UAE Cloud Computing Market Size

UAE Cloud Computing Market Analysis

The UAE Cloud Computing Market size is estimated at USD 9.97 billion in 2024, and is expected to reach USD 35.36 billion by 2029, growing at a CAGR of 28.75% during the forecast period (2024-2029).

• As businesses and government entities increasingly seek scalability, flexibility, and cost efficiency, the demand for cloud services is surging. In response, organizations are adapting their policies and procurement strategies and reshaping human resource practices and cultural norms to leverage technological advancements fully. Collaborating with a trusted partner becomes paramount in crafting a comprehensive IT ecosystem, addressing challenges, and ensuring swift adoption of innovations.
• In the United Arab Emirates, small and medium enterprises (SMEs) are increasingly leveraging cloud services to enhance their business analytics and artificial intelligence (AI) endeavors. With a pronounced focus on data-driven decisions and the widespread embrace of AI, these SMEs are rapidly weaving these technologies into their operations. This strategic alignment equips them with cutting-edge tools and amplifies their operational scalability, fortifying their competitive stance in the digital landscape. According to a MasterCard survey, 74% of UAE's SMEs expressed confidence in their business growth for 2023.
• Furthermore, the UAE government's dedication to digital transformation and its smart city vision presents a fertile ground for cloud service providers. Such initiatives pave the way for innovative solution development and deployment. Supportive government policies further amplify this demand.
• Numerous market players are forging partnerships to enhance their digital transformation offerings. A case in point: In September 2023, Microsoft Corp. deepened its collaboration with Abu Dhabi’s G42. This partnership is set to propel AI technology advancements and bolster cloud infrastructure services in the United Arab Emirates. The initiative aims to provide the UAE's public sector and select industries with access to Microsoft's Azure cloud and AI capabilities, ensuring alignment with local privacy and regulatory standards. In addition, Microsoft has augmented its Azure services in the United Arab Emirates, utilizing Khazna Data Centers, a collaborative venture between G42 and Emirates Telecom.
• With the surge in sensitive data volumes, there's an escalating demand for stringent data protection and cybersecurity measures. This growing challenge underscores the difficulties companies face in safeguarding data and thwarting potential exploitation. Compounding this issue, the nation grapples with a skill gap in pivotal emerging technologies like AI, cybersecurity, and blockchain. This talent deficit poses a significant hurdle to the UAE's ambitions for digital transformation.
• The pandemic catalyzed a swift adoption of digital tools across businesses and governments, accelerating the shift to e-commerce and online services. Concurrently, investments in smart infrastructure are on the rise, aiming to elevate urban living standards through smart city technologies and IoT solutions, further propelling market growth.