UAE Cloud Computing Market | Analysis 2019-2032

UAE Cloud Computing Market Growth and Performance

• The UAE cloud computing market size is estimated to reach US$ 993.8 million by 2024, with an expected Compound Annual Growth Rate (CAGR) of 10.03%.
• The value of UAE cloud computing industry in 2022 was US$ 845.7 million.

UAE Cloud Computing Market Outlook

The UAE cloud computing market is undergoing rapid transformation, driven by increased adoption among enterprises, government initiatives, and substantial investments from global cloud service providers. With a growing emphasis on digital transformation, artificial intelligence (AI), and cloud-based enterprise solutions, the UAE is solidifying its position as a regional technology hub. The UAE cloud computing market outlook remains highly positive, with government-backed initiatives playing a crucial role in shaping the future landscape. Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, recently launched the Dubai Digital Cloud project in collaboration with Digital Dubai, Microsoft, and Moro Hub. This initiative aims to create a carbon-neutral, world-class digital infrastructure that supports businesses in their digital transformation journeys while reducing costs and fostering innovation.

According to Industry experts, 70% of UAE enterprises have already migrated their core business functions to the cloud, with an additional 20% planning to do so within the next 12 months. This significant shift is accelerating the UAE cloud computing market growth by enabling businesses to leverage real-time data access, scalable computing power, and seamless AI integration. Moreover, major investments, such as e&'s $1 billion agreement with AWS, are further propelling cloud adoption across industries.

UAE Cloud Computing Market Trends

Key trends in the UAE cloud computing market include:

AI-Driven Cloud Adoption: Businesses are integrating AI into marketing, customer service, sales, and finance, with cloud computing providing the necessary infrastructure for seamless implementation.

Expansion of Cloud Regions: AWS recently launched its second region in the Middle East, the AWS Middle East (UAE) Region, allowing enterprises to run workloads with lower latency while adhering to data residency regulations.

SME Cloud Accessibility: Through partnerships such as AWS Marketplace, small and medium-sized businesses (SMEs) can now access advanced cloud services, democratizing digital transformation.

Sustainable Cloud Infrastructure: With a focus on green, carbon-neutral data centers, cloud providers are ensuring that sustainability is at the core of their expansion strategies in the UAE.

UAE Cloud Computing Market Competitive Landscape

The competitive landscape of the UAE cloud computing industry is shaped by major global and regional players investing heavily in cloud infrastructure. Key companies operating in the market include:

• Amazon Web Services (AWS): A dominant player with significant investments, including a $5 billion commitment in the UAE through 2036.
• Microsoft Azure: A key partner in Dubai Digital Cloud, contributing to the country’s growing digital infrastructure.
• Google Cloud: Expanding its footprint in the region with AI-driven cloud solutions.
• SAP, Oracle, and IBM: Providing enterprise cloud solutions tailored to various industry needs.
• Local and regional players: e&, Moro Hub, and other UAE-based cloud providers are playing a crucial role in expanding cloud adoption across industries.

UAE Cloud Computing Market Development

The UAE cloud computing market development is bolstered by continued government support, increased investments from global tech giants, and a strong push towards AI and digital transformation. AWS's $5 billion investment in the UAE cloud ecosystem is expected to support nearly 6,000 jobs annually and contribute an estimated $11 billion to the UAE’s GDP over the next 15 years. Additionally, ongoing cloud infrastructure expansion and public-private partnerships will further solidify the UAE's position as a leading cloud computing hub in the region.

UAE Cloud Computing Market Scope