A new report by the Boston Consulting Group (BCG) indicates that the United Arab Emirates (UAE) is expected to spend $20 billion on digital technology, including IT, telecoms, artificial intelligence, blockchain, Internet of Things and robotics, over the next three years. The report also predicts that digital technology will account for between 25% to 30% of global GDP over the next decade, and has already contributed more than two-thirds of productivity growth over the past ten years.
According to BCG, the UAE is well-positioned to double the contribution of its digital economy to GDP from 9.7% to 19.4% within the next ten years, supported by the “UAE 2031 strategy,” the government’s vision for the coming decade. BCG added that the UAE’s digital economy is expected to grow to more than $140 billion by 2031, up from nearly $38 billion at present.
Furthermore, the report highlights the UAE’s ambition to become a leading global digital economy, with the government establishing the Higher Committee for Government Digital Transformation last year, and Dubai launching the Dubai Economic Agenda (D33) plan to support 30 private companies to achieve unicorn status and promote innovation.
The BCG report also notes that the use of automation, robotics and data is expected to create significant opportunities for disruption and wealth creation in the UAE. As such, the report suggests that governments should adapt to the digital economy’s accelerating pace and invest in digital infrastructure, emerging value pools, and research and development into frontier technologies, such as AI and robotics, to spur innovation and economic opportunity.
By collaborating with other public entities, governments can address wide-ranging issues such as digital inclusion, social prosperity and digital ethics, and remain competitive and relevant on the global scene.
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