UAE seeks to bolster digital drive as global data market set to hit $243.4b

The UAE seeks to power ahead of the competition with its digital innovation and business- friendly data policies as the global data economy is predicted to reach $243.4 billion by 2027.

Khalfan Belhoul, CEO of Dubai Future Foundation (DFF) said the UAE is a leader in harnessing the immense potential of data. “Today, data is considered a high-value asset and a national resource for governments that boosts their competitiveness and readiness to face future challenges as digital transformation accelerates across key sectors.”

A new report published by DFF in collaboration with Dubai Economy said the global data economy is on track to become one of the largest economic sectors globally. The publication, titled ‘New Data Economy’, maps the future of data in the UAE and worldwide.

“Dubai Future Foundation is keen on enhancing collaboration with stakeholders around the country and globally to study the future of data, identify emerging trends and devise strategies to leverage data which will create added value,” said Belhoul.

The DFF also assists public and private sector entities in developing digital systems and data management policies. The new report, published in collaboration with Dubai Economy, provides recommendations to accelerate data exchange and utilization and encourage investments in the data sector, said Belhoul.

“Dubai has been at the forefront of technology adoption since it announced the first ICT strategy in 1999 and has followed through with initiatives such as m-Government, Smart city, open data, the mandating of blockchain for government transactions, and other advanced initiatives. What makes the city stand out in the region is the fact that digitalisation has been built into government service and economic development strategy,” said Mohammad Shael Al Saadi, CEO of the Corporate Strategic Affairs sector in Dubai Economy.

“During the pandemic, national strategies have further emphasized the role of the Digital Economy as a priority sector. Moving forward, we need to power ahead of the competition with our digital innovation, business – friendly data policies and technology investments to ensure maximum returns for our society, business and economy,” said Al Saadi.

The report said the constant and rapid accumulation of data on smart devices has driven the development of several innovative businesses that are enabled by data. This has led to the emergence of the global data economy in which companies and countries are collecting, processing and analyzing data to generate insights but also underpin AI and machine learning algorithms and create new value leveraging advanced technologies.

The report examines the role of data as a key driver of economic sectors; for example, the availability of geographic information system (GIS) data led to the growth of satellite GPS applications – an industry which has become a critical enabler of the global transport and logistics sector.

Similarly, data exchange among research institutions and hospitals spearheaded the growth of the “precision medicine” industry that analyzes patient data to help doctors diagnose genetic disorders in early stages, and administer customized treatments. The value of the sector is estimated to cross $105 billion by 2026.

The report discusses the importance of data usage to increase efficiency, streamline operations and derive strategic insights with a level of accuracy in companies and governments in ways that was not previously possible. The global market for Big Data estimated, according to the report, at $70.5 billion in the year 2020, is projected to reach a revised size of $243.4 billion by 2027.

The report also highlights the exponential growth of this economy across the world and its significant untapped potential. In advanced economies, such as Germany, the UK and the Netherlands, the data economy already represents around seven to 10 percent of the GDP and is expected to double over the next few years.

— issacjohn@khaleejtimes.com