Market Trends of UAE Cybersecurity Industry
Stringent Government Regulations for Increasing Adoption of Cybersecurity Solutions is Expected to Drive the Market Growth
- UAE is one of the prominent economies in the Middle East region and has been focusing on moving toward a digital economy for the last few years, combined with government initiatives and increased interest from global and local vendors. Similarly, the country is making headways in digitizing almost every industry in the country. With the emphasis on digitalization, the vulnerabilities associated with it are seeing growth as well.
- Investment drives the demand for ICT products and services in aviation, healthcare, hospitality, retail, and other sectors linked to the UAE’s economic diversification plans, such as real estate and manufacturing. UAE ICT market challenges include the high cost of internet access and bandwidth and its exposure to cybersecurity threats. To attract foreign companies and develop human capital resources, the UAE government has established the UAE ICT Fund, which educates hundreds of Emirati students overseas in the ICT field.
- Moreover, the UAE’s SmartPass system has created a digital framework for the operations of all government services and ministries. The UAE 2031 AI Strategy plans to incorporate Artificial Intelligence (AI) technology into these services.
- Along with the UAE 2031 AI strategy, the Emirates Blockchain Strategy 2021, the UAE National Innovation Strategy, the UAE National Strategy for Higher Education 2030, and the UAE Centennial 2071 Plan have also enabled the country’s rapid digital adoption. Therefore, adopting cybersecurity is expected to witness huge regional demand during the forecast.
- In March 2022, the International Civil Aviation Organization announced new developments and progress in areas of aviation cybersecurity and innovation with the UAE government. The ICAO-UAE partnership is expected to enhance knowledge sharing and experience in terms of cybersecurity, accelerators, and innovation in future civil aviation.
- With the growing 5G, mobile subscriptions, and total fiber broadband networks in the country, the government, in collaboration with telecommunication companies, is taking initiatives to tackle cyberattacks and improve security standards and practices across the According to OpenSignal, the UAE average 5G download speed in 2023 at 298.4 Mbps.
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Retail Industry Vertical is Expected to Hold Significant Market Share
- The retail industry has become a prime target for cyber-attacks, as it handles large amounts of sensitive customer data, including payment card information and personal identification details. According to PPRO, the most popular online payment method in the United Arab Emirates (UAE) in 2023 was by card about 48 percent. As a result, the demand for cybersecurity solutions in the retail sector has increased significantly over the last few years, leading to the growth of the cybersecurity market in the industry.
- Many retailers are moving their operations to the cloud to reduce costs and improve efficiency. However, this shift also increases the risk of cyber-attacks. As a result, retailers are adopting cloud security solutions, such as encryption and access controls, to protect their sensitive data in the cloud.
- However, several retailers have been slow to adopt or invest in cybersecurity measures, either due to a lack of resources or a belief that they are not at risk of being targeted. This has made them vulnerable to cyber-attacks.
- In addition, retailers are using threat intelligence solutions to stay ahead of cyber threats, which provide real-time information on emerging threats, enabling retailers to take action. Thus, as retailers continue to adopt new technologies, the industry's demand for cybersecurity solutions is expected to grow.
- Data is crucial for the retail industry and is derived from the statistics of warehouse inventory, customer traffic patterns, point-of-sale systems, customer surveys, and competitor pricing, among others. Leveraging and drawing meaningful insights from large data sets is critical to forecasting the growth of the retail industry. Thus, breaches lead to customer dissatisfaction, extend downtime, and inflict regulatory penalties.
