Middle East Public Cloud Market 2025 | Size, Share, Trends, and Key Players Forecast to 2033

Middle East Public Cloud Market Overview

Market Size in 2024: USD 38.5 Billion

Market Size in 2033: USD 235.7 Billion

Market Growth Rate 2025-2033: 19.86%

According to IMARC Group's latest research publication, "Middle East Public Cloud Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", Middle East public cloud market size reached USD 38.5 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 235.7 Billion by 2033, exhibiting a growth rate (CAGR) of 19.86% during 2025-2033.

How AI is Reshaping the Future of Middle East Public Cloud Market

• Sovereign AI Infrastructure: Major cloud providers are establishing AI-specific data centers, with the PIF-Google Cloud partnership creating a new global AI hub near Dammam that will process billions of data points while ensuring data sovereignty and regulatory compliance.

• Hyperscale AI Services: UAE's du telecommunications is deploying Oracle Alloy to offer first-of-its-kind hyperscale cloud and sovereign AI services, revolutionizing how government and enterprise sectors access advanced AI capabilities through secure, locally-hosted cloud infrastructure.

• Intelligent Automation Platforms: Cloud-based AI services are automating complex business processes, with organizations reporting 45% faster decision-making and 60% reduction in operational costs through machine learning-powered analytics and predictive modeling integrated directly into cloud environments.

• Advanced Data Analytics: AI-enhanced cloud platforms are enabling real-time processing of IoT device data, allowing smart cities initiatives in Saudi Arabia and UAE to manage millions of connected sensors and optimize urban infrastructure through cloud-native AI solutions.

• Generative AI Integration: Cloud providers are embedding generative AI capabilities into their platforms, with the Middle East GCC region seeing rapid adoption as organizations leverage AI-powered content creation, code generation, and automated customer service solutions directly through cloud interfaces.

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Middle East Public Cloud Market Trends & Drivers:

• Government-backed digital transformation initiatives are supercharging cloud adoption across the Middle East region. Saudi Arabia's Vision 2030 and UAE's national AI strategy have created unprecedented demand for cloud infrastructure, with major hyperscale providers like Microsoft, AWS, and Google Cloud establishing regional data centers to meet growing needs. The Saudi government's investment in cloud computing infrastructure has reached $15 billion, while Microsoft completed construction of its Saudi Arabia cloud region set to launch in 2026. These strategic investments are driving enterprise cloud adoption rates of over 75% among large organizations, with pay-as-you-go models perfectly aligning with the region's dynamic business environment and economic diversification goals.
• The explosive growth of AI and machine learning applications is reshaping cloud service demand throughout Middle Eastern markets. Organizations are increasingly leveraging cloud platforms for AI-powered solutions, with the UAE's MGX fund reaching $100 billion in assets to support AI infrastructure development. Cloud-based AI services are enabling businesses to implement sophisticated analytics, automated decision-making, and predictive modeling without massive upfront investments. Smart cities initiatives across Saudi Arabia and the UAE are consuming massive cloud resources to process data from millions of IoT devices, while financial institutions are using cloud-native AI to detect fraud patterns and optimize trading algorithms in real-time.
• Industry-specific cloud solutions are driving adoption across key sectors including banking, healthcare, and energy. The banking sector has been particularly aggressive, with one Abu Dhabi bank building 50,000 customers in just eight months using cloud-based digital banking platforms. Healthcare organizations are leveraging cloud infrastructure to support telemedicine and patient data analytics, while energy companies are using cloud services for exploration data processing and predictive maintenance. The region's focus on becoming a global technology hub has created strong demand for cloud services that support everything from fintech startups to large-scale manufacturing operations.

Middle East Public Cloud Industry Segmentation:

The report has segmented the market into the following categories:

Service Insights:

• Infrastructure as a Service (IaaS)
• Platform as a Service (PaaS)
• Software as a Service (SaaS)

Enterprise Size Insights:

• Large Enterprises
• Small and Medium-sized Enterprises

End Use Insights:

• BFSI
• IT and Telecom
• Retail and Consumer Goods
• Manufacturing
• Energy and Utilities
• Healthcare
• Media and Entertainment
• Government and Public Sector
• Others

Breakup by Region:

• Saudi Arabia
• Turkey
• Israel
• United Arab Emirates
• Iran
• Iraq
• Qatar
• Kuwait
• Oman
• Jordan
• Bahrain
• Others

Recent News and Developments in Middle East Public Cloud Market

• January 2025: Microsoft announced plans to develop an Azure cloud region in Kuwait, expanding its Middle East presence following successful deployments in Qatar, UAE, and Israel, with the new facility expected to serve government and enterprise clients across the Gulf region.

• February 2025: The Saudi Public Investment Fund and Google Cloud launched their advanced AI hub near Dammam, featuring sovereign cloud infrastructure designed to process sensitive government and enterprise data while maintaining full compliance with local data residency requirements.

• March 2025: G42 and Microsoft unveiled their joint sovereign cloud offering in the UAE, providing public sector and regulated industries with secure access to advanced AI technologies while ensuring complete data sovereignty and regulatory compliance for sensitive workloads.

• April 2025: Amazon Web Services announced a $5.2 billion investment to expand its cloud infrastructure across the Middle East, including new data centers in Saudi Arabia and enhanced AI capabilities to support the region's growing demand for machine learning and analytics services.

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players in the Middle East public cloud market, including major hyperscale providers and regional technology partners.

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