UAE firms turn to Cloud insurance

FREQUENT AWS AND CLOUDFLARE DISRUPTIONS DRIVE FRESH DEMAND FOR OUTAGE COVER

- BY NIVETHA DAYANAND

After back-to-back global outages from AWS and Cloudflare, businesses in the UAE are beginning to look at cloud insurance the same way they once viewed cyber protection.

Basil Mimi, Co-Founder and CEO of Mantas, said the pattern has been building for years as more local companies migrated core functions to the cloud.

He pointed out that “cloud platforms are now the backbone of most UAE businesses,” and with SAP estimating that two-thirds of enterprises rely on cloud systems for daily operations, even a brief outage can freeze sales, break SLAs and stall internal systems. Insurance, he noted, gives companies a buffer when the infrastructure they depend on goes dark.

Cost of downtime

For small businesses that run payments, deliveries, or bookings through third-party platforms, the damage is immediate. Mimi said a half-hour disruption can wipe out an entire day’s margin once lost transactions, delayed orders, and idle staff are factored in.

Outage cover typically reimburses lost revenue and the additional costs needed to keep operations running, while giving firms enough flexibility to handle customer communication during a crisis.