Oracle has announced plans to significantly boost its investment in Abu Dhabi, with a focus on enhancing its cloud and artificial intelligence (AI) services in the UAE. This strategic move is driven by strong demand for Oracle Cloud in the region, with the company committing to a five-fold increase in investment. While exact figures remain undisclosed, the company’s UAE country leader, Nick Redshaw, highlighted the growing demand and investment opportunities in the region.
Why is Oracle Increasing Investment in Abu Dhabi?
The decision to increase investment in Abu Dhabi comes in response to the rising demand for Oracle’s cloud solutions in the UAE. According to Nick Redshaw, Oracle’s Senior Vice President for Technology Cloud and UAE Country Leader, this expansion reflects the growing market dynamics in the region. Redshaw emphasized the importance of collaboration alongside competition within the tech ecosystem, noting that Oracle plans to work with various stakeholders to meet the rising demand for cloud services.
The Growing Cloud and AI Market in the UAE
The UAE’s cloud and AI landscape has seen remarkable growth in recent years. Redshaw noted that just five years ago, the market dynamics were vastly different. Today, the demand for sophisticated cloud infrastructure and AI services is at an all-time high, making the UAE an attractive destination for global tech companies like Oracle. The ongoing investments highlight the ecosystem’s potential for collaboration and competition, with companies striving to meet the needs of customers and government entities.
Oracle’s Cloud Presence in the UAE and Saudi Arabia
Oracle’s commitment to the UAE market includes its two existing cloud regions: UAE East in Dubai, launched in September 2020, and UAE Central in Abu Dhabi, which went live in November 2021. The company has also made significant strides in the broader Middle East region. Oracle recently expanded its cloud infrastructure in Saudi Arabia, with its second cloud region launched in August 2024 and a third one planned for the near future.
Partnership with Du to Develop a Sovereign Cloud Platform
In January 2024, Oracle partnered with the UAE-based telecom company Du to create a sovereign cloud platform specifically tailored for the UAE government. This collaboration has since expanded to include AI services, enhancing the government’s digital transformation efforts. The move demonstrates Oracle’s commitment to meeting the country’s digital infrastructure needs, while also addressing security and regulatory concerns with a local cloud solution.
Upcoming Cloud Initiatives and Regional Developments
Oracle’s investment plans extend beyond the UAE. The company is also working on establishing a sovereign cloud region in Bahrain, in partnership with Beyon Solutions. This expansion is part of Oracle’s broader strategy to offer secure, localized cloud services in the Gulf region.
Multi-Cloud System for Abu Dhabi Government
In early January 2025, the Abu Dhabi government called for the development of a single multi-cloud system to serve over 40 government entities. This initiative highlights the growing importance of cloud technology in the UAE’s public sector and underscores Oracle’s ongoing role in meeting the government’s digital needs.
Data Center Landscape in Abu Dhabi and the UAE
Abu Dhabi is home to several key data centers operated by prominent players such as Gulf Data Hub, Core42, Etisalat, Equinix, Du, and Khazna Data Centers. Additionally, Microsoft and Amazon Web Services (AWS) have established their own cloud regions in the UAE, further solidifying the country’s position as a regional hub for cloud and data center services.
Competing and Collaborating in the UAE Tech Ecosystem
The UAE’s technology landscape is characterized by a balance of competition and cooperation. Redshaw describes the environment as one of “co-opetition,” where companies both collaborate and compete to address market needs. As the demand for cloud and AI services continues to rise, partnerships and joint ventures will play a key role in driving innovation and expanding infrastructure in the region.
FAQ Section
1. Why is Oracle increasing its investment in Abu Dhabi?
Oracle is increasing its investment in Abu Dhabi to expand its cloud and AI offerings in response to strong demand for Oracle Cloud in the UAE. This investment will help Oracle strengthen its presence in the region and address the growing need for digital infrastructure.
2. What are Oracle’s existing cloud regions in the UAE?
Oracle currently operates two cloud regions in the UAE: UAE East in Dubai, launched in 2020, and UAE Central in Abu Dhabi, which was launched in 2021. These regions serve as the foundation for Oracle’s cloud services in the UAE.
3. What is the partnership between Oracle and Du?
Oracle has partnered with the UAE telecom company Du to develop a sovereign cloud platform for the UAE government. This partnership, which includes AI services, aims to support the digital transformation of the UAE government and meet the country’s cloud and AI needs.
4. What other countries in the region is Oracle expanding to?
In addition to the UAE, Oracle is expanding its cloud infrastructure in Saudi Arabia, with a second cloud region launched in 2024 and plans for a third. The company is also planning to launch a sovereign cloud region in Bahrain in partnership with Beyon Solutions.
5. What is the Abu Dhabi government’s multi-cloud system initiative?
In January 2025, the Abu Dhabi government announced plans to develop a single multi-cloud system to support over 40 government entities. This initiative is part of the UAE’s broader digital transformation efforts and highlights the growing demand for cloud services in the public sector.
