DUBAI, UAE – By accelerating cloud adoption, the UAE has the potential to unlock an additional $181 billion in economic value over the coming decade (2023-2033), equivalent to 2.5 percent of the country’s cumulative GDP, a latest report pointed out.
The UAE, according to the report by Amazon Web Services (AWS), registered an impressive economic benefit of $9.5 billion in 2021, thanks to the adoption of public cloud technologies.
This contributed to 2.26 percent of the nation’s GDP, marking the most substantial public cloud contribution to GDP in the region, it added.
Furthermore, cloud infrastructures in the UAE are proving to be of significant benefit to the nation’s productivity, in addition to their “construction” effect.
It is anticipated that by 2036, these infrastructures will generate $11.2 billion for the UAE economy and support approximately 6,000 full-time equivalent roles each year.
UAE outpaces MENA region
In the field of cloud computing, the UAE is outpacing the rest of the MENA region. An increase of just 1 percent in businesses’ cloud usage could boost the nation’s GDP by an average of 0.21 percent, or $854.7 million annually. This growth is three times the regional average, making it the highest in the region.
While public and commercial organizations in the UAE account for only 9 percent of this effect, the “spillover effects” or the increases in national productivity account for more than 91 percent. Cloud computing has proven to be 17 percent more effective than mobile broadband in boosting the UAE economy.
Despite having ambitious goals for leveraging technology to diversify the economy, only 43 percent of UAE-based businesses used the cloud in 2021, lagging behind Western Europe and North America, where the usage stands at 49 percent. However, the UAE government’s strong focus on digital transformation puts the country in a prime position to become a regional hub for cloud computing.
Key economic benefits
The AWS report outlined four main economic benefits of cloud computing. These include improvements to business efficiency and effectiveness, access to a range of services enabling businesses to leverage advanced technologies, increased productivity through collaboration, mobility, and agility among employees, and support for environmental sustainability by reducing carbon emissions per user.
Yasser Hassan, Managing Director, Commercial Sector, MENAT at AWS, commented on the report’s findings, “The results underscore the vast opportunity for the UAE to expedite economic growth and establish itself as a key economic hub, in line with the ‘We the UAE 2031’ vision introduced by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.”
“As the momentum for cloud computing continues to build, it is crucial for the UAE to encourage cloud adoption and cultivate a skilled workforce to boost the country’s global competitiveness. With the backing of AWS, the UAE is well-positioned to expedite its digital transformation and unlock new avenues for economic growth and social development,” Hassan added.