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The UAE ICT market reached a value of USD 43.33 Billion in 2025 and is projected to expand at a CAGR of around 13.40% during the forecast period of 2026-2035. The National AI Strategy 2031, accelerating cloud adoption, major hyperscaler data centre investment commitments, and the UAE's positioning as the Middle East's leading digital hub are driving strong ICT market expansion. The market is expected to reach USD 152.38 Billion by 2035.
Compound Annual Growth Rate
13.4%
Value in USD Billion
2026-2035
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| UAE ICT Market Report Summary | Description | Value |
| Base Year | USD Billion | 2025 |
| Historical Period | USD Billion | 2019-2025 |
| Forecast Period | USD Billion | 2026-2035 |
| Market Size 2025 | USD Billion | 43.33 |
| Market Size 2035 | USD Billion | 152.38 |
| CAGR 2019-2025 | Percentage | XX% |
| CAGR 2026-2035 | Percentage | 13.40% |
| CAGR 2026-2035 - Market by Enterprise Size | Small and Medium Enterprises | 14.2% |
| CAGR 2026-2035 - Market by Industry Vertical | Retail and E-Commerce | 15.3% |
| CAGR 2026-2035 - Market by Region | Abu Dhabi | 13.9% |
| 2025 Market Share by Region | Dubai | 32.4% |
The UAE ICT market is at the centre of the Middle East's hyperscaler-led digital infrastructure buildout. Investment from Microsoft, AWS, Google, and Oracle is transforming the UAE into a leading AI and cloud hub. The National AI Strategy 2031 is driving broad enterprise and government technology adoption across the market.
Microsoft and G42 announced a 200MW UAE data centre expansion in March 2026 to be delivered through Khazna Data Centers and expected online before end-2026, as part of Microsoft's USD 15.2 billion UAE investment (2023-2029) including USD 5.5 billion for AI and cloud infrastructure.
Microsoft confirmed in November 2025 a USD 15.2 billion total UAE investment through 2029, comprising USD 7.3 billion spent in 2023-2025 and USD 7.9 billion from 2026-2029. The commitment includes GPU export licences secured from the US Commerce Department in September 2025 for Azure UAE Central GPU deployment.
Microsoft's Azure UAE Central processed 18 exabytes in 2025, a 140% year-on-year increase demonstrating UAE enterprise cloud adoption at scale. The UAE's 96% digital service delivery rate in 2025, achieved by standardising APIs across 1,200 public services, drives consistent enterprise demand for Azure cloud and AI capabilities.
Amazon Web Services operates a full cloud region in the UAE serving BFSI, government, and technology customers. Oracle expanded Oracle Database@Azure to UAE Central and UAE North in 2025, enabling Oracle workloads natively within Azure and meeting UAE data residency requirements.
Hardware is foundational to the UAE ICT market, driven by hyperscaler data centre expansion requiring servers, storage, network switches, and WLAN equipment. The UAE was the first Arab country and fourth globally to introduce 5G, creating sustained hardware demand for network infrastructure upgrades.
Software is the fastest-growing UAE ICT type, driven by AI-powered platform, SaaS, and cybersecurity solution adoption across enterprise and government. Cloud-native ERP, corporate tax compliance, and data sovereignty rules amplify spending for locally compliant software from providers including Microsoft, Oracle, and SAP.
BFSI commands the largest UAE ICT vertical share at 22.74% in 2025, with banks, insurers, and fintechs across Dubai International Financial Centre and Abu Dhabi Global Market deploying cloud, AI, cybersecurity, and open banking platforms.
Government is a major UAE ICT demand driver. The Smart Government program achieved 96% digital service delivery across 1,200 services in 2025 and the National AI Strategy 2031 targets USD 91.2 billion in annual AI economic impact, driving cloud, AI, and cybersecurity procurement across federal and emirate-level entities.
SMEs are a fast-growing UAE ICT segment at approximately 12% CAGR, supported by accessible cloud services and UAE free zone incentives. Dubai Internet City and Dubai Silicon Oasis host over 2,300 technology companies, with the UAE's Golden Visa for ICT professionals accelerating SME technology adoption.
The "UAE ICT Market Report and Forecast 2026-2035" by Expert Market Research offers detailed analysis across the following segments:
Market Breakup by Type
Key Insight: IT and Infrastructure Services leads at 32.73% share through managed services, cloud infrastructure, and systems integration. Software is the fastest-growing type through AI, SaaS, and cybersecurity. Hardware is foundational through data centre expansion and 5G rollout. Telecom Services is stable.
Market Breakup by Enterprise Size
Key Insight: Large Enterprises dominate at 62.84% market share through cloud, AI, and ERP deployments. SMEs are the faster-growing segment at approximately 12% CAGR through expanding cloud access and the UAE's startup-friendly free zones.
Market Breakup by Industry Vertical
Key Insight: BFSI leads at 22.74% of UAE ICT vertical spending, followed by Government and IT and Telecom. Retail and E-Commerce is a fast-growing vertical. Energy and Utilities is significant given UAE oil and gas sector ICT intensity.
Market Breakup by Region
Key Insight: Dubai is the dominant UAE ICT region through its technology company concentration, data centres, and financial institutions. Abu Dhabi is the second-largest and growing through sovereign ICT investment, Hub71, and TechHub Abu Dhabi. Others covers Sharjah and other emirates.
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By Type, IT and Infrastructure Services leads UAE ICT revenue by share while Software is the fastest-growing type
IT and Infrastructure Services leads UAE ICT at 32.73% revenue share through managed services, cloud infrastructure, and IT security. Hardware is the second-largest category through data centre construction and 5G rollout.
Software is the fastest-growing type through AI, SaaS, and cybersecurity adoption. The National AI Strategy 2031 and data sovereignty mandates create structural demand for AI-powered software and ERP systems. Telecommunication Services holds a stable share.
By Enterprise Size, Large Enterprises dominate UAE ICT spending while SMEs are the faster-growing segment
Large Enterprises account for 62.84% of UAE ICT spending through cloud, AI, ERP, and cybersecurity deployments across BFSI, government, and energy sectors. Government mandates and compliance requirements sustain high per-enterprise investment.
SMEs are the faster-growing enterprise size segment at approximately 12% CAGR, supported by cloud service availability and UAE free zone incentives. Dubai Internet City and Dubai Silicon Oasis host over 2,300 technology companies deploying cloud, SaaS, and AI tools.
By Industry Vertical, BFSI leads UAE ICT spending while Government and Retail and E-Commerce are among the fastest-growing verticals
BFSI commands the largest vertical share at 22.74% through Dubai International Financial Centre, Abu Dhabi Global Market, and major banks deploying cloud, AI, and cybersecurity platforms. Government is the second-largest vertical through the Smart Government program and National AI Strategy procurement.
Retail and E-Commerce grows through internet penetration and smartphone commerce, while Energy and Utilities is significant given UAE oil and gas ICT intensity. Manufacturing and IT and Telecom complete the vertical demand profile.
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The UAE is the Middle East's leading ICT hub, attracting the largest concentration of hyperscaler investment and technology company headquarters within a National AI Strategy and Smart Government framework
The UAE ICT market sits within the Middle East and Africa ICT market, growing at a 10.70% CAGR to reach nearly USD 696.76 Billion by 2035. The UAE is the region's most advanced ICT market, with its 13.40% CAGR outpacing the MEA average, reflecting structural advantages in digital infrastructure, international talent, business-friendly regulation, and sovereign AI investment.
The UAE was the first Arab country and fourth globally to introduce 5G, reaching 96% digital government service delivery in 2025. The UAE-US AI Campus at 5GW, announced in December 2025, is the largest AI infrastructure project outside the United States, positioning the UAE as a global AI destination through the forecast period.
The UAE ICT market is contested by global hyperscalers, enterprise software vendors, and IT services companies. Competitive dynamics are shaped by data sovereignty requirements, government contract scale, and AI integration, with Microsoft, AWS, and Google competing for cloud market share while IBM and Capgemini serve enterprise IT consulting.
Founded in 1911 and headquartered in Armonk, New York, IBM Corp. is a global leader in enterprise AI, hybrid cloud, consulting, and infrastructure services. IBM's Middle East and Africa headquarters serves UAE government, financial, and energy clients with Watson AI, IBM Cloud, and IBM Consulting.
Founded in 1975 and headquartered in Redmond, Washington, Microsoft Corp. is the world's leading enterprise software and cloud company. In the UAE, Microsoft has committed USD 15.2 billion through 2029 for Azure AI and cloud infrastructure, G42 equity, and Khazna Data Centers partnership, with Azure UAE Central processing 18 exabytes in 2025 and 200MW of additional capacity expected before end-2026.
Google LLC, a subsidiary of Alphabet Inc. headquartered in Sunnyvale, California, operates Google Cloud in the UAE as a major cloud and AI provider, serving enterprise, government, and technology customers with AI infrastructure, data analytics, and application development platforms, including Oracle Database@Google Cloud for enterprise multicloud portability.
Amazon.com Inc., founded in 1994 and headquartered in Seattle, operates Amazon Web Services as a leading global cloud platform. AWS maintains a full cloud region in the UAE serving enterprise, government, and startup customers with compute, AI/ML, analytics, and cybersecurity services compliant with UAE data residency regulations.
Other key players in the market are Oracle Corp., Cisco Systems Inc., SAP SE, Salesforce Inc., HP Inc., Capgemini SE, and others.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Our full report for 2026-2035 delivers the market data, technology analysis, and competitive intelligence to capture the UAE ICT market's rapid growth opportunity. Reach out to our team to access the complete report or request a customised version.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
In 2025, the market reached an approximate value of USD 43.33 Billion.
The market is estimated to grow at a CAGR of 13.40% between 2026 and 2035.
The market is estimated to witness a healthy growth during 2026-2035 to reach around USD 152.38 Billion by 2035.
The market is being driven by rapid urbanisation and swift digitalisation across the country.
The key trends aiding the ICT market in UAE include the adoption of 5G technology, the development of data centres, and the integration of artificial intelligence in the ICT technologies.
The major regions considered in the market are Dubai and Abu Dhabi, among others.
The major players in the market are IBM Corp., Microsoft Corp., Google LLC, Oracle Corp., Amazon.com Inc. (Amazon Web Services, Inc.), Cisco Systems Inc., SAP SE, Salesforce Inc., HP Inc., and Capgemini SE, among Others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Type |
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| Breakup by Enterprise Size |
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| Breakup by Industry Vertical |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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