UAE IT Services Market Report, Share & Analysis 2025-2033
UAE IT Services Market Overview
Market Size in 2024: USD 5,880.0 Million
Market Size in 2033: USD 12,876.5 Million
Market Growth Rate 2025-2033: 9.10%
According to IMARC Group's latest research publication, "UAE IT Services Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The UAE IT services market size reached USD 5,880.0 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 12,876.5 Million by 2033, exhibiting a growth rate of 9.10% during 2025-2033.
How AI is Reshaping the Future of UAE IT Services Market
Accelerating Government Digital Transformation: Abu Dhabi is investing AED 13 billion in digital infrastructure to become the world's first fully AI-native government, aiming to automate 100% of government processes through AI-powered solutions that streamline service delivery and citizen engagement.
Driving Cloud Computing Adoption: UAE companies are rapidly shifting to hybrid and multi-cloud environments to support AI workloads and data sovereignty requirements, with the cloud computing market expected to support expanding IT services infrastructure across both public and private sectors.
Powering Smart City Innovation: Dubai's smart city strategy encompasses over 100 initiatives transforming 1,000 government services into smart services, requiring sophisticated AI-enabled IT systems for transportation, energy management, safety, and urban planning that create massive demand for specialized IT expertise.
Strengthening Financial Services: The BFSI sector is implementing AI-driven solutions for fraud detection, risk assessment, and customer service automation, pushing IT service providers to develop advanced analytics platforms and secure cloud infrastructures that meet stringent regulatory requirements.
Enabling Enterprise Intelligence: Organizations across manufacturing, retail, and healthcare are deploying AI to optimize operations, with IT services companies building custom machine learning models and data analytics platforms that help businesses make faster, data-driven decisions in competitive markets.
Grab a sample PDF of this report: https://www.imarcgroup.com/uae-it-services-market/requestsample
UAE IT Services Market Trends & Drivers:
The UAE's digital transformation push is creating unprecedented opportunities for IT services providers. Dubai Electricity and Water Authority made history by becoming the first government department to go completely paperless, eliminating all paper transactions and moving every service to digital channels. This isn't just one department - it's part of a broader government commitment to reach 100% digitization across all departments. Meanwhile, initiatives like UAE Vision 2021 are building world-class digital infrastructure that positions the country as a global innovation leader. From finance and healthcare to retail and manufacturing, businesses are racing to implement cloud computing, big data analytics, and IoT solutions to stay competitive in today's economy.
Smart city investments are transforming how UAE cities operate and deliver services to residents. The Dubai Plan 2021, backed by government spending between USD 7 to 8 billion, is upgrading economic and social services while converting government services into data-driven smart solutions. What's impressive is the scale - Dubai's smart city strategy includes over 100 separate initiatives with plans to transform 1,000 government services into smart services. Cities like Dubai and Abu Dhabi are leading the way with smart solutions for transportation, energy consumption, and public safety. These projects rely heavily on cutting-edge technologies like artificial intelligence, machine learning, and blockchain. Building and maintaining these complex IT infrastructures requires concentrated expertise and resources, creating strong ongoing demand for specialized IT service providers.
The telecom sector is driving substantial IT services demand as 5G networks expand across the country. With internet penetration reaching 74% and 5G coverage already spanning 60% of urban areas, telecom companies need advanced IT systems to manage high-speed connectivity and support the growing Internet of Things ecosystem. The manufacturing sector is another major growth driver, with companies implementing Industry 4.0 technologies for smart factories and automated production lines. Healthcare providers are investing heavily in electronic health records, telemedicine platforms, and AI-powered diagnostic tools. Retail businesses are building omnichannel experiences that seamlessly connect online and offline shopping. All these sectors need IT service providers to help them design, deploy, and manage the sophisticated systems that keep their digital operations running smoothly.
UAE IT Services Industry Segmentation:
The report has segmented the market into the following categories:
Service Type Insights:
Professional Services (System Integration and Consulting)
Managed Services
Enterprise Size Insights:
Small and Medium-sized Enterprises
Large Enterprises
Deployment Mode Insights:
On-premises
Cloud-based
End Use Industry Insights:
BFSI
Telecommunication
Healthcare
Retail
Manufacturing
Government
Others
Breakup by Region:
Dubai
Abu Dhabi
Sharjah
Others
Competitive Landscape:
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Recent News and Developments in UAE IT Services Market
March 2025: Abu Dhabi announced the Abu Dhabi Government Digital Strategy with AED 13 billion allocated for digital infrastructure investment, targeting the ambitious goal of becoming the world's first fully AI-native government, automating 100% of government processes to enhance public service delivery and operational efficiency.
April 2025: The UAE cloud computing sector saw accelerated adoption of hybrid and multi-cloud environments, with companies increasingly migrating workloads to support AI applications and meet data sovereignty requirements, reflecting the broader digital transformation momentum across both government and private enterprises.
September 2025: Dubai hosted the World Governments Summit where the UAE showcased leadership in AI governance and ethics, demonstrating advanced regulatory platforms that connect legislation to judicial rulings and government services in real-time, helping regulators draft laws up to 70% faster through AI integration.
Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.
About Us:
IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
Contact Us:
IMARC Group
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel No:(D) +91 120 433 0800
United States: +1-201971-6302