While the region might have had a later start with cloud adoption compared to other international markets, the GCC has transformed into one of the most active markets for the cloud. Due to the adaptability of their digital programmes, the UAE and Saudi Arabia in particular are leading the area.  

 

GCC economies have historically relied heavily on energy resources to propel economic and governmental growth. With the development of digital technologies, the Gulf region has expanded its efforts to build knowledge-based economies, grow its financial sectors, and adopt digital technology during the previous ten years.

 

According to Grand View Research, the global market for cloud computing, which was valued at $368.97 billion in 2021, is expected to grow at a compound annual rate of almost 16% between 2022 and 2030, with emerging technologies like artificial intelligence and machine learning serving as some of its main drivers.

 

In contrast, research company Gartner predicted that global expenditure on public cloud services would increase by more than 20% yearly, reaching $495 billion this year — over $84 billion more than what was spent in 2020 — and $600 billion in 2023.

 

The UAE has launched many efforts to encourage digital inclusion and adoption.

The UAE Cabinet approved a policy in April that calls for the digital economy to make up 20% of the country's overall non-oil output over the next few years. It was also agreed to establish a council for the digital economy.

 

The strategy covers five new growth sectors in addition to more than 30 initiatives, projects, and programmes.

 

As the demand for cloud services increases, some international firms are also setting up data centres in the area.

 

In 2016, Alibaba Cloud opened its first regional data centre in Dubai. In 2019, Microsoft opened two data centres, one in Abu Dhabi and the other in Dubai. IBM debuted two data centres in the UAE in 2020, marking the company's first venture into the Middle East and Africa.

 

The largest supplier of cloud storage services in the world, Amazon Web Services, said last year that three data centres will be opening in the UAE this year.

 

Technology is one of the main pillars of Saudi Arabia's Vision 2030 agenda, which includes diversifying the country's economy away from oil. To grow the IT industry, Riyadh promotes entrepreneurship and looks for investment from both domestic and foreign sources.

 

The largest oil producer in the world, Saudi Aramco, as well as the kingdom's sovereign wealth fund, the Public Investment Fund, are significant Saudi contributors to the digital drive in technology firms worldwide; and Saudi Telecom Group, the largest telecom company in the nation, which this month partnered with Alibaba Group to launch a $238 million cloud computing venture in the largest economy in the Arab world.

 

One of the most significant foundational technologies for the digital revolution is cloud computing.

 

In addition to the best-in-class cloud technology, it is essential to provide vertical industry insights to organisations to enable them to fulfil the rising need of corporations for digital transformation. They should fully embrace digital transformation as they embark on their digital journey.

 

The public sector, media, entertainment, manufacturing, retail, logistics, finance, and other important industries have all adopted this transition as a "pivotal trend" and are utilising Technologies using AI and data intelligence to increase corporate productivity and sustain growth. This will hasten the adoption of clouds even further.

 

The Covid-19 epidemic is a further reason for the rise in cloud usage. Along with interrupting economic activity, it also kept people at home and increased demand for cloud services by fostering trends like remote working and online learning.

In contrast to this tendency, the digital economy has exploded in popularity, forcing both public and private organisations to acknowledge the urgency and necessity of building their digital economies.

 

By developing their technology sectors, investing in infrastructure, embracing digital and electronic platforms, and establishing technology parks and business incubators, some GCC nations increased governmental support to facilitate digital transformation.

 

The pandemic made it clear how crucial it is to continue the digital economy's expansion, making it necessary for both economic resilience and the growth and development of every sector of the economy.