UAE Pushes More Investments Into Tech In 2023

UAE Pushes More Investments Into Tech In 2023

UAE Investments: Since the early 90s, the United Arab Emirates has been known for its exploits in oil. The UAE economy is presently the 5th largest economy in the Middle East and North Africa. It is also heavily dependent on revenues from Natural gas and petroleum. A 2009 report depicts that 85% of the nation’s economy was a return from its investments in oil.

However, there has been more diversification of its economy and investments across various sectors in recent years. Emirates such as Dubai and Abu Dhabi are exploring sectors like Tourism and Technology to expand their source of revenue.

The UAE began its exploration in tech in 2015 when the National Innovation Strategy was announced by the Vice President of the United Arab Emirates, His Highness Sheikh Mohammed bin Rashid Al Maktoum which led to the year being pronounced the Year of Innovation. This strategy set out to achieve four main goals; Anchor a stimulating environment for innovation through supportive laws and institutions, develop government innovation by integrating modern tools and dedicate a percentage to research projects, encourage the private sector to adopt new technologies and services, and lastly, foster qualifying individuals with innovative skills.

By 2016, the Sharjah Research Technology and Innovation park were established. It was created to accelerate and sustain the innovations and achievements of several companies in Manufacturing, Agriculture, Transport, and Green energy. These investment has led to the growth of over 200 companies and was expected to close a total figure of 500 companies by December 2021.

The country also showed a significant improvement in its innovation standing on the global innovation scale. It ranked 1st among all Arab countries and 41st worldwide.

In 2017, the nation created an artificial intelligence ministry position to manage the country’s approach to attracting venture investments. It also acknowledged and officially legalized crypto and crypto assets in 2017.

In 2021, the United Arab Emirates acquired 46% of the total venture capital raised in the Middle East and North Africa.  By March 2022, the nation hosted the Global Tech Innovation Summit in Dubai. Dubai also launched its Metaverse strategy in hopes to multiply the number of Blockchain and Metaverse companies by five and generate $4 billion for the country’s economy. This strategy aims to provide 40,000 jobs by 2030 and enhance the country’s position as a global testbed for Metaverse technology.

It also emphasizes fostering talents for future capabilities by providing adequate support in Metaverse education for developers, content creators, and other users of various digital platforms in the community.

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UAE And Tech Ecosystem In 2023

Over the past few years, the UAE has attained a status as the frontier in technology and innovation in the Middle East and North Africa region and gained the attention of the global tech ecosystem.

It is stipulated that the UAE will likely spend about $20 billion to improve its digital economy.

Emirates has two main strategies that will foster that tech ambition. These are the Dubai Economic Agenda (D33), which aims to increase the size of the Emirate’s economy with a target of Dh32 trillion ($8.71 trillion) over the next ten years, and Operation 300bn, another decade strategy that aims to double the tech industrial sector’s contribution to gross domestic product to Dh300 billion.

United Arab Emirates Metaverse Technology Holdings also announced that the government will invest $54.5 million in developing utility-based Metaverse cities. Due to their recent boom in tourism, Dubai and Abu Dhabi will be created first to offer users the chance to experience their greatest attractions from the comfort of their homes. The country currently has the highest degree of digitalization, with 99 per cent of its population having access to the internet.

In 2023, the country is also aiming to roll out more incentives and benefits for the startup landscape. This includes making it easier to acquire a digital talent visa and a permanent residency. It also plans to launch more appealing government contracts and programs.

Emirates such as Dubai and Abu Dhabi are focusing on developing infrastructure, creating jobs, and fostering innovation for its citizens and talents in the global ecosystem. This will be implemented through investments in education and skills training to help improve the tech workforce.

The United Arab Emirates is working on some plans to maximize the AI sector, not merely for its economic gain but to improve the standard of living across the country. There are plans to create policies that will ensure that the country thrives in its deployment of the new technology and curtail any likely consequences.

In addition, the Emirati government is investing in research and development, as well as, providing incentives for startups and businesses in the artificial intelligence sector.

By making investments in business and technology, the country aims to strengthen the industrial sector and boost its domestic value. It also aspires to manufacture and export high-tech products worth $4.8 billion annually. This will put the UAE on the map as the centre for tech companies, businesses and international investors.

With many plans under construction in the country, the United Arab Emirates government has given the world many to look out for. These investments will aid the nation in achieving its goal to become a major tech hub globally. It will also be highly beneficial to the Middle East and North Africa region and will make the region more influential in the global tech space.