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Google Cloud Expects to Contribute $110 Billion to Saudi Economy

Startups and large enterprises can exploit Google Cloud's capabilities to develop innovative solutions and keep up with the latest technologies. (Shutterstock)
Startups and large enterprises can exploit Google Cloud's capabilities to develop innovative solutions and keep up with the latest technologies. (Shutterstock)
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Google Cloud Expects to Contribute $110 Billion to Saudi Economy

Startups and large enterprises can exploit Google Cloud's capabilities to develop innovative solutions and keep up with the latest technologies. (Shutterstock)
Startups and large enterprises can exploit Google Cloud's capabilities to develop innovative solutions and keep up with the latest technologies. (Shutterstock)

Google Cloud, the cloud computing arm of the technology giant Google, expects to contribute about $110 billion to the Saudi economy over the next seven years.

Abdul Rahman Al-Thehaiban, General Manager of Google Cloud in the Middle East, Türkiye and Africa, said the recent establishment of three cloud zones in Dammam, Doha and South Africa embodies Google Cloud’s dedication to strengthening its infrastructure to better serve the diverse needs of the region.

In an interview with Asharq Al-Awsat on the sidelines of LEAP, the international tech event, which was held in Riyadh on March 4-7, Al-Thehaiban noted that the establishment of the three cloud zones “not only indicates a major investment in the future of the digital landscape in the region, but also makes us a pivotal player” in the technological revolution sweeping these markets.

He added that Google Cloud’s approach was based on three basic pillars: infrastructure development, ecosystem partnership, and capacity building.

Badr Al-Madi, General Manager of Google Cloud in Saudi Arabia, pointed out that the launch of the cloud zones in November meets the needs of 1.2 million small and medium enterprises in the Kingdom, highlighting the importance of this achievement for the technology giant.

Regarding the broader economic impact of Google Cloud’s operations in Saudi Arabia, Al-Madi expects a contribution of about $110 billion to the local economy over the next seven years.

This contribution is likely to be driven by changes in business models and the creation of about 150,000 job opportunities, “which confirms the role of Google Cloud in supporting not only the digital landscape but also the general economy in the region,” he underlined.

Google Cloud is working to expand its internal team and launch centers of excellence that are designed to “raise the level of skills and ensure that the local workforce is equipped to benefit from Google Cloud technologies effectively,” according to Al-Thehabian, who emphasized the importance of these initiatives in supporting the digital transformation journey in the region.

Al-Madi believes that launching the cloud zone in November 2023 is consistent with the goals of Saudi Vision 2030, which seeks to enhance the contribution of small and medium-sized companies to the GDP and stimulate economic growth.

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ECB's Lagarde Renews Integration Call as Trade War Looms

FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
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ECB's Lagarde Renews Integration Call as Trade War Looms

FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo

European Central Bank President Christine Lagarde renewed her call for economic integration across Europe on Friday, arguing that intensifying global trade tensions and a growing technology gap with the United States create fresh urgency for action.
US President-elect Donald Trump has promised to impose tariffs on most if not all imports and said Europe would pay a heavy price for having run a large trade surplus with the US for decades.
"The geopolitical environment has also become less favorable, with growing threats to free trade from all corners of the world," Lagarde said in a speech, without directly referring to Trump.
"The urgency to integrate our capital markets has risen."
While Europe has made some progress, EU members tend to water down most proposals to protect vested national interests to the detriment of the bloc as a whole, Reuters quoted Lagarde as saying.
But this is taking hundreds of billions if not trillions of euros out of the economy as households are holding 11.5 trillion euros in cash and deposits, and much of this is not making its way to the firms that need the funding.
"If EU households were to align their deposit-to-financial assets ratio with that of US households, a stock of up to 8 trillion euros could be redirected into long-term, market-based investments – or a flow of around 350 billion euros annually," Lagarde said.
When the cash actually enters the capital market, it often stays within national borders or leaves for the US in hope of better returns, Lagarde added.
Europe therefore needs to reduce the cost of investing in capital markets and must make the regulatory regime easier for cash to flow to places where it is needed the most.
A solution might be to create an EU-wide regulatory regime on top of the 27 national rules and certain issuers could then opt into this framework.
"To bypass the cumbersome process of regulatory harmonization, we could envisage a 28th regime for issuers of securities," Lagarde said. "They would benefit from a unified corporate and securities law, facilitating cross-border placement, holding and settlement."
Still, that would not solve the problem that few innovative companies set up shop in Europe, partly due to the lack of funding. So Europe must make it easier for investment to flow into venture capital and for banks to fund startups, she said.