UAE: ICT spending by segment 2019

In 2019, the telecom services sector accounted for the highest information and communications technology (ICT) spending in the United Arab Emirates (UAE), at around 8.77 billion U.S. dollars, which was around half of the country’s total ICT spending in the same year.

 Digital transformation: the fuel behind ICT spending 

Gulf Cooperation Council members including the UAE are undergoing economic diversification transformations. Digital transformation strategies play a key role in such diversification efforts. The UAE has several economic initiatives focused on digitalization and transformation. UAE Vision 2021 for example, aims to transition the country into a knowledge-based economy thus promoting innovation, investing in research and development, and adopting new technologies. The country’s capital and the second-most populous city, has witnessed growth in the contribution of information and technology to the GDP over the past years.

 The future of ICT spending after COVID-19 

  Globally, IT spending was expected to slightly decline in 2020 due to the COVID-19 pandemic. The Middle East, Turkey, and Africa region are expected to follow the same trend. The ICT industry was no different than multiple industries, which continue to experience the effect of the global pandemic on the recovery of enterprises, governments, and consumers. From a consumer perspective, the total consumer spending on communication in the UAE was forecasted to decrease in 2020 and to pick up afterward in the next years. The country was expected to have the fifth-highest real total consumer spending on communication in the MENA region.