Technological Factors of the United Arab Emirates

Technological Infrastructure: UAE and U.S.

Innovations in technology open a plethora of opportunities for rapid and extensive progress in an array of domains, from personal communication to business to industry. Therefore, the analysis of the technological infrastructure of the UAE and comparison to the one of the U.S. as a stellar example of technological infrastructure will give insights into the UAE’s opportunities for further development. Due to the focus on building competitiveness and promoting continuous technological development, the technological infrastructure of the UAE is currently comparable to that one of the U.S.

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Indeed, according to a report published lately, the UAE has taken 16th place in the global ranking of technological infrastructure efficacy, which makes the innovations in the UAE context comparable to those of the U.S. (Augustine). Shaikh Mohammad, the official leader of the UAE, made the following statement: “Every year, the UAE makes a new achievement in the way towards global competitiveness” (Augustine). Therefore, the focus on the unceasing development is what makes the UAE technological infrastructure effective, with both incremental and disruptive innovations being represented in it. The current power supply is impeccable due to the well-thought-out logistics network that strives to make the UAE the “supply chain nerve center” and not merely a logistics hub (Donati).

The focus on the unceasing growth and incorporation of innovativeness into the development of technological infrastructure has made it possible for the UAE to reach the standards set by the U.S. in the specified domain. With the use of technological infrastructure as the vehicle in advancing the state’s economy, the UAE has managed to create the breeding ground for the unceasing progress of its technological infrastructure.

Potential for Digital Forms of Retail

Given the current fast pace at which the technological infrastructure is developed in the UAE, it will be safe to assume that the country will have numerous options for developing digital retail forms. In fact, the UAE has already entered the realm of the digital economy, with a large number of its companies have represented themselves in the online market (“UAE Leads World in Mobile Penetration Rate – New Report”). However, the UAE is yet to explore other potential forms of digital retail.

Digital shopping, mobile payments, and other new forms of retail have been flourishing in the UAE. For instance, the current Internet/smartphone penetration rates in the UAE reach an astounding rate of 173%, which is the highest one in the world (“UAE Leads World in Mobile Penetration Rate – New Report”). The described trend is also believed to have negative social consequences, which is why efforts to reduce it may be observed in the future, yet the current trend can be seen as important for a company to transfer to the realm of the UAE digital market.

Similarly, the propensity toward using credit cards as opposed to cash when paying for products and services seems to have become a trend in the UAE. As Maceda explains, “By 2020, plastic money will clearly overtake cash as a preferred mode of payment, representing a little over 50 percent of all transactions” (Maceda). Thus, when establishing a business in the UAE context, one should focus on appealing to the audiences that utilize digital services and tools in their economic experiences. In fact, the change is quite remarkable since UAE residents had a clear and seemingly unchangeable habit of paying with cash rather than using their credit cards (Maceda). Therefore, it can be predicted that the emergent digital market of the UAE is only going to expand in the future.

Works Cited

Augustine, Babu Das. “UAE among top five in IMD World Competitiveness Ranking.” Gulf News, 2019, Web.

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Donati, Marino. “UAE Must Become ‘Supply Chain Nerve Centre’.” 2016, Web.

Maceda, Cleofe. “More UAE Consumers Now Pay with Credit, Debit Cards Instead of Cash.” Gulf News. 2018, Web.

“UAE Leads World in Mobile Penetration Rate – New Report.” CommsMEA. 2018, Web.

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