The UAE’s technology landscape
The UAE’s advances in technology represent a remarkable journey of transformation. The nation envisions becoming a global hub for innovation, with a focus on AI, advanced healthcare, and space exploration. One of the most significant initiatives is the UAE Digital Economy Strategy, launched in April 2022, which aims to double the contribution of the digital economy to gross domestic product (GDP) from 9.7% to 19.4% in the next 10 years.
The UAE’s technological advancements, particularly in AI, are significantly boosted by collaborations with major Nasdaq companies. Notable partnerships with industry giants such as Microsoft and NVIDIA are pivotal in establishing the UAE as a global AI hub. Innovations from leading AI firms are enhancing the country’s technological capabilities and stimulating economic growth. These initiatives align with UAE leadership’s vision of a diversified and knowledge-based economy, contributing to the projected 19.4% GDP share from the tech sector within ten years.
While benefiting from AI advancements, the UAE strives to establish a robust and ethical AI sector. Regulations are being implemented to support growth and integrate with the nation’s economic and geopolitical goals without limiting innovation.
Stewardship by the Central Bank
The CBUAE has actively contributed to the digital transformation of the country’s financial infrastructure, launching Al Etihad Payments (AEP) to manage digital financial systems and the UAE Domestic Card Scheme (DCS), Jaywan. These systems are built to support the CBUAE’s Central Bank Digital Currency (CBDC) and a new Instant Payments Platform (IPP) named Aani, aiming to improve financial inclusion in the UAE.
The UAE’s ambitious technology vision, driven by advancements in AI, establishment of in-country cloud services and strategic partnerships with global tech giants, positions the nation as a leading hub for digital innovation, to significantly boost economic growth and foster a diversified, knowledge-based economy
While the majority of local leaders (80%) consider the rapid adoption of generative AI and other technologies a significant challenge, generative AI remains a top investment priority for 52% of UAE respondents despite ongoing economic uncertainty.
CEOs in the Middle East and worldwide are also focusing on increasing their organizations’ AI spending (55% and 64% respectively), with increased efficiency and productivity through automation being a key advantage in the Middle East (36%). This is also prominent among CEOs globally at 16%. In the UAE, 20% of respondents view new product and market growth opportunities, as well as fraud detection and cyber-attack response, as the two primary benefits of adopting generative AI. Furthermore, 72% believe their organization is well-prepared for a cyber-attack, a significantly higher confidence level compared to 59% in the Middle East and 48% globally.
Our survey shows that CEOs are looking for long term results when it comes to the return on investment (ROI) of generative AI. Most of the respondents in the Middle East (59%) and globally (63%) anticipate a ROI within three to five years, with 44% of UAE leaders expecting to see benefits within three to five or beyond.
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