- August 15, 2023
- Posted by: Waqas Siddiqui
- Categories: Business & Economy, IT & Innovation
What is UAE’s Digital Economy Strategy?
The ‘UAE Digital Economy Strategy’ aimed to increase the digital economy’s share in the UAE’s GDP from 9.7% as of 2022 to 19.4% over a decade. It was introduced in April 2022 to strengthen the UAE’s role as a central hub for the digital economy, both within the region and globally.
Influence of Digital Economy Growth
According to a WAM report, the UAE has achieved remarkable strides in its transition towards a digital economy since 2013. These achievements have effectively bolstered the competitiveness of the UAE’s national economy. This is affirmed by indices released by international bodies like the World Economic Forum. Notably, in 2017, the UAE secured its position as the foremost Arab and regional hub for E-commerce. Around 40% of the UAE’s population engages with government digital services more than once every week. Concurrently, the domain of E-commerce is witnessing rapid expansion in the UAE’s retail landscape too, playing a pivotal role in driving sales growth.
Digital economy of UAE to reach Dh 514 billion by 2031
A Dubai Chamber of Digital Economy report suggested that the UAE’s Digital economy will grow more than AED 514 billion by 2031. The forecasted increase in contribution of the digital economy reflects UAE’s endeavors to become a key tech hub globally. In addition, UAE’s plans to create a world-class digital infrastructure and support the dynamic start-up ecosystem.
On similar lines, OPEC predicts UAE economy to maintain strong momentum in 2023. This is following a notable GDP growth of 7.9% observed in 2022. The UAE economy is going to continue performing strongly on account of contributions from tourism, hospitality and real estate sectors.
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