Today's Edition
Khaled Al Khawaldeh (Abu Dhabi)
The UAE's technology sector is entering a new era of innovation and growth, according to a recent report by global consulting firm KPMG. The study found that 96% of UAE firms were planning to invest in cloud technology and 89% believed their previous investment in AI had positively impacted profitability in the past 2 years.
KPMG UAE Tech Report 2024 surveyed 2,450 technology professionals globally, including 70 in the UAE.
The UAE respondents worked in various industries and were all employed by companies reporting $250 million or above in annual revenue.
The report emphasised that AI continues to be a top priority for UAE businesses, with 73% of UAE respondents identifying it as critical to their growth strategies and as potentially revolutionising knowledge creation and leading practices in the next few years.
It noted that over 65% of surveyed organisations were planning to invest in AI and integrate it into their operations within the next year, including applications ranging from predictive analytics to customer service automation.
Cloud adoption was even more prominent, with 96% of UAE leaders reporting significant cloud migration efforts in the next year as well as investments in "everything as a service" (XaaS) technology.
"By prioritising data-driven strategies and leveraging cloud platforms, UAE tech leaders are transforming challenges into opportunities for sustained growth and efficiency," Mohamad Majid Partner at KPMG Lower Gulf said.
Despite the promising advancements, the report found that cybersecurity remains a major concern. It found that 63% of organisations were planning to invest in cybertechnology in the next year, underscoring the growing sophistication of digital threats.
Ransomware attacks and data breaches were identified as the most common incidents, prompting increased spending on cybersecurity solutions.
71% also expressed concern regarding complex regulatory developments and 74% about over-investment, admitting these factors had a negative effect on the adoption of and investment in new technology.
Nevertheless, only 14% believed that compliance would slow down their digital transition overall.
Adoption of emerging technology was found to be transforming key sectors in the UAE, including healthcare, finance, and logistics.
Blockchain technology was said to be gaining traction, with 43% of businesses in the financial sector leveraging it for secure transactions and fraud prevention.
In healthcare, AI-driven diagnostics and telemedicine platforms have reportedly become mainstream.
The report also highlights advancements in 5G connectivity, which are enabling smart city projects such as Masdar City and Dubai's Sustainable City.
Moreover, the report underscores the importance of talent development to sustain the tech sector's growth. Approximately 56% of executives cited access to skilled professionals as a major challenge, prompting increased investment in training programmes, partnerships with academic institutions, and incentives to attract global talent.
However, 70% said the skills gap was actually being addressed through advancements in AI.
"By fostering effective communication, enhancing tech literacy, and embracing change, UAE organisations are building the resilient foundations needed to lead in the era of rapid digital transformation," Chi Ngwube, Director at KPMG Lower Gulf, said.
