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Cloud Computing set to contribute 2.5% to UAE’s economy in next 10 years
Cloud computing adoption by 43% of businesses in the UAE added 2.26% to the GDP in 2021.
Cloud computing has brought about a revolution in the way businesses function, providing them with unparalleled scalability, cost-efficiency, and flexibility. According to a report, the adoption of cloud computing by UAE citizens is projected to contribute approximately $181 billion to the country’s economy over the next decade, accounting for around 2.5% of its total economic output.
According to a report by Amazon Web Services, cloud computing has been identified as a more potent economic stimulant in the UAE than mobile broadband, delivering a 17% higher effectiveness.
“Forty-three percent of organizations in the UAE region adopted cloud computing in 2021, versus 49% in Western Europe and North America. The UAE, therefore, has the potential to improve cloud penetration. By doing so, the Emirates will benefit from increasing returns to scale and unlock $181 billion of additional economic value over the next decade (2023-2033), representing 2.5% of the UAE’s cumulative GDP,” stated the report.
The report highlights that although the UAE has ambitious aspirations to diversify its economy through digitization, fully harnessing the potential of cloud computing will necessitate proactive policy reforms to ensure widespread access to public cloud services.
Yasser Hassan, managing director, commercial sector, for MENA and Turkey at AWS, said “The UAE can accelerate its digital transformation and unlock new opportunities for economic growth and social development.”
He emphasizes the significance of ongoing support for cloud adoption in the UAE and the imperative to cultivate a skilled workforce. These measures are crucial for bolstering the country’s competitiveness in embracing cloud computing and staying at the forefront of technological advancements.
The report reveals that in 2021, adopting cloud computing in the UAE contributed a remarkable 2.26% to the country’s GDP, resulting in an economic value of $9.5 billion. The findings also indicate that a mere 1% increase in cloud adoption by UAE organizations would lead to an average GDP growth of 0.21%, three times higher than the mean average.
Moreover, over 91% of this significant economic impact was attributed to spillover effects, indicating the positive ripple effects of cloud adoption on various sectors. The remaining 9% was driven by the direct cloud spending of both public and private organizations in the UAE.