The UAE Digital Services Market is anticipated to grow at a CAGR of around 9.49% during the forecast period of 2022-27, reveals MarkNtel Advisors in their recent research report. The growth has been attributed to the increasing support of the local & regional government of the country towards the digitization of several platforms, such as citizen services which includes issuing driver’s licenses & other forms of identification. The development of digital space platforms for political engagement & for the members of government to interact with citizens have been boosting the demand for digital services across the country.
Moreover, the increased spending by the country on making digital deals & surging spending by the citizens on smart applications has contributed to the growth of the Digital Services market in the UAE. In 2020, the total payment for digital deals stood at around USD18.5 billion in the UAE, whereas the residents spent approximately USD320 million on smart applications in the country.
Furthermore, the growth initiatives by the government to make the UAE a fully digitized country would play a significant role in expanding the digital services in the country. Along with this, the emerging initiatives like the UAE strategy for the fourth industrial revolution include the adoption of robotic healthcare & nanotechnology, as well as the adoption of a digital economy & digital transaction technology.
Hence, this would further escalate the growth of the UAE Digital Services market, further states the research report, "UAE Digital Services Market Analysis, 2027."
Application Services Acquired a Significant Share of the UAE Digital Services Market
Based on the service type, the market is divided into Application Services, Data & Analytics, Intelligent Automation, Cloud Services, Strategy & Consulting. Of them, Application Services held a considerable share in the UAE Digital Services market during the historical period, 2017-2019. This is due to the growing application of document management systems, customer relationship management, enterprise resource planning, and supply chain management system across different government & non-government organizations in the UAE.
The demand for these solutions has increased due to the expansion of IT services in the UAE & the desire to provide digitization to small & large businesses to manage their daily operations more efficiently. Furthermore, the application of the Supply Chain Management system in the construction and oil & gas industries has played an important role in the development of the UAE Digital Services market, as the SCM has effectively maximized the customer's value while achieving a sustainable competitive advantage in the most effective ways.
Moreover, the adoption of SCM tools & software has been effectively managing the transportation, warehousing, inventory, and logistics network design to efficiently link the flow of products, data, and finances. Hence, owing to the growing construction, oil & gas industry, and digitization of government sectors, the UAE Digital Services market is forecasted to grow significantly during the forecast years.
Extensive Investment & Integration of the Digital Technologies to Favor the Dubai Digital Services Market
Geographically, Dubai witnessed a noticeable growth during 2017-2019 in the UAE Digital Services market. The country is among the first to adopt advanced technologies such as cloud computing services designed to develop, test, deploy and manage applications & services to improve organizational & operational efficiency. Moreover, favorable government policies for process automation, paperless economy, industry, etc., have increased the demand for cloud services, business automation, data analytics, and others across the region, resulting in a boost in the market.
Additionally, the use of artificial intelligence (AI) & machine learning has helped create highly personalized, friction-free, and easy-to-navigate experiences. Furthermore, Dubai International Airport, Silicon Oasis, and many other places have installed surveillance cameras, which have contributed to an increase in digital services in the city. Besides, digital technologies have played a pivotal role in Dubai's growth, with extensive investment & integration of digital technologies for governance & city planning, efficient work planning, and its management by the government & private sectors.
Therefore, the Dubai Digital Services market experienced significant growth due to the growing dependence on digital technology. Hence, this led to more opportunities for local service providers to expand their presence, reveals MarkNtel Advisors in their research report, "UAE Digital Services Market Analysis, 2022."
Leading Companies in the Market
According to MarkNtel Advisors, the leading players in the UAE Digital Services Market are AWS (Amazon Web Services), Microsoft Azure, Google Cloud, Oracle Cloud, Alibaba Cloud, Etisalat, Protiviti, Intertec Systems, Cloud4C Services FZ LLC, BIOS Middle East Group, Orixcom, eHosting Datafort, DATAMATICS Global FZ LLC, and Others.
Key Questions Answered in the Study