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UAE technology sector set for record growth in 2025 with $3.8 billion revenue projection

This growth trajectory is forecast to expand the market size to $4.79 billion by the end of the forecast period.

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The UAE’s technology sector is projected to experience significant growth in 2025, driven by advancements in digital innovation and the adoption of key technologies, including artificial intelligence (AI), cloud computing, and blockchain.

According to Statista, the UAE’s technology services market is expected to see an increase of $3.8 billion in revenue by 2025, with an annual growth rate of 6.24% from 2025 to 2029. This growth trajectory is forecast to expand the market size to $4.79 billion by the end of the forecast period.

Statista’s report attributes this growth to the UAE’s ongoing investment in digital infrastructure and regulatory frameworks that foster a supportive business environment for global and emerging tech companies.

Emerging tech firms have reiterated that the UAE is an attractive destination due to its infrastructure and market potential. Speaking to Emirates News Agency (WAM), Harsh Sajnani, Founder and CEO of Kingpin, highlighted the appeal of Abu Dhabi for startups, stating, “The UAE, and particularly Abu Dhabi, is a beacon for startups due to its world-class infrastructure. This facilitates the growth and success of such companies and encourages them to expand globally with groundbreaking technological innovations.”

Sajnani noted that the rapid pace of digital transformation in the UAE creates a competitive environment that enables companies across sectors to adopt advanced technologies to improve operational efficiency and enhance competitiveness.

Similarly, Alex Zito, Strategic COO of CapeCade, announced that the company is relocating its operations to the UAE to capitalise on market opportunities and government support. “We see Abu Dhabi as an ideal environment to transform our regional user base into long-term clients, as it provides a comprehensive ecosystem that supports the objectives of both startups and investors alike,” Zito said.

The UAE’s strategic focus on the tech sector is further reflected in international projections that indicate sustained growth in emerging technologies, reinforcing the country’s role as a key global player in the digital economy.