Cloud computing to add $181bn to UAE's economy by 2033, says AWS

Public cloud adoption added 2.26 per cent to the UAE’s GDP in 2021. AP

The adoption of cloud technology by the public is expected to add $181 billion in economic value to the UAE over the next decade, according to a report.

That is equal to 2.5 per cent of the Emirates’ economy.

Nearly 1 per cent increase in cloud adoption by the UAE organisations will result in a 0.21 per cent or $854.7 million average gross domestic product growth, which is three times the Middle East and North Africa average and the highest in the region, the report commissioned by Amazon Web Services found.

Public cloud is a deployment model where computing resources are owned and operated by a service provider and shared by various tenants or companies.

“The UAE can accelerate its digital transformation and unlock new opportunities for economic growth and social development [using cloud],” Yasser Hassan, managing director, commercial sector, for Mena and Turkey at AWS, said.

“As cloud computing continues to gain momentum, it is imperative for the UAE to continue to support cloud adoption and develop a skilled workforce to enhance the country’s competitiveness on a global scale.”

More than 91 per cent of the cloud adoption impact in the UAE can be attributed to the national productivity gains or “spillover effects” on the economy, while the remainder is driven by cloud spending from UAE public and private organisations.

As an economic stimulant, cloud computing is 17 per cent more effective in the UAE than mobile broadband, the report said.

For businesses, moving to a cloud system hosted by a specialised company – such as Oracle, AWS or SAP – is more economical than creating their own infrastructure of servers, hardware and security networks, industry experts said. It also brings down the overall cost of ownership.

In the cloud industry, businesses pay only for those selective services or resources they use over a period of time.

In 2021, almost 43 per cent of organisations in the UAE region adopted cloud computing, compared to 49 per cent in Western Europe and North America region.

In the same year, public cloud adoption added 2.26 per cent to the country’s GDP, generating an economic value of $9.5 billion.

The adoption of cloud has already led to increased efficiency, cost savings and job creation in various industries, said Mr Hassan.

“As more businesses and organisations continue to migrate to the cloud, the economic benefits are expected to grow even further,” he added.