Middle East Cloud Storage Market: Digital Transformation, Data Localization & Growth Outlook

According to IMARC Group's latest research publication, Middle East cloud storage market size reached USD 6,101.5 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 23,981.3 Million by 2034, exhibiting a growth rate (CAGR) of 16.43% during 2026-2034.

How AI is Reshaping the Future of Middle East Cloud Storage Market

• Massive government investments in AI infrastructure are boosting demand for scalable cloud storage solutions across the region.
• Companies like Microsoft and G42 are expanding data centers with hundreds of megawatts to support AI workloads and secure cloud storage needs.
• Saudi Arabia's HUMAIN initiative partners with global players to build advanced AI data centers that rely heavily on robust cloud storage systems.

Access the Latest 2026 Market Data & Forecasts

Middle East Cloud Storage Market Trends & Drivers:

The Middle East cloud storage market is experiencing robust expansion driven by extensive government-led digital transformation initiatives across the region. National visions such as Saudi Vision 2030 and the UAE's digital economy strategies prioritize cloud adoption to diversify economies beyond oil dependency, fostering widespread migration from traditional on-premises infrastructure to scalable cloud solutions. These programs encourage public and private sectors to embrace cloud storage for enhanced operational efficiency, supporting smart city projects, e-government services, and digitized public administration. As regulatory frameworks promote data localization and sovereign cloud environments, organizations increasingly rely on regional cloud storage to comply with emerging data residency requirements while benefiting from improved accessibility and reduced infrastructure management burdens. This policy momentum accelerates enterprise-level uptake and stimulates investments in localized data centers.

Rapid surge in data generation from digitalization, IoT proliferation, and expanding online services fuels strong demand for flexible cloud storage options in the Middle East. Businesses across sectors like finance, healthcare, retail, and government face exponential growth in unstructured data volumes, necessitating reliable, on-demand storage that supports seamless scalability without heavy upfront capital commitments. The shift toward hybrid and multi-cloud architectures allows organizations to optimize performance, ensure redundancy, and integrate advanced analytics capabilities. Furthermore, rising remote and hybrid work models amplify the need for accessible, secure file sharing and collaboration tools hosted in the cloud, enabling workforce productivity regardless of location. These dynamics position cloud storage as an essential enabler for innovation and competitiveness in a digitally evolving regional landscape.

Increasing emphasis on artificial intelligence, big data analytics, and emerging technologies propels the adoption of advanced cloud storage solutions throughout the Middle East. As enterprises integrate AI-driven applications and machine learning workloads, the requirement for high-performance, low-latency storage becomes critical to handle massive datasets efficiently. Investments by global hyperscalers in regional infrastructure, combined with 5G rollout and edge computing developments, enhance cloud storage capabilities for real-time processing and reduced latency. Organizations leverage these advancements to support predictive insights, personalized services, and automation initiatives. The convergence of these technologies drives a strategic pivot toward cloud-native storage architectures that offer elasticity, security features, and cost-effective management for future-proofing digital operations in the region.

Middle East Cloud Storage Industry Segmentation:

The report has segmented the market into the following categories:

Component Insights:

• Solution
• Services

Deployment Type Insights:

• Private
• Public
• Hybrid

User Type Insights:

• Large Enterprises
• Small and Medium Enterprises

Industry Vertical Insights:

• BFSI
• Government and Public Sector
• Healthcare
• IT and Telecom
• Retail
• Manufacturing
• Media and Entertainment
• Others

Country Insights:

• Saudi Arabia
• Turkey
• Israel
• United Arab Emirates
• Iran
• Iraq
• Qatar
• Kuwait
• Oman
• Jordan
• Bahrain
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Middle East Cloud Storage Market

• February 2026: Microsoft confirms the launch of its Saudi Arabia East cloud region in Q4 2026, enabling local workloads with enhanced data residency, low latency, and support for AI-driven applications across government and enterprise sectors.
• February 2026: The UAE solidifies its position as a data center hub with live capacity exceeding 376 MW from 2025 expansions, driven by hyperscale AI investments including a 200 MW Microsoft-G42 data center project set to come online by end of 2026.
• February 2026: Edge data center deployments accelerate across the Middle East, valued at USD 5.4 billion, fueled by low-latency demands from IoT, 5G collaborations, and smart city initiatives requiring localized cloud storage processing for faster data handling.

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