Thursday, June 25, 2015

Kuwait Shifts focus from Construction, Oil to Tech Sector

First of its breakthrough tech partnership, IBM set up its wholly foreign owned operations in Kuwait. IBM is the US IT tech giant in the field of multinational technology and consulting firm. It is said that the changes made to Kuwait’s foreign investment policies are blooming significant and positive results.

IBM has also announced to make further ado into the technology services by tying up with local Kuwaiti IT industry and introduce the Cloud Computing services in the country. IBM has set up its office in Kuwait City. It focuses on providing the customers with a sales and customer service hub, research analysis, professional services and other managed services. Apart from boosting the country’s ICT industry, IBM has planned its strategy solely on IT technology, rather than just depending upon country’s oil growth. Kuwait is focussing on other sectors instead of solely depending upon its oil revenue. A non-oil growth of 5.5% is predicted by the National Bank of Kuwait (NBK) for the year 2015-16 from 3.5% in 2014.

With the welcoming response of IBM in the Kuwaiti tech market, IBM sees its future in making their presence and services across the Middle Eastern market in the coming years. IBM also has in its line of operation to develop its services in cloud computing, social media, mobile services and security enhancing services.

Furthermore, United Business Group (UBG), leading IT infrastructure and management company had partnered with IBM Cloud to introduce a managed business service provider. The agreement between the two states that UBG and IBM will be offering its Kuwaiti clients with flexible hybrid cloud platform which will be using a system modelled after the OpenStack programme. In addition to this, subscription based cloud services will be given to clients by IBM cloud.

At present, many of the countries have adopted the cloud technology and have benefitted from its uses. In Kuwait, as stated by the Kuwait Financial Centre, 80% (approximately) of the Kuwait’s ICT expenditure is in telecommunications and setting up of computer hardware and software, which stores millions of data. So, by migrating towards the cloud services will reduce the dependency on hardware, thereby reducing the cost to the maximum extent.

It is to be noted that Kuwait ICT’s revenues are estimated to reach $28bn between the years 2012 and 2015, which is the third largest earnings by a GCC country. There has been seen an impacting growth margin and opportunities knocking Kuwait ICT firms by delving into a cloud based business.

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