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This followed an announcement by Qatar's Ministry of Communications and Infotech in 2024 that it had actually signed an agreement with Microsoft Azure whose value has actually likewise not been publicly disclosedto move all government services to the cloud. Revealed in 2021, the task is valued at approximately US$ 1.2 billion and is planned to supply dedicated services to the Israeli federal government and armed force. It was formally stated functional in August 2023 with 3 Accessibility Zones. The Israeli government picked AWS and Google for Job Nimbus as a multi-year program to supply a comprehensive cloud option for the general public sector, clearly specifying that it is mostly meant for the military and defense facility, with the creation of regional cloud sites to keep information within Israel's borders in accordance with security standards. The business states it performed"internal and external evaluations"following the war of genocide in Gaza. In a subsequent authorities upgrade, Microsoft announced that it had "handicapped a set of services/subscriptions for a system within the Ministry of Defense after examining accusations related to the use of cloud storage and AI services."In May 2025, The Guardian reported that the Israeli military usages Azure to keep phone call information files acquired through substantial or mass monitoring operations targeting civilians in Gaza and the West Bank. Arabi Post database and analysis of cloud service centers( information centers )in the Middle East and North Africaa sample covering 22 countries and 89 cloud. The figures are based upon the official pages of service providers(AWS, Microsoft Azure, Google Cloud, Oracle OCI, and others), in addition to reports by companies consisting of the World Bank, IDC, Gartner, McKinsey, RUSI
Comparing the Best Automation Solutions for 2026and the OECD, in addition to interviews carried out by Arabi Post. If you happen to operate in financing, health care, or the general public sector in the Middle East, you will comprehend that countries in the region have rigorous data residency regulations. Nations such as the UAE and Saudi Arabia prefer that particular classifications of data-particularly personal or sensitive information-be hosted in their borders. If your cloud service provider does not have local data? That might be a dealbreaker. For multinational companies, this can get difficult fast. A setup that operates in one nation may not fulfill the requirements in another, especially when regional laws aren't harmonized. The Middle East is rapidly capturing up to other markets in terms of cloud computing adoption. Government financial investments and the increasing presence of public cloud1 suppliers are making cloud services more available. These advancements are offering organizations in the public and economic sectors with a much faster route to recording worth from the technology. In May 2025, US President Donald Trump performed a diplomatic see to the Gulf statesSaudi Arabia, Qatar, and the United Arab Emirates. The see focused on reinforcing the United States'tactical collaborations in the Middle East and advancing economic offers, particularly in defense and innovation, amounting to hundreds of billions of dollars. The Emirati company G42 will develop the campus, together with leading American tech companies, and will provide infrastructurefor data centers and cloud services in the area. These American financial investments aim to enhance the United States technological position in the Middle East, while China is concurrently working to strengthen its local and international existence in advanced technologiesAI, huge data, and cloud computing. A cloud area is a geographic place where a cloud supplier operates different data centers, making sure service connection and high performance. The choice of region impacts speed, reliability, and regulative compliance. The statement was made at the LEAP 2025 technology conferencesupported by Saudi Arabia's Ministry of Communications and Info Technology (MCIT)where Tencent Cloud pledged over$150 million in future financial investments to support the country's digital improvement in sectors such as media, gaming, commerce, financing, and interactions. These developments show the intensifying competition between the United States and China for technological leadership in the Middle East, with both superpowers dedicating comprehensive resources to sophisticated technologies, AI applications, and cloud facilities. Cloud computing supplies access to calculating resources through the internetincluding storage, databases, networks, software, and security serviceswithout the need for physical hardware or local servers. According to Canalys, global costs on cloud services rose by 21 %in the 3rd quarter of 2024 compared to the previous year, reaching$82 billion. Cloud innovation is also a main pillar of the digital economy, enabling data storage, processing, and gain access to while improving efficiency and innovation. This technology provides financial advantages such as cost savings, but it also needs security procedures to safeguard information and avoid cyberattacks. In the digital age, technology is a core element of national security, affecting a nation's capacity to react to threats in military, technological, intelligence, and economic domains. Nations make every effort to achieve technological benefits to strengthen their worldwide standing, boost national security, and promote innovation-driven financial development. In this context, control over cloud technologies and the data streaming through them is necessary for governments and organizationsparticularly in sensitive sectors such as defense, financing, healthcare, and transportation.
Securing data sovereignty has likewise end up being a tactical issue, given that data is an important possession for nationwide security, privacy, and the economy. As an outcome, nations are enacting laws and regulations to restrict access to data and guarantee that it remains under regional control, consequently reducing the risk of exploitation by foreign actors. Amid the US-imposed limitations, China views control over sophisticated technologiesincluding cloud computingas a means to lower reliance on foreign innovations, develop global impact, promote development, and enhance
its digital economy. The Chinese federal government designated cloud computing as a tactical field in its 12th Five-Year Strategy(20112015 ), supporting the advancement of regional infrastructure and encouraging the growth of Chinese cloud business. Today, Chinese companies dominate the cloud market within China and are gradually broadening their international
Key AI Development Trends for 2026 Roadmapsoperations. China's growing presence in the cloud computing sector has raised concerns among states and organizations, particularly around information security, personal privacy breaches, unauthorized access to details, and the transfer of information to external partiesespecially the Chinese federal government. Moreover, the American business NowSecure revealed significant security issues, including unencrypted information transfers and insecure storage practices, with data being sent to servers in China controlled by the Chinese company ByteDance. The dangers connected with the use of Chinese cloud innovations also encompass wise cars, where data such as real-time place, driving patterns, users 'personal info, and the automobiles'technical conditions are gathered and stored. Another concern is that data collected through Chinese cloud technologies might be made use of for purposes beyond its original intentsuch as user surveillance or commercial and security espionage. The United States government has also expressed issue about the operations of Chinese cloud service providers. In August 2020, as part of the Tidy Network effort, the Trump administration provided a warning against the use of Chinese cloud providers in an effort to safeguard the information of American residents and organizations from prospective exposure to the Chinese government. The questions concentrated on how the company stores American clients'dataparticularly individual info and intellectual propertyand whether the Chinese federal government has access to that data. To date, the findings of the examination have not been released. China is heightening its local involvement in the Middle East through worldwide efforts, especially the Digital Silk Road(DSR)the technological part of China's Belt and Road Initiative( BRI). The 3 leading cloud companies are Amazon Web Services( AWS), with a 32%market share, followed by Microsoft Azure at 22 %, and Google Cloud at 11 %. The Chinese company Alibaba Cloud ranks 4th with 4% of the worldwide market.
The United States companies Oracle and IBM follow at 3%and 2.5%, respectively, together with China's Tencent Cloud, which holds 2%of the worldwide market. In Qatar, Bahrain, and Israel, US cloud providers control the local market, while Chinese companies have just a restricted existence. In contrast, in Egypt, the Chinese firm Huawei Cloud operates an active cloud region in Cairo, whereas the three significant US tech business AWS, Microsoft Azure, and Google do not presently runcloud areas there. In Saudi Arabia and the United Arab Emirates, both US and Chinese cloud companies are active, however the United States keeps a more prominent presence, with 12 cloud areas in Saudi Arabia and nine in the UAE. By contrast, China has 7 cloud areas in Saudi Arabia and one in Dubai. In March 2024, AWS revealed plans to develop a cloud region in Saudi Arabia with a financial investment of $5.3 billion. In comparison, in May 2024, Huawei Cloud introduced its very first cloud region in Egypt and North Africa with a five-year financial investment of $300 million. China's financial investment volume and geographical spread in the Middle East stay minimal compared to those of the United States, Chinese business aremaking fast development into the market. China recognizes the potential of emerging markets and the growing need for innovative innovations in the Middle East, especially in the Gulf region. Furthermore, the alignment of interests between China and countries in the region supplies a solid structure for long-lasting cooperation, consisting of in cloud computing. China looks for to leverage its technological strengths to acquire financial and strategic influence in the area, while Middle Eastern countries view China as anappealing partner for upgrading digital facilities and advancing technological innovationoffering services that are cost-efficient, promptly carried out anddevoid of political conditions. While still limited in scope, this pattern holds the potential to gradually deteriorate United States digital hegemony in the region.In Israel, Chinese cloud suppliers have a minimal existence, mostly dealing with personal companies seeking economical prices or those operating in Asian markets. Alibaba Cloud services are offered in Israel through the local business Sela, which offers assistance, guidance, and help to Israeli companies interested in using Chinese cloud services.
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