Cloud Computing in the Middle East: A Growing Market

4 min readJan 28, 2025

The Middle East is experiencing a surge in cloud computing adoption, driven by government initiatives to establish robust digital infrastructure and the increasing presence of major cloud providers in the region. While the Middle East’s cloud market is still maturing compared to North America and Europe, it presents significant potential for growth and expansion.

Market Size and Growth

The Middle East and Africa cloud computing market generated USD 53,383.5 million in 2023 and is projected to reach USD 178,521.1 million by 2030, exhibiting a compound annual growth rate (CAGR) of 18.8% This growth is fueled by several factors, including:

Government investments in digital infrastructure: Governments in the region are actively promoting digital transformation initiatives, leading to increased investments in cloud infrastructure and services.
Expansion of public cloud providers: Major cloud providers like AWS, Microsoft, Google, Oracle, and Alibaba are establishing cloud regions in countries like Saudi Arabia, the UAE, and Qatar, expanding their presence and offerings in the Middle East.
Increasing adoption of advanced technologies: The growing adoption of technologies like AI and IoT is further driving the demand for cloud computing resources and services.
Rising demand for scalability and flexibility: Businesses in the region are increasingly turning to cloud solutions to enhance operational efficiency, reduce costs, and gain a competitive edge.

Key Market Players

The Middle East cloud computing market is characterized by the presence of both global and regional players. Major global players include:

Amazon Web Services (AWS)
Microsoft Azure
Google Cloud
IBM Cloud
Oracle Cloud
Alibaba Cloud

Regional players like eHosting DataFort and du also contribute significantly to the market, offering local expertise and support.

Cloud Data Centers in the Middle East and North Africa

The Middle East and North Africa are witnessing a rapid expansion of cloud data centers, driven by the increasing demand for cloud services and the growing presence of major cloud providers in the region. Here’s an overview of the current and planned cloud data centers:

Existing Cloud Data Centers:

AWS: 3 cloud regions in the Middle East (Bahrain, UAE, and Saudi Arabia)
Microsoft Azure: 4 cloud regions in the Middle East (UAE, Qatar, and 2 in Saudi Arabia)
Google Cloud: 3 cloud regions in the Middle East (Kuwait, Qatar, and Saudi Arabia)
Oracle Cloud: 5 commercial cloud regions in the Middle East (2 in UAE, 2 in Saudi Arabia, and 1 in Jerusalem)
IBM Cloud: Data centers in Egypt and the UAE
Alibaba Cloud: 2 cloud regions in the Middle East (Saudi Arabia and UAE)
Huawei Cloud: 2 cloud regions in the Middle East (Egypt and Saudi Arabia)

Planned Cloud Data Centers:

Tencent Cloud: Plans to expand its cloud business in Saudi Arabia and the UAE

This expansion of cloud data centers is expected to further accelerate cloud adoption in the region, providing businesses with greater access to cloud services and enabling them to leverage the benefits of cloud computing for innovation, growth, and digital transformation.

Challenges and Opportunities

Despite the positive growth trajectory, the Middle East cloud computing market faces certain challenges:

Security concerns: Data security and privacy remain top concerns for organizations considering cloud adoption.
Legacy infrastructure: Many organizations still rely on legacy IT infrastructure, which can make the transition to the cloud more complex.
Skills gap: There is a shortage of skilled professionals with expertise in cloud technologies.
Limited colocation options: Restricted access to cloud computing environments and a lack of established colocation options can hinder cloud adoption.

However, these challenges also present opportunities for growth and development:

Investing in cybersecurity: Addressing security concerns by implementing robust security measures and best practices can foster trust and encourage cloud adoption.
Modernizing legacy applications: Modernizing or remediating existing applications can make them more suitable for cloud environments and unlock the full potential of cloud technologies.
Developing cloud talent: Investing in training and development programs can help bridge the skills gap and create a skilled workforce for the growing cloud market.
Expanding colocation options: Increasing the availability of colocation facilities can provide more choices for businesses and enhance the resilience of cloud infrastructure.

Conclusion

The Middle East cloud computing market is poised for significant growth in the coming years. By addressing the challenges and capitalizing on the opportunities, the region can unlock the full potential of cloud computing and drive innovation, economic growth, and digital transformation.

References

Grandviewresearch.com. (2025). Middle East & Africa Cloud Computing Market Size & Share Report, 2030. Available at: https://www.grandviewresearch.com/horizon/outlook/cloud-computing-market/mea.

Fortecloud.com. (2025). Cloud Computing in MENA: Key Trends and Insights. Available at: https://fortecloud.com/business/cloud-computing-in-mena/.

IDC. (2024). EMEA Public Cloud Services Market Poised for Rapid Growth, Reaching $415 Billion by 2028. Available at: https://www.idc.com/getdoc.jsp?containerId=prMETA52761324.

Bombaysoftwares.com. (2025). The Rise of Cloud Computing in the Middle East. Available at: https://www.bombaysoftwares.com/blog/the-rise-of-cloud-computing-in-the-middle-east.

Enreap.com. (2025). The Middle East’s Cloud Revolution: Navigating Challenges and Capitalizing on Opportunities. Available at: https://enreap.com/the-middle-easts-cloud-revolution-navigating-challenges-and-capitalizing-on-opportunities/.

Ascendcloudsolutions.com. (2025). The State of the Cloud in the Middle East 2024. Available at: https://www.ascendcloudsolutions.com/the-state-of-the-cloud-in-the-middle-east-2024.