade Administration, AI is anticipated to contribute around 14% of the country's GDP (or USD 96 billion) by 2030. Between 2018 and 2030, AI's contribution to the UAE economy is anticipated to grow by 33.5% annually.
- The UAE AI Strategy 2031 was introduced to increase productivity in the transportation, health, space, renewable energy, water, 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 the Emirates. The government's ambitious objectives to diversify its economy and develop a knowledge economy include AI as a vital component.
- AI is driving innovation across various sectors, including finance, healthcare, and transportation, leading to increased demand for ICT services and infrastructure. For example, AI-powered solutions are being implemented to improve patient care in hospitals, optimize financial services, and enhance smart city projects. Moreover, the growth of AI is fostering a thriving startup ecosystem, with numerous AI-focused startups emerging in the country. This has led to increased venture capital investments and collaborations with international AI firms, further bolstering the ICT market.
- Additionally, AI is enhancing cybersecurity measures, which are crucial in a digital-first economy, thus increasing the demand for advanced ICT solutions. As businesses adopt AI to streamline operations and gain competitive advantages, the overall ICT market is experiencing robust growth, positioning the country as a regional tech hub.
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Smart Cities and 5G Developments to drive the ICT Market
- The UAE ICT market is witnessing a substantial upswing, propelled by the emergence of smart cities and advancements in 5G technology. Initiatives like Dubai's Smart City project are spearheading this push, fueling the need for advanced ICT solutions to foster interconnected urban landscapes. Integrating IoT devices, AI, and big data analytics in urban projects aims to elevate urban living standards. This convergence necessitates a sturdy ICT infrastructure, prompting significant sector investments.
- 5G technology plays a significant role in empowering smart cities by delivering the high-speed, low-latency connectivity essential for real-time data transmission and device communication. The country’s rapid deployment of 5G networks is not only facilitating the growth of smart city projects but also opening up new opportunities in various industries, such as autonomous vehicles, remote healthcare, and advanced manufacturing. The enhanced connectivity and capacity of 5G networks are driving innovation and efficiency, leading to increased demand for ICT products and services.
- Moreover, the synergy between smart cities and 5G is fostering a conducive environment for tech startups and global tech companies to invest in the country, further augmenting the ICT market. These developments are positioning the country as a leader in digital transformation and technological advancement.
- In July 2024, ADNOC and e&, a global technology group, unveiled a strategic project for the creation of the energy sector's most extensive private 5G wireless network. This network is set to cover an expansive 11,000 sq. km. Its primary aim is to provide ADNOC, both onshore and offshore, with robust, high-bandwidth connectivity. By 2025, ADNOC aims to fully implement its advanced artificial intelligence (AI) solutions across its remote facilities. This move is set to not only streamline operations and cut costs through automation but also boost efficiency, curb emissions, and bolster workforce safety.
- In February 2024, Huawei and the UAE telecom operator "du" signed a strategic cooperation memorandum. This move aims to propel the country further into its digital transformation, chiefly through the 5G Advanced country project.
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UAE ICT Industry Overview
The UAE ICT market is highly competitive as both global and local players dominate it. Government backing and the launch of advanced projects like AI, smart cities, and IoT are set to elevate market competitiveness. Some of the key market players are Oracle Corporation, SAP AG, Microsoft Corporation, Salesforce, and IBM Corp.
- March 2024: The United Arab Emirates (UAE) and Kenya formalized a memorandum of understanding (MOU) to establish a robust framework for collaboration in digitalization and technology investments. Under the five-year MOU with provisions for renewal, Kenya and the United Arab Emirates pledged to strengthen their ties. Their focus would be on fostering Information Communication Technology (ICT) investment partnerships and advancing digital infrastructure projects.
- March 2024: Coupa, an AI-driven platform facilitating smarter operations and accelerated growth, unveiled its inaugural data center in the Middle East. The center, set to be inaugurated in partnership with the Amazon Web Services (AWS) team, would be located in Dubai. The establishment of the new data center underscores Coupa's dedication to bolstering its presence in the region, fostering growth, and ensuring superior service and data security for its clients in the United Arab Emirates and the wider Middle East.
UAE ICT Market Leaders
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Oracle Corporation
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SAP AG
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Microsoft Corporation
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Salesforce
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IBM Corp.
- *Disclaimer: Major Players sorted in no particular order
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UAE ICT Market News
- February 2024: The United Arab Emirates unveiled a fund aimed at financing advanced technology projects in developing nations. The Abu Dhabi government financed the fund with an initial capital injection of USD 200 million. Faisal Al Bannai, the Secretary General of ATRC, emphasized that the fund's primary aim is to make technologies developed in the Gulf state accessible to governments and organizations in less affluent nations while also supporting various research initiatives.
- January 2024: HH Sheikh Mohamed, the Ruler of Abu Dhabi, introduced the Artificial Intelligence and Advanced Technology Council, underscoring the United Arab Emirates’ dedication to adopting advanced technologies and fostering innovation. The AIATC is set to be a pivotal player in shaping the nation's digital sphere, paving the way towards a more streamlined and enduring future. Given the country’s significant position in tech advancements, this effort underscores the nation's dedication to spearheading AI and advanced technologies.
UAE ICT Industry Segmentation
ICT, short for information and communications technology, highlights the fusion of telecommunications (covering traditional phone lines and wireless signals) with computing. It encompasses enterprise software, middleware, storage solutions, and audiovisual tools, all crucial for users to seamlessly interact with information, be it accessing, storing, transmitting, or analyzing it.
The UAE ICT market is segmented by type (hardware, software, IT service, and telecommunication services), size of enterprise (small and medium enterprises and large enterprises), and industry vertical (BFSI, IT and telecom, government, retail and e-commerce, manufacturing, energy and utilities, and other industry verticals).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | Hardware |
| Software | |
| IT Services | |
| Telecommunication Services | |
| By Size of Enterprise | Small and Medium Enterprises |
| Large Enterprises | |
| By Industry Vertical | BFSI |
| IT and Telecom | |
| Government | |
| Retail and E-commerce | |
| Manufacturing | |
| Energy and Utilities | |
| Other Industry Verticals |
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UAE ICT Market Research FAQs
How big is the UAE ICT Market?
The UAE ICT Market size is expected to reach USD 52.23 billion in 2025 and grow at a CAGR of 10.29% to reach USD 85.24 billion by 2030.
What is the current UAE ICT Market size?
In 2025, the UAE ICT Market size is expected to reach USD 52.23 billion.
Who are the key players in UAE ICT Market?
Oracle Corporation, SAP AG, Microsoft Corporation, Salesforce and IBM Corp. are the major companies operating in the UAE ICT Market.
What years does this UAE ICT Market cover, and what was the market size in 2024?
In 2024, the UAE ICT Market size was estimated at USD 46.86 billion. The report covers the UAE ICT Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the UAE ICT Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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UAE ICT Industry Report
The Information and Communication Technology (ICT) sector in the United Arab Emirates is experiencing robust growth, driven by a favorable business environment, strategic government initiatives, and a tech-savvy population. The IT industry in UAE is segmented extensively to meet the demands of various verticals, offering tailored solutions in areas such as artificial intelligence, cloud computing, and cybersecurity. This segmentation enhances operational efficiencies and supports the UAE's vision of digital transformation and economic diversification. The market is characterized by a diverse range of IT solutions and services catering to sectors like energy, government, and travel and leisure, with the latter expected to see the fastest growth. The competitive landscape is vibrant, with a mix of local and international players contributing to a dynamic market environment, fostering innovation and positioning the UAE as a leading ICT hub in the region. For detailed statistics on the UAE ICT market share, size, and revenue growth rate, access a free report PDF download from Mordor Intelligence™ Industry Reports.
