Market Trends of UAE ICT Industry
This section covers the major market trends shaping the UAE ICT Market according to our research experts:
Artificial Intelligence to Drive the Market
- The UAE places a significant priority on artificial intelligence (AI). According to the International Trade Administration in the US, 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 ambitious objectives of the government to diversify its economy and develop a knowledge economy include AI as a vital component.
- A license for AI and coding has been introduced to promote AI investments and entice AI firms and programmers from around the world to settle in the United Arab Emirates. Additionally, the license intends to realize the objectives of the UAE's Artificial Intelligence Strategy 2031. Businesses with the license will be able to work at the DIFC Innovation Hub, the largest cluster of FinTech and innovation businesses in the region, which accounts for more than 60% of all FinTechs in the Gulf Cooperation Council (GCC) nations. The license also allows businesses to apply for UAE Golden Visas for their workers.
- The UAE National Program for Artificial Intelligence, or BRAIN, is an extensive and well-organized collection of resources highlighting the latest developments in robotics and AI, focusing on the UAE's goal of becoming a global leader in the responsible application of AI and its tools. The numerous efforts, partnerships, collaborations, and achievements in the field of artificial intelligence will be defined and highlighted in this program, along with their effects on humanity.
- By 2035, it was predicted that AI would contribute roughly USD 37 billion to the financial services industry in the United Arab Emirates (UAE). According to a survey conducted by D.P. World, Jafza, and Seyfarth, the UAE's logistics sector was predicted to boost the country's economy by 8% in 2021.
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Smart Cities and 5G Developments to drive the ICT Market
- The UAE has made considerable investments in smart city projects with the intention of creating new smart cities from scratch and enhancing infrastructure in already existing cities. Since October 2013, the Dubai government has been working to make Dubai a smart city by implementing innovations in six major sectors: urban planning, transportation, communications, infrastructure, electricity, and economic services.
- The goal of the city-wide campaign is to make Dubai the establishment of Digital Dubai Authority and support the world's smartest city. The Dubai Paperless Strategy, introduced in 2018, was fully implemented across the emirate's 45 government bodies in December 2021. These organizations offer more than 1,800 digital services and over 10,500 important transactions.
- Some of the efforts include public Wi-Fi, electric car charging stations, real-time traffic monitoring, and an E-wallet for the Roads and Transport Authority. Authorities in the UAE will seek to keep their country's status as a pioneer in smart technology. Ongoing public sector expenditures in significant infrastructure projects centered on "smart" buildings are anticipated to increase, creating opportunities for American businesses.
- The UAE launched its 5G network as the first nation in the Arab world and the fourth worldwide. The biggest telecom operators in the country, Du and Etisalat, introduced limited 5G networks in 2019 and made the 5G-capable ZTE Axon 10 Pro smartphone available to both post-paid and pre-paid consumers. The demand for 5G services is expected to increase over the next few years due to the UAE's technological leadership and high GDP per capita.
- For instance, in June 2021, a 6G initiative unveiled by Etisalat is anticipated to be around 100 times faster than 5G. By researching and creating the 6G ecosystem's key tenets, they have invested in the development of 6G. The development and growth of the UAE's telecom network and infrastructure will probably present economic prospects for American businesses.
- In the Middle East and North Africa (MENA) region, the number of fifth-generation technology (5G) mobile subscriptions was predicted to rise from one million in 2020 to around 150 million by 2026, according to Ericsson. Global digitalization was expedited by the COVID-19 pandemic, which also emphasized the value of broadband connectivity.
