Organizations in the UAE are outpacing their global counterparts in terms of achieving their digital transformation goals, including investments in IoT, Edge, 5G, and intelligent automation. According to the most recent KPMG UAE Tech Report 2022, the majority (93%) of UAE businesses plan to invest in the metaverse as a result of widespread technology adoption and customer demand.
Meanwhile, 90% intend to use Web3 within the next five years. An encouraging number (metaverse – 29%) and (Web3 – 24%) are also planning to implement these plans within the year, which is a higher proportion than global organizations.
The key enablers of digital transformation have emerged as growth, efficiency, agility, and technological modernization. In the UAE, half of all surveyed organizations said that digital transformation is positively impacting their finance function, compared to only 33% of global organizations. In addition, 55% of UAE organizations said that digital transformation was benefiting their marketing, sales, and service functions the most, compared to 44% of global organizations.
Fady Kassatly, Partner and Head of Digital and Innovation at KPMG, Lower Gulf, said: “Disruptive new technologies have proved to be a catalyst for many organizations as they look to overcome the challenges of the past two years. Unsurprisingly, the UAE has emerged as a torchbearer in enabling digital transformation, with a majority of organizations earnestly exploring investments in technology to transform their business. Our report highlights that the UAE is on the fast-track to growth, with further investments in emerging technologies playing a transformational role in driving businesses ahead in the future.”
The report also discovered that, in comparison to the rest of the world, the UAE is still maturing in terms of Data & Analytics, AI & automation, and that, despite these developments, the talent gap remains the most significant barrier to the effective adoption of new technologies in the UAE. With this talent gap and a risk-averse corporate culture, organizations reported operating in a more challenging environment. Cyber security has also emerged as a major concern for organizations as they embark on their cloud journey.
To address these challenges, UAE tech leaders are realigning their plans, with clear data strategies, cyber security, and robust controls. Future investments in cyber security are also expected to drive changing business models and meet changing customer expectations.
Furthermore, three-quarters of UAE tech leaders believed their firms had adequate leadership support and funding to advance their strategy in these areas.