- International Data Corporation’s report projects the kingdom’s IT Sector will experience a 5-year compound annual growth to reach BHD 263 million by 2024
- Bahrain’s spending on public cloud services is expected to reach BHD 23.2 million in 2024
12 April 2021; Manama, Kingdom of Bahrain – The Bahraini economy is set to be empowered by the creation of 5,400 net new jobs, enabled by the cloud and Microsoft’s ecosystem, according to new research by IDC. The study finds that spending on the kingdom’s public cloud services is on track to increase nearly 3.6 times over the next five years, rising from approximately BHD 6.5 million in 2019 to BHD 23.2 million in 2024.
The IDC White Paper discusses the impact that IT, cloud services, and the Microsoft ecosystem will have on Bahrain’s economy during the 2019–2024 period. It builds on more than a decade of analysis around the economic impact of IT on local economies. Given the local investments in public, private, and hybrid cloud solutions, the research finds that businesses in Bahrain are expected to generate nearly BHD 89 million in net new revenues over the next five years.
IDC’s research highlights that the IT sector in Bahrain is expected to reach a value of BHD 263 million by 2024, reflecting a compound annual growth rate (CAGR) of 1.10% over the next five years. And the number of people employed in the IT field in the country is also expected to exceed 20,600 by the end of 2024.
“The Microsoft intelligent cloud and our ecosystem will continue to play a vital role in economic development and creation of jobs in the Kingdom, reinforcing our commitment to support the government in building a knowledge hub that is advanced and sustainable,” said Sheikh Saif Hilal Al Hosni, Country Manager, Microsoft Bahrain & Oman. “IDC’s research shows that almost 36% of IT professionals in Bahrain are in the Microsoft ecosystem or work with or on Microsoft products.”
“Bahrain has a forward-looking strategy for digital modernization with its national ‘cloud-first’ policy, ongoing public-private partnerships in the technology area, and various national level transformation initiatives. The role of cloud and emerging technologies such as AI, IoT, and data analytics will be critical to realizing the government’s long-term Vision 2030 and driving economic growth and accelerated innovation,” said Manish Ranjan, Program Manager for Software & Cloud at IDC Middle East, Turkey and Africa (META).
“There has been an increasing demand for cloud skills, as well as the skills required for the use of related technologies like AI, ML, IoT, analytics, and automation in Bahrain. Innovations and the rising use of public and private cloud services will drive economic diversification in Bahrain and support the establishment of new companies and new jobs. The current pandemic of COVID-19 has accelerated the adoption of these emerging technologies such as cloud and AI as organizations are striving to ensure business continuity,” concluded Ranjan.
IDC’s report also analyzed the impact of Microsoft’s ecosystem in Bahrain. The Microsoft ecosystem — which consists of entities that sell, service, deploy, or otherwise work with Microsoft products — supported almost 5,000 workers in 2019. The ecosystem also accounted for 35.9% of total IT jobs in 2019. The report also found that Microsoft generates far larger revenues from its ecosystem than from its own operations. For every $1 that Microsoft generates in revenue, its ecosystem generates $9.61 in downstream revenue.