Press Release

The UAE Cloud Computing Market to Accelerate at a CAGR of Around 36.12% During 2024-30

The UAE Cloud Computing Market is projected to grow at a CAGR of about 36.12% during the forecast period of 2024–30, cites MarkNtel Advisors in the recent research report. The UAE has emerged as a leader in adopting digital transformation, with governmental bodies and enterprises alike actively pursuing initiatives to modernize their IT infrastructure and operations. This has led to a significant increase in the demand for cloud computing solutions across the nation. The UAE government's ambitious visions and strategies, such as UAE Vision 2021 and the Dubai Smart City project, are underscoring the critical role of digital transformation in driving progress and innovation, which is anticipated to enhance the market size in the forecast period.

Furthermore, businesses throughout the UAE are facing the intimidating task of effectively managing, processing, and storing vast volumes of data. Consequently, organizations are increasingly relying on cloud service providers to address their growing needs for data storage and processing capabilities. Cloud computing offers a scalable and flexible infrastructure that enables businesses to adapt their computing and storage resources in real time, aligning with their current demands. This trend has contributed to the positive growth of the market in the past few years.

Moreover, small and medium enterprises (SMEs) have consistently been significant drivers of the demand for cloud computing services in the UAE. Government initiatives, such as those led by the Mohammed Bin Rashid Establishment for SME Development, have consistently introduced new programs to foster SME growth in the UAE. As a result, the UAE boasts a flourishing ecosystem of SMEs, which are increasingly acknowledging the advantages of cloud computing in reducing IT infrastructure expenses, enhancing agility, and boosting productivity, which is expected to positively propel the demand for cloud computing services across the country, further states the research report, “The UAE Cloud Computing Market Analysis, 2024.”

Segmentation Analysis

Infrastructure-as-a-Service (IaaS) Segment Leading the Market

Based on the service type segment, the market is further bifurcated into Infrastructure-as-a-Service, Platform-as-a-Service and Software-as-a-service. Among them, the Infrastructure-as-a-Service segment is holding a significant share of the market and is expected to hold a major share in the forthcoming period as well. The demand for Infrastructure-as-a-Service (IaaS) has surged significantly, driven by factors such as the expansion of data centers, the growth of e-commerce, and the rise of online services.

The UAE, serving as a regional business hub, attracts multinational companies and industries, leading to an increased need for reliable and secure computing services among businesses operating in the region. Consequently, data center providers are rapidly expanding their infrastructure across the country. For instance, Khazna Data Centers announced the launch of AUH6, a new data center located in Masdar City, Abu Dhabi. This facility offers a capacity of 31.8 MW. This expansion enables organizations to scale their infrastructure dynamically, meeting the escalating demands of cloud computing services.

Banking, Financial Services & Insurance (BFSI) Sector Dominating the Market

The Banking, Financial Services and Insurance (BFSI) sector has grown significantly in the last several years, mostly as a result of its early adoption of cloud computing technologies to give clients dependable and safe access to financial services. Banks may improve the customer experience, increase engagement, and reduce operating costs by using cloud computing.

In addition, cloud-based solutions allow financial institutions like banks and insurance companies to quickly grow their customer base, provide new services and products, and scale their operations without having to make large infrastructure investments. Due to these reasons, the BFSI sector's need for cloud computing is anticipated to fuel the growth & expansion of the UAE Cloud Computing Market in the upcoming years.

Competitive Landscape

With strategic initiatives such as mergers, collaborations, and acquisitions, the leading market companies, including Microsoft Corporation, Inc., IBM Corporation, Google, Oracle Corporation, Amazon Web Services, Inc., Alibaba Cloud, Salesforce Inc., SAP, Etisalat, Adobe Inc., Rackspace Technology, and others, are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across the country?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-2030?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?