Company Trend Analysis - AWS To Lead Bahrain's Cloud Computing Industry - DEC 2017

Amazon Web Services (AWS) plans to open a regional division in Bahrain in early 2019. It will launch three 'availability zones', each with at least one datacentre, to cater to growing demand for cloud services in the Middle East. This move is part of Amazon's broader interest in the Middle East, along with its acquisition of regional e-commerce giant in July 2017. AWS already had some presence in the Middle East through partnerships with telecoms operators, including Batelco in Bahrain and du in the UAE, so it will be leveraging an existing user base.

The arrival of a global player like AWS will have a significant impact on the cloud computing services market in Bahrain and the Persian Gulf region at large. Other global players like Microsoft Azure and Google Cloud are likely to follow, as demand for cloud computing will be bolstered by the region's efforts to diversify their economies as part of their modernisation initiatives, like Saudi Vision 2030, UAE Vision 2021 and Bahrain Vision 2030. Despite credible competition, we expect AWS to be commercially successful in the region, given its early-mover advantage.

Bahrain is a particularly attractive market to place datacentres for cloud services within the MENA region for several reasons:

  • Strong Market Fundamentals Support Growth
    Bahrain - Cloud Computing Spending (BHDmn)
    f = BMI forecast. Source: BMI

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