The UAE’s technology sector is poised for exceptional growth in 2025, propelled by groundbreaking advancements in digital innovation and the adoption of cutting-edge technologies. This growth further solidifies the UAE’s position as a global innovation hub and a prime destination for tech firms worldwide.
Strengthening Global Position
The UAE has significantly enhanced its global reputation as a leading innovation-centric environment and a top choice for both established and emerging tech companies. This progress is attributed to substantial investments in digital infrastructure and the implementation of favorable policies that foster a thriving innovation and growth ecosystem.
Continued Growth Projections
According to international reports, the technology sector in the UAE is expected to continue expanding in key areas such as artificial intelligence (AI), cloud computing, blockchain, and the Internet of Things. A recent report by Statista, a prominent German data platform, projects that the UAE’s technology services market will grow by approximately $3.8 billion by 2025.
The report highlights that this growth reflects the UAE’s ongoing progress in advancing its tech sector and increasing reliance on digital services. It also forecasts a steady annual growth rate of 6.24% from 2025 to 2029, with the market size expected to reach $4.79 billion by the end of the forecast period.
Key Attraction for Emerging Tech Companies
Emerging tech companies are increasingly drawn to the UAE, thanks to its sophisticated infrastructure and supportive business climate. Officials from various companies have praised the UAE as a prime location for technological innovation, particularly with the widespread adoption of AI.
Harsh Sajnani, founder and CEO of Kingpin, remarked that the UAE—especially Abu Dhabi—serves as a hub for startups due to its world-class infrastructure. This environment enables companies to grow and expand globally, offering innovative technological solutions to meet global demand.
Sajnani further emphasized that the UAE’s competitive landscape, fueled by rapid digital transformation, provides businesses with opportunities to integrate advanced technologies that enhance their operational efficiency and global competitiveness.
Similarly, Alex Zito, strategic COO of CapeCade, shared that the company is shifting operations to the UAE to capitalize on promising opportunities and substantial government support that fosters business growth. Zito noted that Abu Dhabi offers an ideal environment to convert regional users into long-term clients, with a comprehensive ecosystem aligned with the goals of both startups and investors.
