The UAE’s IT distribution AI market continues to show strong growth, according to the latest distribution sales data from CONTEXT. Officials reported that revenue is trending upward, exceeding the average monthly revenue of previous years. This sustained growth was revealed during the CONTEXT META Monthly webinar.

AI and digital transformation are key drivers of this performance. The UAE’s strategic push to become a global AI leader is fueling demand across technology sectors. Initiatives such as the “Future of AI in Government Services Accelerator” from the Dubai Centre for Artificial Intelligence promote collaboration between government and tech firms. These projects aim to deliver AI-powered solutions to improve public services.

The Dubai AI Seal, awarded to companies active in AI consulting, development, or infrastructure, was also highlighted. Winners of this seal have a higher chance of securing government AI projects. These include an automated railway inspection system for Dubai Metro and an AI-powered immigration system at Dubai Airport. AI is also transforming healthcare through a new digital platform to support registration and licensing of professionals.

Favorable economic conditions are further boosting growth. Falling global interest rates, expected to be mirrored by GCE banks, will make borrowing cheaper and improve SME access to financing. This is likely to drive investment in technology and strengthen the market.

Key findings from CONTEXT distribution sales indices show:
• Desktop computing and software licensing achieved robust growth.
• Network switch sales recovered above average monthly revenue.
• Notebook sales also showed a steady recovery.

Although server computing dropped from previous months, it remains strong compared to historical performance.

The UAE is also advancing regulatory and educational measures to secure long-term growth. The Ministry of Climate Change and Environment launched a trial scheme to recycle mobile phones and laptops under the “extended producer responsibility” framework. Manufacturers will now pay a fee for proper disposal.

In addition, the Ministry of Education announced that cybersecurity is now a mandatory subject for students in grades 1 to 12. This move builds awareness of digital threats and prepares students for future careers in technology fields.

These combined efforts underscore the UAE’s commitment to driving AI market growth, promoting sustainability, and building a skilled workforce for the digital future.

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