UAE Cloud Accounting Software Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 14.94 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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UAE Cloud Accounting Software Market Analysis
UAE Cloud Accounting Software Market is valued at USD 21.53 million in the previous year and is expected to grow at a CAGR of 14.94% during the forecast period to become USD 54.24 million by the next five years. Cloud-based accounting solutions allow businesses to access their financial data anytime, anywhere, using any device with an internet connection. These solutions are scalable, and companies can easily remove or add users and features as needed. This flexibility makes it easier for businesses to adapt to changing accounting needs and budgets. Cloud-based accounting solutions are also affordable, with many offering subscription-based pricing models that can be customized to fit a business's needs.
- The rise in the adoption of the cloud is significantly contributing to the economic growth of the country. This would enable the government to develop new policies in favor of cloud-providing firms, which would push the cloud firms to create new solutions to capture the market share, and such instances may allow the accounting firms to deploy cloud in their answers to provide better services to their customers.
- Customer data can easily be compromised when filing taxes or handling high-value company data. The firms should be careful of the threats associated with the software, hardware, and communication channels. Cyber security for accountants is of great concern because they handle sensitive client and company data vulnerable to cyberattacks. With cloud computing, confidential data can be stored in the cloud where data security and privacy are assured, while scheduled upgrades can guarantee it. Keeping financial data in the cloud also protects it from natural disasters because it's automatically backed up for effortless retrieval in case of a calamity.
- Further, AI-enabled cloud accounting solutions are changing the landscape of financial management by providing businesses with visibility and insights that were not accessible with traditional accounting solutions. Cloud-based AI solutions are revolutionizing accounting operations by automating manual tasks. This includes data entry and the complexity of processing financial transactions, allowing users to improve accuracy while reducing workloads. The power of AI-enabled cloud accounting is revolutionizing the industry, giving businesses access to a level of accuracy and efficiency never seen. Companies can now gain new levels of insight into their finances with the help of AI-enabled solutions. Accounting departments can now make better decisions faster than ever before, thanks to the potential these AI-enabled tools offer.
- Due to the country's emphasis on digital transformation and its status as a regional commercial hub, the United Arab Emirates (UAE) cloud accounting software market has expanded tremendously. Although cloud accounting has many benefits, the major obstacle to the market's continued growth is the lack of component internal staff who can administer and operate cloud accounting systems.
- The COVID-19 pandemic initially slowed the adoption of cloud accounting software in the UAE, but it also caused disruptions in business operations and financial management. Due to the rising need for remote work solutions, digital transformation, cost-effectiveness, improved security measures, and adaptability to shifting compliance requirements, the industry has grown. Cloud accounting software will continue to be an essential resource for businesses looking to increase their financial operations efficiency, flexibility, and resilience as the business landscape in the UAE changes drastically post-pandemic.
UAE Cloud Accounting Software Market Trends
Small and Medium Enterprises to Witness Significant Growth
- Small and medium-sized enterprises (SMEs) are essential for the growth and development of the United Arab Emirates (UAE) economy. An SME is a company with fewer than 1000 employees. To improve their financial management and operational efficiency, SMEs in the UAE have recently adopted cloud accounting systems. According to the Ministry of Economy, by mid-2022, the number of SMEs in UAE was 557,000. By 2030, this number is expected to reach 1 million; the growing number of SMEs is a significant driver for the market studied.
- A majority of SMEs in the country have been looking forward to integrating their workflow with automation to achieve operational efficiency. Thus, the rising adoption of the accounts receivable automation and reconciliation software is anticipated to drive market growth.
- The vendors in the market have been providing solutions targeted explicitly toward small and medium-sized enterprises. For example, Sage offers its accounting software, a native cloud accounting software for small businesses. It helps its users control their small business bookkeeping with time-saving automation, invoicing, and remote access.
- Various players across the region are undertaking various initiatives to move toward adopting cloud accounting software. In October 2022, the Xpence financial management platform with embedded business banking solutions for SMEs was introduced in the UAE. Real-time monitoring and automatic bookkeeping are two features of the solution that do away with the need for time-consuming expense reports, increase productivity, and potentially save organization expenses.
Retail and E-commerce to Register Fastest Growth
- The United Arab Emirates (UAE) retail and e-commerce industry has transformed remarkably due to the quick spread of digital technologies, shifting consumer behavior, and a vibrant entrepreneurial spirit. This industry supports the UAE's economy and substantially contributes to employment creation, economic diversification, and the nation's status as a center of international trade.
- The retail and e-commerce industries in the UAE have fully embraced digital change. Businesses have tapped into the potential of mobile apps, e-commerce websites, and online platforms to connect with customers, provide individualized experiences, and streamline transactions.
- The industry is characterized by various retail firms, from conventional brick-and-mortar establishments to advanced e-commerce initiatives. It includes a variety of specialist markets as well as fashion, electronics, food, and luxury products. The UAE is now known worldwide as one of the best shopping places, drawing travelers and consumers from all over. Iconic malls, souks, and upscale shops aid the development of the sector and the nation's reputation.
- With high internet and smartphone penetration rates, the UAE has a technologically aware populace. The expansion of the e-commerce industry has been spurred by the ease of online buying and the accessibility of digital payment alternatives. The UAE's retail scene benefits significantly from tourism, attracting visitors eager to experience the country's varied shopping options, from traditional marketplaces to premium brands.
- The ability to track inventory levels, sales patterns, and purchase orders is provided by cloud accounting software. This is extremely important for the Retail and e-commerce industry, where efficient inventory management directly affects probability. Online marketplaces, physical stores, and social media platforms are just a few of the many sales channels that retailers and e-commerce companies frequently use. The seamless integration of sales data from numerous channels is made possible by cloud accounting software.
UAE Cloud Accounting Software Industry Overview
The vendors in the UAE Cloud accounting software market are moderately consolidated with an array of products and services. However, major vendors such as Intuit (QuickBooks), SAGE, Oracle, ODOO, Xero, Freshbooks, Al Nuaimi Auditors, and many more are highly preferred UAE Cloud Accounting software providers across various end users in the country.
- In March 2023, Focus Softnet developed and released its new accounting software - FocusLyte. It is a cloud-based system that aids in handling invoices and business payments. FocusLyte is mainly designed for small and medium businesses. Regardless, it is equally efficient for companies with complex financial accounting processes. The system is popular among firms due to its ease of usage and comprehensive reporting capabilities.
- In January 2023, Wafeq, a Dubai, UAE-based fintech startup that provides a cloud-based accounting tech platform, raised USD 3 million in seed funding. The round was led by Ra'ed Ventures with participation from Wamda Capital. Businesses using Wafeq create over 630,000 invoices monthly, with total monthly invoices exceeding USD 117 million. Wafeq meets every requirement of Saudi Arabia's Zakat, Tax and Customs Authority (ZATCA), the UAE's Federal Tax Authority, and the Egyptian Tax Authority.
UAE Cloud Accounting Software Market Leaders
Intuit (QuickBooks)
Oracle
ODOO
SAGE
Xero
*Disclaimer: Major Players sorted in no particular order
UAE Cloud Accounting Software Market News
- May 2023 - Virtuzone, the UAE's company formation experts and award-winning corporate services provider released TaxGPT, the world's first AI-powered corporate tax assistant programmed to enable UAE-based businesses to navigate the unfamiliar processes and rules that the upcoming corporate tax law will bring once it is official. Built on the Artificial Intelligence model of Generative Pre-trained Transformer 4 (GPT-4), a progressive language model developed by the American Artificial Intelligence research laboratory OpenAI, TaxGPT is prepared to provide instant, specific, and comprehensive answers to questions related to the new corporate tax lawmaking, based on online publications by the Ministry of Finance and the Federal Tax Authority.
- May 2023 - Zoho, a technology company, reported the launch of new corporate tax characteristics in Zoho Books, FTA-accredited cloud accounting software to enable companies, freelancers, and solopreneurs to automate corporate tax compliance and gain adequate visibility into their tax filings. In addition to supporting companies to comply with VAT regulations, the new characteristics launched in Zoho Books will provide automated tax calculations to assure timely and accurate tax filing. With Zoho Books, companies will be able to develop reports in the format that the Federal Tax Authority (FTA) will direct with provisions for exemptions and deductions, through which firms can file taxes with ease on the Federal Tax Authority portal and record all tax expenses made in Zoho Books.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 An Assessment of the Impact and Recovery from the COVID-19 Pandemic
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Demand to Improve the Efficiency of the Financial Process
5.1.2 Growing Automation of Accounting Practices
5.1.3 Rise in Demand for Subscription and as a Service Model
5.2 Market Restraints
5.2.1 Lack of Skilled In-house Personnel
5.2.2 Issues Related to Data Security and Privacy
5.3 Technology Analysis
5.4 Pricing Analysis
5.5 Regulatory Landscape
5.6 Case Studies
5.7 Market Entry Strategies
5.8 Analysis of Consumer Behavior
6. MARKET SEGMENTATION
6.1 By Size of Enterprise
6.1.1 Small and Medium Enterprises
6.1.2 Large Enterprises
6.2 By Industry Vertical
6.2.1 BFSI
6.2.2 IT and Telecom
6.2.3 Retail and E-commerce
6.2.4 Energy, Oil, and Gas
6.2.5 Real Estate and Construction
6.2.6 Other Industry Verticals
7. COMPETITIVE LANDSCAPE
7.1 Market Share Analysis
7.2 Company Profiles*
7.2.1 Intuit (QuickBooks)
7.2.2 SAGE
7.2.3 Oracle
7.2.4 ODOO
7.2.5 Xero
7.2.6 FreshBooks
7.2.7 WAVE
7.2.8 Tally
7.2.9 SAP
7.2.10 ZOHO
7.2.11 Wafeq
7.2.12 Infor
7.2.13 FirstBIT
7.2.14 KGRN Chartered Accountants
7.2.15 Softnet
8. INVESTMENT ANALYSIS
UAE Cloud Accounting Software Industry Segmentation
Cloud accounting software refers to accounting software that is hosted on remote servers and accessed over the Internet. It allows businesses to manage their financial records, perform accounting tasks, and store financial data securely in the cloud rather than on a local computer or server. The Cloud accounting software offers several advantages, including real-time collaboration, automatic updates, and the ability to access financial data from anywhere with an internet connection.
The UAE Cloud Accounting Software Market is Segmented by Size of Enterprise (Small and Medium Enterprises, Large Enterprises), Industry Vertical (BFSI, IT and Telecom, Retail and E-commerce, Energy, Oil and Gas, Real Estate and Construction). The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By Size of Enterprise | |
| Small and Medium Enterprises | |
| Large Enterprises |
| By Industry Vertical | |
| BFSI | |
| IT and Telecom | |
| Retail and E-commerce | |
| Energy, Oil, and Gas | |
| Real Estate and Construction | |
| Other Industry Verticals |
Frequently Asked Questions
What is the current UAE Cloud Accounting Software Market size?
The UAE Cloud Accounting Software Market is projected to register a CAGR of 14.94% during the forecast period (2024-2029)
Who are the key players in UAE Cloud Accounting Software Market?
Intuit (QuickBooks), Oracle, ODOO, SAGE and Xero are the major companies operating in the UAE Cloud Accounting Software Market.
What years does this UAE Cloud Accounting Software Market cover?
The report covers the UAE Cloud Accounting Software Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the UAE Cloud Accounting Software Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UAE Cloud Accounting Software Industry Report
Statistics for the 2024 UAE Cloud Accounting Software market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UAE Cloud Accounting Software analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
