UAE Tech Industry to Hit Record Growth in 2025

The UAE is poised to achieve unprecedented growth in its technology sector in 2025, driven by advancements in digital innovation and the adoption of cutting-edge technologies. This progress reinforces the UAE’s status as a global hub for innovation and a leading destination for tech companies worldwide.

Sustainable investments in digital infrastructure and supportive regulations have positioned the UAE as an attractive market for global and emerging tech companies. The country’s emphasis on creating a favorable environment for innovation has been a key factor in its success.

Key areas expected to drive growth include artificial intelligence (AI), cloud computing, blockchain, and the Internet of Things (IoT). A recent report by Statista forecasts that revenues from the UAE’s technology services market will increase by approximately $3.8 billion in 2025, reflecting the country’s ongoing progress in digital transformation. The report also predicts a stable annual growth rate of 6.24% from 2025 to 2029, with the market size projected to reach $4.79 billion by the end of the forecast period.

Officials from leading tech companies have highlighted the UAE’s advanced infrastructure and innovation-driven business environment as critical factors in attracting businesses. Harsh Sajnani, Founder and CEO of Kingpin, noted that Abu Dhabi’s world-class infrastructure and competitive ecosystem make it a beacon for startups. He emphasized that the UAE supports companies in adopting advanced technologies, boosting operational efficiency and competitiveness.

Alex Zito, Strategic COO of CapeCade, announced the company’s plans to expand its operations in the UAE, citing promising opportunities and robust government support. He highlighted Abu Dhabi’s comprehensive ecosystem as a foundation for transforming regional users into long-term clients and supporting the growth of both startups and investors.

The UAE’s rapid digital transformation, coupled with significant government support and a strong focus on emerging technologies, positions the country as a global leader in the tech industry. With its commitment to innovation and sustainable growth, the UAE continues to attract international attention and investment in its technology sector.