United Arab Emirates ICT Market

United Arab Emirates ICT Market Insights Forecasts to 2035

• The United Arab Emirates ICT Market Size 2024: USD 60.5 Billion
• The United Arab Emirates ICT Market Size 2035:  USD 250.9 Billion
• The United Arab Emirates ICT Market CAGR 2024: 13.8%
• The United Arab Emirates ICT Market Segments: By Component, By Deployment Mode, By Enterprise Size, and By End Use

The United Arab Emirates ICT market encompasses information technology facilities like information infrastructure, software solutions, telecommunication services, cloud computing facilities, cybersecurity solutions, data centers, artificial intelligence solutions, and digital transformation solutions, among others.

 

The UAE, given its position as one of the digitally advanced economies in the Middle East, is driven by robust government initiatives in the form of digital government transformation, smart cities, artificial intelligence strategy, and the expansion of 5G infrastructure within the region. The implementation of advanced ICT ecosystems has been done in some of the major emirates, including Dubai and Abu Dhabi.

 

The ICT market dynamics in the UAE are influenced by the rise of cloud services, the growth of hyperscale data centers, escalating cybersecurity services, the onset of 5G connectivity, AI adoption in the business sector, and the digitalization of enterprises. Additionally, innovation-driving regulatory actions, FDI in technology parks, and the creation of free zones for tech firms are bolstering ICT market growth.

 

Market Dynamics of the United Arab Emirates ICT Market:

The key driving factors of the UAE ICT market include the level of support from governments for digitizing businesses, the increasing number of businesses using cloud services, a move to increase the coverage of 5G networks, getting more businesses to meet their data security needs, integrating digital services into the financial and insurance industries, and developing smarter built environments.

 

High capital costs associated with building infrastructure, security issues related to hackers, providing safe ways for people to comply with data privacy laws when processing information, being dependent upon global tech companies to provide technology, shortage of technical and service personnel who have specialized knowledge about technology are some of the biggest challenges facing the market. Rapid developments in technology require constant investments into upgrading systems to keep up with change.

 

UAE's ICT market will continue to have a bright future due to the growth of AI technology, edge computing, the development of an Internet of Things (IoT), the digitization of health care services, innovations from the financial industry, and applying large-scale computing systems to store and process vast amounts of data. Also, continuing to invest in building smarter cities while using more advanced technologies to connect them.

 

Market Segmentation

The United Arab Emirates ICT Market share is classified into component, deployment mode, enterprise size, and end use.

 

By Component:

The market is divided by component into hardware, software, and services. Among these, the services segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. The dominance of services is attributed to increasing demand for IT consulting, system integration, managed services, cybersecurity services, and cloud migration solutions across government and enterprise sectors.

 

By Deployment Mode:

The market is divided by deployment mode into on-premises and cloud. Among these, the cloud segment is expected to register the fastest growth rate during the forecast period. Accelerated cloud migration, SaaS penetration, hybrid infrastructure adoption, and large-scale government digital programs are significantly expanding cloud-based ICT implementation across the UAE.

 

By Enterprise Size:

The market is divided by enterprise size into large enterprises and SMEs. Among these, the SMEs segment is projected to expand at the highest growth pace over the forecast period. Increasing digital transformation among small and medium enterprises, adoption of cost-effective cloud solutions, rising e-commerce participation, and improved access to managed IT services are strengthening ICT spending within this segment.

 

By End Use:

The market is divided by end use into government, BFSI, healthcare, IT & telecom, retail & e-commerce, energy & utilities, and others. Among these, the IT & telecom segment is forecast to witness the strongest growth momentum during the forecast period. Expanding 5G infrastructure, rising data consumption, increased enterprise connectivity demand, and large-scale digital infrastructure investments are accelerating ICT deployment within this sector.

 

Competitive Analysis:

The report offers the appropriate analysis of the key organisations/companies involved within the United Arab Emirates ICT Market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

 

Top Key Companies in United Arab Emirates ICT Market:

• Microsoft Corporation
• Amazon Web Services (AWS)
• Oracle Corporation
• IBM Corporation
• Google Clou
• Huawei Technologies
• Cisco Systems
• SAP SE
• Etisalat (e&)
• du (Emirates Integrated Telecommunications Company)

 

Recent Developments in United Arab Emirates ICT Market:

In November 2025, Microsoft Corporation announced a strategic collaboration with UAE government authorities to expand AI-powered cloud solutions, supporting national digital transformation and smart government initiatives.

 

In September 2025, Amazon Web Services (AWS) launched enhanced artificial intelligence and machine learning services within its UAE cloud region to strengthen enterprise cloud adoption and data residency capabilities.

 

In July 2025, Oracle Corporation introduced upgraded Oracle Cloud Infrastructure (OCI) services in the UAE, focusing on high-performance computing and sovereign cloud solutions for regulated industries.

 

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

 

Market Segment

This study forecasts revenue at the UAE, regional, and country levels from 2020 to 2035. Decisions Advisors has segmented the United Arab Emirates ICT Market based on the below-mentioned segments:

 

United Arab Emirates ICT Market, By Component

• Hardware
• Software
• Services

 

United Arab Emirates ICT Market, By Deployment Mode

• On-Premises
• Cloud

 

United Arab Emirates ICT Market, By Enterprise Size

• Large Enterprises
• Small & Medium Enterprises

 

United Arab Emirates ICT Market, By End Use

• Government
• BFSI
• Healthcare
• IT & Telecom
• Retail & E-commerce
• Energy & Utilities
• Others

 

FAQ

1. What is the size of the United Arab Emirates ICT Market in 2024?

The United Arab Emirates ICT Market was valued at USD 60.5 billion in 2024 and is projected to reach USD 250.9 billion by 2035, growing at a CAGR of 13.8% during the forecast period 2025–2035. The growth reflects strong digital transformation initiatives and expanding cloud and 5G infrastructure across the UAE.

 

2. What is driving the growth of the UAE ICT Market?

The UAE ICT Market is driven by government-led digital transformation programs, smart city initiatives, AI adoption strategies, expansion of 5G networks, rising cloud computing usage, cybersecurity demand, and enterprise digitalization. Increased investments in hyperscale data centers and innovation-focused free zones further accelerate market expansion.

 

3. What are the key segments of the United Arab Emirates ICT Market?

The United Arab Emirates ICT Market is segmented as follows:

• By Component: Hardware, Software, Services
• By Deployment Mode: On-Premises, Cloud
• By Enterprise Size: Large Enterprises, SMEs
• By End Use: Government, BFSI, Healthcare, IT & Telecom, Retail & E-commerce, Energy & Utilities, Others

 

4. Which component segment leads the UAE ICT Market?

The Services segment held the largest market share in 2024. This is due to increasing demand for IT consulting, managed services, system integration, cybersecurity services, and cloud migration solutions across government and enterprise sectors.

 

5. Which deployment mode is growing the fastest in the UAE ICT Market?

The Cloud deployment mode is experiencing the fastest growth in the UAE ICT Market. Accelerated cloud adoption, SaaS implementation, hybrid cloud infrastructure strategies, and government digital transformation programs are significantly expanding cloud-based ICT solutions.

 

6. Which enterprise size segment is expanding rapidly in the UAE ICT Market?

The SMEs segment is expanding at the highest growth pace. Increasing digital transformation among small and medium enterprises, adoption of cost-effective cloud solutions, and rising participation in e-commerce are strengthening ICT spending within this segment.

 

7. Which end-use sector shows strong growth potential in the UAE ICT Market?

The IT & Telecom sector is witnessing strong growth momentum due to expanding 5G infrastructure, rising data consumption, enterprise connectivity requirements, and digital infrastructure investments across the UAE.

 

8. What are the major challenges in the United Arab Emirates ICT Market?

Key challenges include high infrastructure development costs, cybersecurity risks, data privacy compliance requirements, reliance on global technology vendors, and shortage of specialized ICT professionals. Rapid technological advancements also require continuous investment in system upgrades.

 

9. Who are the top companies operating in the UAE ICT Market?

Major companies operating in the United Arab Emirates ICT Market include Microsoft Corporation, Amazon Web Services (AWS), Oracle Corporation, IBM Corporation, Google Cloud, Huawei Technologies, Cisco Systems, SAP SE, Etisalat (e&), and du (Emirates Integrated Telecommunications Company).

 

10. What is the future outlook of the UAE ICT Market?

The future outlook of the UAE ICT Market remains highly positive, supported by AI integration, edge computing expansion, IoT ecosystem development, fintech innovation, healthcare digitalization, hyperscale data center growth, and continued investment in smart city infrastructure.