Microsoft Cloud to add US$39 billion to UAE economy

The Microsoft Cloud will generate about US$39 billion over four years and create close to 100,000 jobs, according to an International Data Corporation (IDC) study released today at GITEX Global 2022 in Dubai World Trade Centre.

The IDC Infosnapshot, sponsored by Microsoft, “Microsoft Cloud Dividend Snapshot” for the United Arab Emirates shows that between now and 2026, the four-year accumulated total for new revenue from the Microsoft Cloud will be US$39 billion, with 16.6% accumulated benefit emanating from its cloud data centre regions in Abu Dhabi and Dubai. This revenue will be generated by the Microsoft Cloud ecosystem, made up of Microsoft, its partners, and its cloud customers.

“IDC’s findings are confirmation that Microsoft’s efforts to support the government, business community, citizens, and residents of the UAE are bearing fruit,” said Naim Yazbeck, General Manager, Microsoft UAE. “Since we opened our Abu Dhabi and Dubai data centres in 2019, the trusted, versatile, flexible Microsoft Cloud has been driving investment in economies, the creation of jobs, a reduction in carbon emissions, and progress in sustainability. IDC’s snapshot is a projection of how our continued efforts will bring further successes for the communities we serve.”

Customers and partners benefitting from the Microsoft Cloud in the UAE and beyond come from a large cross section of industry and government and include Abu Dhabi Digital Authority (ADDA), the Ministry of Education and leading banks such as First Abu Dhabi National Bank and Mashreq Bank, transport hubs such as DP World and DXB Airport and retail conglomerates including Majid Al Futtaim Retail among others.

Microsoft and its partner ecosystem, in support of growing local businesses, will spend about US$3.4 billion in the UAE data centre regions for services and products in local economies. And the new regions will also help eliminate some of the barriers to cloud adoption within the region. The snapshot report also shows how benefits accruing to partners will continue to rise. Microsoft partners in 2023 can expect to make US$6.40 for every dollar generated by Microsoft through its UAE cloud locations. By 2026, this figure is expected to be US$8.49.

Meanwhile, Microsoft, its partners, and its customers will add over 97,000 jobs to the UAE economy, either through direct employment or through the indirect generation of jobs in other organizations. This will include an estimated over 29,000 new skilled IT jobs, highlighting the ongoing need for collaboration between public and private entities on skilling programmes to ensure that qualified professionals are on hand to assume these roles.

“Microsoft has long been a trusted partner in the UAE’s growth journey,” Yazbeck added. “We guide individuals, enterprises, and governments to leverage our products, platforms, and data-driven services to thrive in a connected world. We pledge to continue investing in infrastructure, research, and people to ensure a future that is prosperous and sustainable for everyone in the UAE.”

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