UAE SMEs and start-ups could see $17.1 billion boost from hyperscale cloud computing: Report : Nov 24, 2022, 4:12pm

DUBAI. KAZINFORM – Large-scale cloud computing is expected to provide SMEs and start-ups in the UAE with economic benefits worth US$17.1 billion (AED62.6 billion) from 2022 to 2030, the equivalent of four percent of the country’s gross domestic product (GDP) in 2021) — says a new report commissioned by Amazon Web Services (AWS) in collaboration with the Dubai Chamber of Digital Economy, reports WAM.

The report, entitled Impact of Hyperscale Cloud on UAE SMEs and Start-ups, was launched during an event hosted by the Dubai Chamber of Digital Economy at the Dubai Chambers headquarters in partnership with AWS.

Khalid Al-Jarwan, Executive Director of Dubai Chamber of Digital Economy, and Yasser Hassan, Managing Director for MENA and Turkey, Amazon Web Services (AWS) and members of the business community attended the event.

The Access Partnership, which conducted the research for the report, delivered an informative presentation on the key findings, followed by a panel discussion with industry experts who discussed the new business opportunities emerging with the growing adoption of cloud computing worldwide .

The report revealed that 74% of SMEs and start-ups in the UAE still use manual processes and basic communication tools, highlighting the vast potential for these companies to reap the benefits of cloud computing.

Between 2022 and 2030, SMEs and start-ups can generate US$10.1 billion (AED37 billion) in user benefits and US$7 billion (AED25.7 billion) in benefits for partners from hyperscale cloud computing, supported by a hyperscale regional data center in the UAE.

The report estimates that by 2030, hyperscale cloud computing is expected to create 133,000 direct and indirect jobs in the UAE and reduce the country’s carbon footprint and carbon dioxide emissions by up to 78 percent and 2.2 million tons compared to other IT infrastructure models, as well as reducing security incidents by more than 30%.

The report outlined three key recommendations for harnessing this potential. Government organizations should first lead the way in digital transformation and technology adoption by harmonizing and simplifying digital and data regulations and implementing a risk-based data classification system to improve data security and facilitate the adoption of technology.

Second, government agencies can work with the private sector and technology companies to close the digital skills gap through training and upskilling programs. Finally, there is the potential to increase collaboration between regulators and private companies to ensure that regulations don’t disrupt technology adoption.

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 advances strategies and initiatives to accelerate its digital transformation. Hyperscale cloud computing offers huge potential for start-ups and SMEs in the UAE looking to enhance their competitiveness and contribute to a thriving innovation ecosystem.

Al Jarwan stressed the importance of conducting market research that provides transparency on emerging economic sectors and identifies market challenges and opportunities. The new report, she noted, outlines recommendations for maximizing the potential benefits of hyperscale cloud in the UAE, adding that such studies reflect the close and ongoing cooperation between the public and private sectors in Dubai.

Yasser Hassan, Chief Executive Officer/General Manager for MENA and Turkey, AWS, said: “The findings of the report are further testament to the value-creating potential that the cloud has to offer to SMBs, entrepreneurs and start-ups. By harnessing the power of the cloud, UAE businesses can accelerate innovation and digital transformation agility to build business resilience in a dynamic and competitive marketplace.

The report identified the benefits of hyperscale cloud computing such as scalable cloud storage, services on a pay-as-you-go basis, innovative capabilities, enhanced security, simplified global operational processes, as well as the expertise to address operational and regulatory issues during the expansion abroad. These benefits add up to increased productivity, cost savings, increased revenue, job creation, increased sustainability and operational resiliency.

Furthermore, adopting a large-scale data center would enable UAE technology partners to be part of a global partner network and generate more revenue by serving customers worldwide.

Photo: WAM

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