Digital Strategies of the UAE: The Path to Global IT and Technology Leadership

Ekaterina Liasko

CEO Global CIO

The Global CIO editorial team is launching a series of articles on the conditions in which IT businesses operate across different countries. The first country we’re introducing is the UAE. We asked our partners about the development of the IT sector in their countries, the specific challenges and opportunities they face, and the key factors for success in each market.

Our first guest, Evgeny Kurtukov, Regional Director for MENA at Softline Group, shares his insights on the region and provides an in-depth look at the IT sector in the UAE. Softline Group specializes in cybersecurity and AI-driven solutions for digital transformation, offering a wide range of IT services tailored to local clients.

In 2024 we opened our office in Dubai which will play a significant role in our plans for future growth in MENA and beyond. We see this office as a center of excellence for all our key technologies, so we are actively hiring a talented people to join Softline team and contribute to UAE and regional digital environment.

What are the three most important facts about the country to know?

The country is a leader in many international indicators. The UAE is a regional commercial hub, regional leader in foreign direct investment (FDI) and hosts world-class trade exhibitions and conferences. In December 2024, it was reported that the UAE ranked 1st in the world for 223 indicators, up from 215 in 2023, and was among the top five countries in the world for 444 indicators, up from 406 in 2023. The UAE's progress reflects the country's authorities' continuous efforts to modernize the legislative framework, implement various initiatives to support the economic system and attract investment, introduce advanced technologies, and develop various economic sectors to improve the quality of life for all residents of the country.

Favorable conditions for doing business. The UAE serves as a major trade and investment hub for the Middle East and North Africa, as well as increasingly for South Asia, Central Asia, and Sub-Saharan Africa. Multinational companies cite the UAE’s political and economic stability, excellent infrastructure, developed capital markets, and a perceived absence of systemic corruption as factors contributing to the UAE’s attractiveness to foreign investors. In 2024, the UAE launched the Work Bundle initiative as part of the Zero Government Bureaucracy Program to simplify the procedures for obtaining residency and work permits in private companies.

In February 2024, the UAE was named the third best country in the world after Hungary and the Netherlands for starting a business, according to the Business Name Generator index.

Emiratization. The Ministry of Human Resources and Emiratization (MoHRE) has stated that companies with 50 or more employees must achieve a 2% target for the number of UAE nationals on their staff by the end of 2024. The UAE has achieved the highest Emiratization figures in its history, with 131,000 UAE nationals currently employed in the private sector. The stated benefits of the Nafis program, along with fines for non-compliant employers, have paid off, with the Emiratization program seeing a 350% increase.

What is the volume and development forecast of the IT market for the next 5 years?

The UAE is a leading market for ICT. The sector is also expected to grow at a steady CAGR of 6.24% between 2025 and 2029, increasing the size of the local technology services market to $4.79 billion by the end of the period. Strategic sectors for ICT include: government, banking, healthcare, energy, manufacturing, supply chain, tourism and hospitality, construction, leisure. The UAE aims to digitize in order to solve infrastructure and manpower challenges with cutting edge 5G Wireless, Smart City and IoT technology based on the knowledge economy. Other key trends include: cybersecurity, software and hardware, IoT, AI, big data, cloud services. Telecommunications and Digital Government Regulatory Authority (TDRA) established the UAE ICT Fund to enhance innovative research & development projects within the UAE ICT sector, as well as to educate hundreds of Emirati students overseas in the ICT field.

What national strategic and digital initiatives have been adopted in the country?

Digital economy. The UAE leads the Middle East region in the deployment of digital solutions to enhance public infrastructure as it aims to become the leading regional smart city and technology innovator. The UAE has adopted more than 15 digital transformation strategies both at the national level and at the level of individual emirates, as well as more than a dozen scientific, technological and industry strategies. The UAE’s Digital Economy Strategy includes measures to support the growth of the Digital Economy from the current 12% of non-oil GDP to 20% by 2030.

Startup ecosystem. The UAE government has established a number of free trade zones such as Dubai Internet City (in 1999) and Dubai Silicon Oasis (in 2005) that specialize in the ICT industry and act as industry clusters for high technology and innovation. These free zones are areas within the UAE that permit foreign ownership and are dedicated to a specific industry, making them business hubs. In February 2025, the Dubai Chamber of Digital Economy announced that it had supported the establishment and expansion of 1,210 Dubai digital startups in 2024, an increase of 120% compared to 2023, highlighting Dubai’s growing attractiveness to entrepreneurs and startups in key sectors of the digital economy.

AI is a priority in the UAE.

The UAE was among the first countries to launch a national AI strategy in 2017 (the UAE Strategy of AI), aiming to establish itself as a global AI hub by 2031.

This strategy focuses on key sectors such as education, healthcare, transportation, and energy. The UAE is strengthening its position as a global leader in AI by implementing comprehensive strategies that foster innovation, investment, and supportive legislation. A report by PwC estimates that AI will contribute approximately 13.6% to the UAE’s GDP, amounting to around $100 billion by 2030.

What local infrastructure features influence the choice of technologies and solutions in your country?

Telecommunication infrastructure. UAE is centrally located in the middle eastern region in terms of its location compared to the location of the submarine cables connecting the region to the rest of the world. According to DataReportal, the internet penetration rate in the UAE is 99%. For comparison, the average internet penetration rate in Russia is 90.4%. In the Network Readiness Index 2024, the UAE ranks 28th with an overall score of 62.79. The UAE was the first country in the Arab region and fourth globally to launch its 5G network. As 5G network adoption continues, the UAE is considering Open Radio Access Network (Open RAN) technologies to provide network flexibility, encourage supplier diversity, and drive higher efficiency. In December 2024, it was announced that the UAE plans to allocate the 600 MHz and 6 GHz bands, which will help speed up the country's transition to 6G networks. Actual operation of the new frequency bands is likely to commence between 2025 and 2026. In April 2024, TDRA unveiled a 6G roadmap that aims to replicate the UAE's success as an early adopter of 5G.

Cloud infrastructure. The UAE is one of the largest data center hubs in the Middle East and more are planned. Up to $1 billion in additional investments are projected by 2026. According to Blackridge, the data center market in the UAE is projected to experience a compound annual growth rate of 9.95% over the next five years, creating a market worth AED 9.7 billion by 2029. Underscoring this estimate, the UAE government’s strategy to expand its digital economy has borne fruit by persuading multinational technology companies such as AWS, Google, Microsoft and Alibaba to expand their capacity throughout the country. Consequently, the UAE now has 38 data center facilities primarily located in Abu Dhabi and Dubai, with companies such as Equinix Inc., Khazna Data Center and Moro Hub, leading the way. With aggressive investments by the UAE government in cloud computing, and the UAE’s competitive business laws and strong technological infrastructure, the sector is forecasted to continue expanding in the years ahead. The deployment of 5G services and development of smart cities will increase data traffic and further grow the demand for more data centers in the country.

What is the situation with local software developers? What business applications are in demand among customers?

Arabic LLM. In August 2023, UAE-based G42 announced the launch of an open-source AI model in Arabic. Jais contains about 30 billion parameters and was created based on a large dataset combining Arabic and English languages. Jais will be available under an open-source license. The development is a collaboration between Cerebras Systems, the Mohammed bin Zayed University for AI (MBZUAI), and Inception, a company part of the Abu Dhabi-based tech conglomerate G42.

Falcon 2 LLM. In May 2024, the Technology Innovation Institute (TII), a leading research center of the Abu Dhabi Advanced Technological Research Council (ATRC), introduced two revolutionary versions of LLM: Falcon 2 11B, a more efficient and affordable LLM variant trained on 5.5 trillion tokens with 11 billion parameters, and Falcon 2 11B VLM, which features image-to-language capabilities, providing seamless conversion of visual input into text.

What cybersecurity and data protection regulations affect IT companies in your country?

The UAE has made significant progress in recent years in terms of national cybersecurity.

According to the International Telecommunication Union’s 2023-2024 Cybersecurity Report, the country was ranked among the pioneering countries that received the highest score in the global cybersecurity index.

In February 2025, UAE Cabinet approved National Cybersecurity Strategy, based on five main pillars: governance, protection, innovation, establishing and building, and partnership. The strategy seeks to establish a cohesive and highly effective governance framework for cybersecurity, ensure a secure, resilient, and sound digital environment, enable the safe and swift adoption of innovations, enhance national capabilities in digitization and cybersecurity, and bolster partnerships and collaborative relations at both national and international levels.

The UAE’s geopolitical position, importance to the world economy, and critical infrastructure in the energy (oil & gas and nuclear power), transportation, and aviation sectors make the UAE vulnerable as a target of cyber-attacks, driving rapid growth in the cybersecurity market. The UAE reports the highest number of malware incidents among consumers in the GCC. To protect the UAE’s critical data information infrastructure and improve national cybersecurity, the government introduced the UAE Information Assurance Standards, which are a set of guidelines for government entities in critical sectors. The UAE will continue to develop new laws setting the use of data in various critical industries.

Several local players have been developing cybersecurity capabilities to capitalize on rising demand, while international IT security firms are expanding their presence in the country.

Which sectors are the most digitalized in your country? What local specificities or challenges most often arise when adapting technologies in these sectors?

Finance. Aligned with the UAE’s AI Strategy 2031 and the Economic Agenda D33, the UAE is poised for rapid advancements in financial technology innovations, AI, and blockchain technology. AI: From streamlining operations to managing risk and bolstering customer service, AI and ML are transforming financial institutions at a rapid pace. Traditional customer service has also shifted to AI-powered chatbots developed to manage accounts, answer customer queries, and even provide financial advice. Neobanks (digital-only banks) leverage technology to offer streamlined banking services and operate without physical branches. According to Statista, the total transaction value in the digital payments market in the UAE is projected to reach USD 80.37 billion in 2025, with a CAGR of 13,80% from 2025 to 2029. This results in a projected amount of USD 134.80 billion by 2029. In September 2024, it became known that Emirati banks will begin issuing debit cards of their own payment system, Jaywan. It is expected that within 2.5 years, they will replace all existing debit cards in the country. Jaywan is the first national payment system in the country. It belongs to the Central Bank of the UAE and will allow the Emirates to develop their own payment infrastructure.

E-Commerce. The UAE is experiencing rapid growth in e-commerce, driven by the presence of tech-savvy youth, strong government support in terms of legislation and regulations, and significant investments in digital infrastructure. According to research by Majid Al Futtaim, a leading operator of shopping malls in the Middle East, the UAE has the fastest growing E-Commerce market in the world, with online sales expected to reach $9.2 billion by 2026. Today, electronic payment is the preferred method of payment for 75% of consumers. Credit and debit cards are the most common payment methods for online purchases, accounting for 93.2% of transactions. Traditional brick-and-mortar retailers are pivoting quickly to provide customers with an additional online retail platform to augment their revenues. E-government services are migrating to online platforms as well, where they are integrated with online payment platforms to provide residents faster and more effective public services. This includes services such as utility billing, traffic services, licensing, visa issuance, etc.

Government. According to the Network Readiness Index 2024, the UAE scores highly on indicators such as Government online services and Government promotion of investment in emerging tech. In September 2024, the UAE Ministry of Energy and Infrastructure launched the Data Bridge project, which aims to establish digital connectivity with all entities involved in the ministry’s activities. The initiative aims to increase the number of government entities exchanging digital data with the ministry to 50, as well as achieving a customer satisfaction rate of 90% by the end of 2025.

Energy. In November 2024, AIQ, developing innovative solutions for the energy sector, has entered into a strategic partnership with World Wide Technology (WWT), a global leader in technology solutions and services, to fast-track the adoption of AI-powered innovations across the global energy industry. Their AI Lab as a Service program will democratize access to compute infrastructure and AI talent across the energy sector by delivering sandbox environments for proof of concepts and piloting advanced AI systems in record time. AI has become a key pillar of Dubai Electricity and Water Authority (DEWA)’s operations in the power and water sectors across its value chain – generation, transmission and distribution – in addition to customer services and internal operations. AI has brought about a significant transformation in DEWA’s operations.

Smart City. The UAE has made significant investments into projects for smart cities, with goals to build smart cities from scratch and improve the infrastructure in existing cities. Examples of initiatives include the provision of public Wi-Fi, electric car charging stations, and live traffic monitoring for the Roads and Transport Authority. Continuous public sector investments in large-scale infrastructure projects revolving around smart building will continue growing. IoT opportunities include smart services, private industrial 5G internet systems, and machine-to-machine communications. There are applications in the public sector for smart cities and telehealth, and enterprise applications include smart metering, asset tracking, and production optimization.

Agriculture. In July 2024, the Abu Dhabi Agriculture and Food Security Authority (ADAFSA) announced the launch of the Agribusiness Data Platform. The platform will serve as a strategic tool to support decision-making on food security and agriculture in the Emirate of Abu Dhabi. The platform monitors the state of food security in real time at the local, regional and global levels through a comprehensive dashboard covering over 335 indicators. It also enables agile responses to food, livestock and pest emergencies, facilitating timely action to prevent supply chain disruptions.

What examples of successful projects in the field of digital transformation or implementation of new technologies in your region can serve as a reference point for IT managers in other countries? What examples of successful projects in the field of digital transformation or implementation of new technologies in your region can serve as a reference point for IT managers in other countries?

AI technologies. According to ServiceNow, 77% of respondents’ organizations in UAE have increased AI budgets, year on year. More than half (53%) of respondents say their organization is using AI for data-cleaning, management, integration, visualization, or transformation. Some 44% are using AI for performance management, and 43% are concentrating on resource utilization such as labor and IT capacity. Another 43% are using AI for sales-focused tasks like lead-generation and marketing. Almost two thirds (65%) report at least some ROI in terms of increased efficiency or productivity and 24% say their ROI was greater than 15%.

Healthcare. In November 2024, e& enterprise, the digital transformation arm of e& group, and Smart Salem, the UAE’s premium visa medical and health and wellness screening center, have entered into a three-year partnership to implement the nation’s first state-of-the-art cloud-based Picture Archiving and Communication System (PACS) platform. The cloud-based PACS solution offers numerous benefits to healthcare providers and stakeholders alike, starting with cost efficiency by significantly reducing the infrastructure costs typically associated with traditional on-premises medical imaging systems. It delivers unmatched scalability and data accessibility, allowing healthcare professionals to scale operations effortlessly and securely access patient data remotely.

Finance. In February 2025, Etihad Credit Insurance (ECI), the UAE Federal export credit company, joined the KYC Blockchain Platform, marking a first for the insurance sector. Led by the Dubai Department of Economy and Tourism (DET), the initiative aims to improve ease of doing business, company KYC compliance, and customer data quality and enable the KYC network’s future growth by leveraging it as a reliable customer data ecosystem. The platform uses norbloc’s Fides solution to improve customer experiences by leveraging innovative blockchain technology to offer access to accurate and reliable information for banks and other financial institutions. Joining the platform ensures an expedited account opening process, streamlined financial and digital services, seamless consent-driven customer data transfer, and confidentiality of customer data.

Transport. In February 2025 Wipro Limited announced that it has been selected by Etihad Airways to lead its comprehensive technology modernization. As part of the five-year contract, Wipro FullStride Cloud will deliver a customized cloud-based solution that will provide Etihad Airways real-time insights into their resource utilization and improve operational agility and scalability for their global operations. Wipro will also integrate GenAI modules across the IT framework – from automation of data centers to conversational support to end-users. GenAI will also provide intelligent device management and GenAI-based insights that will optimize performance and resolve potential disruptions proactively.

What is the situation with highly qualified IT specialists, and what steps are being taken to develop local personnel in the context of global competition?

UAE’s labor market.

The UAE leads the MENA region in human development and ranks first among the top 20 countries in the world in the UN Development Program’s Human Development Index. According to a LinkedIn report, the UAE is the world’s preferred destination for individuals seeking new career horizons and a high standard of living.

In November 2024, it was reported that the UAE was ranked first in the world as the most attractive labor market for skilled expatriates. In just the last four years, the Emirati labor market has experienced unprecedented growth: the number of companies registered in the UAE has grown by 14%, 28% of which are new, and the total workforce has increased by 9%, with the number of skilled professionals growing by 4%. The implementation of several important initiatives to improve the competitiveness of the local labor market has also played a significant role in increasing the attractiveness of the UAE for expatriates.

Emiratization. The UAE has a so-called Emiratization program and the UAE Ministry of Human Resources and Emiratization. This initiative aims to provide job opportunities and training programs for UAE nationals in the UAE, contributing to the acceleration of Emiratization in the country’s key economic sectors. In the UAE, 1,934 companies violated the rules of the Emiratization program between mid-2022 and November 19, 2024. Violating companies face fines from 20 to 50 thousand dirhams. In January 2025, Abu Dhabi Commercial Bank (ADCB) has achieved 100 percent Emiratization across all banking roles in its Al Ain branches. During 2024, ADCB recruited around 400 UAE nationals, bringing the total to more than 2,100 Emirati employees today, representing approximately 40 percent of the employee base and one of the highest levels in the industry.

Digital nomads. CEOWorld magazine ranked the Emirates fifth in its ranking of the best destinations for digital nomads, while InterNations ranked it fourth in its ranking of the best places for expats to live and work.

AI talents. The UAE is set to see a job boom as the country looks to attract a large number of skilled workers who specialize in the growing AI sector. To support its AI ambitions, the UAE is rapidly building a talent pipeline. Key initiatives include the Golden Visa program, offering 10-year residency to AI professionals, and the establishment of the Mohamed bin Zayed University of AI (MBZUAI), the world’s first dedicated AI research university. As a result, the UAE boasts an annual AI talent growth rate of 30%.

The UAE has witnessed a 40% increase in AI professionals since 2022, reinforcing its position as a leading hub for AI talent and expertise.

In June 2024, UAE Minister for AI Omar Al Olama said that over 1 million UAE residents will be able to effectively use AI technologies in the next 3 years.

Cybersecurity talents. In October 2024, Positive Technologies signed a memorandum of understanding and cooperation with Amity University Dubai, the largest private university in the UAE. The main goal of the cooperation is to improve the level of training of specialists in the field of cybersecurity in the Middle East. The parties agreed on the participation of students and teachers of the university in internships and other events on cybersecurity, as well as joint research. In addition, Positive Technologies and Amity University Dubai agreed to use the latest technologies on a mutually beneficial basis.

What is the situation with the competitive environment?

ICT industry. The UAE, a leading hub for international trade and business in the MENA region, is a competitive market for the ICT industry. As a regional trade hub supporting significant international business activity, the UAE is a market where exporters can expect to face strong multinational competition. Successful exporters often rely on technological and qualitative advantages, customer service, and after-sales service to compete with foreign companies that may have lower price points.

AI market. In 2024, the UAE has achieved a remarkable position among the top 10 countries with the most AI companies per million population, as revealed in the Global AI Competitiveness Index. In December 2024, it was revealed that, according to a study by the Dubai Centre for AI, Dubai is home to over 800 AI companies. Dubai’s advanced infrastructure, advanced standards, and innovative services are key factors in attracting leading companies in the field.

Cybersecurity market. According to Statista, the UAE cybersecurity solutions market is highly competitive, with 80% of the market coming from 10 key vendors with a market share of over 3%. The UAE cybersecurity services market is less competitive, with more than half of the market (53%) coming from vendors with a market share of less than 1%.

Global CIO is a professional IT community that unites more than 5,000 IT professionals from 110 countries. The goal of the Global CIO is to bring together IT leaders around the world to consolidate practical experience, create a unique knowledge base and communication between all professionals in the field of information technology. Community members gain access to a unified knowledge base, practical IT cases from various industries and countries, and opportunities to participate in webinars and events aimed at enhancing professional skills and personal effectiveness. The hallmark initiatives of the community include the international case competition "Project of the Year" and the "Top 100 IT Leaders" recognition program.

There are representatives of the UAE among the members of the Global CIO professional community, some of whom participated in the "Project of the Year". We invite you to explore these projects.

• Teez Integrated Marketplace, Customer Teez
  Customer app, supplier management, inventory, logistics and point of sale are combined in one suite of systems, separate, but working in tight concert. The most unique component is the warehousing and logistics system (WMS).

• Quantum: digital transformation journey, Customer Ali & Sons Holding
  Main goal of Project Quantum was to integrate and streamline our core business processes into a unified system that enhances efficiency, accuracy, and data visibility across different companies and departments.

• AI-Driven Access Automation for a Mining Major: Proactive Fraud Prevention, Customer Saudi Mining Company (Ma'aden)
  The the Mining Major's Project is uniquely positioned by harnessing AI and automation to redefine risk management and access security within Cloud ERP.

• Employee Digital Portal (EDP), Customer Ali & Sons Holding
  The Employee Digital Platform (EDP) stands out for its innovative integration of AI and biometric technology, creating a highly efficient, secure, and data-driven environment that supports employees across multiple locations.

• IATA NDC Development Project, Customer Easy Trip Planners Limited
  The IATA New Distribution Capability (NDC) project revolutionizes how airlines interact with Online Travel Agencies (OTAs) and customers, providing real-time, dynamic, and personalized content.