UAE’s Technology Sector Poised for Record Growth in 2025
The UAE’s technology industry is set for unprecedented growth in 2025, driven by rapid advancements in digital innovation and the widespread adoption of cutting-edge technologies. This expansion further cements the UAE’s position as a global leader in technological development and a preferred destination for both established and emerging tech companies.
The country has strengthened its standing as an innovation hub through sustained investments in digital infrastructure and the implementation of progressive policies that foster a business-friendly environment. These initiatives have made the UAE an attractive location for international technology firms seeking expansion opportunities.
According to a recent report by Statista, the technology services market in the UAE is projected to generate an additional $3.8 billion in revenue by 2025. The report further predicts a steady annual growth rate of 6.24% from 2025 to 2029, bringing the market size to $4.79 billion by the end of the forecast period.
Industry experts highlight that artificial intelligence (AI), cloud computing, blockchain, and the Internet of Things (IoT) will be key drivers of this growth. The UAE’s commitment to integrating these technologies into various sectors has positioned the country as a regional and global leader in digital transformation.
Tech entrepreneurs and executives have also emphasized the UAE’s appeal due to its world-class infrastructure and supportive regulatory environment. Harsh Sajnani, Founder & CEO of Kingpin, described the UAE, particularly Abu Dhabi, as an innovation hub that enables startups to scale rapidly and achieve global success. He noted that the country’s fast-paced digital transformation allows businesses to leverage advanced technologies to enhance efficiency and competitiveness.
Similarly, Alex Zito, Strategic COO of CapeCade, revealed that his company is shifting its operations to the UAE to capitalize on the region’s business-friendly policies and immense growth potential. He highlighted Abu Dhabi as an ideal location to convert regional users into long-term clients, given its comprehensive ecosystem designed to support both startups and investors.
With strong government backing, a rapidly expanding tech landscape, and a favorable business environment, the UAE is on track to achieve record-breaking technological growth in 2025, solidifying its reputation as a global innovation powerhouse.
