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Amazon Web Services (AWS) said in a new report that the UAE could unlock additional economic value of $181 billion, or 2.5 percent of its cumulative GDP, through accelerated cloud adoption over the next decade (2023-2033).
The study, conducted by Telecom Advisory Services and directed by Raul Katz, director of business strategy research at the Columbia Institute for Telecommunications and Information (Columbia Business School), provides a cutting-edge econometric approach to calculating the overall productivity gains realized by economies adopting cloud calculate. It extends previous economic research focused on enterprise-level productivity by identifying cloud adoption as a driver of national productivity and economic growth.
Unlock the Economic Power of Cloud Computing
In 2021, public cloud adoption will have a significant impact on the UAE’s economy. It contributed 2.26 percent to the country’s GDP and generated $9.5 billion in economic value, making it the largest public cloud contributor to GDP in the region, the report said. This “productivity” effect is complementary to the “build” effect of building and operating cloud infrastructure in the UAE, which in the case of AWS UAE Region is expected to contribute $11.2 billion to the UAE economy by 2036, supporting nearly 6,000 annual Full-time equivalent position.
In the Middle East and North Africa, the UAE is where cloud adoption drives the most economic growth in terms of spillover effects. The report found that a 1% increase in cloud adoption by UAE organizations leads to an average increase in GDP of 0.21% (854.7 million), which is three times the MENA average and the highest in the region.
Over 91% of the impact can be attributed to increased national productivity or so-called economic “spillovers”, while the remainder (9%) was driven by cloud spending by UAE public and private organizations. As an economic stimulant, cloud computing is 17% more efficient than mobile broadband in the UAE.
huge opportunity
Yasser Hassan, Managing Director of the Commercial Sector at AWS MenaT, said: “The findings of our report underscore the enormous opportunity for the UAE to accelerate economic growth and position the country as an attractive and influential economic hub, in line with the government’s “We the UAE 2031 “The vision was launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. As cloud computing continues to grow, the UAE must continue to support cloud adoption and develop a skilled workforce, To enhance the country’s competitiveness on a global scale.With the support of AWS, the UAE can accelerate its digital transformation, unlocking new opportunities for economic growth and social development.
The study shows that the economic impact of cloud computing is influenced by returns to scale — greater adoption of cloud computing will lead to proportional increases in productivity gains and economic impact.
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.
Improve efficiency
“The widespread adoption of the cloud has already increased efficiency, saved costs and created jobs across industries. As more businesses and organizations continue to migrate to the cloud, the economic benefits are expected to grow even further,” Yasser added.
The report identified four key benefits of cloud computing: first, it increases business efficiency and effectiveness, streamlines processes and improves outcomes; second, it provides a wide range of services that enable businesses to take advantage of advanced technologies; third, It increases productivity by promoting collaboration, mobility, and agility within the workforce; fourth, cloud computing promotes environmental sustainability by reducing carbon emissions per unit of data transferred. — trade arab news agency
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