UAE Hybrid Cloud Market Research Report, 2030

The UAE Hybrid Cloud Market is undergoing significant transformation, supported by a growing emphasis on digital transformation across both public and private sectors. The country’s push toward smart governance, particularly through initiatives like the UAE Digital Government Strategy 2025 and Dubai’s Smart City plan, has driven demand for scalable and flexible cloud infrastructures. Enterprises in sectors such as banking, government, and retail are increasingly shifting to hybrid cloud models to strike a balance between data control and operational flexibility. Given the UAE's sensitivity to data residency and sovereignty especially in regulated industries like finance and healthcare the hybrid model allows firms to keep critical data on-premises while taking advantage of public cloud scalability. Additionally, the government’s cloud-first policies are prompting ministries and federal entities to adopt hybrid cloud frameworks to support digital services, AI integration, and automation in citizen services. Energy and utilities, another key sector in the UAE, are exploring hybrid cloud to support real-time monitoring, predictive maintenance, and industrial IoT. Multinational cloud providers like Microsoft and Oracle have established regional data centers in Abu Dhabi and Dubai to cater to growing regional demand, reducing latency and addressing compliance concerns. Simultaneously, local firms such as G42 Cloud are playing a strategic role in national digital infrastructure. Furthermore, the hybrid cloud is acting as a catalyst for innovation in data analytics, cybersecurity, and intelligent automation, especially in sectors handling high volumes of structured and unstructured data. According to the research report "UAE Hybrid Cloud Market Research Report, 2030," published by Actual Market Research, the UAE Hybrid Cloud market is anticipated to grow at more than 18.42% from 2025 to 2030. The UAE Hybrid Cloud Market is expected to grow steadily owing to a blend of regulatory alignment, digital priorities, and industry-specific use cases. One of the primary drivers is the UAE’s progressive regulatory framework that has introduced guidelines to secure cloud adoption while promoting innovation. For instance, the UAE Central Bank’s guidelines on outsourcing in financial services indirectly promote hybrid cloud adoption by supporting infrastructure flexibility while ensuring security and control. Similarly, the Dubai Electronic Security Center has issued cloud security standards that make hybrid models a practical choice for compliance. Apart from regulations, the need for agility, cost-efficiency, and localized data hosting is driving adoption among both large enterprises and SMEs. Retail and e-commerce firms are leveraging hybrid models to balance seasonal workloads while preserving customer data confidentiality. Tourism-related businesses are also using hybrid cloud solutions to personalize customer experiences through AI and analytics while securing transaction data. Another significant growth enabler is the increasing cyber resilience needs in sectors like oil & gas and aviation, where hybrid cloud enables disaster recovery and business continuity across distributed environments. The pandemic further accelerated cloud initiatives in the education and healthcare sectors, with hybrid cloud enabling scalable virtual environments for e-learning and telemedicine, which continue to evolve. Investments in AI, big data, and blockchain, as outlined in the UAE’s national innovation strategy, are being supported through hybrid infrastructure capable of hosting diverse workloads.

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Software as a Service (SaaS) leads the hybrid cloud landscape in the UAE, driven by the widespread enterprise adoption of collaboration tools, customer relationship management (CRM), enterprise resource planning (ERP), and HR management platforms. Public and semi-government organizations are increasingly relying on SaaS-based tools to streamline workflows, reduce capital expenditure, and support mobile workforce models. Platforms such as Microsoft 365, Salesforce, and Oracle Cloud applications are in strong demand, especially within education, public administration, and finance. The flexibility to integrate SaaS with legacy systems via hybrid cloud makes this model particularly attractive. Infrastructure as a Service (IaaS) continues to be relevant for entities seeking control over computing resources, especially in defense, logistics, and government-linked industrial zones where data customization and latency concerns exist. However, it is Platform as a Service (PaaS) that is showing the fastest growth, as UAE-based developers and IT teams adopt cloud-native development environments to accelerate deployment of AI, analytics, and IoT applications. The push toward low-code and no-code platforms is also fostering PaaS adoption, especially in financial services and government sectors looking to rapidly launch digital services without overhauling their IT stack. The availability of regional PaaS offerings by hyperscalers, integrated with local compliance features, has encouraged innovation-driven startups and mid-tier enterprises to build, test, and scale applications without heavy upfront investment. Solution-based offerings dominate the UAE Hybrid Cloud Market due to the immediate demand for virtualization tools, orchestration platforms, container management systems, and cloud management consoles. Organizations are investing in these core solutions to enable seamless workload mobility, data integration, and security enforcement across hybrid environments. Industries like utilities and healthcare are deploying hybrid cloud solutions to unify patient databases or optimize energy grid data, ensuring continuity between on-premises infrastructure and public cloud providers. Similarly, sectors like real estate and construction are using hybrid solutions for centralized project management while retaining autonomy over proprietary data. The demand for cloud security solutions, particularly those tailored for hybrid setups such as Zero Trust Architecture and multi-cloud access controls has seen notable growth. Meanwhile, services are emerging as the fastest-growing segment, driven by the increasing complexity of hybrid deployments and the skills gap in cloud-native architecture and DevOps. UAE-based firms are increasingly relying on managed service providers (MSPs), system integrators, and cloud consultants to assess readiness, design hybrid architecture, ensure migration success, and provide ongoing optimization. The growing use of hybrid DevOps practices is also pushing demand for continuous integration/continuous deployment (CI/CD) support services. Government-related digital transformation projects often involve extensive customization, security audits, and data classification assessments all of which fall under professional and managed service offerings. Hybrid cloud adoption in the UAE varies significantly by enterprise size. Large enterprises dominate usage, particularly in industries like finance, energy, telecom, aviation, and public sector entities. These organizations typically operate complex IT environments and are focused on creating unified hybrid architectures that support business continuity, compliance, and high performance. Banks and insurance firms, for instance, are implementing hybrid cloud to facilitate digital onboarding, fraud detection, and real-time analytics while adhering to stringent regulatory frameworks. Telecom operators are deploying hybrid cloud for network function virtualization (NFV), 5G infrastructure support, and customer analytics platforms. Multinational companies with operations in the UAE often leverage hybrid models to comply with local data residency rules while connecting with global infrastructure. However, the fastest growth is occurring among Small and Medium-sized Enterprises (SMEs), particularly in tech startups, education providers, and professional service firms. With the rise of government programs such as the National Program for SMEs and the Abu Dhabi Hub71 startup initiative, smaller enterprises are being encouraged to embrace cloud for scalability and efficiency. Hybrid cloud offers these firms the ability to access enterprise-grade tools without incurring heavy CapEx, especially for functions like accounting, CRM, and content management. Furthermore, UAE-based cloud service providers are introducing cost-effective hybrid bundles and localized support for SMEs, lowering barriers to entry. For SMEs focused on innovation or rapid scaling, hybrid cloud provides the agility to develop in public cloud while maintaining critical data in-house.

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Nikita Jabrela

Business Development Manager

Considered in this report • Historic Year: 2019 • Base year: 2024 • Estimated year: 2025 • Forecast year: 2030 Aspects covered in this report • Hybrid Cloud Market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Service Model • Software as a Service (SaaS) • Infrastructure as a Service (IaaS) • Platform as a Service (PaaS)

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By Component • Solution • Services By Enterprise Size • Large Enterprises • Small and Medium-sized Enterprises The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.