UAE IT Service Market Outlook to 2027
Driven by Assessment of UAE IT Services Market and Recommendations on Organization Structure & Service Offerings for Ankabut
September 2023
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About the Report
About the Report
Market Overview:
The UAE has been rapidly growing as a technology hub in the Middle East, driven by the government's push for digital transformation and innovation. The UAE government has been actively promoting digital transformation across various sectors, including government services, healthcare, education, and finance. This has led to a high demand for IT services to implement and manage digital initiatives. The UAE has been fostering a startup-friendly ecosystem, with initiatives like free economic zones and accelerators. This has attracted tech startups and entrepreneurs, increasing the demand for IT services such as app development, cloud computing, and digital marketing.
With the complexities of modern technology, many businesses in the UAE are looking to IT consulting firms to guide them in making strategic technology decisions. Additionally, outsourcing IT services is common to focus on core business activities. The diverse nature of the UAE economy, spanning sectors like finance, healthcare, tourism, and technology, has likely contributed to the demand for various IT services. Moreover, the UAE's strategic geographic location and its role as a business hub have attracted tech companies and entrepreneurs, leading to the expansion of the IT industry.
UAE IT Service Market Analysis
The UAE government initiated the National Innovation Strategy, which includes the implementation of regulations like the UAE's National Cyber Security Strategy, Dubai's cyber security strategy, FedNet, the UAE Pass app, and other related measures.
Funds directed towards initiatives like the Dubai Smart City project. Approximately 70% of the UAE's GDP comes from sectors other than oil. The UAE presents appealing prospects for both Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII).
Encouraging digital literacy and workforce enhancement, exemplified by initiatives like the One Million Arab Coders program. UAE inhabitants have displayed significant technology integration, with ~90% of the population possessing fundamental ICT skills.
Fostering innovation hubs such as Dubai Future Foundation. ICT infrastructure, including high-speed internet connectivity, data centers. Abu Dhabi is ranked 28th in smart cities globally.
Implementing legislation and regulations focused on cybersecurity, safeguarding intellectual property rights. The introduction of laws such as the Data Protection Law, Internet Access Management policy, and Information Assurance Regulation, among others.
Key Trends by Market Segment:
By Type of Services: The IT service landscape in the UAE showcases a dynamic distribution of preferences among various technology domains. Cloud services lead the way, reflecting the growing trend of leveraging cloud platforms for flexible and scalable solutions. Data centres underscoring the importance of robust infrastructure to support digital operations. Security and networking indicating a collective focus on safeguarding data and optimizing network connectivity. IT consulting plays a pivotal role guiding organizations through strategic tech decisions.
By Type End User: IT services in the UAE find diverse applications across sectors. Government, BFSI, healthcare, education, retail, and media adopt technology extensively. Other industries, including Oil, Travel, Transportation, and Real Estate, also benefit from IT solutions, reflecting the widespread integration of technology across the UAE's economy. The sector holding the largest share is the government.
Competitive Landscape:
The competitive landscape of the UAE IT Services Market was dynamic and competitive, with both domestic and international companies operating in the market. Companies like Microsoft, IBM, and Oracle have a strong presence in the UAE IT service market. They offer a wide range of software, hardware, and cloud services to both businesses and the government sector. Several UAE-based companies provide IT services, including infrastructure management, software development, and cybersecurity. Some well-known names include DarkMatter (now rebranded as Virtru), Raqmiyat, and Alpha Data. The UAE IT service market has seen a mix of competition and collaboration among various players. Larger companies often collaborate with local firms to tap into their knowledge of the local market and regulations. The competitive landscape of the IT Service market in UAE is characterized by the presence of several key players vying for market share.
Recent Developments:
- The full potential of these IT services has not yet been realized due to consumers' ongoing evaluation of their practical value. Within the region, digital users anticipate substantial positive outcomes from these emerging trends, with Egypt slightly leading Saudi Arabia and the United Arab Emirates. Survey participants identified AI and hyper-personalization as the most promising trends in terms of potential impact.
- In 2023, investment banks anticipate slower global economic growth. Organizations will increase cloud spending but closely monitor cloud-related expenses. FinOps will gain traction for managing and optimizing cloud costs.
- Edge computing and hybrid cloud helps in lower latency, reduced bandwidth, improved resiliency, and optimized data processing for diverse industries.
- Formula 1, the technologically advanced motorsport, leverages AWS for real-time analytics, enhancing fan experience. Stadiums and venues also embrace cloud technologies for improved fan engagement.
- XaaS market will grow as businesses migrate to cloud-based services, offering increased control, scalability, cost savings, and enhanced flexibility.
Future Outlook:
- The UAE has strategic intentions to expand its investments in data centers, with plans to allocate up to AED ~4 billion by 2026 for this purpose.
- The IT sector is poised to experience substantial benefits from Etisalat's ambitious initiatives, including the implementation of 6G technology and the enhancement of its Research and Development (R&D) center in the UAE.
- AI and automation technologies are increasingly being adopted across diverse sectors in the UAE, encompassing education, healthcare, and banking.
- While Cloud Operators predominantly serve global clientele, robust government backing, growing awareness, and a surge in data will generate increased demand for cloud services within the domestic market.
- The escalating need for dependable, effective, and adaptable Data Center infrastructure among service operators, coupled with the government's diverse ICT initiatives, is anticipated to exert a positive impact on its expansion across all emirates in the UAE.
- The rise in demand for dependable, efficient, and adaptable Data Center infrastructure among service operators, combined with the government's diverse ICT initiatives, is projected to shape its growth across all emirates in the UAE.
Scope Of The Report
Scope of the Report
UAE IT Service Market Segmentation |
|
By Types of Services |
Cloud Services Data Centers Security Networking IT Consulting Artificial Intelligence Others (including Managed IT Services, High Performance Computing, Smart Classroom, Smart CCTV and DevOps Services) |
By End User |
Government BFSI Healthcare Education Retail Media (including Gaming) Others (Oil and Petroleum, Travel and Tourism, Transportation and Logistics, Real Estate and more) |
Products
Products
Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report:
- Investors and Entrepreneurs
- Industry Professionals
- Government Officials
- Business Leaders
- Market Researchers
- Consultants and Advisors
- Academic Institutions
- Technology Providers
- International Corporations
- Financial Institutions
- Media and Press
- Investors & Venture Capital Firm
- Government Entities
- Potential Market Entrants
- Industry Associations
- Consulting Agencies
- Government Bodies & Regulating Authorities
Time Period Captured in the Report:
- Historical Period: 2017-2022
- Base Year: 2022
- Forecast Period: 2022-2027
Companies
Major Players Mentioned in the Report:
- AWS
- G42
- Moro
- Oracle
- Alibaba
- Microsoft
- Etisalat
Table of Contents
Table of Contents
A. Executive Summary and Approach
A.1. Research Methodology
A.2. Service Taxonomy
Service Taxonomy
A.3. Executive Summary
Executive Summary – UAE IT Service Market
B. External Market Assessment
B.1. Country Overview
Population Demographics of UAE
Economic Overview of UAE
Business Scenario in UAE
SMEs in UAE
Foreign Direct Investment across sectors in UAE
Digital Lifestyle in UAE
B.2. Market Overview of UAE IT Service Market
UAE IT Service Market Supply Side Ecosystem
UAE IT Service Market Demand Side Ecosystem
B.3. Trend Analysis of UAE IT Service Market
Adoption of Various Technologies across the world
Global Trends in Cloud Service Market
Digital adoption across various industries in UAE and KSA
Middle East Trends in IT Services Market
Trends in UAE IT Service Market
Middle East IT Indicators
Telecom Sector - Subscription & Internet User Indications, 2021
Broadband Speed: Country Ranking and Speed Values (as of April 2023)
Policy & Regulatory Bodies: Arab Markets
Network Readiness Index Score, 2022
Business Usage Indicators Score, 2022
Government Usage Indicators, 2022
B.4. Market Size and Segmentation of UAE IT Service Market
UAE IT Service Market Size, 2017-2022
Segmentation of IT Services Market by Types of Services, 2022
Segmentation of IT Services Market by End- Users, 2022
Cross Comparison between the End Users in UAE IT Services Market
Segmentation of Cloud Service Market By Types of Services, 2022
Segmentation of Cloud Services Market by Types of Clients, 2022
Segmentation of Data Centre Market by Types of Data Centre, 2022
Segmentation of Data Centre Market by Types of Clients, 2022
Snapshot on KSA IT Services Market
B.5. Industry Analysis of UAE IT Service Market
PESTEL Analysis foe UAE IT Industry
Major Risks and Challenges in UAE IT Industry
Government Regulations in UAE IT market
Licenses required in IT Industry of UAE
B.6. Pricing Analysis of UAE IT Service Market
Cloud Service Pricing for UAE Market, 2022
Data Centre Pricing for UAE Market, 2022
Networking Pricing for UAE Market, 2022
B.7. Future market Outlook for UAE IT Service Market, 2022-2027
UAE IT Service Future Market Size, 2022-2027
Future Segmentation of IT Services Market by Types of Services, 2027
Future Segmentation of IT Services Market by End- Users, 2027
Future Segmentation of Cloud Service Market by Type of Cloud Services and By Type of
Clients, 2027
Future Segmentation of Data Centers by Type of Data Centers and By Type of Clients, 2027
B.8. Competition Framework in UAE IT Service Market
Cross Comparison of Major Companies in UAE IT Service Market
C. Business Strategy and Operating Model
C.1. End- User Analysis of UAE IT Service Market
Factors affecting the demand for IT Industry
Industry Wise End-User Analysis
Total Addressable Market
C.2. Organization Structure for Ankabut
Current Organization Structure of Ankabut
New Organization Structure
Key Result Area
Changed Management Strategy
Risks in Implementing New Organization Structure
C.3. Analyst Recommendations
SWOT Analysis for Ankabut
Potential Opportunities in Various Industries for Ankabut
Potential Opportunities in Various technologies for Ankabut
Social Media Strategy
Strategy Roadmap for Ankabut
Potential Risks for Ankabut
Disclaimer
Contact Us
Research Methodology
Research Methodology
Step: 1 Identifying Key Variables:
Ecosystem creation for all the major entities and referring to multiple secondary and proprietary databases to perform desk research around market to collate industry level information.
Step: 2 Market Building:
Collating statistics on UAE IT Services Market over the years, penetration of marketplaces and service providers ratio to compute revenue generated for IT services. We will also review service quality statistics to understand revenue generated which can ensure accuracy behind the data points shared.
Step: 3 Validating and Finalizing:
Building market hypothesis and conducting CATIs with industry exerts belonging to different companies to validate statistics and seek operational and financial information from company representatives.
Step: 4 Research output:
Our team has approached multiple IT Services providing channels and understanded nature of product segments and sales, consumer preference and other parameters, which supported us validate statistics derived through bottom to top approach from IT Service Providers.
Frequently Asked Questions
Frequently Asked Questions
01 What is the Study Period of this Market Report?
The UAE IT Services Market is covered from 2017–2027 in this report, including a forecast for 2022-2027.
02 What is the Future Growth Rate of the UAE IT Services Market?
The UAE IT Services Market is expected to witness a CAGR of ~8.5% over the next years.
03 What are the Key Factors Driving the UAE IT Services Market?
The UAE IT service market is driven by a combination of factors including robust digital transformation initiatives, substantial infrastructure development, increasing adoption of cloud services, rapid emergence of technologies like AI and IoT, expansion of e-commerce, implementation of smart city projects, strong government support.
04 Who are the Key Players in the UAE IT Service Market?
AWS, Google and oracle are the key players.
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