5 November 2024, Tue |
3:38 PM
Amazon Web Services, Inc. (AWS), a subsidiary of Amazon.com, Inc., has commissioned a comprehensive report examining the symbiotic relationship between cloud computing adoption, national productivity, and economic expansion within the Middle East and North Africa (MENA) region. The report illuminates the significant potential for Kuwait to unlock an additional $16.8 billion in economic value over the coming decade, spanning from 2023 to 2033.
The research, conducted by Telecom Advisory Services LLC under the guidance of Raul Katz, Director of Business Strategy Research at the Columbia Institute for Teleinformation (Columbia Business School), introduces a cutting-edge econometric approach for gauging the cumulative productivity enhancements realized by economies embracing cloud computing. It builds upon earlier economic studies that concentrated on productivity at the firm level, establishing cloud adoption as a catalyst for national productivity and economic expansion.
Unveiling the Economic Potential of Cloud Computing in Kuwait
In 2021, the incorporation of public cloud services had a profound impact on Kuwait’s economy. According to the report, it contributed 0.59% to the nation’s GDP, generating an economic value of $798 million. The study further reveals that a 1% rise in cloud adoption among Kuwaiti organizations would result in an average GDP growth of 0.05%, equivalent to $63.86 million.
Yasser Hassan, Managing Director of the Commercial Sector (MENA and Turkey) at AWS, emphasized, “Our report’s findings underscore the remarkable opportunity for Kuwait to harness the potential of cloud computing in alignment with the government’s strategic initiatives. As cloud computing continues to gain momentum, it is imperative for Kuwait to invest in infrastructure and cultivate a skilled workforce to enhance the country’s global competitiveness. With AWS’s support, Kuwait can expedite its digital transformation and unlock fresh prospects for economic growth and societal advancement.”
The research illustrates that the economic influence of cloud computing adheres to the principle of economies of scale: greater cloud adoption correlates with proportionally more substantial productivity gains and economic impact. Yasser further noted, “The widespread adoption of cloud has already led to increased efficiency, cost savings, and job creation in various industries. As more businesses and organizations continue to migrate to the cloud, the anticipated economic benefits are poised for further expansion.”
The report identifies four key advantages of cloud computing. First, it elevates business efficiency and effectiveness by streamlining processes and enhancing outcomes. Second, it provides access to an extensive array of services, enabling businesses to leverage advanced technologies. Third, it elevates productivity by fostering collaboration, mobility, and agility within the workforce. Fourth, cloud computing champions environmental sustainability by diminishing carbon emissions per unit of data transmitted.
