UAE Cloud Computing Market Research Report: Forecast (2025-2030)

Market Definition

Cloud computing refers to the supply of computing services, including storage, databases, networking, software, and analytics, over the Internet. This model enables users to access and utilize computing resources without the need for on-premises infrastructure or upfront investments in hardware and software. Cloud computing services are provided by a third party, known as a cloud service provider, who maintains and manages the underlying infrastructure in secure data centers.

Market Insights & Analysis: UAE Cloud Computing Market (2025-30):

The UAE Cloud Computing Market size was valued at around USD13.14 billion in 2024 and is projected to reach USD40.73 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 20.75% during the forecast period, i.e., 2025-30. The increasing digital transactions, online activities, and widespread deployment of IoT devices have collectively contributed to an unprecedented volume of data generation, which requires cloud computing services for smooth processing. Businesses across the UAE are grappling with the challenge of effective management, processing, and storing this immense amount of data. As a result, organizations are increasingly turning to cloud service providers to meet their expanding data storage and processing demands. Cloud computing provides a scalable and flexible infrastructure that allows businesses to dynamically adjust their computing and storage resources based on requirements, positively enhancing the market size.

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Moreover, small and medium enterprises (SMEs) in the UAE are primarily focused on implementing cloud services for performing business analytics and artificial intelligence (AI) tasks. The increasing emphasis on data-driven decision-making and the adoption of AI across industries are influencing SMEs to incorporate these technologies into their operations. Hence, cloud computing provides a streamlined and accessible avenue for SMEs to align with these trends, enabling them to leverage advanced technologies, scale their operations efficiently, and compete effectively in the digital marketplace.

In addition, the increasing digital transformation in the construction and healthcare sectors is propelling the adoption of cloud computing services in the UAE. Amidst the real estate boom in the UAE and the multitude of iconic mega projects with smart technological solutions, construction firms find themselves facing an unprecedented opportunity. However, acknowledging the inherent pressures and challenges associated with these ambitious endeavors, companies are progressively embracing technology such as Building Information Modeling (BIM) and cloud construction management software as a means to leverage these opportunities, enhance profitability, and ensure the timely delivery of projects. This adoption, in turn, fuels the demand for cloud computing services, which provide the essential infrastructure and tools to support the modernization and growth of the construction sector in the UAE, which is further projected to augment the market size & volume during the forecast period.

UAE Cloud Computing Market Driver:

Surging Digital Transformation Initiatives Driving Market Demand – In recent years, the United Arab Emirates (UAE) has been at the forefront of embracing digital transformation, with both government entities and businesses actively pursuing initiatives to modernize their IT infrastructure and processes. Consequently, there has been a noticeable surge in the desire for cloud computing solutions throughout the country. The UAE government has outlined ambitious visions and strategies, such as UAE Vision 2021 and the Dubai Smart City project, that emphasize the importance of digital transformation. For instance,

• In 2023, the UAE Central Bank announced a new digital currency, open finance, and a domestic card payment initiative to accelerate digital transformation in the financial services sector.

These initiatives serve as catalysts for technological progress, fostering an environment conducive to the widespread adoption of cloud computing, which would positively augment market growth during 2025–2030.

UAE Cloud Computing Market Opportunity:

Expansion of SMEs to Open New Doors for Market Growth – SMEs (Small & Medium Enterprises) have always played an important role in increasing the demand for cloud computing services in the UAE. Initiatives of the UAE government, like the Mohammed Bin Rashid Establishment for SME Development, have continuously brought new schemes that support SME growth in the UAE. Consequently, the UAE has a thriving ecosystem of SMEs, which are increasingly recognizing the benefits of cloud computing in reducing IT infrastructure costs, improving agility, and enhancing productivity. For instance,

• According to the UAE Ministry of Economy, Abu Dhabi Chamber, with approximately 1.5 million SMEs currently registered in the GCC, the sector had the potential to generate 22 million jobs in 2022 and contribute a significant percentage of annual GDPs for many of the region’s economies. SME's share in the Abu Dhabi economy was around 29% (44% in the non-oil economy) in 2022.

Hence, cloud providers have the opportunity to cater to the specific needs of SMEs by offering scalable and cost-effective cloud solutions in the upcoming years.

UAE Cloud Computing Market Challenge:

Rising Data Privacy Concerns & Cybersecurity Risks – With the increasing adoption of cloud computing, cyber threats such as data breaches, ransomware attacks, and unauthorized access pose significant challenges in the UAE Cloud Computing Market during the historical years. As per the Cybersecurity Council of UAE, an increase of around 32% is observed in 2024 from 2023, accounting for over 223,800 attacks. Moreover, data privacy regulations such as the UAE Data Protection Law and requirements for data localization pose challenges for cloud providers in ensuring compliance with regulatory standards while offering cloud services. Consequently, organizations hesitate to adopt cloud solutions due to concerns about data security, sovereignty, and compliance, which is further projected to hinder market growth & expansion in the coming years.

UAE Cloud Computing Market Trend:

Integration of Artificial Intelligence (AI) & Machine Learning (ML) – By integrating AI and ML capabilities into cloud computing platforms, organizations in the UAE can automate routine tasks, streamline processes, and improve operational efficiency. AI-driven automation helps optimize resource utilization, reduce manual intervention, and accelerate time-to-market for new products and services. In addition, AI-powered cloud solutions enable organizations to deliver personalized and targeted customer experiences across various techniques. For instance,

• In 2023, G42, the leading UAE-based AI and cloud computing technology company, announced the launch of the USD10 billion G42 Expansion Fund, a global technology growth fund formed in a strategic partnership with the Abu Dhabi Growth Fund (ADG).

Thus, by analyzing customer data in real-time, AI algorithms recommend relevant products or services, personalize marketing campaigns, and improve customer engagement and satisfaction, which is anticipated to augment the size & volume of the market during the forecasted period.

UAE Cloud Computing Market (2025-30): Segmentation Analysis

The UAE Cloud Computing 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 national level. According to the analysis, the market has been further classified as:

Based on Deployment Type:

• Public Cloud
• Private Cloud
• Hybrid & Multi-Cloud

Hybrid & Multi-cloud is leading the market based on the deployment type, with around 39% market share. The demand for hybrid & multi-cloud is expected to increase in the UAE Cloud Computing Market, propelled by their growing adoption across diverse industries, notably among small and medium enterprises (SMEs) in the UAE. Additionally, the increasing prevalence of user and resource mobility, coupled with a rising trend in cloud migration applications, is expected to further drive the adoption of hybrid cloud models. Major companies such as IBM, AWS, and others have introduced a range of hybrid cloud services in the UAE to cater to the evolving demands of end-users. For instance, in 2023, First Abu Dhabi Bank (FAB) announced its collaboration with IBM to advance the hybrid cloud transformation journey. Hence, this highlights the growing importance of hybrid cloud solutions in meeting the diverse needs of organizations in the UAE.

Based on End User

• Banking, Financial Services & Insurance (BFSI)
• Government & Public Sector
• IT & Telecom
• Healthcare
• Education
• Retail

• Others (Real Estate, Manufacturing, etc.)

The BFSI (Banking, Financial Services and Insurance) segment witnessed a burgeoning growth in the historical years, holding the market share of around 31%, as this segment was the early adopter of services to offer their customers secure & reliable access to their financial services. By leveraging cloud computing, banks can potentially improve the customer experience, increase customer engagement, and reduce operational costs. As a result, banks such as Mashreq, First Abu Dhabi Bank, the Central Bank of the United Arab Emirates (CBUAE), etc. have adopted these solutions, leading to a growth in the share of BFSI in the market.

In addition, cloud-based solutions allow banks, financial firms, and insurance companies to rapidly scale their operations, launch new products and services, and expand their customer base without significant investments in infrastructure. Thus, owing to such factors, the higher demand for cloud computing solutions across the BFSI sector is anticipated to propel the growth of the UAE Cloud Computing Market during the forecasted period.

UAE Cloud Computing Industry Recent Development:

• 2024: AWS, in partnership with Continental AG, launched the “Automotive Edge Framework (CAEdge)” to support over-the-air updates and cloud-based vehicle architectures, enhancing edge-cloud integration for software-defined vehicles adopted by UAE automotive manufacturers.
• 2024: Accenture partnered with Siemens AG to develop “cloud-powered engineering” services, offering manufacturing clients in the UAE and globally access to cloud-native tools that enhance product design, development, and production efficiency through digital engineering solutions.

Gain a Competitive Edge with Our UAE Cloud Computing Market Report

1. UAE Cloud Computing Market 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. UAE Cloud Computing 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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