As per MRFR analysis, the GCC Cloud Infrastructure Services Market Size was estimated at 0.84 (USD Billion) in 2023. The GCC Cloud Infrastructure Services Market Industry is expected to grow from 1.1(USD Billion) in 2024 to 4.5 (USD Billion) by 2035. The GCC Cloud Infrastructure Services Market CAGR (growth rate) is expected to be around 13.663% during the forecast period (2025 - 2035)
Key GCC Cloud Infrastructure Services Market Trends Highlighted
The growing need for digital transformation among the region's enterprises and government organizations has been driving notable developments in the GCC Cloud Infrastructure Services Market. Cloud technology investments have surged as a result of initiatives like the United Arab Emirates' National Innovation Strategy and Saudi Arabia's Vision 2030. These government-led frameworks promote collaboration in the private sector, which accelerates the use of cloud services in a number of sectors, such as logistics, healthcare, and finance. The necessity for regional cloud data centers has also been fueled by a growing emphasis on improving local data residency and adhering to regional rules.Â
Opportunities are still being investigated in fields like cloud security solutions, which are becoming more and more important as businesses move to cloud environments. Additionally, the increase of small and medium-sized businesses (SMEs) in the GCC is creating a need for cloud solutions that are adaptable and scalable in order to meet their expansion goals. Cloud services are also incorporating cutting-edge technology like machine learning and artificial intelligence, which offer more chances for efficiency and innovation.
As businesses look to avoid vendor lock-in and take advantage of the finest solutions from several providers, trends show a noticeable shift towards hybrid and multi-cloud strategies.
This development demonstrates the significance of interoperability and flexibility in cloud services. In order to satisfy commercial and regulatory requirements, cloud service providers in the GCC are also giving priority to energy-efficient solutions and sustainable infrastructure as a result of the growing emphasis on sustainable practices. All things considered, the GCC Cloud Infrastructure Services Market is poised for sustained expansion and advancement.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
GCC Cloud Infrastructure Services Market Drivers
Increasing Digital Transformation Initiatives
The GCC region is witnessing a surge in digital transformation initiatives across various sectors, which significantly drives the growth of the GCC Cloud Infrastructure Services Market Industry. The United Arab Emirates, for instance, aims to enhance its digital economy under the UAE Vision 2021, targeting a 20% increase in digital services utilization by 2025 as per government data. This commitment is resulting in substantial investments in cloud infrastructure from leading organizations such as Amazon Web Services and Microsoft Azure.
In 2021 alone, the UAE invested approximately 1.2 billion USD into information technology and communications, demonstrating a clear trajectory towards increased reliance on cloud services. Organizations are leveraging these services to boost operational efficiency and innovate business models, further solidifying the foundational tech ecosystem that accelerates the cloud infrastructure market growth in the GCC region.
Government Support and Regulations
Government policies in the GCC are increasingly supportive of cloud infrastructure adoption, propelling market growth in the GCC Cloud Infrastructure Services Market Industry. Initiatives such as the Saudi Vision 2030 in Saudi Arabia emphasize digital transformation and cloud adoption across public and private sectors, allocating approximately 20 percent of national budgetary resources towards technology advancements.Â
Moreover, the introduction of the Bahraini cloud-first policy mandates that government agencies use cloud solutions as their primary method for IT service delivery, thereby expanding the market's potential.With established organizations like STC Cloud and Batelco enhancing their service offerings in response to these regulations, the GCC cloud infrastructure market is projected to see sustained growth.
Rising Adoption of Big Data and Analytics
The rising need for big data and analytics across industries is a crucial factor driving the growth of the GCC Cloud Infrastructure Services Market. Market data indicates that organizations in the GCC region generated 58.4 million terabytes of data in 2022, a figure projected to double by 2025 as the importance of data-driven decision-making increases.Â
Regional firms such as Emirates Group and Qatari telecom company Ooredoo are increasingly leveraging cloud-based analytics to enhance customer experiences and optimize operations.Such investments signal a growing reliance on cloud infrastructure, with corporations looking to harness the power of data while maintaining scalability and flexibility.
Cloud Infrastructure Services Market Service Model Insights
The GCC Cloud Infrastructure Services Market demonstrates a robust and dynamic landscape, especially within the Service Model segment, which encompasses Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Each of these models contributes significantly to the overall market growth, reflecting the increasing adoption of cloud technologies across various industries in the region. The GCC governments are driving digital transformation initiatives, establishing cloud-first policies that promote IaaS as a scalable and flexible solution, allowing businesses to leverage on-demand resources while managing costs effectively.
This adaptability is particularly crucial for startups and small enterprises aiming to optimize their IT infrastructure without heavy upfront investments.
Platform as a Service holds immense significance as it offers developers essential tools and services for building, testing, and deploying applications with ease, facilitating innovation and reducing the time-to-market for new solutions. The growing demand for DevOps solutions and agile development practices within the GCC underscores the vitality of PaaS in enabling collaborative environments. Conversely, Software as a Service remains dominant due to its user-friendly access to applications over the internet, minimizing the need for extensive hardware and enabling organizations to focus on their core competencies.
This model also accommodates a subscription-based payment structure, enhancing financial flexibility for companies in the region. The rapid digitalization efforts in sectors such as healthcare, finance, and education are further solidifying the relevance of SaaS as these industries increasingly recognize the benefits of leveraging cloud-based solutions for improved operational efficiencies. The GCC Cloud Infrastructure Services Market continues to evolve, showing promising growth potential driven by technological advancements, increased demand for data security, and a burgeoning digital economy.
Challenges such as regulatory hurdles and cybersecurity threats remain, but they also provide opportunities for developing more robust and secure cloud solutions tailored to the unique needs of the GCC region.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Cloud Infrastructure Services Market Deployment Type Insights
The Deployment Type segment of the GCC Cloud Infrastructure Services Market is a critical focus area, encompassing Public Cloud, Private Cloud, and Hybrid Cloud solutions. The Public Cloud demonstrates substantial adoption due to its scalability and cost-effectiveness, often preferred by businesses looking to minimize IT expenses and maximize operational efficiency. Meanwhile, the Private Cloud caters to organizations prioritizing security and regulatory compliance, making it essential for industries like finance and healthcare. The Hybrid Cloud offers flexibility, combining the advantages of both Public and Private Clouds, thereby gaining traction among companies aiming for a tailored approach to their infrastructure needs.
As the digital transformation accelerates across the GCC region, driven by initiatives promoting innovation and technological advancements, the demand for these deployment types is expected to rise significantly. The region’s investment in smart cities and digital economies further aligns with the growth of the GCC Cloud Infrastructure Services Market, creating opportunities for enhanced data management and service delivery across all segments, thus supporting market growth and diversification.
Cloud Infrastructure Services Market End User Insights
The GCC Cloud Infrastructure Services Market is witnessing a notable transformation in its end-user segment, driven by the demands of diverse entities, including Small and Medium Enterprises (SMEs), Large Enterprises, and Government bodies. SMEs are increasingly adopting cloud solutions to enhance operational efficiency and reduce costs, thereby fueling market growth. Large Enterprises, on the other hand, are leveraging these services to improve scalability and data management, often leading to significant investments in advanced technologies. Meanwhile, Government entities in the GCC are focusing on digital transformation initiatives, promoting innovation and improving public services through cloud adoption.
This trend is supported by strategic government initiatives aimed at enhancing the digital economy. In addition, the strong emphasis on data sovereignty and security measures has reinforced the significance of cloud infrastructure in the region. The GCC Cloud Infrastructure Services Market showcases a promising landscape where the interplay between these End Users is expected to drive growth and evolution, reflecting an overarching regional ambition towards digitalization and smart governance. As the market progresses, the collaboration between enterprises and government will likely pave the way for enhanced service offerings and technologies, further invigorating this dynamic market segment.
Cloud Infrastructure Services Market Industry Vertical Insights
The GCC Cloud Infrastructure Services Market is experiencing significant growth driven by various industry verticals that emphasize digital transformation. The IT and Telecommunications sector represents a major share, as companies seek to enhance their operational efficiencies and deliver improved services to customers. The increasing reliance on data and connectivity in this sector fuels the demand for reliable cloud solutions, making it a key contributor to market growth. In the Healthcare vertical, the focus is on leveraging cloud technology to enhance patient care through efficient data management and telemedicine solutions, driving innovation and improving healthcare delivery across the region.
This sector recognizes the importance of cloud infrastructure for storing sensitive patient information securely and facilitating seamless communication among healthcare professionals. The Retail sector also plays a crucial role, as retailers adopt cloud services to streamline their operations, optimize supply chains, and personalize the shopping experience for customers. The ability to leverage cloud data analytics helps businesses make informed decisions to meet consumer demands effectively. Each of these verticals embodies unique challenges and opportunities, which collectively contribute to the overall advancement of the GCC Cloud Infrastructure Services Market.
GCC Cloud Infrastructure Services Market Key Players and Competitive Insights
The GCC Cloud Infrastructure Services Market has seen substantial growth and transformation, driven by the increasing demand for scalable and efficient cloud solutions across various businesses and sectors. This market is characterized by a competitive landscape where multiple players vie for leadership through innovative technologies, strategic partnerships, and tailored service offerings. As businesses in the GCC region shift towards digital transformation, cloud infrastructure services have become essential for enhancing operational efficiency and enabling seamless access to advanced services.Â
The dynamic nature of this market is further amplified by the influence of government initiatives aiming to foster technology adoption and the establishment of smart cities across the region.Oracle has carved a significant niche for itself within the GCC Cloud Infrastructure Services Market by offering a comprehensive suite of cloud solutions tailored to meet the unique needs of local businesses. The company has established a strong presence by leveraging its deep expertise in enterprise software and cloud technology, highlighting its strengths in providing robust, secure, and highly available cloud services that are optimized for data-intensive applications.
Oracle's advanced cloud infrastructure services cater to various sectors, including finance, healthcare, and government, allowing clients to adopt innovative technologies such as artificial intelligence and machine learning seamlessly.Â
This positioning, along with Oracle's commitment to local data regulations and compliance, significantly enhances its attractiveness in the GCC market.With its early investments, regional infrastructure, and solid alliances, Microsoft is dominating the GCC cloud infrastructure services industry. In keeping with national goals for digital transformation, the company has set up Azure data center regions in the United Arab Emirates and is growing into Saudi Arabia and Kuwait. Azure is very appealing to governments and businesses because of these features, which guarantee data sovereignty, minimal latency, and regulatory compliance.Â
By offering cutting-edge services that are suited to local requirements, such as AI, hybrid cloud, analytics, and machine learning, Microsoft strengthens its position as a leader. Its ecosystem and consumer reach are further strengthened through strategic partnerships like those with Etisalat Digital and Ooredoo. Microsoft has established itself as a major force propelling cloud adoption and digital innovation throughout the GCC area by fusing cutting-edge technologies with regional operations and emphasizing sovereignty and scalability.
Key Companies in the GCC Cloud Infrastructure Services Market Include
GCC Cloud Infrastructure Services Market Industry Developments
The GCC Cloud Infrastructure Services Market has seen significant developments recently, with Oracle announcing its plans to set up a cloud region in Saudi Arabia to bolster local data residency and security in August 2023.Microsoft and Dubai's Emirates Integrated Telecommunications Company (du) announced a strategic alliance in April 2025 to construct and run a new hyperscale data center in the United Arab Emirates. Microsoft will be the anchor cloud tenant, and the facility will be owned and operated by du, increasing the capacity of the national cloud.
Zoom chose Oracle Cloud Infrastructure in February 2025 to power its AI-first work platform in Saudi Arabia. Zoom AI Companion inferencing from Oracle's Riyadh and Jeddah cloud regions is now made possible by OCI, enhancing service delivery for Saudi clients while meeting local performance and data residency standards. A collaborative AI hub proposal in the Kingdom was advanced in May 2025 by Google Cloud and the Public Investment Fund of Saudi Arabia in collaboration with the Saudi technology startup Humain.
In order to speed up the country's digital transformation across priority industries, the program focuses on developing skills, generative AI services, and local cloud infrastructure.
The growth rate in the GCC Cloud Infrastructure sector is projected to accelerate, driven by increased digital transformation initiatives, with major players like IBM and Google Cloud continuously expanding their services. In terms of mergers and acquisitions, STC has actively pursued opportunities, including its acquisition of a 51% stake in the Saudi information technology firm, NComputing. Over the past few years, from 2021 to 2023, the GCC Cloud Infrastructure Services Market has been propelled by substantial investments and government support towards digital economy initiatives, enhancing regional capabilities and competitiveness.
GCC Cloud Infrastructure Services Market Segmentation Insights
Cloud Infrastructure Services Market Service Model Outlook
Cloud Infrastructure Services Market Deployment Type Outlook
Cloud Infrastructure Services Market End User Outlook
Cloud Infrastructure Services Market Industry Vertical Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 0.84(USD Billion) |
| MARKET SIZE 2024 | 1.1(USD Billion) |
| MARKET SIZE 2035 | 4.5(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 13.663% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Oracle, Dell Technologies, Mitel, Accenture, Amazon Web Services, Etisalat, Axiom Telecom, Tencent Cloud, IBM, Ooredoo, Alibaba Cloud, Nokia, Microsoft, STC, Google Cloud |
| SEGMENTS COVERED | Service Model, Deployment Type, End User, Industry Vertical |
| KEY MARKET OPPORTUNITIES | Increased demand for digital transformation, Rising adoption of hybrid cloud solutions, Expansion of e-commerce platforms, Growing investments in cybersecurity services, Government initiatives for smart cities |
| KEY MARKET DYNAMICS | increased cloud adoption, evolving regulatory landscape, rising demand for scalability, growing cybersecurity concerns, competitive pricing strategies |
| COUNTRIES COVERED | GCC |
Frequently Asked Questions (FAQ):
The GCC Cloud Infrastructure Services Market is expected to be valued at 1.1 billion USD in 2024.
By 2035, the market is projected to reach a value of 4.5 billion USD.
The expected CAGR for the market during this period is 13.663%.
Infrastructure as a Service is anticipated to experience the largest growth, reaching 1.9 billion USD by 2035.
The Software as a Service segment is valued at 0.3 billion USD in 2024.
Key players include Oracle, Dell Technologies, Accenture, Amazon Web Services, and Microsoft among others.
Platform as a Service is projected to reach 1.2 billion USD by 2035.
Current global dynamics present both opportunities and challenges, impacting growth trajectories in the market.
Increasing digital transformation initiatives and the demand for scalable solutions are key drivers of growth.
Infrastructure as a Service is valued at 0.5 billion USD in 2024.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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