DUBAI 20 June 2019: Microsoft chose the UAE to open its first two data centres in the Middle East to meet the demand of a fourfold spending increase in cloud services forecast for the region between 2017 and 2022.
With new data centres in Abu Dhabi and Dubai, Microsoft’s global network has reached 55 and it will be launching eight more in the coming months. The investment in data storage in Saudi Arabia and the UAE – the Arabian Gulf’s two largest economies – is set to rise to more than Dh1.5 billion in 2022, according to Massachusetts researcher International Data Corporation.
“There is a huge scope for cloud business … with new data centres driving digital transformation, economic growth and job creation in the region,” Sayed Hashish, general manager for Microsoft Gulf said.
Without divulging the exact amount Microsoft invested in UAE data centres, Hashish said: “We are investing billions of dollars across our data centres. Huge demand is giving us confidence to invest.”
For regional enterprises, moving to a cloud system hosted by a specialised company proves cheaper than creating their own infrastructure of servers, hardware and security networks.
“As all data stays in the UAE, it will enable government organisations to comply with local regulatory frameworks,” Hashish added.
The public cloud services market in the Middle East and North Africa is projected to grow to $1.9bn (Dh7.97bn) by 2020, double what it was in 2016, according to Statista.
Microsoft’s technology and cloud services together will help create more than 110,000 jobs in Saudi Arabia and UAE by the end of 2022, according to IDC, with jobs in data science, blockchain architecture and AI.
“We anticipate the cloud services delivered from UAE to have a positive impact on job creation, entrepreneurship and economic growth across the region.”, said Mr Hashish.
With this announcement, Microsoft has become the first of the ‘Big Three’ cloud providers to open a data centre in the Middle East, beating out Amazon and Google.
TRA Welcome
The launch of Microsoft cloud services in the UAE confirms the UAE’s leading role in the ICT sector and as one of the world’s leading hubs of digital transformation in all sectors. The presence of advanced, efficient, flexible and high-performance cloud services in the region enables companies for full digital transformation, which positively affects the quality, competitiveness and efficiency of the services they provide to their customers, said Hamad Obaid Al Mansoori, TRA Director General.
The presence of cloud services in the region will also contribute to the promotion of a culture of innovation, especially for start-ups and entrepreneurs, to build globally competitive digital products and services.
This also creates new job opportunities in the country in the field of information technology.
TRA, the entity responsible for the development of the ICT sector, welcomes and encourages these
investments in the UAE due to its role in making the UAE a global leader in the ICT sector.
