Transformative Industry in the UAE


Many countries across the globe are experimenting with new models that can make their economies more sustainable and capable of improving the lives of their people. This form of transformation is essential since it reduces overdependence on a specific industry or sector. Within the past decade, the United Arab Emirates has been keen to consider emerging industries to improve gross domestic product (GDP) and empower more people to pursue their aims.

The Information and Communications Technology (ICT) sector is a new area that follows a transformative model to revolutionize the economy of UAE by increasing its GDP, creating new job opportunities, and diversifying the current source of revenues. The targeted objectives include identifying a specific transformative industry that has the potential to diversify the economy of the UAE and presenting new ways to support it. It will be possible to achieve such aims by describing how the UAE government is currently promoting this industry. This paper will propose additional approaches for making the sector more productive and beneficial to the targeted citizens.

Information and Communications Technology in the UAE

Sector Analysis

Just like the other countries in the Middle East, the primary source of government revenues in the UAE has been the oil and gas industry. The presence of numerous reserves and functional extraction plants means that the country is still one of the leading producers, refiners, and marketers of crude oil and other related products. However, the uncertainties and challenges recorded in this industry have forced the government to introduce new models that can improve the level of diversification (Middle East economy watch, 2019).

This practice is essential since it creates room for introducing new sectors and supporting them to meet the changing demands of the population. The ICT sector has emerged as one of the newest transformative industries that have the potential to take this country from point A to B and make it easier for more citizens to lead high-quality lives.

ICT is a concept that has become widely utilized in both the developing and the developed world due to its ability to change people’s experiences. The field focuses on all technologies and systems that have the potential to improve the manner and rate at which people access data and information through various telecommunication networks. Due to the nature of this industry, more people have found it meaningful and capable of meeting their demands. In the UAE, the government has been keen to extend its application beyond the delivery of essential government services and make it an essential tool for empowering the people to become self-sufficient (Mahmah and Kandil, 2019).

The results recorded in Europe and North America reveal that ICT is a field whose potential can deliver numerous benefits when tapped and pursued diligently. The decision to continue promoting this industry is a development that might eventually present numerous benefits to this country’s citizens.

Products, Services, and Benefits

Positive economic trends have been recorded in the UAE following the government’s move to promote the idea of diversification. In 2018, the country’s real GDP was observed to increase to 1.7 percent from a low of 0.8 percent (Shadab, 2018). This development is attributable to the promotion of non-oil activities. The key products and services associated with the ICT sector is the delivery of communication networks that make it easier for people to liaise with one another and be involved in various economic activities. Different leaders have been keen to promote the sector since it makes it easier for more people to become self-employed by engaging in app production and website creation.

The diverse nature of this field explains why more people in the UAE are embracing the power of the Internet to engage in online-related activities, such as digital marketing (Bahrini and Qaffas, 2018). Some people have been keen to pursue the emerging opportunities to engage in activities that can maximize the experiences and outcomes of more citizens. For instance, cyber cafes, printing services, and the mobile segments have delivered additional benefits to the greatest number of citizens in this country.

The nature of this sector explains why more people will always be empowered to utilize the available systems and platforms to pursue their dreams. The UAE government has been keen to consider new ways of improving the effectiveness of this industry by providing the relevant financial support and infrastructure (Moussa and Seraphim, 2017). Such incentives are encouraging majority of the people to become more practical and improve the current level of economic performance and productivity (Shayah, 2015). These transformative products and services are essential since they have the potential to improve a wide range of activities. These measures will eventually make the economy of the UAE more stable and sustainable.

Statistics and Percentages

The selected transformative industry has delivered positive results in this country within the past few years. For instance, the ICT sector was observed to record “a growth rate of around 2.7 percent in the year 2018” (Government of Dubai, 2020, p. 87).

However, there were no significant changes recorded in the amount of capital the industry contributed to the overall GDP. However, the indicators were promising since it was setting the right stage for future development and profitability. In 2010, the ICT was providing job opportunities to around 24,000 citizens across the UAE. However, the number increased to over 30,000 within a period of four years (Government of Dubai, 2020). By 2018, the number has increased steadily to over 37,000 (Government of Dubai, 2020). This means that similar trends and developments will be recorded in the coming days.

Similarly, the corporate world was benefiting significantly from the potential power of ICT in the UAE. For instance, the number of companies that were considering the power and use of modern telecommunication technologies had increased by a big percentage in 2018 (Government of Dubai, 2020). This field is also critical since it has the potential to set the right stage for other sectors and ensuring that they record positive results in a timely manner. For example, the adoption of ICT is appropriate since it increases the level of efficiency for other companies and minimizes costs of production (Government of Dubai, 2020). This analysis reveals that the ICT sector is capable to increasing the potential for growth in the future.

Investing in this Sector: Differences from the Ideal Competitive Model

Traditionally, companies have been focusing on superior models for manufacturing more items and marketing them successfully to the targeted customers. The oil and gas industry has not been the exception since it has been considering the most appropriate strategy to maximize performance and increase this country’s GDP (Moussa and Seraphim, 2017). From the above analysis, it is evident that the ICT sector is transformative in nature and presents additional insights for improving economic performance (El Mourad, 2017).

It differs from the other industries since it emerges as a platform for influencing the manner in which the other fields operate and achieve the outlined aims. Any person or corporation planning to invest in this new sector should be aware of the entry issues, political concerns, and legislation regarding the use of merging technologies and data protection laws.

The above statistics show that this industry has made it possible for more people to land new job opportunities and pursue their aims diligently. For the UAE, it is agreeable that such a transformative sector is capable of empowering more people and making it easier for them to improve their relationships with other professionals across the globe. The government, therefore, needs to consider these possibilities and present additional financial resources to support it and eventually deliver positive results (Alshehhi, 2016). With the availability of adequate infrastructural systems and networks, the remaining part is for the government to provide additional devices and tools that will empower the people.

When this is done, chances are high that more citizens will be willing to venture in the sector and become self-employed. Different companies will consider the new model to make ICT part of their operations and service delivery procedures. The end result is that such firms will become more effective and minimize most of the costs they incur when pursuing their missions and visions (Mahmah and Kandil, 2019). The models recorded in the west can become a powerful guideline for adopting the ICT industry and making it a key driver for economic excellence.

Companies and individuals who rely on emerging technologies will streamline their operations and minimize sources of wastes. They will also be in a position to identify new ways of adding value to the customers and stakeholders. Logistical operations will become more streamlined than ever before, thereby maximizing the level of profitability (Mahmah and Kandil, 2019). Corporations that use this model will eventually overcome most of the emerging challenges, such as competition and loss of customers (El Mourad, 2017).

Similarly, the government will be in a position to deliver timely services to the people. The presence of existing infrastructure and skilled persons in the field of ICT means that the UAE might not encounter numerous obstacles when trying to pursue this sector.

Existing Opportunities: Additional Employment

The government can consider a number of attributes to make this sector more effective and capable of empowering the population. Competitiveness can be enhanced by identifying and introducing the latest technologies, such as 4G enabled network systems. The government can also facilitate the acquisition of superior computers and smartphones that different people can use to achieve additional gains.

The idea of extending network coverage across the UAE is an evidence-based approach or increasing efficiency and maximizing competiveness (Khan and Agha, 2015). The government can go further to reduce the costs for licenses and starting new businesses in the sector. Most of the expenses importers of such systems or computers incur need to be reduced significantly. Existing laws should be favorable and capable of promoting continuous development in this transformative industry.

When the government is aware of these considerations, more people will be willing to invest in different areas associated with the sector in an attempt to transform their lives. This new development will ensure that the country’s population is involved in the industry to achieve either organizational or personal goals (Moussa and Seraphim, 2017). For instance, the exemption of taxes will encourage more individuals to start importing a wide range of items, such as Internet modems, computers, smartphones, and printers (Moussa and Seraphim, 2017).

The use of social media will increase, thereby making it possible for the stakeholders to identify additional ways of making revenues. Government agencies relying on the power of ICT will deliver exemplary services to the citizens in a timely manner. This move will make it easier for them to consider additional ways of maximizing their income levels.

These developments indicate that the UAE will record increased levels of employment. More people will be willing to venture into private practice and be in a position to provide a wide range of services to the people. The government will also be involved to identify existing or emerging hurdles and address them before they can disorient the level of economic performance (Middle East economy watch, 2019). The final result is that the economy of this country will become more diversified and sustainable. The overdependence on the oil sector will also become a thing of the past, thereby empowering more people to achieve their aims.


The above discussion has identified ICT as a new sector that is transformative in nature. The indicated statistics support the fact that the industry has the potential to increase or present additional employment opportunities. The government should, therefore, consider some of the most appropriate strategies to address existing barriers and introduce new incentives to support the future performance of this sector. Such a model will diversify the economy and make it easier for more citizens to achieve their aims in life.

Reference List

Alshehhi, Y.Z. (2016) Demand and supply of labor market: a case of UAE’, Applied Studies in Agribusiness and Commerce, 10(4-5), pp. 145-154. Web.

Bahrini, R. and Qaffas, A.A. (2018) ‘Impact of information and communication technology on economic growth: evidence from developing countries’, Economies, 7(1), pp, 21-33. Web.

El Mourad, A. (2017) Innovation in procurement and its added value to the United Arab Emirates banking sector. Druck: Anchor Academic Publishing.

Government of Dubai. (2020) Dubai economic report 2019. Dubai: The Department of Economic Development.

Khan, S.H. and Agha, S. (2015) ‘Impact of FDI in U.A.E over the main elements of sustainable development: economy and environment’, Journal of Emerging Trends in Economics and Management Sciences, 6(7), pp. 263-267. Web.

Mahmah, A.E. and Kandil, M.E. (2019) ‘The balance between fiscal consolidation and non-oil growth: the case of the UAE’, Borsa Istanbul Review, 19(1), pp. 77-93. Web.

Middle East economy watch. (2019) London: PricewaterhouseCoopers.

Moussa, M.B. and Seraphim, J. (2017) ‘Digital gender divides and e-empowerment in the UAE: a critical perspective’. International Journal of Education and Development Using Information and Communication Technology, 13(3), pp. 145-161. Web.

Shadab, S. (2018) ‘Tourism and economic growth in the United Arab Emirates: a granger causality approach’, IOSR Journal of Business Management, 20(4), pp. 1-6. Web.

Shayah, M.H. (2015) ‘Examining trends of UAE’s exports — current and future perspective’, International Journal of Trade, Economics and Finance, 6(1), pp. 41-44. Web.

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