As per the Consultancy Company Gartner, after a near decline of 2.8 percent the previous year, spending on Information and Data technology in the MENA (the Middle East and Northern Africa) is expected to rise at 2.4 percent in 2020.
It also added that “The net IT spending across the region is poised to reach $160 billion (Dh587.2bn) this year 2020, and that is $3.75bn higher than in 2019. Growth will primarily be driven by non-oil economic activity.”
John Lovelock, research vice president at Gartner stated that “During 2019, varied organizations in the MENA region disinvested for the data center systems, devices and communication services, which led to a downfall of 2.8 percent in the overall IT spending.”
The region’s biggest economies UAE and Saudi Arabia and their ongoing non-oil economic initiatives– will boost IT spending in the region over the coming months.
He further added that “the biggest Non-oil economic initiatives such as Dubai Expo 2020, the Al Qiddiya entertainment, sports, and arts complex, the Red Sea Project and the Neom living laboratory in Saudi Arabia would be bolstering the business activity in Mena, heavily influenced via IT spending regionally during 2020.”
Gartner additionally notified that “The overall increase in IT spend will also be driven hugely in accordance with the digital transformation activities as initiated by the government and private organizations.”
The report stated that “As local organizations continue to invest more resources into digitalization, technology consulting budgets will also increase.”
The communications services and devices industry will see the largest IT outlay among five sectors highlighted, totaling $134.89bn, according to the report. The remaining $25.34bn will go towards upgrading data centers, enterprise software, and IT services.
“This year, businesses in Mena are on pace to increase their IT budgets across all segments, with spending on enterprise software expected to achieve the highest growth [12.3 percent year-on-year], reaching $7.42bn,” said Mr. Lovelock.
Spending on devices will grow at 3.6 percent, following a double-digit decline last year. IT services spending is expected to total $13.1bn, an 8.4 percent year-on-year increase. Mr. Lovelock stated that “IT spending levels in Mena are amongst the highest in the world, after China, the emerging Asia-Pacific region and Latin America.”