UAE CLOUD COMPUTING MARKET

UAE Cloud Computing Market Size

UAE Cloud Computing market reached USD 4.1 billion in 2024 and the market is forecast to touch USD 23 billion in 2032 growing at CAGR of 24.1% between 2025 and 2032 primarily driven by government focus to digitize economies, rise in the number of organisations adopting digital first strategies, rise of sovereign cloud & data localisation legislation and rise in investment in AI, increasing AI adoption.

Key Market Insights

Market Size:

• • 2024 – USD 4.1 Billion
  • 2032 – USD 23 Billion
  • Market Forecast – CAGR of 24.1% from 2025-2032

Segment Insights

• • Cloud Service Model Type Insights: SaaS service type dominates the UAE cloud market.
  • Organisation Size Type Insights: SMB is forecast to grow at a higher CAGR.
  • Deployment Model Type Insights: Public Cloud captures the largest market share.
  • Industry Vertical Insights: BFSI dominates the UAE cloud market.

UAE Cloud Computing Market Drivers

Government Focus to Digitize Economies

Digitization has been one of the paramount objective of the UAE government and the country has a vision UAE National Strategy for Artificial Intelligence 2031. In January 2025, Abu Dhabi Executive Council has approved USD 3.5 billion for digital strategy for 2025-2027. This investment helps Abu Dhabi government to become the first country in the world to integrate AI into all the government digital services by 2027. This strategy will also achieve 100% sovereign cloud adoption across the government services. Maryam bint Ahmed Al Hammadi, Minister of State and Secretary General of The UAE Cabinet highlighted the UAE has saved around USD 4 billion owing to adoption of digital transformation across public sector.

Rise in the number of Organisations Adopting Digital First Strategies

Rising adoption of cloud computing across numerous industries such as BFSI, media & entertainment, hospitality, and retail & consumer goods, will drastically drive the demand for cloud computing technologies in the UAE over the coming years. In addition to this, the government has launched several initiatives, including the National Innovation Strategy aims to develop a culture of innovation among individuals and organizations, and the TRA Vision focuses on promoting electronic transformation while encouraging innovation across the UAE. These initiatives are mainly focusing on technological innovation, thereby boosting the usage of cloud computing technologies in the country. Moreover, the other initiatives such as UAE Vision 2031, Dubai Smart City, and Abu Dhabi Vision 2030, will accelerate the demand for real-time operations to transform public services & experience, thus increasing the adoption of cloud computing across the UAE.

Rise of Sovereign Cloud & Data Localisation Legislation

As Companies migrated from on premise datacentres to public, hybrid and multi clouds, these clouds models present a challenge over data control on critical data workloads. The companies operating in sectors like BFSI, Healthcare, government are more concerned as the companies in these sectors has to follow a strict compliance and data governance. In order to address this concern sovereign cloud model is emerged

Rise in Investment in AI & AI Adoption

The country is an early adopter of AI technology and its AI sector is one the most advanced in the world, the country is the first to appoint an AI minister globally. The government of UAE is betting on AI and investing in AI significantly to positioned itself as one of the champions in AI revolution. The government is creating a conducive environment and setting a stage for AI, through its initiatives such as UAE National Strategy for Artificial Intelligence 203 and National Program for Artificial Intelligence. UAE AI market is surging and the market is forecast to touch around USD 50 billion by 2032 and the AI is projected to contribute around 14% to the economy of UAE by 2030, will create significant opportunities for cloud market in the country.

UAE Cloud Computing Market Segment Analysis

Cloud Service Model Type Market Insights: SaaS service type dominates the UAE cloud market

Service Model Market Insights: Software-as-a-Service (SaaS) type hold the largest market share owing rising demand of enterprise resource management (ERM) and customer relationship management (CRM), management applications and collaborative applications. Growing adoption of SaaS primarily in sector such as retail, manufacturing, and healthcare Start-Ups and other enterprises are driving the SaaS market in UAE. However, PaaS segment is forecast to grow at the highest CAGR during the forecast period.

Organisation Size Market Insights: SMB is forecast to grow at a higher CAGR

Based on organisation size, the Small and Medium-sized Enterprises segment is projected to grow at a higher CAGR during the forecast period due to the increasing adoption of cloud computing technologies by small and medium sized enterprises driven by its remarkable advantages such as high flexibility, easy to use, and cost-effective. It also offers pay-for-what-you-use payment models and reduces operational cost along with customized options as per the end-user needs.

Deployment Model Market Insights: Public Cloud captures the largest market share

In UAE, public cloud dominates the market revenues owing to as it offers cost-efficiency and rapid scalability to organizations. One of the driver is growing number of start-ups in AI is growing in the country the prefer to choose public cloud as only pay for the resources they actually use reducing the CAPEX significant.

Industry Vertical Market Insights: BFSI dominates the UAE cloud market

Based on the Vertical, the Retail and Consumer Goods market is estimated to grow at a significant rate during the forecast period. This is attributed to the growing awareness regarding the remarkable benefits offered by the cloud-computing solution and software, among the retailers.

UAE Cloud Computing Market Major Players & Competitive Landscape

Several leading companies operating in UAE Cloud Computing market include Amazon Web Services, Microsoft, Google, Oracle, IBM, Alibaba Cloud, Rackspace, Salesforce, Adobe, VMware, SAP, Fujitsu, among others.

The robust cloud market growth and rising adoption in GCC has attracted many cloud service providers in the region. The first data center in Middle east was set up by AWS in Bahrain, the surge in the cloud demand in UAE has attracted Microsoft to set up a datacentre in UAE in 2022. The competition in the UAE cloud market is heating up as Hyper scale wants to increase the share of the pie and competition is also coming from Chinese cloud providers such as Huawei and Alibaba, they see UAE cloud market as an attractive market. Tencent a Chinese company is planning to expand its cloud business in Saudi Arabia and the UAE.

UAE Cloud Computing Market News

• • In 2025, Abu Dhabi government is partnering with Microsoft and Core42 to build a sovereign cloud and AI infrastructure in Abu Dhabi, this will redefine the government services by allowing to process 11 million digital interactions with citizens and government.
  • In 2025, du partners with Microsoft to build a hyperscale data centre in the UAE with a deal value of USD 544.5 million. As part of this deal du will build operate and manage the datacentre and Microsoft as a confirmed tenant.
  • In 2025, Alibaba Cloud and Hibrid, a leading UAE-based provider of innovative streaming technology signed a MoU. Through this partnership the Hibrid will provide comprehensive streaming and infrastructure services to customers across GCC and Middle East region.
  • In 2024, AWS and AE-based telco e& signed a USD 1billion cloud agreement, with this collaboration both the companies expand their cloud offerings to customers in a heavily regulated industries such as oil & gas, finance and healthcare.

UAE Cloud Computing Market Scope of the Report

The UAE Cloud Computing market is segmented into service model, deployment model, organization size and industry vertical. Based on the service model, the market has been segmented into Infrastructure as a Service, Platform as a Service, Software as a Service. Based on the deployment model, the market has been segmented into Public Cloud, Private Cloud and Hybrid Cloud. Based on the organization size, the market has been segmented into Small and Medium Enterprises and Large Enterprises. Based on industry vertical, the market has been segmented into Manufacturing, Healthcare and Life Sciences, IT & Telecom, Retail and Consumer Goods, Energy and Utilities, Media and Entertainment, BFSI, Government and Public Sector.

UAE Cloud Computing Market by Service Model

• • Infrastructure as a Service
  • Platform as a Service
  • Software as a Service

UAE Cloud Computing Market by Deployment Model

• • Public Cloud
  • Private Cloud
  • Hybrid Cloud

UAE Cloud Computing Market by Organisation Size

• • Small and Medium-Sized Enterprises
  • Large Enterprises

UAE Cloud Computing Market by Industry Vertical

• • Banking, Financial Services and Insurance
  • IT and Telecommunications
  • Government and Public Sector
  • Retail and Consumer Goods
  • Manufacturing
  • Energy and Utilities
  • Media and Entertainment
  • Healthcare and Life Sciences
  • Others

Leading market players

• • Amazon Web Services
  • Microsoft
  • Google
  • Oracle
  • IBM
  • Alibaba Cloud
  • Rackspace
  • Salesforce
  • Adobe
  • VMware
  • SAP
  • Fujitsu