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UAE cloud computing market set to skyrocket by 2030

UAE cloud computing market set to skyrocket by 2030
27 Mar 2024 09:17

MAYS IBRAHIM (ABU DHABI)

The UAE cloud computing market is projected to experience a staggering growth rate of approximately 36.12% compound annual growth rate (CAGR) during the period 2024-2030, according to recent research by MarkNtel Advisors, a consulting and market research firm.

Its report attributed this surge to the rise in digital transactions, online activities, and the widespread adoption of Internet of Things (IoT) devices, all of which have led to an unprecedented increase in data generation, ultimately fuelling demand for cloud computing services for seamless data processing.

“Businesses across the UAE are grappling with the challenge of efficiently managing, processing, and storing this immense amount of data. As a result, organisations 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 current requirements, positively enhancing the market size,” the report said.

It further noted that small- and medium-sized enterprises (SMEs) in the UAE are primarily concentrating on integrating cloud services to conduct 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.”

The report also pointed out that the burgeoning digital transformation in the construction and healthcare industries is driving the uptake of cloud computing services in the UAE.

Amid the real estate boom in the UAE and iconic mega projects, construction firms are progressively embracing technology, such as Building Information Modeling (BIM) and cloud construction management software, to “enhance profitability and ensure timely project delivery”, according to the report.

“This adoption, in turn, fuels the demand for cloud computing services, which provide the essential infrastructure and tools to support the modernisation and growth of the construction sector in the UAE, which is further projected to augment the market size & volume during the forecast period.”
UAE at the ‘Forefront’ of Digital Transformation

The report highlights the key drivers, opportunities, and trends shaping the UAE Cloud Computing Market. It noted that surging digital transformation initiatives, driven by ambitious government visions such as UAE Vision 2021 and the Dubai Smart City project, are fostering an environment conducive to the widespread adoption of cloud computing solutions throughout the country.

“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 modernise their IT infrastructure and processes. Consequently, there has been a noticeable surge in the desire for cloud computing solutions throughout the country… 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”.

Expansion of SMEs to Drive Market Growth

The report views that the expansion of SMEs in the UAE presents new opportunities for market growth.
“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 recognising the benefits of cloud computing in reducing IT infrastructure costs, improving agility, and enhancing productivity,” it stated.

The report pointed out that data from the UAE Ministry of Economy and Abu Dhabi Chamber shows that there are roughly 1.5 million SMEs registered in the GCC, signalling the sector’s potential to create 22 million jobs in 2022 and substantially contribute to the annual GDPs of several regional economies. In 2022, SMEs accounted for approximately 29% of the Abu Dhabi economy (44% in the non-oil economy).

“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,” it added.

Market Trend: Integrating Emerging Tech

The recent report stated that the integration of emerging technologies such as AI and Machine Learning (ML) into cloud computing platforms is expected to drive market growth. By automating routine tasks and streamlining processes, AI-driven cloud solutions enable organisations to optimise resource utilisation and deliver personalised customer experiences, thus contributing to market expansion.

For example, in 2023, G42, a leading UAE-based AI and cloud computing technology company, unveiled the $10 billion G42 Expansion Fund, a global technology growth fund established in collaboration with the Abu Dhabi Growth Fund (ADG).

“Thus, by analysing customer data in real-time, AI algorithms recommend relevant products or services, personalise marketing campaigns, and improve customer engagement and satisfaction, which is anticipated to augment the market growth during 2024-30,” the report said.

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