UAE SaaS market expected to valued at $30.52 billion by 2029

UAE is one of the Middle East’s leading hubs for data centers

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Published: Mon 24 Jun 2024, 4:00 PM

Last updated: Mon 24 Jun 2024, 4:01 PM

Rising government efforts, digital transformation, and increased acceptance of cloud computing to spur growth, the UAE Software as a Service Market (SaaS) is predicted to grow rapidly over the projected period, research shows.

According to a recent report by Blueweave Consulting, the UAE SaaS market size is projected to grow at a CAGR of 27.93 per cent reaching a value of $30.52 billion by 2029. Its size was estimated at $5.49 billion in 2022.

Major growth factors for the UAE market “include the rising company needs for a single solution to assist them in resolving business issues. SaaS solutions like CRM and supply chain management are gaining huge traction among UAE businesses, especially with the increasing automation in the business process, which is also influencing the growth of the overall UAE software as a service market as well,” the report said.

Mr Vikas Panchal, General Manager - Middle East, Tally Solutions says “With UAEs Smart city initiatives and moving towards paperless, government and businesses alike are implementing completely integrated solutions. There has been a notable transformation in the software landscape, where Software product industry has emerged as a predominant influence. SMEs are reaping benefits of digitisations with software helping them with insightful reports at click of button and managing compliances effectively. These software solutions have transformed traditional delivery methods and are providing a wide range of benefits that businesses across various sectors are embracing. With government supporting startups and fintechs, software market industry is expected to grow leaps and bounds.”

SaaS is a method of distributing programs via the internet aas a service. Companies may avoid complicated software and hardware maintenance by just accessing the software via the Internet rather than installing and maintaining it. Microsoft Office 365, Gmail, and Slack are all examples of frequently used SaaS products. Like many customer service and support programs, client relationship management systems, or CRMs, are SaaS-based. The SaaS platform shares a strong relationship with application service providers and on-demand computing software delivery models, where the provider hosts client software and makes it available online to selected end users with permission.

Tithi Tewari, co-founder of Trezi, said: “The Middle East, particularly the UAE, is rapidly becoming a hub for digital transformation, with businesses increasingly adopting cutting-edge software solutions to enhance efficiency and competitiveness. This environment aligns perfectly with Trezi’s mission to revolutionize the design and collaboration process in architecture, engineering, and construction through immersive technology experiences. We are excited about the prospects of fostering innovation and driving digital adoption in the UAE, supporting the region’s vision of becoming a global leader in technology and smart solutions.”

According to the data released by the International Trade Organization, the UAE is one of the Middle East’s leading hubs for data centers. By 2026, additional investments of up to $1 billion are anticipated. Microsoft Azure introduced two cloud zones in Dubai and Abu Dhabi in 2019. Amazon Web Services made plans for a new data center area in the UAE public in 2021. Several small and medium-sized companies are also entering the market to tap on the growing market opportunities. Dynatrace, for instance, announced the release of the Dynatrace platform on the UAE-hosted Microsoft Azure, making it the region’s first SaaS-based observability and application security platform. These factors are offering lucrative growth opportunities to the UAE software as a service market, propelling the overall market growth.

Rishab Chandra, Co Founder and CTO of TaskTracker Suite, said: “In the UAE, SaaS is not just a tool for efficiency but a catalyst for innovation, driving the nation’s vision of becoming a digital powerhouse and creating a fertile ground for technological advancement across industries.”