e& and AWS Forge a $1 Billion Partnership to Propel Cloud Innovation in the UAE
In a significant move that underscores the growing importance of cloud technology in the Middle East, the UAE’s telecom and technology group e& has entered into a landmark agreement with Amazon Web Services (AWS). Announced on Tuesday, this $1 billion deal aims to accelerate cloud-driven innovation and digital transformation across the region over the next six years. This partnership not only highlights the increasing reliance on cloud solutions but also positions the UAE as a burgeoning hub for technological advancement.
A Strategic Investment in Cloud Infrastructure
The collaboration comes on the heels of AWS’s launch of its second Middle East cloud region in the UAE in 2022. This initiative is part of a broader strategy that includes a planned investment of $5 billion (approximately Dh20 billion) in the local economy through to 2036. The focus of this investment is to enhance cloud services, which are critical for businesses looking to modernize their operations and improve efficiency.
Core Services and Technological Advancements
The deal between e& and AWS will center on delivering essential cloud services such as storage, computing, networking, and cybersecurity. Additionally, the partnership will leverage advanced technologies in artificial intelligence (AI) and machine learning (ML). These services are expected to empower businesses across various sectors, enabling them to harness the power of data and drive innovation.
One of the key aspects of this agreement is e&’s intention to modernize its platforms, including Starzplay Arabia, a popular TV streaming service, and Careem, the Middle East’s leading “everything app” that provides services ranging from food delivery to digital payments. By integrating AWS’s robust cloud services, e& aims to enhance user experiences and operational efficiencies.
Expanding AI Capabilities and Smart Home Services
In addition to modernizing existing platforms, e& plans to deploy Amazon’s technologies to bolster its AI capabilities. This includes advancing its Smart Home services, which are becoming increasingly popular among consumers seeking convenience and connectivity in their daily lives. Furthermore, e&’s Smiles loyalty program will allow customers to earn points when shopping on Amazon, creating a seamless integration between e-commerce and telecommunications.
Empowering Small and Medium-Sized Enterprises
A significant component of this partnership is the commitment to support small and medium-sized enterprises (SMEs) in the region. AWS will provide these businesses with access to the AWS Marketplace, enabling them to discover, deploy, and manage software solutions that run on AWS. This democratization of cloud access is crucial for fostering innovation and growth among SMEs, which are vital to the region’s economy.
The Future of Cloud Adoption in the Middle East
The potential impact of this partnership is underscored by recent studies. According to PwC, nearly 70% of companies in the Middle East plan to migrate most of their operations to the cloud within the next two years. Additionally, a report by Telecom Advisory Services predicts that public cloud adoption could unlock an astonishing $733 billion in economic value across the Middle East and North Africa by 2033. This trend highlights the urgency for businesses to adopt cloud technologies to remain competitive in an increasingly digital landscape.
Leadership Perspectives
Hatem Dowidar, Group CEO of e&, expressed enthusiasm about the partnership, stating, “This agreement with AWS demonstrates our shared long-term strategic goal to create an ecosystem that supports today’s digital needs and lays the foundation for future growth.” He emphasized the importance of investing in critical infrastructure and talent development to support the UAE’s vision of becoming a world-leading digital powerhouse.
Tanuja Randery, Vice President for Europe, the Middle East, and Africa at AWS, echoed this sentiment, noting that the collaboration marks a significant step in AWS’s ongoing investment in the UAE. She highlighted the importance of AWS’s security infrastructure and expertise in AI and ML, which will empower public sector organizations and enterprises to innovate securely and drive progress across the region.
Conclusion
The $1 billion partnership between e& and AWS is a pivotal development in the UAE’s journey toward becoming a global leader in digital innovation. By investing in cloud infrastructure and advanced technologies, both companies are not only enhancing their service offerings but also contributing to the broader economic growth of the region. As the Middle East continues to embrace digital transformation, this collaboration sets the stage for a future where businesses can thrive in an AI-powered, data-driven economy.