Oman public cloud market size, share, growth drivers, trends, opportunities & forecast 2025–2030

Oman Public Cloud Market Overview

• The Oman Public Cloud Market is valued at USD 390 million, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of digital transformation initiatives across various sectors, coupled with the rising demand for scalable and cost-effective IT solutions. Organizations are increasingly leveraging cloud services to enhance operational efficiency and reduce infrastructure costs.
• Muscat, as the capital city, dominates the market due to its concentration of businesses and government agencies that are rapidly adopting cloud technologies. Other significant cities include Salalah and Sohar, where industrial growth and investments in technology infrastructure are fostering a conducive environment for cloud service adoption.
• In 2023, the Omani government implemented the National Digital Economy Program under the Ministry of Transport, Communications and Information Technology (MTCIT). This initiative includes a commitment to invest USD 200 million in cloud computing technologies, promoting the use of public cloud services among government entities and encouraging private sector participation in cloud adoption. The program mandates compliance with the “Cloud First Policy” (MTCIT, 2020), requiring government agencies to prioritize cloud-based solutions for new IT projects, with operational guidelines for data residency, security, and procurement.

Oman Public Cloud Market Segmentation

By Type:The market is segmented into various types of cloud services, including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS), Cloud Storage and Backup Services, Cloud Security Services, Cloud Migration and Integration Services, and Managed Cloud Services. Each of these segments addresses distinct business requirements, with IaaS and SaaS being particularly popular due to their flexibility, scalability, and support for remote work and digital business models.

By End-User:The end-user segmentation includes Small Enterprises, Medium Enterprises, Large Enterprises, Government and Defense Agencies, Educational Institutions, Healthcare Providers, Transport and Logistics, Media and Entertainment, Automotive, and Others. The increasing reliance on cloud solutions for operational efficiency is driving adoption across all end-user categories, with large enterprises leading the way due to their extensive IT needs and digital transformation investments.

Oman Public Cloud Market Competitive Landscape

The Oman Public Cloud Market is characterized by a dynamic mix of regional and international players. Leading participants such as Oman Data Park, Gulf Business Machines (GBM), Microsoft Oman, Oracle Oman, Amazon Web Services (AWS) Oman, Etisalat Oman, Ooredoo Oman, IBM Oman, Zain Oman, CloudBox Oman, Veeam Software, Alibaba Cloud Oman, DigitalOcean Oman, Rackspace Technology Oman, and Red Hat Oman contribute to innovation, geographic expansion, and service delivery in this space.

Oman Public Cloud Market Industry Analysis

Growth Drivers

• Increasing Demand for Digital Transformation:The Omani government has prioritized digital transformation, with a projected investment of OMR 1.5 billion in IT infrastructure in future. This investment aims to enhance public services and boost economic diversification. As organizations increasingly adopt digital solutions, the demand for public cloud services is expected to rise significantly, with an estimated 30% increase in cloud service utilization across various sectors, including healthcare and education, in future.
• Government Initiatives Promoting Cloud Adoption:The Omani government has launched several initiatives to promote cloud adoption, including the "Digital Oman Strategy." This strategy aims to increase the number of cloud-based services by 40% in future. Additionally, the government is investing OMR 200 million in developing local data centers, which will enhance the availability and reliability of cloud services, further driving adoption among businesses and public sector entities.
• Rising Need for Data Security and Compliance:With the increasing volume of data generated, Omani businesses are prioritizing data security and compliance. The implementation of the Personal Data Protection Law mandates strict data handling practices, leading to a projected 25% increase in demand for secure cloud solutions in future. Companies are investing in cloud services that offer robust security features, ensuring compliance with local regulations and international standards, thus driving market growth.

Market Challenges

• Limited Awareness of Cloud Benefits:Despite the growth potential, many businesses in Oman remain unaware of the benefits of cloud computing. A recent survey indicated that only 35% of local companies understand how cloud solutions can enhance operational efficiency. This lack of awareness hinders adoption rates, as organizations are hesitant to transition from traditional IT infrastructures to cloud-based systems, impacting overall market growth.
• Concerns Over Data Privacy and Security:Data privacy remains a significant concern for Omani businesses, with 60% of organizations citing it as a barrier to cloud adoption. The fear of data breaches and non-compliance with regulations deters companies from fully embracing cloud solutions. As a result, many organizations are reluctant to migrate sensitive data to the cloud, which poses a challenge for cloud service providers in gaining trust and expanding their customer base.

Oman Public Cloud Market Future Outlook

The Oman public cloud market is poised for significant growth, driven by increasing digital transformation initiatives and government support. In future, the market is expected to witness a surge in cloud adoption across various sectors, including healthcare and education. As businesses prioritize data security and compliance, the demand for secure cloud solutions will rise. Additionally, the emergence of hybrid cloud models and advancements in AI technologies will further shape the landscape, creating a dynamic environment for cloud service providers.

Market Opportunities

• Growth in E-commerce and Online Services:The e-commerce sector in Oman is projected to reach OMR 1 billion in future, creating substantial demand for cloud services. As online businesses seek scalable solutions to manage increased traffic and transactions, cloud providers can capitalize on this growth by offering tailored services that enhance operational efficiency and customer experience.
• Potential for Hybrid Cloud Solutions:With 45% of organizations expressing interest in hybrid cloud models, there is a significant opportunity for cloud service providers to develop integrated solutions. These models allow businesses to balance on-premises and cloud resources, providing flexibility and scalability. In future, the hybrid cloud segment is expected to grow, driven by the need for customized solutions that meet diverse business requirements.