UAE Cloud Computing Market Size
| Study Period | 2019 - 2023 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 9.97 Billion |
| Market Size (2029) | USD 35.36 Billion |
| CAGR (2024 - 2029) | 28.75 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UAE Cloud Computing Market Analysis
The UAE Cloud Computing Market size is estimated at USD 9.97 billion in 2024, and is expected to reach USD 35.36 billion by 2029, growing at a CAGR of 28.75% during the forecast period (2024-2029).
- As businesses and government entities increasingly seek scalability, flexibility, and cost efficiency, the demand for cloud services is surging. In response, organizations are adapting their policies and procurement strategies and reshaping human resource practices and cultural norms to leverage technological advancements fully. Collaborating with a trusted partner becomes paramount in crafting a comprehensive IT ecosystem, addressing challenges, and ensuring swift adoption of innovations.
- In the United Arab Emirates, small and medium enterprises (SMEs) are increasingly leveraging cloud services to enhance their business analytics and artificial intelligence (AI) endeavors. With a pronounced focus on data-driven decisions and the widespread embrace of AI, these SMEs are rapidly weaving these technologies into their operations. This strategic alignment equips them with cutting-edge tools and amplifies their operational scalability, fortifying their competitive stance in the digital landscape. According to a MasterCard survey, 74% of UAE's SMEs expressed confidence in their business growth for 2023.
- Furthermore, the UAE government's dedication to digital transformation and its smart city vision presents a fertile ground for cloud service providers. Such initiatives pave the way for innovative solution development and deployment. Supportive government policies further amplify this demand.
- Numerous market players are forging partnerships to enhance their digital transformation offerings. A case in point: In September 2023, Microsoft Corp. deepened its collaboration with Abu Dhabi’s G42. This partnership is set to propel AI technology advancements and bolster cloud infrastructure services in the United Arab Emirates. The initiative aims to provide the UAE's public sector and select industries with access to Microsoft's Azure cloud and AI capabilities, ensuring alignment with local privacy and regulatory standards. In addition, Microsoft has augmented its Azure services in the United Arab Emirates, utilizing Khazna Data Centers, a collaborative venture between G42 and Emirates Telecom.
- With the surge in sensitive data volumes, there's an escalating demand for stringent data protection and cybersecurity measures. This growing challenge underscores the difficulties companies face in safeguarding data and thwarting potential exploitation. Compounding this issue, the nation grapples with a skill gap in pivotal emerging technologies like AI, cybersecurity, and blockchain. This talent deficit poses a significant hurdle to the UAE's ambitions for digital transformation.
- The pandemic catalyzed a swift adoption of digital tools across businesses and governments, accelerating the shift to e-commerce and online services. Concurrently, investments in smart infrastructure are on the rise, aiming to elevate urban living standards through smart city technologies and IoT solutions, further propelling market growth.
UAE Cloud Computing Market Trends
Data Privacy Concerns Are Driving Increased Adoption Of Public Cloud Services
- Cloud computing is not just about adopting new technologies but fundamentally restructuring processes, tools, and experiences in a virtual environment. By enhancing security, user experience, and data integrity, cloud solutions are becoming integral to business operations, fueling the growth of the cloud computing market.
- In today's digital landscape, companies are pursuing agility through technology integration, with a notable emphasis on migrating to cloud environments. Leveraging the cloud provides embedded connections and intelligence, fostering interoperability in operations and laying a robust foundation for cloud-connected digital services.
- Cloud computing is transitioning towards significant growth, mainly due to its on-demand delivery of IT resources via the Internet using a pay-as-you-go pricing model. Rather than investing in and managing physical data centers and servers, businesses can tap into technology services ranging from computing power to storage and databases based on a need. This shift enables SMEs to allocate resources precisely where needed, curbing unnecessary expenses on IT resources.
- The number of internet users is increasing significantly in the country, which propels the data traffic, and there is an expansion of data centers by major cloud providers in the UAE, which aims to open new opportunities for local businesses to leverage high-performance cloud services with low latency. For instance, in June 2024, The UAE's Ministry of Investment and Egypt's Ministry of Communications and Information Technology inked a Memorandum of Understanding (MoU) to jointly invest in data center projects, aiming for a combined IT capacity of approximately 1 GW.
- The agreement outlined a commitment for Egypt and the United Arab Emirates to share insights on projects, explore joint ventures, and delve into policy, investment research, certification development, and innovation in the data centers.
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BFSI is Expected to Hold Significant Market Share
- The UAE's fintech ecosystem is thriving, with a multitude of startups pioneering solutions in areas like payments, lending, wealth management, and blockchain technology. This surge in fintech investments is catalyzing both innovation and growth within the market's BFSI sector.
- At the Dubai Fintech Summit 2024, the United Arab Emirates underscored its ambition to spearhead the digital economy, bolstered by its regulatory framework. In line with the CBUAE’s vision of nurturing a dynamic fintech environment, the CBUAE rolled out a comprehensive regulatory sandbox. This initiative provides a secure environment for both nascent fintech startups and established entities to experiment with novel offerings, all while ensuring consumer protection and adhering to regulatory benchmarks. In addition, several institutions are harnessing machine learning for enhanced customer service and proactive fraud detection, achieving unprecedented efficiency.
- In May 2024, as part of Dubai's D33 Agenda, which envisions the city as a premier global financial hub by 2033, the 2nd Dubai FinTech Summit emphasized the importance of cross-border collaboration and innovation in reshaping the FinTech domain. Notably, Dyna.Ai made its international debut at the summit, presenting its cutting-edge AI solutions designed specifically for the Arabian market.
- Furthermore, the United Arab Emirates is transitioning toward a cashless economy, evidenced by the widespread embrace of digital payment methods like mobile wallets and contactless transactions. E-commerce platforms are seamlessly integrating digital payment gateways, enriching the online shopping journey. Data from PPRO Financial Ltd highlights that in 2023, card transactions were predominant in the United Arab Emirates, accounting for 48% of e-commerce payment methods.
- Moreover, businesses are leveraging big data analytics to decode customer behaviors and preferences, paving the way for tailored product offerings and marketing approaches. Real-time analytics, bolstered by machine learning algorithms, are instrumental in identifying suspicious activities, empowering businesses to thwart fraud and mitigate financial setbacks.
UAE Cloud Computing Industry Overview
The UAE's cloud computing market is witnessing consolidation, dominated by a handful of major players vying for market share. These companies are solidifying their foothold and venturing into new territories through strategic partnerships. Prominent players in this landscape include industry giants like Amazon Web Services, Google, Microsoft, and Oracle.
UAE Cloud Computing Market Leaders
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Amazon.com Inc(AWS)
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Google LLC
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Microsoft Corporation
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IBM Corporation
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Oracle Corporation
*Disclaimer: Major Players sorted in no particular order
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UAE Cloud Computing Market News
- July 2024: Du, a leading telecommunications operator in the Middle East, is launching Oracle Alloy. This initiative aims to deliver cloud and sovereign AI services to businesses, government entities, and public sector organizations across the United Arab Emirates. By leveraging Oracle Alloy, du enhances its role as a cloud provider, facilitating faster innovations with greater customization and control. Du's clientele now has access to over 100 Oracle Cloud Infrastructure (OCI) services featuring advanced AI solutions. These offerings are specifically designed to meet the diverse UAE markets and sectors' distinct needs, ensuring full compliance with local regulatory standards.
- April 2024: Acronis, a global leader in cybersecurity, has unveiled its Cyber Cloud Data Center in Dubai. This marks Acronis' first venture in the Middle East, highlighting the company's commitment to the region's expanding Cloud and Data Center landscape.
- April 2024: G42, a UAE-based AI technology holding company, has clinched a strategic investment worth USD 1.5 billion from Microsoft Corp. This partnership is set to roll out advanced Microsoft AI technologies and training programs, extending their reach from the United Arab Emirates to a global audience. To further cement this alliance, Brad Smith, Microsoft's Vice Chair and President, will be joining G42's Board of Directors.
- February 2024: Cisco announced the establishment of a new local cloud data center in the United Arab Emirates, dedicated to its Duo multifactor authentication (MFA) and secure access solutions. Situated in Dubai, this cloud data center is a strategic move in line with Cisco and Duo's global vision to bolster security infrastructure. The facility will be fully equipped to support Duo's sophisticated zero-trust platform, featuring MFA, single sign-on (SSO), secure remote access, device trust, password-less entry, adaptive risk-based policies, and the automated detection of malicious user behavior, all powered by Machine Learning (ML) and Artificial Intelligence (AI). Moreover, its strategic location promises to enhance performance and elevate the business user experience.
UAE Cloud Computing Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
-
4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Robust Shift Towards Digital Transformation Across the Country
- 5.1.2 Data Privacy Concerns Are Driving Increased Adoption Of Public Cloud Services
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5.2 Market Challenges
- 5.2.1 Regulatory Compliance and Data Breaching Risk
- 5.3 Pricing Model Analysis
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5.4 Overview of demand trends of Cloud Computing in UAE
- 5.4.1 Increased adoption of hybrid and multi-cloud strategies
- 5.4.2 Rising adoption of SaaS Applications
- 5.5 Number of data centres in UAE
- 5.6 Industry Regulations and Standards for Cloud Computing Market in UAE
- 5.7 Case Study Analysis
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 Public Cloud
- 6.1.1.1 IaaS
- 6.1.1.2 PaaS
- 6.1.1.3 SaaS
- 6.1.2 Private Cloud
- 6.1.3 Hybrid Cloud
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6.2 Organization Size
- 6.2.1 SMEs
- 6.2.2 Large Enterprises
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6.3 End-user Industries
- 6.3.1 Manufacturing
- 6.3.2 Education
- 6.3.3 Retail
- 6.3.4 Transportation and Logistics
- 6.3.5 Healthcare
- 6.3.6 BFSI
- 6.3.7 Telecom and IT
- 6.3.8 Government and Public Sector
- 6.3.9 Others (Utilities, Media & Entertainment etc)
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 Amazon.com Inc(AWS)
- 7.1.2 Google LLC
- 7.1.3 Microsoft Corporation
- 7.1.4 DigitalOcean Holdings, Inc.
- 7.1.5 Linode, LLC
- 7.1.6 Rackspace Technology, Inc
- 7.1.7 Oracle Corporation
- 7.1.8 IBM Corporation
- 7.1.9 Alibaba Cloud (Aliyun)
- 7.1.10 YVOLV
- *List Not Exhaustive
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityUAE Cloud Computing Industry Segmentation
Cloud computing delivers computing services via the internet, encompassing servers, storage, databases, networking, software, analytics, and intelligence. This approach fosters quicker innovation, adaptable resources, and economies of scale. Typically, customers pay solely for the cloud services they utilize, leading to reduced operational costs, more efficient infrastructure management, and the ability to scale in line with evolving business needs.
The UAE cloud computing market report is segmented by type (public cloud [ IaaS, Paas, Saas], private cloud, hybrid cloud), and by organization size (SMEs, large enterprises), and by end-user industries (manufacturing, education, retail, transportation, and logistics, healthcare, BFSI, telecom and IT, government and public sector, and others including utilities, media & entertainment, etc.). The market sizes and forecasts are provided in terms of value (USD) for all segments.
| By Type | Public Cloud | IaaS |
| PaaS | ||
| SaaS | ||
| By Type | Private Cloud | |
| Hybrid Cloud | ||
| Organization Size | SMEs | |
| Large Enterprises | ||
| End-user Industries | Manufacturing | |
| Education | ||
| Retail | ||
| Transportation and Logistics | ||
| Healthcare | ||
| BFSI | ||
| Telecom and IT | ||
| Government and Public Sector | ||
| Others (Utilities, Media & Entertainment etc) |
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UAE Cloud Computing Market Research FAQs
How big is the UAE Cloud Computing Market?
The UAE Cloud Computing Market size is expected to reach USD 9.97 billion in 2024 and grow at a CAGR of 28.75% to reach USD 35.36 billion by 2029.
What is the current UAE Cloud Computing Market size?
In 2024, the UAE Cloud Computing Market size is expected to reach USD 9.97 billion.
Who are the key players in UAE Cloud Computing Market?
Amazon.com Inc(AWS), Google LLC, Microsoft Corporation, IBM Corporation and Oracle Corporation are the major companies operating in the UAE Cloud Computing Market.
What years does this UAE Cloud Computing Market cover, and what was the market size in 2023?
In 2023, the UAE Cloud Computing Market size was estimated at USD 7.10 billion. The report covers the UAE Cloud Computing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the UAE Cloud Computing Market size for years: .
UAE Cloud Computing Industry Report
Statistics for the 2024 UAE Cloud Computing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UAE Cloud Computing analysis includes a market forecast outlook for 2024 to 2023 and historical overview. Get a sample of this industry analysis as a free report PDF download.
UAE Cloud Computing Market Report Snapshots
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