UAE's e& signs $1bn partnership with AWS to accelerate cloud adoption

Agreement will focus on boosting services such as AI, cloud storage, computing, networking and cybersecurity

A concept electric car showcased at the e& stand at Gitex Global in Dubai. Pawan Singh / The National

UAE telecoms and technology company e& has entered into a partnership valued at more than $1 billion with Amazon Web Services, the world's largest cloud services provider, to accelerate the adoption of cloud solutions and drive digital transformation in the region.

The partnership, announced at Gitex Global in Dubai, will focus on delivering services such as cloud storage, computing, networking, cybersecurity, artificial intelligence and machine learning over the next six years, the companies said in a joint statement on Tuesday.

E& said that it will harness AWS's suite of 200 services to modernise key platforms, including Starzplay Arabia, a TV streaming service in which e& holds a majority stake, and Careem, the super app that offers services such as food delivery, mobility and digital payments.

The UAE company said it will also enable small and medium-sized businesses to access the AWS marketplace.

“We are enabling businesses across the region to lead in an AI-powered, data-driven economy,” said Hatem Dowidar, group chief executive of e&, which serves more than 175 million subscribers in 34 countries.

“By investing in both critical infrastructure and talent development, we are … supporting the region’s economy, digital resilience, and … its people, who will be instrumental in realising the UAE’s vision of becoming a world-leading digital powerhouse.”

AWS launched its second Middle East cloud region in the UAE in 2022, alongside a planned $5 billion investment in the local economy through 2036. In August 2022, the company announced that its facility would contribute an estimated $11 billion to the UAE’s economy over the next 15 years.

AWS said it will enable regional companies to access generative AI technology using its Amazon Bedrock solutions, helping them boost productivity and improve customer experience. The Seattle-based company, a cloud subsidiary of Amazon – the world’s largest e-commerce firm – provides on-demand cloud computing platforms to businesses.

Cloud companies around the world are recording growing demand amid the AI boom. Nearly 68 per cent of Middle East companies surveyed by PwC last year said they planned to migrate most of their operations to the cloud within two years. Consultancy Telecom Advisory Services expects public cloud adoption to unlock $733 billion in economic value across the Middle East and North Africa by 2033, according to its report last year.

The cloud computing market in Middle East and Africa is expected to reach more than $178.52 billion by 2030, growing at a compound annual growth rate of 18.8 per cent from 2024 to 2030, according to California-based Grand View Research.

With a 31 per cent market share, AWS is the biggest player in the global cloud infrastructure services sector, followed by Microsoft Azure with 25 per cent and Google Cloud with 10 per cent, data from Statista shows.

The e& partnership will fast-track the UAE's 2031 vision that aims to raise its gross domestic product to Dh3 trillion ($816.88 billion) by the next decade, said Tanuja Randery, vice president for Europe, Middle East and Africa at AWS.

AWS and e& will also work on developing a local upskilling initiative, with plans to provide training opportunities to thousands of individuals, including UAE nationals, in cloud technologies and AI.

“Our investment in developing the skills of UAE nationals will have a positive impact on the region’s economic growth and technological leadership,” said Ms Randery.

Separately, Microsoft said at Gitex on Tuesday that its cloud ecosystem is projected to contribute $74.4 billion to the UAE economy and create more than 152,530 jobs by 2028. These jobs will be created both directly within Microsoft and indirectly through its partner ecosystem and cloud-using customers, according to a report by International Data Corporation that was sponsored by Microsoft.

Over the next four years, Microsoft and its partner ecosystem will spend approximately $5.1 billion in the UAE’s data centre regions for services and products in local economies, it said. “This investment will fuel the growth of enterprises, particularly those looking to harness the power of cloud and AI,” it added.