A new report from the consulting firm McKinsey & Co. paints a bleak picture for U.A.E. tech giants as the economy slows and China’s appetite for foreign investments is waning.
The report, titled “China’s Internet: The Future of Business in a Changing World,” notes that in the first half of 2018, only 10 of the top 10 U.B.C. technology companies were based in China.
In the same period last year, those companies made up more than 40 percent of the overall U.K. tech market.
The report notes that China is the top destination for tech companies seeking to grow, with China accounting for almost 90 percent of all U.U.S.-based technology investments.
In 2018, U.N. reports showed China’s internet adoption rate had grown to nearly 70 percent.
“In 2018, the Chinese market is poised to become the fastest-growing market in the world in 2020 and 2020, but as U.E.-based companies are increasingly focusing on global growth, the future is uncertain,” McKinsey’s report says.
The McKinsey report notes the U.T.A.’s digital transformation was the catalyst for its rapid rise to global prominence.
The country’s Internet users in 2018 were almost twice as large as those in 2014.
“The growth of the Chinese internet has dramatically shifted the way we do business in the U: by creating a new market for our products, services and technologies,” U.H.E.’s CEO, John Pogue, said in a statement.
The U.F.T.’s top two U.I. companies, the IT and telecommunications group, and the logistics and warehousing group, are now based in mainland China.
“While U.L.G. is still one of the world’s largest U.O. companies in terms of market share, its recent growth is being driven by an aggressive expansion into Asia, and it’s hard to see that continuing,” McKinson’s report said.
The companies have invested billions in research and development, as well as in data centers, infrastructure and operations.
“We think this is the beginning of the end of U.Y.E.,” Pogue said.
“China is going to be the largest market for UY.
Es in the future.”