ALBAWABA - A recent report has unveiled an impressive level of confidence among technology leaders in the UAE. According to the report, a remarkable 89 percent of UAE tech leaders are confident that their current technology can effectively drive business growth and enhance organizational development, surpassing their global peers by a significant 16 percent.
This elevated confidence underscores the UAE's strong commitment to leveraging technology to achieve ambitious business objectives, address challenges, and promote environmental, social, and governance (ESG) priorities. Notably, 87 percent of tech leaders in the UAE are confident in their current technology's ability to advance the organization's ESG agenda, exceeding the global average by 15 percent. Additionally, a substantial 86 percent of UAE tech leaders believe that their organization's technology is concurrently enhancing employee satisfaction, well-being, efficiency, and cost reduction.
Mohamad Majid, Partner of Digital and Innovation at KPMG Lower Gulf, stated, "The UAE's digital transformation leaders are resolute in their commitment to innovation and the rapid realization of value, even in the face of global economic uncertainty. This year's UAE Tech Report offers insights into how the nation's tech leaders are paving the way for innovation and technology-driven growth, setting a global example in strategic AI adoption, ESG prioritization, cybersecurity, and advancements in business technology."
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The UAE's strategic focus on artificial intelligence (AI) and machine learning (ML), along with its dedication to transformative technologies, aligns with the views of Chief Technology Officers (CTOs). The KPMG study reveals that 53 percent of tech leaders in the UAE recognize AI as a key driver for achieving their short-term objectives. The study also sheds light on other technology preferences among respondents for fulfilling these short-term goals, with edge computing (43 percent) and quantum computing (41 percent) emerging as highly valuable options. Interestingly, the Metaverse, though at 29 percent, shows potential as an evolving concept rather than an immediate competitor to innovative technologies.
Furthermore, 43 percent of tech leaders attribute their faith in AI's potential to its demonstrated return on investment (ROI), with two-thirds of CTOs reporting significant increases in profitability due to AI initiatives. An impressive 84 percent of UAE tech leaders believe that the benefits of "XaaS" (Everything as a Service) technologies outweigh the risks, placing them 21 percent ahead of tech leaders worldwide. XaaS encompasses resources and services obtained over the internet through subscriptions, including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS), and more. XaaS enables businesses to adapt quickly to changing needs, save costs, and stay current with regular updates and improvements.
The report also highlights that in the UAE, information security is a primary driver of digital transformation, influenced by regulatory requirements and increasing cybersecurity concerns. Over half (56 percent) of tech leaders prioritize meeting customer demands for enhanced data privacy and cybersecurity in shaping their strategies.
Nonetheless, 47 percent of tech leaders in the UAE identify underdeveloped data management strategies as a challenge to transformation (compared to the global average of 34 percent). Moreover, 43 percent of respondents underscore the limitations of legacy technology, emphasizing the need for innovative strategies to address these challenges directly.
As the UAE works toward achieving its centennial 2071 ambitions, technology breakthroughs have the potential to reshape the future of education, healthcare, tourism, manufacturing, and ESG objectives, as highlighted in the report.
