Transforming Kuwait’s Industries through Tech Adaptations

23 Apr 2021   |  Kuwait

The Kuwait government emphasizes digital transformation for public and private sector services by committing to spending up to USD 10.1 Billion by 2024, mainly for adopting advanced technologies such as artificial intelligence (AI), big data, cloud computing, and the Internet of Things (IoT).

The measures resulted from the government's plans to enhance Kuwait's society to provide technological solutions around the gulf region and beyond. The country is restructuring policies and procedures that would enable the government to offer competitive services focusing on innovative e-service programs.

Diversifying Economic Opportunities

Kuwait’s Industries through Tech Adaptations

Amongst the country's sectors, Kuwait's energy industry will take the largest share of the spending, accounting for over 45% of the overall ICT budget. The government has prioritized digital transformation to boost output and reduce harmful emissions, mainly from the oil, gas, and petrochemical sectors.

Digital transformation in the oil and gas sector would improve efficiency and allow the business players to shift from the time-consuming traditional approaches.

The adoption of fintech solutions will also support the growth of Kuwait's IT sector, as major banks such as Al Ahli Bank of Kuwait and Burgan Bank are expanding their horizon to e-wallet and digital payment solutions.

Retail banking also contributes significantly to the development of cloud computing, bringing a growth forecast of 18.6% CAGR or equivalent to reach USD 1.6 Billion by 2024. Several Kuwait banks have partnered with AWS to digitize their banking processes to improve customer banking experience and effectiveness.

Cloud computing's capacity to analyze and manage data among many layers of enterprises will drive data and analytics revenue over the next five years.

However, mobile spending is estimated to reach the highest CAGR of 20.5% by 2024, with more than 4.26 Million internet users and 6.94 Million mobile connections in Kuwait by January 2021.

The growing adoption of mobile content management among businesses will fuel revenue growth, especially alongside the rollout of 5G technology that would enable new opportunities for other vertical fields such as banking, medical, and entertainment sectors.

The government has recently announced its Cloud Connect service that would allow Kuwait enterprises to access cloud services supported by Ooredoo Business. The partnership with Microsoft would further accelerate cloud migration and trigger innovation, eventually resulting in job creation and prosperity across Kuwait.

Taking Measure for Kuwait Vision 2035

In conjunction with the Kuwait Vision 2035, the country seeks to become an enabler of digital transformation and a vital component of the upcoming economic prosperity. As a response to the global oil price volatility and increasing budget deficit, the country is planning to diversify its economic base by improving the productivity of different sectors and reducing reliance on saturated industries.

Kuwait Vision 2035 gives room for private sectors to take a more prominent role in economic activities by supporting citizen-centered policies and inviting healthy competitiveness.

The government has recently announced its Cloud Connect service that would allow Kuwait enterprises to access cloud services supported by Ooredoo Business.

The partnership with Microsoft would further accelerate cloud migration and trigger innovation, eventually resulting in job creation and prosperity across Kuwait.

As Kuwait continues rolling out its plan on digital transformation across all sectors, businesses will benefit from access to the intelligent cloud and supportive government's digital regulations.

Kuwait enterprises now can optimize data-rich management tools that would play a significant role in optimizing cost, reducing complexities, and driving the country's economic vision to 2035.

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