Cloud Spending to contribute USD 1.2 billion to Bahrain’s GDP by 2026

TDT | Manama                                                    

The Daily Tribune – www.newsofbahrain.com

Bahrain, a trailblazer in the digital transformation landscape, is set to witness a substantial economic boost thanks to its strategic investment in cloud technology.

According to the recently unveiled Economic Impact Study by the International Data Corporation (IDC), Bahrain's cloud spending is poised to contribute an impressive USD1.2 billion to the Kingdom's GDP by 2026, equivalent to around 2.3% of the total GDP.

This groundbreaking study, which delved into the comprehensive analysis of national investments in cloud technology, revealed that Bahrain's forward-thinking legislation, business-friendly environment, and a pool of digitally skilled local talent have played pivotal roles in the Kingdom's remarkable cloud journey and technological progress.

In a proactive move, Bahrain emerged as a regional leader by being the first in the Middle East to mandate a national CloudFirst policy, responding with agility to global trends in digital innovation.

This visionary policy, implemented in 2019, ignited a surge in cloud spending and laid the foundation for a mature, cloud-ready infrastructure and ecosystem. The establishment of a cloud security framework and flexible regulations further solidified Bahrain's position as a prominent cloud and data centre hub in the Middle East and North Africa (MENA) region.

The IDC white paper emphasized that Bahrain's Cloud-First Policy, coupled with the public sector's commitment to digitizing national infrastructure, has significantly enhanced operational performance across various sectors.

Investments in cloud-based solutions, coupled with the use of data analytics and advanced AI technologies, are expected to further drive nationwide cloud adoption. Government bodies, including the Information and eGovernment Authority (iGA) and Bahrain Economic Development Board (Bahrain EDB), spearheaded Bahrain's leading position in digitizing its economy and advancing its ICT infrastructure through key digital initiatives.

Collaborative efforts between government agencies and private sector players, supported by the Labour Fund Tamkeen's investments in upskilling the national workforce, resulted in pioneering regulations like the data jurisdiction law.

As part of its digital transformation journey, Bahrain achieved key milestones, attracting global giants such as Amazon Web Services (AWS). In 2019, AWS selected Bahrain as the destination to host the first AWS Region in the Middle East and North Africa, marking a significant achievement in the country's cloud infrastructure growth.

Wojciech Bajda, Managing Director, Public Sector, Middle East, Turkey, and Africa at AWS, affirmed their commitment to supporting Bahrain's strides in cloud infrastructure across all industries.

He stated, "Bahrain adopted a Cloud-First policy early on in its digital transformation journey, and we are proud to have been the first cloud provider, implementing advanced and secure technology infrastructure that aids in the growth of the country's IT and cloud spending." Jyoti Lalchandani, Group Vice President and Regional Managing Director of IDC Middle East, Turkey, and Africa, highlighted the multiplying economic benefits of Bahrain's Cloud-First strategy.

"As Bahrain successfully drives its cloud-first strategy, economic benefits multiply from the ability to scale resources and leverage the workforce, increase accessibility and productivity, and reduce costs while increasing security," Lalchandani commented. Musab Abdulla, Executive Director of Business Development, ICT, at Bahrain EDB, underscored Bahrain's pioneering role in digital transformation and technology adoption.

Abdulla said, "Bahrain has continuously led the region in digital transformation and adoption of the latest technologies. This has resulted in a number of strategic benefits to the Kingdom, including being the globally leading government adopter of cloud infrastructure." The report also highlighted the economic impact of Bahrain's cloud adoption, comparing it to a similar study conducted in Europe in 2021.

Despite Bahrain's major cloud spending starting in 2019, the impact on GDP contribution, revenue, and employment mirrors that of countries with earlier cloud service spending. Spending on public cloud services in Bahrain is projected to grow by an impressive 14.9 times between 2018 and 2026, making it one of the fastest-growing in the Middle East and Africa (MEA) region.

Bahrain's commitment to cloud technology not only positions it as a regional leader but also propels the nation towards accelerated innovation and a thriving digital economy.