Cloud to add $181b to UAE economy by 2033 – News

Cloud adoption in the UAE is three times the MENA average

According to a study commissioned by Amazon Web Services, the UAE has the potential to unlock an additional $181 billion in economic value over the next decade (2023-2033), or 2.5% of the country’s cumulative GDP, through accelerated adoption of cloud services .

In the Middle East and North Africa (Mena) region, the UAE stands out as the country where cloud adoption drives the most significant economic growth through spillover effects. According to the study, for every 1 percent increase in cloud adoption among UAE organizations, GDP increased by an average of 0.21 percent, equivalent to $854.7 million.

This growth rate is three times the Middle East and North Africa average and the highest in the region. Notably, over 91% of the impact can be attributed to increased national productivity or spillover effects to the economy, while the remaining 9% was driven by cloud spending by UAE public and private organizations.

“As an economic catalyst, cloud computing proved to be 17 percent more effective in stimulating the UAE economy compared to mobile broadband,” the report said.

The UAE has ambitious plans to diversify its economy through digitization. In 2021, 43% of organizations in the UAE region have adopted cloud computing, compared to 49% in Western Europe and North America. With the government’s focus on digital transformation, it has the potential to become a cloud computing hub for the region.

“Wide cloud adoption has already increased efficiency, saved costs, and created jobs across industries. As more businesses and organizations continue to move to the cloud, the economics are expected to grow even further,” said AWS Regional Business Director Manager Yasser Hassan said.

He said the findings highlighted the great opportunity for the UAE to accelerate its economic growth and establish itself as an attractive and influential economic hub, in line with the government’s ‘We UAE 2031’ vision.

“As cloud computing gains momentum, the UAE must continue to support cloud adoption and develop a skilled workforce to increase the country’s global competitiveness. With the support of AWS, the UAE can accelerate its digital transformation and provide economic Growth and social development unlock new opportunities,” he added.

The study reveals that the UAE’s economy will see a significant boost in 2021 due to the widespread adoption of public cloud services. This adoption contributed 2.26% to the country’s GDP, generating $9.5 billion in economic value. “Notably, this contribution represents the largest impact of public cloud adoption on the region’s GDP. The positive impact on the economy is not limited to productivity, but also includes building and operating cloud infrastructure in the UAE,” the report said.

The study, conducted by Telecom Advisory Services, identified four key benefits of cloud computing: first, it increases business efficiency and effectiveness, streamlines processes and improves outcomes; second, it offers a wide range of services that enable businesses to Leveraging advanced technology; third, it increases productivity by promoting collaboration, mobility, and agility within the workforce; and fourth, cloud computing promotes environmental sustainability by reducing carbon emissions per unit of data transferred.