Information and Communications Technologies (ICT) market in the United Arab Emirates (UAE)

ICT remains a top priority for the UAE as a sector and a central enabler to advance other sectors for economic diversification. The country's dynamism, strategic geographical positioning, future-ready infrastructure, advanced technology ecosystem, access to capital, low corporate tax rate, and streamlined process for setting up a business with the introduction of golden visas have made the UAE a global gateway for trade across Europe, the Middle East, Africa, and Asia Pacific. Furthermore, the expansion of the Canada-UAE Air Transport Agreement (ATA) has allowed 31 weekly direct flights between the two countries, which has boosted trade opportunities and outcomes for Canadian companies.

Key opportunities for Canadian ICT companies in the UAE

In the dynamic landscape of ICT, the UAE emerges as a proactive leader, demonstrating considerable enthusiasm for adopting innovative technologies in:

• Artificial Intelligence (AI)
• Anything as a service (XaaS)/Cloud
• Cybersecurity
• Edge computing/Internet of Things (IoT)

Notable challenges for Canadian ICT companies in the UAE

• Employee resistance
• Risk-averse culture
• Competition/pricing
• Saturation in certain technologies where the market is experiencing maturity
• Upfront investment required to secure opportunities (trade show presence and regular travel)
• Longer procurement cycles that require a medium-to-long-term market development view and commitment

The UAE's business landscape

The Digital Economy Strategy aims to double the contribution of the digital economy to the UAE's gross domestic product (GDP) from 9.7 per cent in 2022 to 19.4 per cent within 10 years.

The UAE has set its sights on becoming a global leader in Artificial Intelligence (AI) within the next decade, seeing an opportunity to diversify its economy away from hydrocarbons while achieving improvements in quality of life and delivery of services. In 2017, the UAE appointed "the world's first" AI Minister and has rolled out the National Strategy for AI 2031.

The UAE cloud adoption rate is three times higher than the Middle East and North Africa (MENA) average due to the investment in data center infrastructure and the rise of e-commerce and advanced technologies such as AI, IoT and blockchain. More businesses and organizations migrate to the cloud for increased efficiency and cost savings. Microsoft announced it will build a sovereign cloud for the UAE government, and Amazon Web Services (AWS) recently launched a cloud region and three data centers in the UAE.

Summary

The UAE is entering a new growth era where the digital economy will play a pivotal role in creating opportunities based on knowledge and innovation to achieve unprecedented growth across a wide range of industries. With its advanced technological infrastructure, smart city solutions, high internet, and smartphone penetration and most importantly an agile government committed to enhancing competitiveness, the UAE has everything it needs to become the next Silicon Valley.

For more information on the ICT market in the UAE, please contact uae-eau.infocentre@international.gc.ca.