Report Overview

UAE Software as a Service Market - Industry Trends & Forecast Report, 2029

The UAE software as a service (SaaS) market size was estimated at USD 5.49 billion in 2022. During the forecast period between 2023 and 2029, the UAE software as a service market size is projected to grow at a CAGR of 27.93% reaching a value of USD 30.52 billion by 2029. Major growth factors for the UAE software as a service 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.

UAE Software as a Service Market – Overview

Software as a service (or SaaS) is a method of distributing programs via the Internet as 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.

UAE Software as a Service Market

Growth Drivers

Expanding Scope of Cloud Computing and Increasing Number of SaaS Companies

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 USD 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.

Restraints

Data Security and Privacy Concerns

The use of SaaS involves sensitive and confidential information and data about the company and its customers. However, it is still exposed to the risks of data breaches and privacy concerns. When employing SaaS, organizations have less access to and control over their data. As a result, there is a higher chance of data leakage or deletion by accident. If this risk materializes, it could lead to the permanent loss of sensitive data, which frequently harms a company's finances, legal situation, and reputation. It may act as a huge restraining factor for the growth of UAE software as a service market.

Impact of COVID-19 on UAE Software as a Service Market

The UAE software as a service market witnessed new growth opportunities post the COVID-19 outbreak in the country. The pandemic, followed by nationwide lockdown, prompted companies to shift from on-premises deployment to SaaS. This migration to SaaS assisted the companies in remote accessing their work. The cloud also offers a more alluring first buy-in for the numerous businesses that were financially hit by the epidemic but still want to boost productivity and efficiency and expand the business. The increasing number of startups across sectors including healthcare, manufacturing, and retail, are prompting the increasing demand for SaaS solutions and services to expand their business amid the pandemic.

UAE Software as a Service Market

Segmental Coverage

UAE Software as a Service Market – By Deployment Type

Based on deployment type, the UAE software as a service market is segmented into public cloud, private cloud, and hybrid cloud. The public cloud holds the highest share of the market. This kind of deployment mode is prominent among both large as well as small enterprises. The small and medium-sized enterprises that lack the capital to deploy adequate security measures in place delegate cybersecurity to a bigger supplier with more resources by adopting a public cloud service, which acts as a crucial factor in propelling the overall Software as a Service market growth.

UAE Software as a Service Market – By Organization Size

Based on organization size, the UAE software as a service market is segmented into small and medium-sized enterprises (SMEs) and large enterprises. The large enterprise segment accounts for a higher share in the UAE software as a service market. Large enterprises are significantly investing in SaaS software and services to streamline and smoothen their business process. Through SaaS, they can eliminate unnecessary upfront hardware costs and offer improved accessibility at a lower expenditure. However, SMEs are projected to have better growth opportunities in the forecast period. SaaS allows better scalability to SMEs at lower cost, which is directly impacting their market growth.

UAE Software as a Service Market – By Application

Based on application, the UAE Software as a Service market is segmented into customer relationship management (CRM), human resource management (HRM), financial management, sales management, enterprise resource planning (ERP), and others. The customer relationship management segment holds the highest market share. CRM makes things easier by facilitating communication between the organization and the client, organizing data, and enhancing customer service. The process of ensuring requirements is addressed and actions are resolved promptly will be streamlined due to all of this. With the UAE emerging as one of the largest data center hubs in the Middle East, the demand for CRM is projected to expand in the coming years.

UAE Software as a Service Market – By End User

Based on end user, the UAE software as a service market is segmented into manufacturing, healthcare, IT & telecom, BFSI, oil & gas, and others. The BFSI sector accounts for the highest share in the UAE software as a service market. The integration of SaaS services in banking and financial services offers advanced security and better access management. Banks may reduce the risk of security breaches by controlling access rights using a uniform framework for user authentication and imposing perimeter network control with the aid of pre-defined firewalls, intrusion detection, and prevention systems. However, the IT and telecom sector is projected to register growth at the highest CAGR during the forecast period as IT companies are deploying SaaS applications to improve their customer service as well as expand their market share by tapping into newer regions.

Competitive Landscape

Competition in UAE software as a service (SaaS) is intense. Major competitors in the market include IBM Corporation, Microsoft Corporation, SAP SE, Oracle Corporation, Cisco Systems, Inc., Amazon Web Services, Inc., Hewlett Packard Enterprise Development LP, Infor, Inc., VMware, Inc., SolutionsDots Systems ltd., and Symantec Corporation. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In November 2022 - Clear, an India-base SaaS firm, expanded its operations in other GCC countries including the UAE, Bahrain, Oman, Qatar, and Kuwait, after Saudi Arabia.

Scope of the Report

By Deployment Type

• Public Cloud

• Private Cloud

• Hybrid Cloud

By Organization Size

• Small and Medium-sized Enterprises (SMEs)

• Large Enterprises

By Application

• Customer Relationship Management (CRM)

• Human Resource Management (HRM)

• Financial Management

• Sales Management

• Enterprise Resource Planning (ERP)

• Others

By End User

• Manufacturing

• Healthcare

• IT & Telecom

• BFSI

• Oil & Gas

• Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. UAE Software as a Service Market Insights
   1. Industry Value Chain Analysis
      1. DROC Analysis
      2. Growth Drivers
         1. Increasing government initiatives and digital transformation
         2. Increase the adoption of cloud computing in the country
      3. Restraints
         1. Complexity with regulations compliance
      4. Opportunities
         1. IT infrastructure spending in UAE are further boosting the growth of the market
      5. Challenges
         1. Data security concerns
   2. Technology Advancements/Recent Developments
   3. Regulatory Framework
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. UAE Software as a Service Market Overview
   1. Market Organization Size& Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Deployment Type
         1. Public Cloud
         2. Private Cloud
         3. Hybrid Cloud
      2. By Organization Size
         1. Small and Medium Enterprises
         2. Large Enterprises
      3. By Application
         1. Customer Relationship Management (CRM)
         2. Human Resource Management (HRM)
         3. Financial Management
         4. Sales Management
         5. Enterprise Resource Planning (ERP)
         6. Others
      4. By End User
         1. Manufacturing
         2. Healthcare
         3. IT & Telecom
         4. BFSI
         5. Oil & Gas
         6. Others
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. UAE Software as a Service Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on UAE Software as a Service Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. IBM Corporation
   2. Microsoft Corporation
   3. SAP SE
   4. Oracle Corporation
   5. Cisco Systems, Inc.
   6. Amazon Web Services, Inc.
   7. Hewlett Packard Enterprise Development LP
   8. Infor, Inc.
   9. VMware, Inc.
   10. SolutionsDots Systems ltd.
   11. Symantec Corporation
   12. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1.  Qualitative Research
      1.  Primary & Secondary Research
   2.  Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.  Breakdown of Primary Research Respondents, By Region
   5.  Assumptions & Limitations

*Financial information of case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       UAE Software as a Service Segmentation

Figure 2       UAE Software as a Service Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       UAE Software as a Service Market Organisation Size, By Value (USD Billion), 2019–2029

Figure 5       UAE Software as a Service Market Share, By Deployment Type, By Value, 2019–2029

Figure 6       UAE Software as a Service Market Share, By Organisation Size, By Value, 2019–2029

Figure 7       UAE Software as a Service Market Share, By Application, By Value, 2019–2029

Figure 8       UAE Software as a Service Market Share, By End User, By Value, 2019–2029

List of Tables

Table 1        UAE Software as a Service Market Organisation Size, By Value (USD Billion), 2019–2029

Table 2        UAE Software as a Service Market Organisation Size, By Deployment Type, By Value, 2019–2029

Table 3        UAE Software as a Service Market Organisation Size, By Organisation Size, By Value, 2019–2029

Table 4        UAE Software as a Service Market Organisation Size, By Application, By Value, 2019–2029

Table 5        UAE Software as a Service Market Organisation Size, By End User, By Value, 2019–2029

Table 6        IBM Corporation Company Overview

Table 7        IBM Corporation Financial Overview

Table 8        Microsoft Corporation Company Overview

Table 9        Microsoft Corporation Financial Overview

Table 10      SAP SE Company Overview

Table 11      SAP SE Financial Overview

Table 12      Oracle Corporation Company Overview

Table 13      Oracle Corporation Financial Overview

Table 14      Cisco Systems, Inc Company Overview

Table 15      Cisco Systems, Inc Financial Overview

Table 16      Amazon Web Services, Inc. Company Overview

Table 17      Amazon Web Services, Inc. Financial Overview

Table 18      Hewlett Packard Enterprise Development LP Company Overview

Table 19      Hewlett Packard Enterprise Development LP Financial Overview

Table 20      Infor, Inc. Company Overview

Table 21      Infor, Inc. Financial Overview

Table 22      VMware, Inc. Company Overview

Table 23      VMware, Inc. Financial Overview

Table 24      SolutionsDots Systems ltd. Company Overview

Table 25      SolutionsDots Systems ltd. Financial Overview

Table 26      Symantec Corporation ltd. Company Overview

Table 27      Symantec Corporation ltd. Financial Overview