The cloud will add $181bln to the UAE economy by 2033

According to a study commissioned by Amazon Web, the UAE could gain $181 billion in added economic value over the next decade (2023-2033), or 2.5 percent of the country’s overall GDP, by accelerating the adoption of cloud services. Services.

In the Middle East and North Africa (MENA) region, the United Arab Emirates stands out as the country driving the most significant economic growth through cloud adoption spillover effects. A one percent increase in cloud adoption by UAE firms leads to a 0.21 percent growth in average GDP, equivalent to $854.7 million.

This growth rate is more than three times the MENA average, the highest in the region. Notably, more than 91 percent of this impact can be attributed to national productivity gains or spillover effects on the economy, while the remaining nine percent is driven by cloud spending by public and private companies in the UAE.

„As an economic catalyst, cloud computing is 17 percent more effective in boosting the UAE economy compared to mobile broadband,” the report said.

The UAE has ambitious plans to diversify its economy through digitalization. By 2021, 43 percent of organizations in the UAE region have adopted cloud computing, compared to 49 percent in Western Europe and North America. With the government’s focus on digital transformation, it is well positioned as a hub for cloud computing in the region.

„The widespread adoption of cloud computing has already led to increased efficiency, cost savings and job creation across a variety of industries. And as businesses and organizations continue to migrate to the cloud, the economic benefits are expected to grow further,” said Yasser Hassan, managing director of the region’s business division at AWS.

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The findings underscore a significant opportunity for the UAE to accelerate its economic growth and position itself as an attractive and influential economic hub, aligned with the government’s „We UAE 2031” vision.

“As cloud computing continues to gain momentum, it is imperative that the UAE continues to support cloud adoption and develop a skilled workforce to improve the country’s competitiveness globally. With the support of AWS, the UAE can accelerate its digital transformation and unlock new opportunities for economic growth and social development,” he added.

The study revealed that the UAE experienced a significant boost to its economy in 2021 due to widespread adoption of public cloud services. This adoption contributed 2.26 percent to the country’s GDP, resulting in an economic value of $9.5 billion. „In particular, this contribution reflects the huge impact of public cloud adoption on GDP in the region. The positive influence on the economy is not limited to productivity, but also includes the construction aspect of installing and operating cloud infrastructures in the UAE,” the report said.

A study conducted by Telecom Advisory Services identifies four key benefits of cloud computing: First, it improves business efficiency and effectiveness, streamlines processes and improves outcomes; Second, it provides access to a wide range of services, enabling businesses to use advanced technologies; Third, it increases productivity by facilitating collaboration, mobility and agility within the workforce; And fourth, cloud computing promotes environmental sustainability by reducing per unit data transfer.

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