On the back of a surge in tech adoption, investments in infrastructure funds are expected to go up.
“Digitisation in the consumer and business segment through higher data penetration, usage and adoption of 5G/ IOT has led to a growth of digital infrastructure and an increase in connectivity across the Middle East. This has drawn investment for data centers to the GCC region especially,” said Radhika Kapoor, Consultant, Capitel.
She further added that as we see multiple infrastructure funds are looking to invest and cloud providers and tech giants are entering the market such as AWS, Microsoft and Tencent.
There has also been immense growth in the area of cloud computing in the Middle East. As people are getting a better understanding of the workings of cloud computing people are becoming more comfortable in adapting the technology. The cloud adoption has seen a huge surge in the Middle East.
5G and edge computing are the emerging technologies that most countries are looking to adopt, which could open up new business opportunities.
The Middle East is home to more than two dozen sovereign wealth funds such as Abu Dhabi Investment Authority, Mubadala Investment Company, Qatar Investment Authority.
According to a report in Arthur D Little titled ‘Middle East digital economy outlook- Special report: Growth opportunities in UAE, Pakistan and Oman’. During the pandemic there has been a clear acceleration of this digital transformation.
More rapid technology adoption and industry disruption is forcing faster 5G and cloud deployment. Customers have been more accepting of change and new ways of working.
Regulators have been more relenting, enabling faster adoption and greater experimentation with digital solutions. Remote working, contactless payments, and autonomous systems are now part of everyday norms.
The report further added that post-pandemic, global economies are grappling with the twin challenges of how to recover from a severe economic downturn and adapt to the disruption that has occurred.
Governments, businesses, and households operate and interact differently in the new normal. It is recognised that the digital economy has taken a major step forward, with multiple technologies and solutions entering our lives for good, our behaviors and preferences irreversibly altered.
We have also come to realize the digital economy is more resilient.