A new report commissioned by AWS, in partnership with the Dubai Chamber of Digital Economy, reveals that between 2022 and 2030, the UAE’s SMEs and start-ups stand to gain a total of US$17.1 billion (AED62.6 billion) in economic benefits from hyperscale cloud computing.
This consists of US$10.1 billion (AED37 billion) in user benefits and US$7 billion (AED25.7 billion) in local technology partners' and resellers’ benefits. Moreover, 74% of UAE SMEs have opportunities to benefit from hyperscale cloud computing advantages, which include cost savings, productivity, operational resilience and sustainability.
Source: Impact of Hyperscale Cloud on the UAE’s SMEs and Startups - Report
As per the AWS report, the increased scale, productivity and revenue for the UAE’s SMEs and start-ups, enabled by hyperscale cloud computing, will lead to the creation of 133,000 direct, indirect and induced jobs by 2030.
The report also estimates that by 2030, hyperscale cloud computing will reduce the country’s carbon footprint and carbon dioxide emissions by up to 78% and 2.2 million metric tons, respectively, in comparison to other IT infrastructure models, in addition to reducing security incidents by more than 30%.
Commenting during the report’s launch, Khalid Al-Jarwan, executive director of the Dubai Chamber of Digital Economy, said: “Despite its rapid progress, the UAE continues to look to the future as it pushes ahead with strategies and initiatives to fast track its digital transformation. Hyperscale cloud computing offers tremendous potential for startups and SMEs in the UAE that are keen to enhance their competitiveness and contribute to a thriving innovation ecosystem.”
Yasser Hassan, managing director/general manager for MENA and Turkey, Amazon Web Services (AWS), added: “The report findings are a further testament to the value creation potential that the cloud has to offer to SMEs, entrepreneurs and startups. By leveraging the power of the cloud, UAE businesses can accelerate innovation and digital transformation agility to build business resilience in a competitive and dynamic marketplace.”
The adoption of a hyperscale data center would enable UAE technology partners to be part of a global partner network and generate more revenue by serving customers worldwide.
Recommendations to Maximize the Potential of Hyperscale Cloud in the UAE
First, harmonizing and simplifying digital and data regulations on the federal and emirate levels, in addition to the implementation of a risk-based data classification system, will enable government organizations to improve data security and facilitate technology adoption.
Second, the UAE government can work with the private sector and technology companies to bridge the digital skill gap through digital training and upskilling programs. Building the foundations for a digitally-enabled local workforce can take the lead in innovation and entrepreneurship.
Finally, there is potential to increase collaboration between regulators and technology companies to ensure current and future regulations do not hinder widespread technology adoption.
