KPMG Study: UAE firms keener to invest in the Metaverse, IoT and Intelligent Automation than Global Counterparts
Organisations in the UAE are paving the way ahead of their global counterparts in fulfilling their digital transformation ambitions, including investment in IoT, Edge, 5G and intelligent automation. This is according to the latest KPMG UAE Tech Report 2022, which revealed that a majority (93%) of UAE businesses plan to invest in the metaverse, triggered by widespread technology adoption and customer demand.
Meanwhile, 90% plan to harness the Web3 over the next five years. An encouraging number are also set to embark on these plans within the year (metaverse – 29%) and (Web3 – 24%), which is a higher proportion than global organisations.
Growth, efficiency, agility and technology modernisation emerged as key enablers of digital transformation. Half of all surveyed organisations in the UAE compared with just 33% of global organisations said that digital transformation is positively affecting their finance function. Fifty percent of UAE organisations also said that their marketing, sales and service functions were benefiting the most from digital transformation, compared with 44% of global organisations.
Fady Kassatly, Partner and Head of Digital and Innovation at KPMG, Lower Gulf, said, “Disruptive new technologies have proved to be a catalyst for many organisations as they look to overcome the challenges of the past two years. Unsurprisingly, the UAE has emerged as a torchbearer in enabling digital transformation, with a majority of organisations earnestly exploring investments in technology to transform their business. Our report highlights that the UAE is on the fast-track to growth, with further investments in emerging technologies playing a transformational role in driving businesses ahead in the future.”
The report also found that the UAE is still maturing with respect to Data & Analytics, AI & automation compared to the rest of the world, and that despite these developments, the talent gap remains the biggest hurdle in the effective adoption of new technologies in the UAE. Organisations reported that they were operating in a more challenging environment with this talent gap and a risk-averse corporate culture. Cyber security also emerged a major concern for organisations in their cloud journey.
Encouragingly, UAE tech leaders are realigning their plans to address these challenges, with clear data strategies, cyber security, and robust controls. Future cyber security investments are also expected to drive changing business models and meet evolving customer expectations.
Additionally, three quarters of UAE tech leaders believed their companies were equipped with adequate leadership support and funding to advance their strategy in these areas.