The UAE is set for record tech sector growth in 2025, driven by AI, cloud computing, blockchain, and IoT. With strong government support, advanced infrastructure, and rising global investment, the country is positioning itself as a leading innovation hub. Revenue is projected to grow by $3.8B, reaching $4.79B by 2029.
The United Arab Emirates (UAE) is on track to achieve record-breaking growth in its technology sector in 2025, marking a transformative milestone in the country’s digital evolution. Fueled by strategic investments, forward-thinking regulation, and a deep commitment to innovation, the UAE is solidifying its reputation as a premier destination for global and emerging tech companies.
A surge in digital infrastructure development and proactive government policies have helped establish the UAE as a tech-friendly environment. The country’s leadership has prioritized digital transformation as a national objective, recognizing the technology sector’s pivotal role in driving economic diversification and future-proofing the economy.
According to a recent report by Statista, the UAE's technology services market is expected to experience a revenue increase of approximately $3.8 billion in 2025. The study forecasts a consistent annual growth rate of 6.24% from 2025 through 2029, projecting a total market size of $4.79 billion by the end of the forecast period. These figures underscore the UAE’s strong momentum in adopting emerging technologies and implementing them across key industries.
Core areas anticipated to drive this growth include artificial intelligence (AI), cloud computing, blockchain, and the Internet of Things (IoT). These technologies are rapidly gaining traction in sectors such as finance, logistics, healthcare, and education, further embedding digital solutions into the nation’s economic fabric.
Industry leaders have praised the UAE for its comprehensive approach to fostering innovation. Harsh Sajnani, Founder and CEO of tech startup Kingpin, described Abu Dhabi’s infrastructure as “world-class,” citing it as a crucial factor in the country’s appeal to startups. “The UAE provides a competitive ecosystem that not only welcomes innovation but actively supports companies in integrating advanced technologies,” Sajnani said. “This leads to improved operational efficiency and increased global competitiveness.”
Echoing this sentiment, Alex Zito, Strategic COO of software firm CapeCade, confirmed the company’s expansion plans within the UAE. “We see exceptional opportunities for long-term growth here, thanks to strong government backing and a vibrant ecosystem,” Zito noted. He emphasized that the country’s proactive stance on tech regulation and investment incentives creates a fertile ground for startups, established companies, and venture capital alike.
Government initiatives such as the UAE Digital Economy Strategy and smart city projects across Dubai and Abu Dhabi are further driving innovation. These programs aim to position the UAE among the top digital economies in the world, with goals that include doubling the digital economy’s contribution to GDP within the next decade.
As the global spotlight turns to the Middle East for technological innovation, the UAE continues to stand out as a beacon of progress. With its robust infrastructure, strategic location, and future-focused governance, the country is not only meeting the demands of the digital age but leading them.
With 2025 projected to be a landmark year, the UAE is well-poised to become a global leader in tech, offering unmatched opportunities for investors, entrepreneurs, and developers from around the world.
