UAE organisations accelerate technology reshaping as geopolitical risks rise
Organisations across the United Arab Emirates are rapidly recalibrating technology strategies to address an increasingly fragmented global environment, according to a new regional analysis by KPMG. The survey, which draws on responses from senior technology leaders across government and major private sectors, finds a marked shift toward onshore capability, stricter supplier scrutiny and wider adoption of open-source solutions.
Key findings from the KPMG UAE Tech Report 2026
KPMG’s UAE Tech Report 2026 outlines several measures where local respondents outpace global peers. Notable statistics include:
54% of UAE organisations plan to expand onshore technology hiring and to step up data sovereignty audits across partner ecosystems, compared with a global average of 36%.
49% said they intend to reduce reliance on traditional enterprise software licences in favour of open-source alternatives, versus 31% globally.
43% will apply stricter geographic scrutiny to cybersecurity partners and suppliers, ahead of the global 35%, and 41% plan to reduce technology exposure to adversarial jurisdictions entirely.
The report also highlights robust baseline capabilities: 90% of UAE organisations rank in the top two tiers for resilience globally, and 66% report optimised cybersecurity capabilities compared with a global benchmark of 51%. Governance concerns are rising as well, with 34% citing AI transparency among top future concerns and 32% flagging intellectual property exposure tied to open-source use.
Why UAE organisations are moving faster
Executives surveyed by KPMG point to the interplay of geopolitical volatility, regulatory expectations and competitive strategy as drivers of change. For many UAE organisations, a combination of strategic national ambitions, heavy investment in digital infrastructure and proximity to regional trade routes has increased the perceived cost of disruption.
Instead of treating resilience and innovation as competing priorities, the report suggests local leaders are integrating them into a single agenda: building trusted, verifiable technology stacks that support continuous innovation while limiting supply-chain and jurisdictional risk.
Implications for vendors, investors and policymakers
The findings have several practical implications for companies operating in the UAE and for international vendors targeting the market.
Vendors and service providers should expect greater demand for onshore delivery models, localised data-handling guarantees and transparent supply-chain provenance. Vendors whose products rely on cross-border data flows or offshore development may face increased commercial friction unless they can offer localised alternatives or contractual assurances on data residency and auditability.
Open-source and licensing present a mixed picture. While nearly half of respondents view open-source as a route to reduce vendor lock-in and licensing costs, organisations also flagged intellectual property exposure as a material concern. This suggests rising demand for mature open-source governance, licence compliance tooling and clear risk frameworks.
Investors and M&A should factor enhanced due diligence into valuations. Technology exposures tied to specific jurisdictions, dependent third-party services, or weak IP controls could become bargaining points in deals. Conversely, firms that can demonstrate rigorous data sovereignty controls and resilient supply chains may command a premium.
Regulators and policymakers will likely see these market dynamics reflected in evolving expectations. Higher internal audit rates of data residency and supplier geography indicate that private-sector practices may anticipate or exceed forthcoming regulatory standards, potentially accelerating policy harmonisation across the region.
Sectoral effects and talent market pressures
Because the survey spans finance, energy, healthcare, manufacturing and government sectors, the shift to onshore hiring and tighter supplier controls will have cross-industry consequences. Demand for cloud engineers, security architects, compliance specialists and data engineers with local experience is likely to rise, putting upward pressure on wages and creating competition for limited senior technical talent.
For public sector and regulated industries, the move aligns with longstanding priorities around continuity and national security. For technology and consumer-facing firms, the trade-off will be managing cost and speed of innovation while meeting increasingly strict vendor and data governance requirements.
Outlook
KPMG’s survey presents the UAE market as one that has moved from building digital foundations to using them as a strategic advantage. Organisations that can combine resilient infrastructure, clear governance and in-country talent are positioning themselves to navigate global fragmentation with less operational disruption.
For international suppliers and investors, the message is clear: successful engagement in the UAE will increasingly require localised delivery, demonstrable governance controls and robust IP and open-source management practices. The next 12 to 24 months will be instructive in determining how quickly these strategic preferences translate into procurement decisions and regulatory changes across the wider Gulf region.
Note: Findings are drawn from the KPMG UAE Tech Report 2026, which surveyed senior technology leaders across multiple sectors in the UAE.
