Inside the UAE's tech-powered economic transformation
From manufacturing to real estate, UAE companies across all sectors are rapidly adopting advanced digital solutions, driving the country's IT market toward a projected $12.5 billion by 2032.
This tech-powered shift is reshaping how business operates in the Emirates and cementing the nation's position as the Middle East's digital innovation hub.
From smart city developments to paperless governance, companies across the UAE are adopting technology at a feverish pitch. Supercar rentals are implementing fleet management systems, real estate firms are automating sales processes, manufacturers are modernizing supply chains, and investment companies are shifting to real-time portfolio management platforms. This widespread digital transformation is triggering unprecedented growth for the country's IT services market, according to sector experts.
'The UAE isn't just adopting technology – it's actively shaping the future of tech-driven economies across the Middle East,' Moossa M. Alavi, Founder & CEO of Techbot ERP, which provides cost-effective, scalable and user-friendly IT solutions tailored for businesses of all sizes in the UAE, told Arabian Business.
'The growth ahead… is transformational,' he said.
Alavi said their company has seen a 180 per cent year-on-year increase in clients choosing cloud-native ERP systems – a clear sign that scalability, cost-efficiency, and real-time data access are top priorities for businesses today.
Industry players said the UAE government's big push on the digital tech front to empower businesses, especially SMEs, is also playing a pivotal role in making advanced solutions like cloud-based tools, ERP and CRM more accessible, especially in logistics, retail, and manufacturing.
Sector experts and studies predicted the Information and Communication Technology (ICT) sector to surge to a whopping over $83 billion by 2029 from an estimated $41 billion in 2023.
They also bet that the IT sector in the UAE is set for a dynamic decade, with the IT market projected to surge to $12.5 billion by 2032 from the estimated $5.3 billion in 2023.
UAE IT market not only growing, but also maturing at a rapid pace
Industry players said the expansion of proactive IT services, green tech initiatives and large-scale data centre investments in the UAE reflects that the market is not only growing but also maturing at a rapid pace.
A slew of government-led initiatives, such as the National Digital Government Strategy 2025 and the AI Strategy 2031, are aiding the market acceleration in a big way, helping to create a future-ready business ecosystem, they said.
Besides, the country's strategic investments in digital infrastructure have created fertile ground for the IT services sector to thrive, experts said.
'The UAE's IT services sector is experiencing remarkable growth, underpinned by the country's ambitious digital transformation strategies and tech-driven economic diversification,' Deepak Kumar, Managing Director of ATOP Computer, told Arabian Business.
'As demand for intelligent IT services continues to rise, we are excited to support organisations in leveraging these advancements to stay competitive and sustainable in a rapidly evolving digital landscape,' he said.
Alavi said the current surge in adoption clearly signals that digital agility is no longer optional, but it's the foundation for future growth.
'Whether it's insurance firms adopting integrated platforms for regulatory compliance and customer service, or supercar rental companies embracing custom ERP solutions for fleet management and client engagement – the demand for sector-specific IT solutions is growing fast,' he said.
Alavi said educational institutions are also investing in unified ERP systems in a big way to streamline administration and learning.
The flurry of activities across industries – manufacturers hurrying to modernise their supply chains, real estate developers automating sales and customer management, and even investment companies rushing to switch over to digital platforms for real-time portfolio management and compliance – will further accelerate the current surge in IT adoption in the UAE, he said.
Alavi said that from AI and cloud computing to smart city infrastructure, the UAE has positioned itself as a global digital leader, helping the accelerated growth of the IT industry in the country.
UAE seeing emergence of new trends such as Green IT services
Sector experts said the UAE market is also seeing the emergence of some interesting new trends, such as 'Green IT services' and rising data centre-led expansion for the IT sector.
As the sustainability drive in the UAE – as well as in the wider region – becomes a focal point in the coming years, the Green IT services are expected to see an exponential growth going forward, they said.
The segment is projected to see a compound annual growth rate (CAGR) of about 16 per cent from 2025 to 2030, according to Horizon Grand View Research.
Similarly, the UAE's data centre market is projected to grow from an estimated $1.26 billion in 2024 to $3.33 billion by 2030, at a CAGR of 17.58 per cent, indicating a robust infrastructure to support IT services.
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