According to a recent report from the Boston Consulting Group, the United Arab Emirates is expected to allocate approximately $20 billion toward digital technology. These include IT, telecommunications, as well as emerging technologies such as IoT, AI, blockchain, and robotics, over the next three years.
The report anticipates that digital technology will account for between 25 and 30 percent of global GDP in the next decade, after being responsible for over two-thirds of productivity growth over the past decade. BCG also notes that the UAE is well positioned to increase the contribution of its digital economy to GDP, doubling it from 9.7 percent to 19.4 percent over the next decade.
UAE’s Digital Economy Strategy Set For Growth And Government Support
BCG stated that “We the UAE 2031 strategy,” which is the government’s vision for the next ten years, will provide additional support for the country’s digital economy strategy. According to a recent report by the Dubai Chamber of Digital Economy, the UAE’s digital economy is expected to grow to over $140 billion by 2031, up from nearly $38 billion at present.
The UAE Cabinet approved the establishment of the Higher Committee for Government Digital Transformation in 2022 as well. The BCG report highlighted that the advances in automation, robotics, and also the anticipated surge in data and intelligence in the coming years, present significant opportunities for unprecedented disruption and wealth creation in the UAE.
Dubai’s D33 Strategy Aims To Establish Itself As A Global Economic Powerhouse
The ambitious D33 strategy aims to position Dubai as a top economic city, by supporting 30 private companies to become unicorn status valued at over $1 billion (approximately Dh3.67 billion). The strategy includes the introduction of “Sandbox Dubai,” a plan to test and commercialize new technologies, creating a market-leading innovation hub.
Faisal Hamady, managing director and partner at BCG, emphasized the importance of agile governance structures to prioritize digital ecosystems for growth in various sectors.
Importance Of Policies To Promote Digital Infrastructure, Research, And Innovation In Frontier Technologies
The report highlights the significance of policies that foster investments in digital infrastructure and enable research and development in emerging technologies such as AI and robotics. Furthermore, it accentuates the importance of establishing an innovative ecosystem that lures highly skilled and specialized talent.
The report suggests that the government should collaborate with other public entities, to harmonize strategic priorities to tackle various issues including digital inclusion, social prosperity, and concerns surrounding digital ethics. Mr. Hamady stresses that the government cannot afford to consider the digital economy as an optional aspect as it represents a considerable deviation from the traditional organization and regulation of economies.
Final Thought
The UAE’s investment in digital technology, including recruitment solutions, is a testament to the country’s commitment to innovation and its willingness to embrace new technologies. With its ambitious plans and supportive government policies, the UAE is well-positioned to lead the way in digital innovation and technology in the region. As the UAE continues to make significant investments in digital technology, we can expect to see new and exciting opportunities emerge for businesses, entrepreneurs, and individuals alike.
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