United Arab Emirates IT Services Market Size, Share, By Service Type (IT Consulting, System Integration, Managed Services, Cloud Services, Cybersecurity Services), By Deployment (On-Premise, Cloud-Based), By Enterprise Size (Large Enterprises, SMEs), By End Use (BFSI, Government, Healthcare, Retail, Energy & Utilities, Telecommunications), United Arab Emirates IT Services Market Insights, Industry Trend, Forecasts to 2035
Industry: Information & Technology
United Arab Emirates IT Services Market Insights Forecasts to 2035
- UAE IT Services Market Size 2024: USD 40.5 Billion
- UAE IT Services Market Size 2035: USD 144.4 Billion
- UAE IT Services Market CAGR 2024: 12.25%
- UAE IT Services Market Segments: Service Type, Deployment Mode, Enterprise Size, and End Use.
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The UAE IT services market consists of professional technology services that assist organisations with digital transformations, enterprise upgrades, cybersecurity protection, cloud computing, data analysis and IT systems operation across all public and private organizations. The market serves industries which include banking and financial services, government entities, healthcare institutions, retail and e-commerce companies, energy and utilities and telecommunications providers.
The main IT services of a business include consulting services, application development, system upkeep, infrastructure control, managed service offerings, cybersecurity protection and cloud solutions. The implementation of artificial intelligence, big data analytics, robotic process automation, blockchain technology and Internet of Things devices is creating new enterprise IT structures at companies based in the United Arab Emirates.
The market experiences strong growth because of digital government programs, smart city projects, financial technology development, and business transitions to cloud computing. Organizations are increasing their investments in managed services and cybersecurity solutions because of the growth of hybrid work environments, the rise in cybersecurity threats and the need for organisations to make decisions based on data analysis.
The UAE Digital Government Strategy and smart city projects in Dubai and Abu Dhabi and data center expansion and AI-based economic development plans from the government create a regulatory and financial framework that supports the growth of advanced IT service providers.
Market Dynamics of the United Arab Emirates IT Services Market:
The driving forces behind this UAE IT services market include the growing need for digital transformation by businesses and the transition to cloud solutions and the increased risk of cybersecurity attacks and the development of the fintech sector and the digital transformation efforts of governmental organizations. Large organizations and public institutions make IT modernization their top priority while small and medium-sized enterprises are turning to managed IT services for better operational efficiency and cost savings on their technology infrastructure.
The challenges faced by the market include the need for expensive deployment of advanced IT solutions and the difficulties associated with data protection and legal requirements and the lack of skilled professionals in AI and cybersecurity fields and the intensifying rivalry among global IT service companies.
The future prospects for the UAE IT services market in UAE are encouraging, because of its rapid artificial intelligence development and its increasing number of hyperscale data center facilities and its growing e-commerce and digital banking sector and its expanding 5G network coverage and its adoption of new technologies in business IT systems.
United Arab Emirates IT Services Market Report Coverage
| Report Coverage | Details |
|---|---|
| Base Year: | 2024 |
| Market Size in 2024: | USD 40.5 Billion |
| Forecast Period: | 2025-2035 |
| Forecast Period CAGR 2025-2035 : | CAGR of 12.25% |
| 2035 Value Projection: | USD 144.4 Billion |
| Historical Data for: | 2020-2023 |
| No. of Pages: | 210 |
| Tables, Charts & Figures: | 95 |
| Segments covered: | By Service Type, By Deployment |
| Companies covered:: | IBM Corporation, Accenture plc, Tata Consultancy Services (TCS), Wipro Limited, Infosys Limited, Cognizant Technology Solutions, Microsoft Corporation, Amazon Web Services (AWS), Oracle Corporation, Emirates Integrated Telecommunications Company (du), and Key Players |
| Pitfalls & Challenges: | COVID-19 Empact, Challenge, Future, Growth, & Analysis |
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Market Segmentation
The United Arab Emirates it services market share is classified into service type, deployment, enterprise size, and end use.
By Service Type:
The United Arab Emirates IT services market is divided by service type into IT consulting, system integration, managed services, cloud services and cybersecurity services. Among these, the managed services segment led the market in 2024 and the segment is expected to experience substantial growth throughout the forecast period. Organizations now tend to hire specialized providers to handle their IT infrastructure management needs as well as their network monitoring and cybersecurity operations and application support requirements. The market for cloud services is growing quickly because of businesses joining hybrid cloud systems and deploying SaaS and moving away from their older systems. Cybersecurity services are experiencing strong demand because of increasing cyber threats and the need to meet regulatory compliance standards.
By Deployment:
The United Arab Emirates IT service market is divided by deployment into on-premise and cloud-based models. Among these, cloud-based deployment held the largest market share in 2024 and is projected to grow at a substantial CAGR during the forecast period. Primarily because organizations in the government, banking, retail, and healthcare sectors are moving towards hybrid and multi-cloud models to improve the scalability and efficiency of their operations and realize cost savings. The requirement for on-premises solutions continues to exist because highly regulated sectors require strict control over data and compliance. Cloud adoption is growing at a rapid pace as organizations are investing in hyperscale data centres.
By Enterprise Size:
The UAE IT services market is divided by enterprise size into large enterprises and small & medium-sized enterprises (SMEs). Among these, the large enterprises segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. Large enterprises lead the way mainly because of their substantial IT budgets, complex infrastructure requirements, and advanced digital transformation initiatives. These organizations invest heavily in AI integration, cybersecurity frameworks, and enterprise resource planning solutions. Thus, large enterprises remain the primary drivers of advanced IT service adoption in the UAE.
By End Use:
The UAE IT services market is divided by end use into BFSI, government, healthcare, retail, energy & utilities, and telecommunications. Among these, the BFSI segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. BFSI leads the way mainly because of rapid digital banking transformation, expansion of fintech services, significant cybersecurity investments, and strict regulatory compliance requirements. Thus, the sector remains the primary driver of advanced IT service adoption in the UAE.
Competitive Analysis:
The report offers the appropriate analysis of the key organisations/companies involved within the United Arab Emirates IT services market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.
Top Key Companies in United Arab Emirates IT Services Market:
- IBM Corporation
- Accenture plc
- Tata Consultancy Services (TCS)
- Wipro Limited
- Infosys Limited
- Cognizant Technology Solutions
- Microsoft Corporation
- Amazon Web Services (AWS)
- Oracle Corporation
- Emirates Integrated Telecommunications Company (du)
Recent Developments in United Arab Emirates IT Services Market:
In April 2024, Accenture plc collaborated with leading financial institutions in the UAE to deploy AI-driven automation and cloud-native core banking solutions aimed at strengthening cybersecurity frameworks and improving digital customer experience.
In February 2024, Microsoft Corporation launched enhanced AI-powered cloud services within its UAE data centers, expanding Azure AI and advanced analytics capabilities to support enterprise digital transformation and government smart services initiatives.
In January 2024, Amazon Web Services (AWS) partnered with regional enterprises in the UAE to accelerate cloud migration programs and expand managed security services for regulated industries.
Key Target Audience
- Market Players
- Investors
- End-users
- Government Authorities
- Consulting and Research Firm
- Venture capitalists
- Value-Added Resellers (VARs)
Market Segment
This study forecasts revenue at the UAE, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Arab Emirates IT Services Market based on the below-mentioned segments:
United Arab Emirates IT Services Market, By Service Type
- IT Consulting
- Application Development & Maintenance
- Infrastructure Services
- Cloud Services
- Cybersecurity Services
- Managed Services
United Arab Emirates IT Services Market, By Deployment Mode
- On-Premise
- Cloud-Based
United Arab Emirates IT Services Market, By Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
United Arab Emirates IT Services Market, By End Use
- BFSI
- Government
- Healthcare
- Retail & E-commerce
- Energy & Utilities
- Telecommunications
Frequently Asked Questions (FAQ)
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1. What is the size of the United Arab Emirates IT services market in 2024?The United Arab Emirates IT services market was valued at USD 40.5 billion in 2024. The market is driven by strong enterprise digital transformation initiatives, government modernization programs, cloud adoption, and rising cybersecurity investments across key industries.
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2. What is the projected growth of the UAE IT services market by 2035?The UAE IT services market is expected to reach USD 144.4 billion by 2035, growing at a CAGR of 12.25% during 2025–2035. Growth is supported by AI integration, hyperscale data center expansion, fintech development, and increasing cloud-based service adoption.
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3. What factors are driving growth in the UAE IT services industry?Key growth drivers include: Increasing enterprise digital transformation, Rapid migration to cloud-based infrastructure, Rising cybersecurity threats, Expansion of fintech and digital banking, Smart city and digital government initiatives, Growing adoption of AI, big data analytics, and IoT technologies.
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4. Which service segment dominates the UAE IT services market?The managed services segment dominated the market in 2024. Organizations increasingly outsource IT infrastructure management, cybersecurity monitoring, network operations, and application support to specialized service providers to improve efficiency and reduce operational costs.
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5. Why is cloud-based deployment growing rapidly in the UAE?Cloud-based deployment is expanding rapidly due to: Hybrid and multi-cloud adoption, Scalability and cost efficiency, Hyperscale data center investments, Growing SaaS implementation, Demand for remote work infrastructure. Highly regulated sectors still maintain partial on-premise solutions for data control and compliance.
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6. Which industries drive demand for IT services in the UAE?The major industry verticals include: BFSI, Government, Healthcare, Retail & E-commerce, Energy & Utilities, Telecommunications. Among these, BFSI leads the market due to digital banking transformation, fintech innovation, cybersecurity spending, and regulatory compliance requirements.
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7. What are the major challenges in the UAE IT services market?The main challenges include: High deployment costs for advanced IT systems, Data protection and regulatory compliance complexities, Shortage of skilled AI and cybersecurity professionals, Intense competition among global IT service providers.
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8. What role does artificial intelligence play in the UAE IT services market?Artificial intelligence plays a critical role in: AI-powered automation, Advanced analytics, Predictive cybersecurity, Smart government services, Intelligent customer experience platforms. AI adoption is accelerating across banking, healthcare, retail, and government sectors.
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9. Who are the key companies operating in the UAE IT services market?The major players in the UAE IT services market is IBM Corporation, Accenture plc, Tata Consultancy Services (TCS), Wipro Limited, Infosys Limited, Cognizant Technology Solutions, Microsoft Corporation, Amazon Web Services (AWS), Oracle Corporation, Emirates Integrated Telecommunications Company (du).
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10. What is the future outlook for the UAE IT services market?The future outlook is highly positive due to: Expansion of hyperscale cloud infrastructure, Growth in digital banking and e-commerce, increasing 5G network coverage, AI-driven enterprise modernization, Continued government investment in digital transformation. The UAE is positioned as a regional digital technology hub, strengthening long-term demand for IT services.
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