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Google Contributed Billions To The Middle East Economy In 2021
Google contributed over $3 billion to the economy in both the UAE and Saudi Arabia in 2021 alone.
For better or worse, Google is at the heart of the modern internet. Services like Google Search, Gmail, YouTube, Google Maps, and Google Drive are used by billions of people around the world, helping them find useful information, establish an online presence, and accomplish their goals, among many other things.
Interested to see how much value it contributes to the Middle East economy, the tech giant commissioned independent consultancy Public First to explore how Google’s products helped people, businesses, and workers, and the findings are astonishing: Google contributed over $3 billion to the economy in both the UAE and Saudi Arabia in 2021 alone.
To be more precise, Google helped support an estimated 12.2 billion SAR (or $3.25 billion) in economic activity in Saudi Arabia and AED 11.3 billion (or $3.08 billion) in the UAE.
In both countries, e-commerce played a vital role in Google’s contributions. Before the COVID-19 pandemic, people across the Middle East were fairly reluctant to shop online. Since the first wave of pandemic lockdowns restricted access to physical stores, e-commerce penetration more than doubled both in Saudi Arabia (from 5% to 10%) and the UAE (from 5.6% to 12.1%).
Other drivers of Google’s contributions include the company’s huge developer ecosystem or the various content creators it helped propel to stardom, such as the Iraqi creator known as Chef Shaheen, whose YouTube channel has around 2.4 million subscribers.
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“We see from the numbers that the content creator economy is growing massively…same thing for developers,” says Anthony Nakache, Google’s Managing Director in the Middle East and North Africa. “All signs are showing that there is a growth in the [digital] economy — all components are actually growing.”
On the flip side, any economy that becomes largely dependent on a single company can find itself in an unpleasant situation if the company stops being able to deliver its services, just like when the massive Facebook outage shook the internet in 2021.
News
Microsoft Plans $10 Billion-Plus Gulf Expansion Despite Iran Conflict
Security is shaping Microsoft’s approach, from resilience work with governments to what it will say about how the money splits by country.
Microsoft is planning more than $10 billion of investment across the UAE, Saudi Arabia, Qatar and Kuwait through 2030, Vice Chair and President Brad Smith told Reuters, calling the spending schedule aggressive. The Iranian conflict that began on February 28 has not persuaded the company to scale back.
“We’re sustaining all the investments we planned to make before this conflict started, and we are in fact adding to them,” Smith said. The $10 billion-plus total does not, however, show how large those additions are.
The investment, which Smith described as part of Microsoft’s continued infrastructure expansion, is aimed at cloud and AI infrastructure and at the company’s growing regional operations. Microsoft also intends to put more than $400 million into subsea and terrestrial connectivity across the Middle East by 2030.
The spending fits the region’s own ambitions too. Gulf governments have been investing heavily in AI infrastructure as part of a push to diversify their economies beyond oil and gas and turn themselves into global technology hubs. Major cloud and AI providers have been drawn in part by the land and relatively low-cost energy on offer.
Microsoft is widening its partnerships with regional AI companies, though not on identical terms. In 2024, it invested $1.5 billion in Abu Dhabi-based G42 for a minority stake, and Smith currently sits on G42’s board. Saudi Arabia’s Humain and Qatar’s Qai are working with Microsoft on selected priority areas, but Smith said the company does not plan to make capital investments in either.
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The conflict has added another strand to Microsoft’s work in the region. Since it began, Smith said, the company has supported regional partners with digital resilience assessments, and it is now working with Gulf countries through a digital resilience initiative focused on preparedness and the protection of critical data.
So far, the company has given no country-by-country breakdown of the investment, citing security among other factors. So while the headline figure is public, how Microsoft divides the spending among the four countries is not.
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