(MENAFN- Mid-East Info) Since the late 2010s, the Emirates have done what many countries only proclaim: transformed from an oil exporter into one of the world's most advanced technology hubs. Just look at the numbers. According to GlobalData, the UAE's total ICT market will reach USD 67.3 billion by 2028. The digital transformation segment is expected to grow just as fast- a market value is forecasted up to USD 2.23 billion by 2029. But the real star is artificial intelligence: Middle East AI News estimates the national AI market will hit USD 46 billion by 2030. What is driving this explosive growth, and why are international corporations moving their R&D centres to Dubai or Abu Dhabi? Kristina Shinkareva, COO of Reputation House, explains.

Digital strategy is not just slogans, but KPIs

Success starts from the top. In 2017, the government launched the UAE Artificial Intelligence Strategy 2031 -a plan with clear metrics (AI's share in GDP, traffic reduction, automation of public services). A year later, the Dubai 10X initiative was introduced: every department was instructed to implement technologies“as if we were ten years ahead.” The results speak for themselves-100% of visa procedures are now processed via a mobile app, and the DIFC Courts are testing blockchain for cross-border judgement enforcement. In November 2021, the UAE introduced its Digital Government Strategy 2025 : 95% of public services are digitalised, and 50% of enquiries are handled without human intervention.

“For businesses, it's not just about demand, but also the 'corridor' of benefits and clear regulations. The UAE offers one of the most extensive ones. Free zones like DIFC, ADGM, and Dubai Internet City allow for 100% foreign ownership, 0% corporate tax for IT firms for up to 50 years, and simplified compliance procedures,” says Kristina Shinkareva.

Other incentives include the Golden Visa, valid for 10 years, which is granted to tech specialists and startup founders with investments over AED 2 million. Regulatory sandboxes under the Central Bank and the Securities Authority allow fintech, crypto, and insure-tech platforms to test their products with real clients under supervision but without harsh penalties.

Infrastructure: from cloud to hyper-speed networks

The UAE was among the first countries to provide 5G coverage to all major cities; by the end of 2024, network penetration exceeded 97%. Cloud infrastructure is equally strong: Microsoft, AWS, and Oracle operate their own data centres in Dubai and Abu Dhabi, eliminating latency and regulatory risks of cross-border data storage. The G42 Cloud government project offers a sovereign environment for healthcare, energy, and defence sectors, supporting confidential big data processing and edge computing.

The government-backed Mubadala Capital and Dubai's Innovate Tech Fund jointly manage over USD 3 billion in venture investments. Abu Dhabi's Hub71 has already attracted 260 startups from 25 countries, and its residents have generated over USD 1 billion in revenue. For corporations, it makes strategic sense to locate R&D divisions near fast venture capital and top talent-from AI engine developers to robotics engineers.

“There are many transformation case studies on the UAE market, but I'd like to highlight the one I'm personally involved in. For several years, Reputation House operated as an agency providing reputation management services. But in 2025, we made a major breakthrough: we moved away from the old model and transformed into an IT company, which not only offers services but also develops software and technological solutions for clients. We closely follow the developments in the reputation management market and strive to remain a leader in customer service. This rapid transformation became possible thanks to the favourable business conditions in the country,” Kristina Shinkareva shares.

What does a company gain from relocating to the UAE?

• Tax efficiency.
• Access to global talent.
• Regulatory predictability..
• Tier 1 cloud and telecom infrastructure.
• Fast access to MENA, Africa, and South Asia markets.

By 2028, the UAE's ICT market will surpass USD 67 billion . Parallel to this, demand will grow for cybersecurity, quantum communications, and autonomous transport solutions. The government has already launched an initiative to train 100,000 specialists as part of the“One Million Coders” programme. Additionally, startup access to government procurement (up to 20% of tenders are reserved for SMEs) makes the market even more attractive for companies seeking scalability and rapid proof-of-concept.

The UAE has achieved a rare combination: an ambitious digital strategy alongside liberal rules for investors. That's why global companies now view the Emirates not just as a trade hub, but as a launchpad for their next technological breakthrough-from AI labs to quantum research centres.

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