Amazon Web Services, commissioned a new report quantifying the relationship between cloud computing adoption, national productivity, and economic growth in the Middle East and North Africa region. The report highlights the potential for Kuwait to unlock $16.8 billion in additional economic value over the next decade (2023-2033).
The study, performed by Telecom Advisory Services, and directed by Raul Katz, Director of Business Strategy Research at the Columbia Institute for Teleinformation (Columbia Business School), provides a cutting-edge econometrical method for calculating the aggregate productivity gains realised by economies that adopt cloud computing. It extends previous economic research focused on firm-level productivity by establishing cloud adoption as a driver of national productivity and economic growth.
Economic Power of Cloud Computing in Kuwait
In 2021, public cloud adoption made a significant impact on Kuwait’s economy. According to the report, it contributed 0.59% to the country’s GDP, generating an economic value of $798 million. The report finds that a 1% increase in cloud adoption by Kuwait organisations will result in a 0.05% (USD 63.86million) average GDP growth.
Yasser Hassan, Managing Director, Commercial Sector (MENA and Turkey), at AWS, said: “The findings of our report highlight the tremendous opportunity for Kuwait to harness the potential cloud computing in line with the government’s strategic initiatives. As cloud computing continues to gain momentum, it is imperative for Kuwait to invest in infrastructure and develop a skilled workforce to enhance the country’s competitiveness on a global scale. With the support of AWS, Kuwait can accelerate its digital transformation and unlock new opportunities for economic growth and social development.”
The study demonstrates that the economic impact of cloud computing is guided by returns to scale – greater adoption of cloud computing will lead to proportionally greater productivity gains and economic impact.
“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 economic benefits are expected to grow even further,” added Yasser.
The report identifies four key advantages of cloud computing. First, it enhances business efficiency and effectiveness, streamlining processes and improving outcomes. Second, it offers access to a wide range of services, enabling businesses to leverage advanced technologies. Third, it boosts productivity by facilitating collaboration, mobility, and agility within the workforce. Fourth, cloud computing promotes environmental sustainability by reducing carbon emissions per unit of data transmitted.