UAE ICT Market Size (2024 - 2029)

UAE ICT Market Analysis

The UAE ICT Market size is estimated at USD 47.36 billion in 2024, and is expected to reach USD 77.28 billion by 2029, growing at a CAGR of 10.29% during the forecast period (2024-2029).

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 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.