About this report
The Middle East public cloud market report explores the critical analysis of the Middle East public cloud industry using key parameters. The report consists of investment strategies, the need for investments in the Middle East public cloud industry, and the multiple benefits for investors. Importantly, this report sets out major changes in the technical regulations for the Middle East public cloud industry and how economic and non-economic barriers are helping the market grow. Moreover, the report analyses the regional and country-level historic and forecasted market size. The report also provides a comprehensive analysis of key investment propositions, demand and supply gap, competitors positioning, STAR analysis, SRC analysis, and Tornado analysis. Key technological developments and other analyses include Porter’s five forces analysis, PESTEL analysis, value chain analysis, etc.
| REPORT ATTRIBUTE |
DETAILS |
| Middle East Public Cloud Market by Volume |
Yes |
| Middle East Public Cloud Market by Value |
Yes |
| Middle East Public Cloud Market, Tornado Analysis |
Yes |
| Middle East Public Cloud Market, STAR Analysis |
Yes |
| Middle East Public Cloud Market, SRC Analysis |
Yes |
| Middle East Public Cloud Market, Import-Export Data |
Yes (On Demand) |
| Middle East Public Cloud Market Pricing Analysis |
Yes (On Demand) |
| Middle East Public Cloud Market Segment Analysis |
· By Computing (Cloud Billing, Cloud Communication Platform, Cloud Access Security, Cloud High-Performance Computing, and Cloud Infrastructure)
· By Service (SaaS, PaaS, and IaaS)
· By Organization Size (Small & Medium Enterprise and Large Enterprise)
· By Industry (Manufacturing, BFSI, Healthcare, Retail, Government, Aerospace & Defence, IT & Telecommunication, and Others) |
| Middle East Public Cloud Market, Regional Analysis |
· Middle East and Africa (GCC Countries, South Africa, and the Rest of Middle East and Africa) |
| Middle East Public Cloud Market Key Companies |
Fujitsu Ltd, Rackspace Technology Inc, Google LLC, IBM Corporation, AWS Inc, Microsoft Corporation, VMWare Inc, Cisco Systems Inc, Salesforce.com Inc, CoreSite Realty Corporation, Hewlett Packard Enterprise Company, Citrix Systems Inc, Oracle, Cloudflare Inc, Equinix Inc |
| Middle East Public Cloud Market Competitive Landscape |
· Market Share Analysis
· Competitive Benchmarking
· Key Players Market Positioning
· Geographical Presence Analysis
· Major Strategies Adopted |
Key Highlights of the report
How are the major segments performing in the Middle East Public Cloud Market?
- The cloud infrastructure segment led the market in computing in 2021 and is expected to continue throughout the projection period. Cloud infrastructure is leading the computing market segment owing to the cloud providers’ focus on developing adequate hardware to meet the needs of clients and enterprises. The virtualization of servers and other hardware components and the associated decrease in operational costs may enhance segment expansion over the forecast period.
- In 2021, the SaaS segment accounted for the largest market share. Increasing government initiatives and digital transformation in Middle Eastern countries such as the UAE, Saudi Arabia, and Kuwait is one of the key drivers boosting Middle East SaaS industry demand over the forecast period, positively impacting the Middle East public cloud market.
- Small and medium-sized enterprises (SMEs) account for a sizable share of the private sector in the Middle East, particularly in countries with large informal economies. Public cloud computing has emerged as SMEs’ most dependable and cost-effective solution. As a result, Middle Eastern SMEs are shifting away from traditional on-premise deployment and toward cloud implementation.
- The BFSI industry segment led the market in 2021 and is expected to continue during the forecast period. The expansion can be attributed to growing customer preferences for personalized banking and the widespread adoption of technology. The delivery medium is growing more digital as new companies enter the BFSI industry. The BFSI industry is aggressively embracing online platforms to improve client experience and easier access to accounts and finances.
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Which country dominated the Middle East public cloud market?
Saudi Arabia dominated the Middle East public cloud market in 2021 and is expected to maintain its dominance throughout the forecast period. The region’s small businesses, particularly those in Saudi Arabia and the United Arab Emirates, are expanding their cloud-based deployment initiatives to enable rapid business analytics that will facilitate their companies to compete more assertively in the market and experience future growth. The region will see rapid adoption of XaaS (anything as a service) and public cloud services across various industries for the upcoming few years. The Country’s telecom regulator, the Information and Communication Technology Commission, issued a document titled ‘KSA Cloud-First Policy’ in 2019 to boost the adoption of cloud-based computing services, mandating government entities to choose cloud options when attempting to make modern technological investments. Since implementing its Cloud First Policy in 2019 to promote cloud adoption across the private and public sectors, Saudi Arabia has seen a 16% increase in the use of cloud services.
What is the competitive environment of the Middle East public cloud market?
The Middle East Public Cloud market is extremely fragmented, with many important companies having a significant market share. The Middle East Public Cloud players compete for customers based on cloud security, scalability, and accessibility to data centers throughout the region. The companies are also planning to invest in mergers to reduce competition and boost their market share in the Middle East Public Cloud industry. For instance, Arada, the UAE’s property developer with the fastest growth rate, collaborated with Microsoft in May 2021 to use Microsoft Cloud to speed up its digital transformation and improve the experiences of customers and business management. Similarly, Abu Dhabi Islamic Bank (ADIB) announced a relationship with IBM in April 2021 to expedite its transition to a digitally-led Islamic bank by leveraging IBM Hybrid cloud technologies based on Red Hat OpenShift. The bank’s efficiency in delivering operational and financial benefits will improve due to this paradigm change.
Executive Summary
What are all the technical developments in the Middle East public cloud market?
The transformation of organizations to digital businesses drives cloud technology investment, with the cloud serving as a critical enabler and platform for digital technologies. It has positively impacted the public cloud market in the Middle East. The Middle East’s collective economic goal of becoming more technology and data-centric has been a driving factor in the region’s rapid public cloud adoption. Moreover, Middle Eastern SMEs have focused on implementing cloud services that will enable them to perform business analytics and artificial intelligence tasks more quickly, which are significant growth drivers for the region’s public cloud industry. Adopting Al and ML technologies by businesses has benefited from the fact that public cloud services are already outfitted with these technologies, which has helped the public cloud market in the Middle East expand. Businesses in the Middle East are rapidly adopting modern technologies such as artificial intelligence, 5G, and machine learning as part of their digital transformation strategy. Middle Eastern companies are increasingly using these technologies to track data and conduct analytics. Adopting these technologies at scale is only possible with cloud computing, which serves as the foundation and enables enormous amounts of data to be handled quickly and on demand. As a result, over 70% of Middle Eastern businesses are anticipated to have multi-cloud configurations by the end of the next two years. For instance, in May 2021, Amazon Web Services Inc announced plans to open a data center in the United Arab Emirates (UAE) in the first half of 2022. The new AWS (Middle East) region will now have three Availability Zones and will be AWS’s second Middle East region, joining the existing AWS Region in Bahrain. This initiative will give customers more options and flexibility in leveraging advanced cloud technologies from the world’s leading cloud provider.
Which are the key investments by the Middle East public cloud market players?
Middle Eastern countries invest in cloud computing applications and projects to develop and establish knowledge-based economies. The availability of resources on demand, multi-user access to cloud-based applications, scalability, cloud storage, self-service computation, and utility subscription models are all advantages of cloud computing for Middle Eastern nations. Increasing government investments and initiatives in ICT for digital transformation, faster digitalization, and enhanced use of cloud-dependent technologies such as the IoT and Bring Your Device to drive the Middle East public cloud market during the forecast period. Many countries in the Middle East are now utilizing cloud technology and infrastructure. Investments in the information technology sector, including Saudi Arabia, the United Arab Emirates, and Qatar. These governments are eager to digitize their departments and services, enhancing their infrastructure and offering new services like e-applications that expedite administrative procedures. Initiatives and investments like Bahrain’s cloud-first policy, as well as national strategic visions like the UAE Vision 2021, Saudi Vision 2030, and New Kuwait Vision 2035, impact governments to implement newer technologies like cloud computing to accomplish their digital transformation goals.
Some major players in the Middle East public cloud market are Fujitsu Ltd, Rackspace Technology Inc, Google LLC, IBM Corporation, AWS Inc, Microsoft Corporation, VMWare Inc, Cisco Systems Inc, Salesforce.com Inc, CoreSite Realty Corporation, Hewlett Packard Enterprise Company, Citrix Systems Inc, Oracle, Cloudflare Inc, and Equinix Inc.
What are the Major Driving Factors for the Middle East Public Cloud Market?
Growing government investments and initiatives in ICT for rapid digitalization and digital transformation are expected to propel the Middle East public cloud market during the forecast period. In addition, rising enterprise awareness of the benefits of the cloud and its technologies and rising demand for data security and analytics are expected to fuel the market in the coming years. Furthermore, rising cloud-based technologies such as the Internet of Things and Bring Your Device are expected to drive the market over the forecast period.
What are the Major Risks for the Middle East Public Cloud Market?
An increase in data loss concerns is impeding the market growth. One of the most crucial elements of business continuity is data security. In the modern digital world, accessing important information presents several difficulties. Enterprises that store sensitive data face many difficulties, one of which is that cybercriminals frequently target them. Unfortunately, data centers that handle sensitive customer data are not an exception. Cyberattacks are one of the most common causes of data center outages. Ransomware attacks and cyberattacks cause increased downtime by disrupting business operations. The achievement of high levels of interoperability and security has been a significant challenge, despite the numerous improvements and developments in public cloud technologies.
Which is the key industry in the Middle East public cloud market?
In 2021, the BFSI industry segment dominated the market, and this trend is anticipated to hold throughout the forecast period. The digital environment around financial institutions is expanding at an unprecedented rate. The growth can be attributed to the growing customer preference for personalized banking and the extensive use of technology. The BFSI sector is seeing an influx of new companies, changing the delivery method. Private clouds enable several systems to function at high transaction volumes without overburdening the network or slowing down the process, resulting in a better user experience. The chances of data security, privacy, compliance with regulations, and high-quality service are eliminated by advances in cloud applications. The BFSI industry is rapidly leveraging online platforms to improve client experience and streamline access to finances and accounts. As a result, cloud apps have assisted banks and other financial organizations in improving their efficiency and performance.
How is the Middle East public cloud market performing in regional countries?
Saudi Arabia dominated the Middle East public cloud market in 2021 due to the establishment of cloud-based service provider offices, technological advancements, and strict government regulations requiring adoption of best-in-class technologies and standards. Telecom companies across the country have begun expanding their enterprise cloud offerings, with several focusing on in-house IaaS and leveraging their data center assets to provide hybrid cloud services. As more businesses adopt cloud computing, Telcos are moving toward expanded cloud offerings and strategic alliances with international cloud providers. For instance, Saudi Arabia Telecom’s data center in Dubai recently introduced an IaaS powered by OpenStack. In addition, the company intends to open additional data centers in Saudi Arabia and Qatar. Dubai Parks and Resorts, Khalifa University, and Arabic game developer Onemt are the company’s clients.
Furthermore, the UAE market is expected to have the highest revenue share in the Middle East public cloud industry during the forecast period. UAE organizations were the first to adopt cloud-based applications, and as a result, they outperformed other countries in terms of development. UAE has had a high adoption rate in recent years and is expected to have the highest growth rate. In the current era of globalization, UAE businesses must stay ahead of their rivals in the technological sector. It is profitable for these companies to outsource services to a third-party cloud-managed service provider. As a result, businesses in the Middle East are increasingly turning to cloud computing to cut time and costs.
What is the regulatory landscape for the Middle East public cloud market?
The demand for public cloud infrastructure services in the Middle East is driven by the government’s ambitious ideals and robust economic growth. The pandemic, government expenditures on significant smart city and public administration projects, and the accessibility of a broadening range of data centers and managed hosting options to support enterprise adoption of emerging technology are all contributing to the Middle East’s rapid adoption of cloud computing. Regional and hyperscale providers are scrambling to keep up with the demand for cloud services. In addition, over the past few years, numerous data centers from major players like Oracle, Amazon Web Services (AWS), Microsoft, and IBM have popped up throughout the Middle East, enhancing the already established cloud presence of SAP, Alibaba, and other regional cloud providers. Digital technologies are developing despite several obstacles that prevent widespread cloud adoption, such as skills gaps, security issues, and data sovereignty regulatory regulations. Governments in the region are allowing businesses to take advantage of cloud-based solutions as the Middle East is a hub for innovation and technology, accelerating the uptake of cloud-based solutions over the forecast period.
What is the Market Size of the Middle East Public Cloud regarding value?
The Middle East public cloud market is anticipated to grow at a notable CAGR of 9.55% in the upcoming years. The Middle East public cloud industry, which was valued at USD 10,693.80 million in 2023, is expected to reach USD 24,480.38 million by 2032.
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What are the major players planning for the future of the Middle East public cloud market?
Rapidly increasing cloud adoption results from the cloud’s ability to deliver services over the network effectively and affordably. In addition to the governments in the area, the Banking, Financial Services, and Insurance (BFSI), as well as the energy and utility verticals, use cloud-based computing services. Industry titans such as AWS, Oracle, IBM, and Google are expanding their operations in the Middle East public cloud market by launching regional initiatives. The region’s continued expansion of cloud adoption is creating new business opportunities for cloud service providers. Cloud vendors are investigating the possibility of further expansion. For instance, Microsoft opened data centers in Dubai and Abu Dhabi in June 2019 to broaden its reach and provide cloud computing services to customers in the region. Oracle opened a regional hub in Saudi Arabia, Jeddah, for its cloud data center in MEA in July 2020. The company declared its intent to establish an Oracle Cloud Infrastructure (OCI) data center in Israel in December 2020. Similarly, Saudi Ground Service (SGS) chose Oracle Cloud Infrastructure (OCI) in February 2021 to migrate its IT services locally. It will enable rapid operational scale, capitalize on cost-effectiveness, and build a future-ready digital technology ecosystem.
Segmentation of the Middle East Public Cloud Market-
Middle East Public Cloud Market – By Computing
- Cloud Billing
- Cloud Communication Platform
- Cloud Access Security
- Cloud High-Performance Computing
- Cloud Infrastructure
Middle East Public Cloud Market – By Service
Middle East Public Cloud Market – By Organization Size
- Small & Medium Enterprise
- Large Enterprise
Middle East Public Cloud Market – By Industry
- Manufacturing
- BFSI
- Healthcare
- Retail
- Government
- Aerospace & Defence
- IT & Telecommunication
- Others
Middle East Public Cloud Market – By Region
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of Middle East and Africa
