The UAE’s growing drive to become a global innovation hub is placing high demands on its digital infrastructure, with new research underscoring the economic importance of building AI-ready networks.

Cisco’s latest global networking report warns that a single severe network outage per organization each year could cost the global economy billions, with impacts beyond financial losses, disrupting supply chains, eroding trust, and slowing growth. 

In the UAE, where digital transformation drives economic strategy, the risks are especially high across sectors such as finance, logistics, and public services.

The report found that 96% of UAE respondents expect improved networks to directly boost revenue, while 97% foresee cost savings through fewer outages, more efficient operations, and reduced energy consumption.

Yet challenges remain. Siloed systems (64%), incomplete deployments (55%), and reliance on manual oversight (50%) are seen as major hurdles. 

AI workloads, ranging from AI assistants to autonomous agents, are intensifying demands for high bandwidth and ultra-low latency, but 67% of UAE IT leaders say their current data centres cannot fully meet these needs. In response, 92% plan to expand capacity either on-premises, in the cloud, or both.

“Networks are the engine powering the UAE’s digital transformation,” stated Mohannad Abuissa, Director of Solutions Engineering and CTO for Cisco in the Middle East and Africa. “To stay competitive, organizations must rethink network design to be predictive, autonomous, and secure by design.”  

Cybersecurity is also a top priority, with 99% of UAE organizations viewing secure networking as essential, and 68% calling it critical to operations. Nearly all (97%) believe strengthening their networks will also bolster cyber resilience.

Industry analysts add that network modernization is a strategic imperative for the UAE to safeguard its competitive edge in a fast-changing global economy.

The report is based on insights from over 8,000 senior IT and business leaders worldwide, including more than 250 in the UAE.