The UAE’s technology sector is expected to experience record growth in 2025, driven by advances in digital innovation and the adoption of cutting-edge technologies. This growth strengthens the UAE’s position as a global hub for innovation and a key destination for tech firms.
The UAE has become a leader in fostering an innovation-driven environment, attracting both global and emerging tech companies. This success is attributed to its substantial investments in digital infrastructure and the development of regulations and policies that promote innovation and growth.
Global reports predict continued expansion in areas like artificial intelligence (AI), cloud computing, blockchain, and the Internet of Things. A recent Statista report forecasts that the UAE’s technology services market will see a USD 3.8B revenue increase in 2025. This growth reflects the UAE’s ongoing progress in its tech sector and the increasing demand for digital services.
The report also predicts an annual growth rate of 6.24% from 2025 to 2029, with the market projected to reach USD 4.79B by the end of the period. Tech leaders have confirmed that the UAE is a prime destination for tech businesses, citing its advanced infrastructure and supportive business environment. The widespread adoption of AI, in particular, offers exceptional opportunities for technological innovation.
Harsh Sajnani, Founder & CEO of Kingpin, highlighted that Abu Dhabi’s world-class infrastructure fosters the growth of startups, encouraging them to scale globally with innovative technologies. Similarly, Alex Zito, Strategic COO of CapeCade, praised the UAE’s promising opportunities and government support, viewing Abu Dhabi as the ideal environment to convert regional users into long-term clients.
