A majority of technology leaders in the UAE expressed their confidence that their current technology can effectively fuel business growth and enhance organisational development, according to a recent report by KPMG. The report revealed that 89 percent of IT leaders in the country are poised to propel their businesses through tech. This level of confidence significantly surpasses their global counterparts by 16 percent, making the UAE a leading global force in tech innovation.
Mohamad Majid, partner, digital and innovation, KPMG Lower Gulf, said, “The UAE’s digital transformation leaders are committed to their innovation priorities and realising value at pace, despite the headwinds of global economic uncertainty. This year’s UAE Tech Report provides insights into how the nation’s tech leaders are forging a path of innovation and technology-driven growth, setting a global example for strategic AI adoption, prioritising ESG and cybersecurity, and advancing business technology.”
Key focuses
The KPMG UAE Tech report for 2023, titled “Tech Trailblazers: Navigating the Next Digital Frontier,” further highlighted that the country’s strategic focus on artificial intelligence (AI) and machine learning (ML) is evident in the report. A significant 53 percent of tech leaders in the UAE consider AI a key driver for fulfilling their short-term objectives. The study also highlights their preferences for other transformative technologies, with 43 percent opting for edge computing and 41 percent for quantum computing. Notably, the Metaverse, although at 29 percent, shows potential, indicating its status as an evolving concept rather than an immediate competitor to other innovative technologies.
Remarkably, 43 percent of tech leaders attribute their belief in AI’s potential to its demonstrated return on investment (ROI). Additionally, two-thirds of Chief Technology Officers (CTOs) attribute significant increases in profitability to AI initiatives
Elevating ESG priorities and employee satisfaction
The KPMG report emphasises the UAE’s commitment to using technology to address environmental, social, and governance (ESG) priorities. A striking 87 percent of tech leaders in the UAE are confident in their current technology’s ability to advance their organisation’s ESG agenda, surpassing the global average by 15 percent. Furthermore, 86 percent of UAE tech leaders believe that their organisation’s technology is simultaneously enhancing employee satisfaction, well-being, efficiency, and cost reduction.
XaaS adoption and cybersecurity
An additional standout finding from the report is the UAE’s strong belief in XaaS technologies, with 84 percent of tech leaders considering the benefits of “Everything as a Service” worth the associated risks. This figure places those 21 percent ahead of tech leaders around the world. XaaS offers various resources and services over the internet through subscriptions, such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), enabling businesses to adapt quickly to changing needs, save money, and stay up to date with regular updates and improvements.
Information security plays a pivotal role in the UAE’s digital transformation journey, driven by regulatory requirements and increasing cybersecurity concerns. More than half (56 percent) of tech leaders in the UAE prioritise meeting customer demands for enhanced data privacy and cybersecurity when shaping their strategies.
Challenges and future vision
Despite their achievements, tech leaders in the UAE face challenges. The report reveals that 47 percent of them identify underdeveloped data management strategies as a hurdle to transformation, compared to the global average of 34 percent. Additionally, 43 percent of respondents highlight the limitations of legacy technology, emphasising the need for innovative strategies to address these challenges directly.
Looking ahead, the report envisions a holistic digital evolution across all industries in the UAE. As the nation pursues its centennial 2071 ambitions, technology breakthroughs are expected to reshape the future of education, healthcare, tourism, manufacturing, and ESG.
