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Dubai, UAE: Economic uncertainty is prompting UAE businesses to take a more selective approach to technology spending, even as artificial intelligence adoption continues to accelerate.
According to Dell Technologies’ Modern Enterprise Readiness Study 2026, 82% of UAE business and IT leaders are reassessing technology investments and placing greater emphasis on efficiency, measurable returns and long-term business value.
The findings, released during the Dell Technologies Forum in Dubai, suggest companies are not necessarily cutting technology budgets. Instead, they are becoming more focused on whether investments in AI, infrastructure and cybersecurity can deliver tangible results.
AI Returns Will Vary Across Businesses
Mohammed Amin, Senior Vice President for CEEMETA at Dell Technologies, said returns from AI investment will differ significantly between organisations.
He said results depend on factors including digital transformation maturity, infrastructure readiness and how quickly companies can integrate AI into their operations.
Amin identified the cost of AI deployment and a shortage of skilled talent as two of the biggest barriers facing businesses.
At the same time, declining AI usage costs could make the technology more accessible and enable companies to expand deployments as the economics improve.
The shift comes as AI adoption across the UAE continues to rise. A recent AWS study found that 72% of UAE businesses are now using AI, up from 53% a year earlier.
AI Agents Move Beyond Simple Assistance
Dell executives also highlighted the growing importance of agentic AI, which can carry out multi-step business tasks rather than simply responding to questions or generating information.
Amin said companies increasingly need to consider how human employees and AI agents can work together across business operations.
Adrian McDonald, President of EMEA at Dell Technologies, said this could contribute to entirely new business models, including highly valuable companies operated by very small teams or even a single individual.
Lower-cost AI tools could be particularly significant for smaller businesses by giving them access to capabilities such as product development, marketing, customer research and pricing analysis without requiring large internal teams.
McDonald said agentic AI is already beginning to reshape how businesses operate and is likely to expand rapidly.
Cybersecurity Becomes a Major AI Barrier
Security remains one of the biggest obstacles to faster AI adoption.
Dell’s study found that 68% of UAE business and IT leaders said security and compliance concerns had already slowed or delayed AI projects.
At the same time, 94% said integrated data protection and cyber recovery capabilities were important when assessing infrastructure platforms.
Cybersecurity has become an increasingly urgent issue as attackers also adopt artificial intelligence.
Mohamed Al-Kuwaiti, Head of Cybersecurity for the UAE Government, highlighted threats involving AI-powered phishing, deepfakes, social engineering and malicious software during the forum.
The UAE has previously reported facing hundreds of thousands of cyberattacks every day, with critical infrastructure among the targets. Recent government-linked reporting has put the figure above 800,000 attacks per day during periods of heightened threat activity.
UAE Strengthens Sovereign Cybersecurity
The UAE is responding by expanding domestic cybersecurity capabilities and developing systems that can detect and respond to threats more quickly.
National initiatives include early-warning systems and security operations infrastructure designed to connect government and private-sector organisations.
The growing focus on cyber resilience is also influencing corporate purchasing decisions.
Dell’s study found that 90% of UAE business and IT leaders expect security capabilities to be included in proposals from strategic technology partners.
Another 78% expect to increase their use of managed security services during the next two to three years.
AI PCs and Workplace Modernisation Gain Priority
Workplace technology is another major investment area.
Around 94% of UAE leaders surveyed said AI PCs and modern devices will play an important role in future workplace strategies.
However, 66% said outdated devices are currently restricting their organisations’ ability to adopt new technologies.
The findings indicate that companies increasingly view hardware modernisation as part of the broader infrastructure required to support AI.
Rather than treating AI as a standalone software investment, businesses are looking at computing infrastructure, cybersecurity, data protection and workforce capabilities together.
Businesses Prefer Fewer Strategic Technology Partners
Dell’s study also found growing demand for simplified technology relationships.
About 86% of UAE business and IT leaders said they would prefer to meet more of their technology requirements through a single strategic partner.
This could help companies reduce operational complexity, although it may also increase reliance on major technology suppliers.
Amin said no technology provider can deliver every component of an AI environment independently and stressed the importance of partnerships across the industry.
Modern AI deployments typically depend on combinations of computing infrastructure, networking, cloud services, software, data platforms and cybersecurity technologies.
AI Investment Shifts Toward Measurable Returns
The Dell Technologies Forum, held at Coca-Cola Arena in Dubai, brought together technology executives, government officials and business leaders to discuss AI, digital infrastructure, cybersecurity and workplace transformation.
The event also highlighted sovereign AI solutions, AI-powered devices and the UAE National Vault, developed through collaboration between Dell Technologies, CPX and the UAE Cyber Security Council.
The study suggests UAE companies are entering a new phase of AI adoption.
The question for many organisations is no longer whether to invest in artificial intelligence, but which investments can generate measurable value while meeting security, infrastructure and compliance requirements.
As economic uncertainty increases scrutiny on technology spending, businesses are likely to focus more heavily on AI projects that demonstrate clear productivity gains, operational savings or revenue opportunities.
Saad Farooq brings a blend of engineering prowess and a passion for writing to technewsme.com. As a tech engineer based in the vibrant tech landscape of the UAE, Saad has immersed himself in the latest technological advancements, making him an invaluable asset to our team. His deep understanding of tech intricacies comes from hands-on experience in the field, coupled with a genuine love for all things tech.
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