Software as a Service - United Arab Emirates

United Arab Emirates

Revenue in the Software as a Service market is projected to reach US$0.93bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 19.85%, resulting in a market volume of US$2.30bn by 2029.
The average spend per employee in the Software as a Service market is projected to reach US$133.50 in 2024.
In global comparison, most revenue will be generated in the United States (US$190.10bn in 2024).

Key regions: Japan, United Kingdom, United States, Italy, Germany

Market

Region

Region comparison

Currency

Analyst Opinion

The Software as a Service market in United Arab Emirates is experiencing significant growth and development.

Customer preferences: Customers in United Arab Emirates are increasingly adopting Software as a Service (SaaS) solutions due to several reasons. Firstly, SaaS offers flexibility and scalability, allowing businesses to easily adjust their software needs as their operations grow or change. This is particularly attractive for small and medium-sized enterprises (SMEs) in United Arab Emirates, as it allows them to access advanced software tools without the need for significant upfront investments. Additionally, SaaS solutions often come with regular updates and maintenance, relieving businesses from the burden of managing their own software infrastructure.

Trends in the market: One of the key trends in the SaaS market in United Arab Emirates is the increasing adoption of cloud-based solutions. Cloud computing provides businesses with the ability to access their software and data from anywhere, which is particularly beneficial in a country like United Arab Emirates where many businesses operate across multiple locations. Furthermore, cloud-based solutions offer enhanced security measures, ensuring that sensitive data is protected. As a result, businesses in United Arab Emirates are shifting towards cloud-based SaaS solutions to streamline their operations and improve efficiency. Another trend in the SaaS market in United Arab Emirates is the growing demand for industry-specific software solutions. Businesses in various sectors, such as healthcare, finance, and retail, are seeking specialized software that caters to their unique needs and requirements. This trend is driven by the recognition that generic software solutions may not fully address the specific challenges and complexities faced by businesses in different industries. As a result, SaaS providers in United Arab Emirates are focusing on developing industry-specific solutions to meet the growing demand.

Local special circumstances: United Arab Emirates has a thriving startup ecosystem, with many entrepreneurs launching innovative businesses across various sectors. These startups often have limited resources and budgets, making SaaS solutions an attractive option. By adopting SaaS, startups in United Arab Emirates can access advanced software tools and technologies without the need for significant upfront investments. This allows them to focus on their core business activities and accelerate their growth.

Underlying macroeconomic factors: The United Arab Emirates has been actively promoting digital transformation and innovation as part of its Vision 2021 strategy. This strategy aims to position the country as a global hub for technology and innovation. As a result, the government has implemented various initiatives and policies to support the growth of the SaaS market in United Arab Emirates. These include providing financial incentives and support for startups, as well as creating a favorable regulatory environment for technology companies. These initiatives have attracted both local and international SaaS providers to establish their presence in United Arab Emirates, driving the growth of the market. Additionally, the country's strong economic growth and high internet penetration rate contribute to the increasing demand for SaaS solutions. In conclusion, the Software as a Service market in United Arab Emirates is developing rapidly due to customer preferences for flexibility and scalability, the adoption of cloud-based solutions, the demand for industry-specific software, the thriving startup ecosystem, and the government's support for technology and innovation. These factors are driving the growth and adoption of SaaS solutions in United Arab Emirates, making it an attractive market for SaaS providers.

Methodology

Data coverage:

The data encompasses B2B and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP and level of telecommunications infrastructure.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the relevant segment. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.