Spending on digital technology, together with IT, telecoms and rising tech similar to artificial intelligence, Internet of Things, blockchain and robotics, within the UAE over the subsequent three years is anticipated to succeed in $20 billion, in line with a brand new report by the Boston Consulting Group.

Digital technology is projected to have accounted for greater than two thirds of productiveness development over the previous decade, and can account for 25 per cent to 30 per cent of worldwide gross home product (GDP) over the subsequent decade, the report stated.

The UAE is properly positioned to double the contribution of its digital economy to GDP to 19.4 per cent from 9.7 per cent inside the subsequent 10 years, in line with BCG.

“We the UAE 2031 strategy”, the federal government’s imaginative and prescient for the subsequent decade, will additional assist the nation’s digital financial system technique, the worldwide consultancy added.

The UAE’s digital economy is expected to grow to more than $140 billion in 2031, up from practically $38 billion at current, in line with a latest report by the Dubai Chamber of Digital Economy.

The UAE Cabinet additionally accepted the formation of the Higher Committee for Government Digital Transformation final yr.

Advances anticipated from using automation, robotics and a “historic explosion of data and intelligence in the coming years” current important alternative for unprecedented disruption and wealth creation within the UAE, in line with the BCG report.

“For government decision makers, the digital economy’s expansion carries major strategic implications,” it stated.

“Positioning economies appropriately can help them remain competitive, overcome productivity lags and maintain resilience against internal and exogenous shocks.”

Dubai, which is in search of to cement its place as a worldwide capital of the digital financial system, not too long ago launched the formidable Dubai Economic Agenda (D33) plan.

The technique goals to catapult the town into the world’s prime cities by financial power within the subsequent 10 years and envisages a programme to assist 30 non-public corporations to realize unicorn standing ― price greater than $1 billion (about Dh3.67 billion).

The D33 plan additionally unveiled “Sandbox Dubai” to harness the testing and commercialisation of recent applied sciences and promote Dubai as a market-leading innovation hub, BCG stated.

“In a rapidly transforming world, new agile governance structures are required to prioritise considerations around how digital ecosystems can help various sectors grow,” Faisal Hamady, managing director and companion at BCG and co-author of the report, stated.

“The digital sector’s multi-trillion-dollar expansion leaves leaders and decision-makers with only two options: adapt to its accelerating pace or be left behind.

“Thus, by considering how systems can change at the same pace as technology, governments can recalibrate the regulatory framework for a digital-first world.”

This method might help result in the “right investments” in infrastructure, particularly in rising worth swimming pools, to spur innovation and financial alternative, Mr Hamady added.

Policies that encourage investments in digital infrastructure and analysis and growth into frontier applied sciences, similar to AI and robotics, and create an setting for innovation that trains or attracts extremely expert and specialised expertise have to be emphasised, the report stated.

By collaborating with different public entities to align strategic priorities, governments might help deal with wide-ranging points which can be gaining prominence similar to digital inclusion, social prosperity and questions round digital ethics.

“For governments, the digital economy is not an elective. It marks a profound departure from the way that economies have historically been organised and regulated,” Mr Hamady stated.

“Tackling this brave new world head-on will prove essential to remaining competitive and relevant on the global scene.”

Updated: March 28, 2023, 7:30 AM