GCC Software as a Service (SaaS) Market Research Report: Forecast (2025-2030)

Market Definition

Software as a Service (SaaS) is a business model where a company takes the responsibility of providing and hosting the software services to many businesses. This software assistance usually consists of CRM, SRM, ERP, etc., where businesses don’t invest a lot.

Market Insights & Analysis: GCC Software as a Service Market (2025-30):

The GCC Software as a Service Market size was valued at around USD 6,192 million in 2024 & is estimated to reach USD 9,293 million by 2030. Along with this, the market is anticipated to grow at a CAGR of around 7% during the forecast period, i.e., 2025-30. Gulf countries have a huge hub for IT and Tech companies coming from all around the globe. These companies are offered with business-friendly environment and policies to function smoothly without any hassle. Apart from this, these countries are blessed with an innovative and stable startup culture, powered by strong financial support coming from the generational wealth of the residents of Gulf countries. The startup ecosystem in GCC is like no other. It’s a blend of visionary government support, a young and dynamic population, and a market brimming with opportunities. While it faces challenges, the region’s proactive approach ensures that solutions are always on the horizon.

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GCC has a few key sectors where it has a strong hold, like Fintech, E-commerce, and Health tech. Fintech is booming in the GCC, fueled by regulatory support and a growing e-commerce sector. UAE-based Tabby is leading the Buy Now, Pay Later trend. Whereas e-commerce thrives due to high internet penetration and strong logistics, with giants like Noon and Namshi dominating. Along with that, Health tech has surged post-pandemic, with platforms like Altibbi revolutionizing telemedicine across the Arab world.

GCC Software as a Service Market Driver:

Booming Startups & Economy Driving Regional Market – In the world of startups, every region has its flavor. Silicon Valley thrives on disruption. Southeast Asia dazzles with its mobile-first approach. Europe is a hub of sustainability-focused ventures. And then, there’s the Gulf Cooperation Council (GCC), with a startup ecosystem that’s carving out its own unique identity on the global stage. The GCC startup scene is brimming with opportunity, inspired and driven by bold government initiatives, a digitally savvy population, and untapped markets. Gulf countries have a good chunk of a young population. For instance,

• According to the World Bank, more than 70% of the population lies between the ages of 15-64 years.

This digital-native generation is hungry for innovation and has the potential to build startups. Along with that, many startups in the GCC evolve from family businesses, leveraging existing networks to scale faster. Furthermore, entrepreneurs can tap into a customer base that’s willing to pay for premium products and services, especially in sectors like e-commerce and fintech. Subsequently, these booming startups and the economy are driving the demand for the SaaS in GCC.

GCC Software as a Service Market Opportunity:

Government Facilitation to the IT & SaaS Companies – The governments of Gulf countries are supporting IT and Tech companies, including SaaS companies, as one of the main objectives of their future economic plans. For instance, in Saudi Arabia, the National Technology Development Program (NTDP) has been set up to support tech-based startups in the country. Along with that, MCIT’s Digital Government Authority & Vision 2030 programs and Oman’s Vision 2040 program have digital transformation and technological development as one of their major pillars. Additionally, in the UAE, the government has developed various policies of 100% foreign ownership for MNCs and especially those situated in the free zones. This made the UAE a suitable tech hub with various amenities and ease of monetary and fiscal policies, attracting global leaders of the IT sector like IBM, Oracle, Salesforce, etc.

GCC Software as a Service Market Challenge:

More Reliability on Traditional Operating Model Hindering the Demand for SaaS – A major factor setting leading digital companies apart is their agile and lean operating model. This is a particular challenge for GCC companies, which tend to value traditional operating models and have relatively strict command-and-control practices. This requires a shift in mindset from control and stability to trust and adaptability. Along with that, organizations traditionally prefer CapEx budgeting, which consists of a one-time payment, whereas SaaS requires OpEx budgeting, which is a subscription model.

Furthermore, these SaaS models are required to be localized according to the Gulf countries, for which local staff expertise and talent are required. Subsequently, this acts as a barrier to the growth of demand for SaaS in GCC.

GCC Software as a Service Market Trend:

Cloud & GenAI Adoption Changing Market Dynamics – The GCC region is undergoing an AI-powered transformation, with Saudi Arabia, the UAE, and Oman leading the charge in digitalizing their SME sectors. Governments, Chambers & Industry Associations, and technology providers are collaborating to empower SMEs with AI-driven tools, cloud computing, cybersecurity solutions, and digital marketplaces, ensuring they remain agile in a rapidly evolving digital economy. For instance,

• The governments have launched various programs and strategies for AI investment and adoption, like the National AI Strategy 2031 in the UAE, the National Program of AI and Advanced Digital Technologies, and the Oman Technology Fund (OTF) in Oman.

Generative AI (GenAI) in SaaS is not just a technology trend; it’s a highly effective tool that can make the software more functional and appealing. It enables advanced AI models capable of creating images, including text, new content, music, code, language translation, data augmentation, etc. With the help of a prompt, it empowers businesses with more reliable outcomes. Subsequently, AI integration in SaaS is driving the demand in Gulf countries.

GCC Software as a Service Market (2025-30): Segmentation Analysis

The GCC Software as a Service Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the regional level. Based on the analysis, the market has been further classified as:

Based on Product Type:

• Customer Relationship Management (CRM)
• Enterprise Resource Planning (ERP)
• Human Capital Management (HCM)
• Content, Collaboration & Communication
• BI & Analytics
• Others

Customer relationship management (CRM) is an end-to-end strategy and set of tools aimed at handling an organization's interactions with customers and prospects. It is a software product that combines a number of different functions, such as sales, customer service, and marketing, making it possible to collect and analyze data efficiently. This helps growing inclination towards digitalization across various sectors in the Gulf Cooperation Council (GCC), which makes it a remarkable driver for the SaaS industry in the GCC. Governments are actively participating in improving efficiency and consumer experience, with the goal of becoming more competitive on a global scale. For instance,

• The Saudi Vision 2030 initiative aims to diversify the economy and foster a digital environment that supports innovation and technological advancement.

As a result, there has been a notable increase in demand for Customer Relationship Management (CRM) software solutions as organizations seek to optimize customer interactions. Subsequently, driving the demand for SaaS.

Based on Enterprise Size:

• Small & Medium Enterprises (SMEs)
• Large Enterprises

Small and Medium Enterprises (SMEs) were increasingly adopting SaaS solutions in the GCC region. Traditionally, this region was marked by dominance from large enterprises and state-owned companies. A significant upsurge in startups has been witnessed recently, with tech hubs established, and government initiatives directed towards SMEs. Also, these systems have easy deployments and are cost-effective since they are on the cloud and based on a subscription model, not raising an upfront cost for a separate IT infrastructure that is unusually high, which would suit SMEs with a tighter budget. Along with that, in the Gulf countries, SMEs dominate key emerging sectors such as retail, logistics, professional services, and e-commerce, which heavily rely on SaaS for their functioning.

GCC Software as a Service Market (2025-30): Regional Projections

Geographically, the GCC Software as a Service Market expands across:

• The UAE
• Saudi Arabia
• Qatar
• Bahrain
• Kuwait
• Oman

The UAE leads the regional SaaS industry because the government of the UAE is keen on investing in new AI technology, and businesses are also investing in smart tools for various management tasks in the organization to work more efficiently. These tools are mostly being outsourced in the form of SaaS. Additionally, Businesses in the UAE are growing due to the increased use of cloud technology, as it is cheap and easy to scale. Gradually increasing the use of SaaS for the adoption of cloud servers and cloud management services.

Also, the UAE’s key role as a world shipping center is speeding up the need for Supply Chain Management (SCM) solutions. These SCM solutions are facilitated by the various software which are managed by other companies through contracts due to their efficiency and cost effectiveness. Subsequently, contributing to the growth of the Software as a Service Market in the UAE.

Gain a Competitive Edge with Our GCC Software as a Service Market Report

1. GCC Software as a Service Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. GCC Software as a Service Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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