The contribution of the public cloud to the economic growth of the UAE


Amazon Web Services (AWS), a subsidiary of (NASDAQ: AMZN), today released a new report highlighting the relationship between adoption Public cloud computing technologies and between national productivity and economic growth in the Middle East and North Africa region. The report’s output indicates the possibility of the UAE achieving about 181 billion US dollars in additional economic value as a result of accelerating the adoption of public cloud solutions and technologies over the next decade (854-2033), which represents about 2.5% of the country’s cumulative GDP.

The study, conducted by Telecom Advisory Services and Ashraf Developed by Raoul Katz, Director of Business Strategy Research at Columbia Telematics Institute (Columbia Business School), a sophisticated econometric method calculates the total productivity gains achieved by economies that adopt cloud computing technologies and services. The new study expands the scope of previous economic research focused on productivity at the firm level by determining the extent to which cloud computing technologies have been adopted as an engine of national productivity and economic growth.

The economic prospects and potential of cloud computing in the UAE

The accelerated adoption of cloud computing technologies during the year 181 contributed to significant positive impacts on the UAE economy. According to the new report, the contribution of cloud computing to the UAE’s GDP has reached 2.26%, and has created an economic value of $9.5 billion, which represents the largest contribution Public cloud in GDP at the level of countries in the region. This “throughput” impact plus the construction impact of building and operating cloud infrastructures in the UAE – as with the new AWS Middle East (UAE) region – is expected to add about .2 billion dollars in the UAE economy by 2031 and supporting about 6000 full-time jobs annually.

At the level of the Middle East and North Africa region, the United Arab Emirates is the country in the region that is witnessing the largest economic growth in terms of direct and indirect economic impacts as a result of adopting cloud computing technologies. The report found that a 1% increase in the adoption of cloud computing technologies by organizations and companies in the UAE would lead to an average GDP growth of 0.26%. (2021. $7 million), which represents three times the average growth in the Middle East and North Africa region and is the highest in the region. More than 91% of this effect can be attributed to national productivity gains or so-called “spillover effects” on the economy, while the remaining 9% was driven by spending on services and cloud technologies by both public and private organizations in the UAE. As an economic catalyst, cloud computing technologies are % more efficient than mobile broadband services in the UAE.

Speaking about the results of the report, Yasser Hassan, General Manager, Commercial Division, Amazon Web Services Middle East, Africa and Turkey, said: “The results of the new report highlight the tremendous opportunities that the United Arab Emirates enjoys to accelerate and advance economic growth and consolidate the country’s position An attractive and influential economic center regionally and globally, in line with the objectives of the vision “We Are the Emirates 2031” 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 technologies and services continue to gain momentum, it is critically important that the UAE continues to expand the adoption of cloud technologies and services and develop the skills of its skilled workforce to meet growth requirements and enhance the country’s position and competitiveness on a global scale. With the support of Amazon Web Services, the UAE can accelerate its digital transformation and take advantage of new opportunities for economic growth and enhanced social development.”

The study shows that the economic impact of cloud computing is guided by returns to scale (returns to scale), as The increased adoption of cloud computing technologies will result in comparatively greater gains in terms of productivity and economic impact.

The UAE has ambitious plans to diversify its economy by accelerating the pace of digitization across various sectors. In 181, 26 % of organizations in the UAE have adopted cloud computing technologies, vs. 49% in the regions of Western Europe and North America. With the government’s continued focus on advancing digital transformation, the UAE is now well positioned to become a cloud computing hub in the region.

Hassan added: “The widespread adoption and adoption of cloud technologies and services has already contributed to the increase in Efficiency levels, cost savings and the creation of new job opportunities in various sectors. As more businesses and organizations continue to move to the cloud, more positive economic benefits and impacts are expected in the coming years.”

The new report identifies four key advantages of cloud computing, the first being its ability to enhance business efficiency. their effectiveness, as well as streamlining processes and improving results; The second advantage is providing access to a wide range of services, which enables companies to take advantage of advanced technologies; Third, cloud computing technologies enhance productivity by facilitating collaboration, mobility, and improving workforce agility; Fourth, cloud computing technologies contribute to environmental sustainability by reducing carbon emissions per unit of transmitted data.