Increasing government initiatives to create an effective integrated business environment to boost Cloud Database and DBaaS Market growth.
The Middle East & Africa region’s leading center for international trade and business, the UAE, is a fiercely competitive market for the ICT sector. Initiatives from the UAE government aim to create a competitive knowledge economy and a free, effective, efficient, and globally integrated business environment to lessen reliance on oil revenue and expand the private sector. To promote the growth of the knowledge-based economy, the UAE government is taking several actions. UAE businesses are increasingly migrating their data infrastructure to the cloud. This shift is driven by the benefits of scalability, cost-effectiveness, and remote accessibility offered by cloud databases.
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Source: Interviews with Experts, Whitepapers, MarketsandMarkets Analysis
Fueled by a growing demand for digital services and data-driven decision-making, organizations in the UAE have increasingly embraced cloud-based database solutions; this includes both traditional(SQL) and NoSQL databases hosted on private clouds and, in some cases, public clouds to accommodate a wide range of workloads. With a strong focus on cost management and the integration of artificial intelligence and analytics, the UAE’s cloud database and DBaaS market reflects its commitment to digital innovation and data management solutions to meet the challenges and opportunities of the digital age.
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Private cloud deployment models are growing at a higher CAGR in the UAE. The region is experiencing rapid growth in cloud adoption and digital transformation initiatives. Many organizations in the UAE are considering various cloud deployment models, including private cloud, to meet their specific business requirements and regulatory compliance. Remote cloud deployment offers greater control and security for sensitive data, making it an attractive choice for regional businesses. Data security and compliance with local regulations were a significant concern for companies in the UAE. Private clouds, which can be hosted locally or in a data center, were favored for sensitive data and applications to ensure compliance with local data sovereignty laws. Data-driven decision-making is a priority, and the UAE saw increased demand for cloud-based analytics and artificial intelligence (AI) solutions.
In industries like healthcare,space, aviation, aerospace, defense, transportation, retail, financial services, hospitality, and those connected to the UAE’s economic diversification plans, investment drives demand for ICT goods and services. The UAE is one of the Middle East’s most significant data center hubs. The UAE invests heavily in smart city initiatives, with projects like Smart Dubai. These projects use IoT, AI, and data analytics technologies to enhance urban living, transportation, and sustainability. According to the Trade Administration, by 2026, up to USD 1 billion in additional investments are anticipated. Microsoft Azure introduced two cloud regions in Dubai and Abu Dhabi in 2019. Amazon Web Services data center region in the UAE public is active. The Middle East (UAE) Region has three Availability Zones that users can use to reliably spread applications across multiple data centers. Oracle announced the launch of its second cloud region in Abu Dhabi in November 2021, following its cloud region in Dubai. Etisalat and G42 Cloud, owned by the government, also have a sizable data center. These trends highlight the UAE’s commitment to adopting cloud database and DBaaS solutions to drive digital transformation, enhance data-driven decision-making, and ensure data security and resilience.
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