UAE Cloud Computing Market Set to Grow 28.75% Over Next 5 Years

The UAE cloud computing market is projected to grow at a compound annual growth rate (CAGR) of 28.75% from 2025 to 2030, from an estimated $12.84 billion in 2025 to $45.41 billion by 2030, research shows.

According to a survey by Morodor Intelligence, the demand for cloud services is rising as more companies and government organizations look for scalability, flexibility, and cost effect.  As a result, businesses are changing their procurement and policy plans, as well as their HR procedures and cultural norms, in order to properly utilize technology.  To create a complete IT ecosystem, solve problems, and guarantee quick acceptance of innovations, working with a reliable partner becomes essential.

In the UAE, cloud services are being leveraged increasingly by SMEs to enhance their business analytics and artificial intelligence (AI) initiatives. These SMEs are now increasingly working with these technologies, with a marked focus on data-driven decisions and a wide accompanying acceptance of AI. This strategic alignment avails them with the latest tools and enhances their operational scalability, further bolstering their competitiveness in a digital world. As per a MasterCard study, 74% of SMEs in the UAE showed confidence in their growth in 2023.

Cloud service providers also have an advantage because to the UAE government's commitment to digital transformation and its vision for smart cities.  Innovative solution creation and implementation are made possible by such initiatives.  Government initiatives that are supportive of this demand increase it even further.