Software - United Arab Emirates

United Arab Emirates

Revenue in the Software market is projected to reach US$1.92bn in 2024.
Enterprise Software dominates the market with a projected market volume of US$0.80bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 4.73%, resulting in a market volume of US$2.31bn by 2028.
In global comparison, most revenue will be generated in the United States (US$353.50bn in 2024).

Key regions: United States, Canada, Germany, China, Japan

Definition:

In general, software is defined as a set of instructions written as programming code to execute specific tasks on a computing device. The Software market covers a wide range of software products and solutions that are publicly sold by various companies. Most software solutions in this market are designed for professional use, but some can also be suitable for personal use. They can also range from basic productivity tools such as word processors and spreadsheets to complex software solutions such as project management tools, graphic design software, and enterprise resource planning software.

Products in the Software market can be obtained in two ways: as on-premises software that is sold via a transactional license or a subscription and as cloud-based software (software as a service/ SaaS) that is most frequently sold as a subscription.

Structure:

The market contains four markets that are based on the functionality of the software:

Productivity Software refers to application software that supports activities such as producing documents, spreadsheets, drawings, and presentations. This market includes Administrative Software, Collaboration Software, Office Software, Creative Software, and Construction and Design Software.
Enterprise Software refers to all software that supports essential large-scale business activities such as enterprise resource management, customer management, and supply chain activities. This market includes Enterprise Resource Planning Software, Customer Relationship Management Software, Business Intelligence Software, Supply Chain Management Software, Content Management Software, and Other Enterprise Software.
Application Development Software refers to software and tools that help the overall application development process.
System Infrastructure Software refers to software that provides the base framework for operating and managing organizational processes and services on hardware devices.

Additional Information:

The Software market comprises revenue and revenue change as the key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in this market include Microsoft, Adobe, SAP, Oracle, and Salesforce.

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Market

Region

Region comparison

Currency

Analyst Opinion

The United Arab Emirates (UAE) is a country that is known for its rapid economic growth and development. One of the sectors that have been growing in the country is the software market.

Customer preferences: The UAE has a diverse population, and the demand for software varies across different segments. However, there is a growing trend towards the adoption of cloud-based software solutions. This is due to the benefits that come with cloud computing, such as scalability, flexibility, and cost-effectiveness. Additionally, customers in the UAE are increasingly looking for software solutions that are easy to use and offer a seamless experience across different devices.

Trends in the market: One of the key trends in the software market in the UAE is the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. This is driven by the need to automate processes and improve efficiency across different industries. Another trend is the growing demand for cybersecurity solutions, as businesses in the UAE become more aware of the risks posed by cyber threats. Additionally, there is a trend towards the development of software solutions that are tailored to the needs of specific industries, such as healthcare, education, and finance.

Local special circumstances: The UAE is a hub for innovation and entrepreneurship, with the government investing heavily in the development of technology and innovation. This has created a conducive environment for the growth of the software market, with many startups and established companies setting up shop in the country. Additionally, the UAE has a large expatriate population, which has contributed to the demand for software solutions that cater to the needs of different nationalities and cultures.

Underlying macroeconomic factors: The growth of the software market in the UAE is driven by several macroeconomic factors, including the country's favorable business environment, stable political climate, and strategic location. The UAE is also home to several free zones, which offer tax incentives and other benefits to businesses. Additionally, the country has a high level of internet penetration and a tech-savvy population, which has contributed to the growth of the software market. Finally, the UAE government has been investing heavily in digital transformation initiatives, which has created opportunities for software companies to develop innovative solutions that can help drive the country's economic growth.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises, except for the Enterprise Software segment, in which consumer (B2C) spending is not considered. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, level of digitization, GDP sector composition, and observed level of software piracy. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.