UAE Firms Outpace Global Peers in Adapting Technology Strategies Amid Rising Geopolitical Risks: KPMG Report
Organizations across the UAE are moving faster than their global counterparts in reshaping technology strategies to navigate an increasingly complex geopolitical landscape, according to the latest KPMG UAE Tech Report 2026: Scale, Confidence and Acceleration.
The report, based on responses from senior technology leaders across government, financial services, energy, healthcare, manufacturing, and technology sectors, reveals that UAE organizations are taking proactive measures to strengthen digital resilience, enhance data sovereignty, and secure technology supply chains.
According to the findings, 54 per cent of UAE organizations plan to increase hiring of onshore technology talent over the next 12 months, significantly exceeding the global average of 36 per cent. An equal proportion also intends to strengthen data sovereignty audits across partner ecosystems, highlighting growing concerns around digital security and regulatory compliance.
The report indicates that UAE businesses are reassessing every layer of their technology infrastructure, from sourcing and cybersecurity to talent acquisition and operational governance.
Growing Focus on Digital Sovereignty
The shift toward greater technological independence is evident across the technology supply chain. Nearly half (49 per cent) of UAE organizations plan to reduce reliance on traditional enterprise software licenses by adopting open-source alternatives, compared to 31 per cent globally.
Additionally, 43 per cent of respondents intend to apply stricter geographic scrutiny when selecting cybersecurity vendors and technology suppliers, surpassing the global average of 35 per cent. Another 41 per cent plan to reduce technology exposure to adversarial countries, underscoring an increased focus on operational continuity, resilience, and trusted digital ecosystems.
Commenting on the findings, Robert Ptaszynski said organizations in the UAE have moved beyond discussions about geopolitical risk and are already implementing strategic changes.
He noted that the emphasis on local talent, data sovereignty, and supply chain oversight reflects a leadership mindset that views resilience and innovation as interconnected priorities rather than separate objectives.
Cybersecurity and Governance Strengths
The report also highlights the UAE’s strong position in cybersecurity readiness. Approximately 90 per cent of surveyed organizations rank within the top two resilience tiers globally, while 66 per cent report optimized cybersecurity capabilities, compared to a global benchmark of 51 per cent.
Governance has also emerged as a strategic priority. Around 34 per cent of UAE respondents identified AI transparency as a key forward-looking concern, the highest proportion recorded globally. Meanwhile, 32 per cent cited intellectual property risks associated with open-source technologies as a current challenge.
According to KPMG, these findings demonstrate that governance is increasingly viewed as a competitive advantage rather than simply a compliance requirement.
Turning Digital Foundations into Strategic Advantage
The report concludes that UAE organizations are entering a new phase of digital transformation. After years of investment in technology infrastructure, cybersecurity, and innovation, businesses are now leveraging those foundations to build long-term competitive advantages.
As global uncertainty continues to reshape technology and business environments, UAE organizations appear focused on securing the talent, partnerships, and digital infrastructure needed to remain resilient and competitive in the years ahead
