How companies in the UAE are investing in talent, tech, and digitalization 2.0

As UAE grows and diversifies at an ever-increasing pace, so does the demand for external providers to help support that growth.

Sortlist data confirms that the number of companies coming to Sortlist to find an external partner has increased by 85% in 2024.

And broadly speaking, there’s been an explosion in the demand for digital marketing functions, such as marketing, software development, and content strategy, while AI is slowly coming into the picture.

Rank	Expertise	Project Volume Change	Budget Change	Rank Change
1	Marketing	292.29%	53.8%	↑ 2
2	Social Media	94.33%	75.4%	↓ 1
3	Advertising	105.39%	-10.8%	↑ 1
4	Digital Strategy	-2.39%	60.88%	↓ 2
5	SEO	198.81%	0.17%	↑ 7
6	Website Creation	184.58%	10.65%	↑ 7
7	Event	3.38%	263.5%	↓ 2
8	Branding & Positioning	33.49%	-25.54%	↓ 2
9	Online Advertising	41.14%	-61.5%	↓ 2
10	Video Production	160.64%	-18.43%	↑ 6
11	E-commerce	45.11%	-43.19%	↓ 1
12	Mobile App	20.53%	-4.59%	↓ 3
13	Public Relations (PR)	-13.98%	106.27%	↓ 5
14	Graphic Design	-7.62%	-62.29%	↓ 3
15	Influencer Marketing	36.72%	2.69%	=
16	Web Application	59.9%	32.45%	↑ 1
17	3D	-20.6%	-63.7%	↓ 3
18	Data Consulting	52.69%	76.94%	=
19	Software Development	186.8%	523.48%	↑ 5
20	Copywriting	120.5%	429.17%	=
21	Content Strategy	203.25%	-73.82%	↑ 4
22	Innovation	65.33%	8,199.83%	↓ 1
23	Media Planning	148%	-67.44%	↑ 3
24	Artificial Intelligence	120.67%	-82.5%	↑ 4

Growing expertises

Marketing outsourcing grows by 300%

Events like the “Power to the Marketer” festival in Dubai have highlighted the importance of personalized and omnichannel marketing approaches, further fueling demand for marketing services.

Similarly, the UAE’s strategic trade agreements, such as the recent free trade agreement with Australia, have opened new markets and business opportunities. These developments have encouraged companies to invest in marketing to effectively enter and compete in the UAE market.

And as a tourist destination, the UAE’s power can’t be understated. Dubai’s successful repositioning as a major travel destination has led to a significant increase in visitors. In the first quarter of 2024, Dubai welcomed 5.18 million visitors, an 11% increase from the same period in 2023.

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The Leading Marketing Agencies in the UAE

All this has has put brands under pressure to deliver ever more impactful campaigns. Whether you’re looking to sharpen your online presence, launch a memorable brand campaign, or simply stand out in a saturated market, partnering with an expert agency can be the game-changer you need.

Three of the best rated UAE marketing agencies leading the way in the development of the emirate are Origin, Novicom and Pixoo Media: each offering a different but complimentary perspective.

ORIGIN merges cutting-edge technology and design, delivering award-winning automated marketing that deeply connect brands and audiences.

Novicom are known for their data-first approach transforming that data and creativity into winning campaigns. They serving startups and global brands with strategic, real-time marketing solutions.

Pixoo Media excells in creative marketing that crafts memorable brand identities online – for businesses of all sizes.

If you want to compare and contrast all the marketing agencies in the UAE, and the work they’ve been doing over the last 12 months, you can browse this directory.

Content projects triple amid AI-driven personalization boom

It’s a trend that has prompted businesses to invest in tailored content strategies to meet evolving consumer demands.

And this is especially true with the adoption of AI and other technologies, already reshaping content creation and marketing strategies in the UAE.

And this boom in demand comes as budgets drop by over 70%. While previously, content creation would take up a big share of spend on any content related project, it’s clear AI is making content creation cheaper no matter the format, and a strategy to cut through the noise is more necessary than ever.

Software development budgets increase sixfold

Initiatives like the National Artificial Intelligence Strategy 2031 aim to integrate AI across various sectors, fostering a robust environment for software development.

Additionally, the UAE’s enterprise software market is expected to grow significantly, with projections indicating a market volume of $1,112.00 million by 2029.

And partnerships like Microsoft’s $1.5 billion investment in Abu Dhabi’s G42 underscores the nation’s commitment to becoming a global AI hub.

Trends per sector

Rank	Sector	YOY Growth	Rank change
1	E-commerce	7.74%	=
2	Arts & Crafts	7.34%	↑ 2
3	Marketing & Advertising	-12.89%	↓ 1
4	Beauty	-9.33%	↓ 1
5	Accounting	41.57%	↑ 3
6	Sports	2.28%	=
7	Fashion	-6.36%	↓ 2
8	Automobile	23.17%	↑ 1
9	IT Software & Services	8.60%	↓ 2
10	Education	22.30%	↑ 1
11	Agriculture	22.73%	↑ 2
12	Banking & Finance	40.37%	↑ 6
13	Internet	-7.93%	↓ 3
14	Entertainment	12.40%	=
15	Music	5.47%	=
16	Real Estate	-5.88%	↓ 4
17	Travel & Leisure	24.75%	↑ 3
18	Media	23.76%	↑ 3
19	Architecture	34.78%	↑ 3
20	Construction	5.98%	↓ 3
21	Hospitals & Healthcare	-3.28%	↓ 5
22	Restaurants	-11.43%	↓ 3
23	Retail	24.00%	=
24	Beverages	58.62%	↑ 1
25	Luxury Goods & Jewelry	13.51%	↓ 1

Digitalization helps banking in the UAE grow by 40%

Perhaps more importantly, the UAE banking sector has embraced digitalization, improving efficiency and customer experience. The digital banking market in the Middle East has seen significant growth, with forecasts predicting a 4.77% growth rate in the UAE digital banking sector between 2024 and 2029, reaching a market volume of $3.61 billion by 2029.

As of July 2024, the capital and reserves of banks operating within the UAE surpassed $136 billion for the first time, recording an annual growth rate of 10.5%. This substantial capital growth has further enhanced the UAE’s position as a financial hub in the region.

As if that weren’t enough, the Emirates have successfully attracted numerous global hedge funds, investment banks, and asset managers, bolstering its status as a leading financial center. Dubai alone has boosted the number of hedge funds operating from its finance hub to 60, including firms like Eisler Capital and Westbeck.

Real estate shrinks 6% due to oversupply and investor caution

On the other hand, the real estate industry in the UAE decreased by 5.88% in the past year.

That, plus the concerns about a potential global economic slowdown, have made investors more cautious, affecting investment decisions in the real estate sector.

Variations in interest rates, influenced by global economic policies, have impacted borrowing costs for both developers and buyers. Higher interest rates can deter potential buyers, leading to reduced demand and a subsequent slowdown in market growth.

Exploding skills

SMBs are driving an explosion in AI adoption

Small and medium-sized businesses (SMBs) dominate AI service requests, with nearly 75% coming from companies with 50 or fewer employees in 2025.

Eager to optimize and automate processes while staying competitive, these businesses lack the in-house expertise for AI development, driving them to Sortlist for outsourcing solutions.

Customer service is still a major use case for SMBs

10% of AI requests focus on customer service, with 75% of those coming from SMBs with under 50 employees.

While chatbots remain popular, 25% of customer service AI projects now target phone support, from software firms seeking 24/7 AI systems to logistics companies automating dispatch operations.

AI skills remain a sticking point

As AI development, continues apace, identifying genuine expertise, becomes equal parts challenge and competetive advantage to successfully ride the wave. So we’ve curated a directory of top-rated AI agencies, to help bringing clarity to a rapidly evolving market and mitigate risk in AI development.

Below you can see the top 10 ranked – allowing you to compare ratings, specializations, and global reach at a glance.

Rank	Agency	Rating	# Ratings	Location
1	Yellow	5	11	San Francisco
2	Digital Unicorn	4.95	23	Paris
3	Loop Crew	4.96	13	Paris
4	DEV@WORK	4.95	23	Ghent
5	Databay	5	8	Benalmádena
6	Alltegrio	5	5	Sussex County
7	Linnify	5	8	Cluj-Napoca
8	we-site	4.95	26	Hamburg
9	NetDevices	4.81	31	Paris
10	Big Boss	4.75	50	Paris

Automation + personalization = winning formula for business

25% of AI projects from SMBs focus on personalization at scale, creating tailored experiences for every user. From training apps to AI-generated interior designs and custom travel recommendations, these solutions automate expert-level tasks using zero-party data, delivering high-quality results efficiently.

Personalization use cases can be categorized in three different tiers:

• Personalized process automation: 41%, such as generating personalized training plans automatically rather than manually.

• Personalized user interfaces: 19%, such as chatbots designed to help find products and services.

• Personalized content and messaging: 38%, like an AI avatar based on the company CEO to generate travel recommendations accurately based on past trips.

AI drives demand for personalization

As users of LLMs like ChatGPT become more and more used to extremely precise responses to their queries, this kind of fully individual experience will become expected. Those same technologies are being integrated into the products used by business owners.

Personalization is being used to crack crowded markets

Smaller, more agile companies are using personalized digital experiences to stand out from the crowd: we’ve seen real estate businesses offering targeted recommendations for customers, a personalized web portal for wealth management, and individually tailored learning paths for online study.

Data analysis and predictive analytics: as varied as the companies that use it

Some other use cases include:

• Predicting fraudulent e-commerce transactions,

• NLP-powered search tools integrated with SQL databases,

• AI forecasting to optimize sales and predict demand,

• Identifying new markets using customer data and demographics,

• Enhancing ERP systems with AI for inventory, sales, and supply chain optimization.

Companies under pressure to do more with less

Companies seeking AI partners on Sortlist prioritize scalability, process efficiency, and profitability without increasing headcount. This shift aligns with a broader trend since 2022, as businesses focus on cost efficiency over aggressive growth amidst inflation and cautious investment environments.

With rising supply chain costs squeezing budgets and cautious investors reducing funding, scalable and efficient solutions are key. While requests for ROI and cost optimization have dipped 25% since 2023, they remain 370% higher than in 2021, underscoring their continued importance. Selecting the right partner is critical to navigating these challenges.

Make no mistake: companies are still laser-focussed on profitability when looking for an agency or consultancy, with marketing the task that’s most under pressure to prove ROI.

Marketing Direct ROI

Over the years, the shifting trends in how companies manage their workload have become apparent—with ever more turning to a network of external partners to drive growth and minimize long term risk.

To illustrate the point, we’ll examine these trends by comparing variations in the number of outsourced projects posted on Sortlist and the job postings on Indeed from 2020 to 2025 (taking 2020 as a baseline for both).

Perhaps unsurprisingly, the two seem to be two sides of the same coin. While in-housing grew steadily through 2021, as consumer confidence returned post-covid, it peaked during 2022, and has declined since, in line with a more complex economic environment.

The balance between in-housing and outsourcing

We see that, indeed throughout 2021 and into 2022, a time of greater confidence, in-housing predominated. While in 2020 and especially the second half of 2022, 2023 and 2024, businesses looked to continue to grow in an uncertain environment with the help of external providers.

And that’s in line with the predicted global spending on outsourcing in 2025, which sits at around $1,140 billion.

That’s the role of Sortlist in this fragmented business scenario—when companies outsource their projects to expert providers they avoid the misplacement of resources and reduce risk, all while securing the required talents for their projects.

Price comparison: outsourcing up to 5x cheaper per project

Is outsourcing marketing services cheaper than hiring in-house experts?

To find out, we analyzed 2024’s top services, factoring in gross salaries plus additional costs like taxes and social security to reveal the true expense of in-house hires.

Across all expertise areas, the cost of outsourcing a project is significantly lower than the annual salary of hiring an in-house employee.

For example, outsourcing a mobile application developer costs $23,000, while the in-house salary is $120,889—nearly 5.3 times more.

Roles with higher in-house salaries, such as mobile application developers ($120,889) and brand managers ($90,697), see significant cost savings when outsourced, at $23,000 and $8,500 respectively.

These figures are meant to give companies an idea of costs on a per-project basis. While an in-house employee may yield more impact than a single project, the numbers prove that outsourcing allows to cover specific projects rather than committing to ongoing annual salaries, making it a cost-efficient choice for businesses needing occasional expertise.

Outsourcing is now a key strategy for businesses, with the market expected to reach $807.91 billion in 2025. Beyond cost savings, companies seek flexibility and expertise to stay competitive, with 59% prioritizing performance and nearly half valuing adaptability.

This is where Sortlist makes a difference. By connecting businesses with their ideal service providers, Sortlist helps you avoid resource mismanagement, minimize risks, and achieve high returns on your projects. Post your project on Sortlist today and find the perfect partner to drive your business forward.

The figures related to demand and pricing in this report are derived from data collected on the Sortlist platform, from both agencies and projects.

Additionally, data on professional salaries and the number of job vacancies were gathered from Indeed’s salary guides and then compared with our data on project outsourcing costs.