Cloud to add $181b to UAE economy by 2033

Cloud to add $181b to UAE economy by 2033

UAE cloud adoption is three times higher than the Mena average

Published: Mon 5 Jun 2023, 4:38 PM

The UAE has the potential to unlock $181 billion in additional economic value over the next decade (2023-2033), or 2.5 per cent of the country’s cumulative gross domestic product by accelerating the adoption of cloud services, according to a study commissioned by Amazon Web Services.

In the Middle East and North Africa (Mena) region, the UAE stands out as the country where cloud adoption drives the most significant economic growth through spillover effects. A one per cent increase in cloud adoption by UAE organisations leads to average GDP growth of 0.21 per cent, equivalent to $854.7 million, according to the study.

This growth rate is three times higher than the Mena average, making it the highest in the region. Remarkably, over 91 per cent of this impact can be attributed to the national productivity gains or spillover effects on the economy, while the remaining nine per cent is driven by cloud spending from both public and private organisations in the UAE.

“As an economic catalyst, cloud computing proves to be 17 per cent more effective in stimulating the UAE’s economy compared to mobile broadband,” said the report.

The