The UAE leads the region in terms of investment in smart cities and associated systems such as communications networks, artificial intelligence, the Internet of Things, and data centers. Smart city initiatives in Abu Dhabi and Dubai are among the most advanced globally. Frost & Sullivan predicts that investment in smart city projects in the UAE and Saudi Arabia will reach about 185 billion dirhams ($50 billion) by 2025. Abu Dhabi and Dubai continue to lead the region in the smart cities index according to the International Institute for Administrative Development.
Abu Dhabi ranked 13th and Dubai 17th in the Smart Cities Index 2023, highlighting the cities’ continued regional leadership in the field. Gartner emphasizes the importance of smart cities in achieving a sustainable, human-centered quality of life by implementing digital strategies. The integration of data-based insights and technology is essential for addressing challenges related to the high cost of living, social pressures, and climate change.
Dr. Harper Yetseth from Heriot-Watt University Dubai estimates that the UAE and Saudi Arabia will invest approximately 185 billion dirhams ($50 billion) in smart city projects by 2025. The UAE’s commitment to technological advancement is evident in its deployment of smart infrastructure, artificial intelligence-powered surveillance, public transportation systems, and smart energy networks. Dubai’s Roads and Transport Authority has launched a digital strategy worth 1.6 billion dirhams to enhance various aspects of the city.
Ammar Taba, Vice President at Huawei, states that the global smart cities market is expected to reach approximately $873.7 billion by 2026. The UAE has advanced in technology and innovation, moving up five places internationally according to the Technology and Innovation Report 2023 by the United Nations. The country’s investment in smart cities, such as Masdar City, showcases its commitment to digital advancements and sustainable development.
Haider Nizam, President of Zoho in the Middle East and Africa, praises Dubai’s innovation and investment in smart technologies to strengthen its position as a regional and global smart city hub. Self-driving taxis, 6G network adoption, and increased digital technology adoption across sectors demonstrate Dubai’s commitment to smart infrastructure. The UAE’s continuous investment in smart cities, including 5G technology, aims to enhance global competitiveness and ensure sustainable development for future generations.