Report Overview

Rapid digital transformation and increasingly high use of social media, smartphones, and other internet-connected devices are expected to boost the growth of UAE Cloud Computing Market during the forecast period between 2024 and 2030.

UAE Cloud Computing Market - Industry Trends & Forecast Report, 2030

The UAE Cloud Computing Market size was estimated to be worth USD 1.92 billion in 2023. During the forecast period between 2024 and 2030, the UAE Cloud Computing Market size is projected to grow at a CAGR of 7.02%, reaching a value of USD 3.01 billion by 2030. Major growth factors for the UAE Cloud Computing Market include the rising adoption of advanced technologies, such as artificial intelligence (AI), the Internet of Things (IoT), and machine learning (ML), resulting in huge data volume generation. Furthermore, cloud computing is gaining significant traction among large enterprises for better scalability of their business operations, which is anticipated to drive the UAE cloud computing market during the forecast period.

Cloud Computing – Overview

Cloud computing is a technology that enables real-time and on-demand access to computer services, such as data storage and processing power, without requiring direct management. Using cloud computing is cost-effective for organizations because they only pay for cloud services, they want instead of spending on IT infrastructure and operating costs. Cloud computing also offers better productivity as it eliminates the need for assembling, racking, and stacking IT components. Cloud computing is entering the maturity stage, as more companies are increasingly embracing a cloud-first strategy.

UAE Cloud Computing Market

Growth Drivers

Rising Adoption of Advanced Technologies

The UAE cloud computing market is expected to develop at a significant rate due to the growing usage of new technologies like artificial intelligence (AI), machine learning, the internet of Things (IoT), and big data. Large amounts of data are produced by AI and IoT, which may be analyzed and used to derive insights to increase business productivity. Many industries, like manufacturing, healthcare, supply chain, energy & utilities, and media & entertainment, are seeing a major upsurge in the use of these technologies. The popularity of these cutting-edge technologies is expected to increase demand for cloud computing as well, driving the overall UAE Cloud Computing Market.

Challenges

High Risk of Cyberattacks

The increased danger of cyberattacks is a major obstacle to the expansion of Cloud Computing Market in the UAE. These threats impede the growth and potential of the cloud sector. In the last two years, 87% of UAE-based businesses have dealt with various types of cyber-attacks, according to a Kaspersky study. The risk of cyberattacks are especially prevalent among SMEs in UAE due to lack of resources to implement advanced cybersecurity measures.

UAE Cloud Computing Market

Segmental Coverage

UAE Cloud Computing Market – By Service Model

Based on the service model, the UAE Cloud Computing Market is segmented into infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). The SaaS segment accounts for the highest share in the UAE Cloud Computing Market due to its simple deployment and inexpensive maintenance costs. SaaS products are therefore the main emphasis of the majority of market leaders, including Google and Amazon, which propels the industry's growth.

UAE Cloud Computing Market – By Organization Size

Based on organization size, the UAE Cloud Computing Market is split into large enterprises and small and medium-sized enterprises (SMEs) segments. The large enterprises segment accounts for a higher market share owing to their high financial capacity to invest in advanced technologies, such as IoT and AI. Furthermore, high data volume generation among large enterprises plays a major role in driving the demand for cloud computing. Furthermore, the rising adoption of remote working facilitates the need for centralized data accessibility for collaborative teams and is also influencing the growth of cloud computing among large enterprises.

UAE Cloud Computing Market – By Vertical

Based on verticals, the UAE Cloud Computing Market is segmented into BFSI, IT & telecommunications, government, consumer goods & retail, healthcare, manufacturing, and others. The BFSI segment dominates the UAE cloud computing market. The significant growth in internet banking and online payment platforms is boosting the growth of cloud computing in the country. It facilitates improved customer relationship management (CRM) by offering services such as digital wallets and unified customer experiences.

Competitive Landscape

Major players operating in the UAE Cloud Computing Market include AWS, Microsoft, IBM, Google, Rackspace, Oracle, SAP, Alibaba Cloud, Salesforce, Fujitsu, VMware, and NEC.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In February 2024 – du (formerly Emirates Integrated Telecommunications Company), announced its partnership with AWS to build a Cloud Center of Excellence to boost cloud adoption for enterprises and government agencies in the UAE.

Scope of the Report

By Service Model

• Infrastructure as a Service (IaaS)

• Software a Service (PaaS)

• Software as a Service (SaaS)

By Deployment Model

• Public Cloud

• Private Cloud

• Hybrid Cloud

By Organization Size

• Large Enterprises

• Small and Medium-sized Enterprises (SMEs)

By Vertical

• BFSI

• IT & Telecommunications

• Government

• Consumer Goods & Retail

• Healthcare

• Manufacturing

• Others