AWS report: Public cloud’s contribution to MENA economy could reach USD $733 billion by 2033

Amazon Web Services, Inc. (AWS), an Amazon.com, Inc. company (NASDAQ: AMZN), commissioned a new report quantifying the relationship between public cloud computing adoption, national productivity, and economic growth in the Middle East and North Africa (MENA) region. The report highlights the potential for the MENA region to unlock USD $733.1 billion of additional economic value over the next decade (2023-2033), representing 1.14% of MENA's cumulative gross domestic product (GDP), by accelerating adoption of cloud.
The study, performed by Telecom Advisory Services LLC, and directed by Raul Katz, Director of Business Strategy Research at the Columbia Institute for Tele-information (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.
Unleashing the Economic Power of Cloud Computing in MENA
In 2021, cloud adoption made a significant impact on the MENA region's economy. According to the report, it contributed 0.97% to the regional GDP, generating an economic value of USD $34.8 billion. Over 86% of this impact can be attributed to the national productivity gains or so-called “spillover effects” on the economy. The remaining 14% is driven by cloud spending from both public and private organizations in the MENA region.
On average, MENA countries experience a 0.07% increase in GDP for every 1% increase in cloud penetration. Extrapolating this data, a 10% increase in cloud penetration across the entire MENA region, would result in economic spillover effects amounting to an estimated USD $25.5 billion per year.
Yasser Hassan, Managing Director, Commercial Sector, MENAT at AWS, said: "The findings of this report highlight the tremendous opportunity for the MENA region to leverage cloud computing and accelerate economic growth. With significant untapped potential, the region can unlock additional economic value by increasing the current average cloud penetration. AWS is committed to supporting our customers and partners in MENA on their cloud journey, and we believe that the cloud will play a vital role in driving innovation, enhancing productivity, and transforming and scaling businesses in the region over the next decade." 
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.
In 2021, 26.5% of organizations in the MENA region embraced cloud computing, significantly lower than the adoption rates of 49% in Western Europe and North America. This presents an opportunity for the MENA region to enhance its cloud penetration and reap substantial benefits. 
“With the current forecast, the economic impact of the cloud is undeniable and is poised as a key catalyst for economic prosperity. As such, it is important for businesses in the region to invest in cloud computing technology to stay competitive and boost their economic potential,” 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.
The full report is available HERE