MENA IT Spending Forecasted to Reach $193.7 Billion in 2024
Riyadh: In a new report, information technology spending in the Middle East and North Africa region is projected to hit $193.7 billion in 2024, marking a 5.2 percent increase from the previous year, according to US-based consulting firm Gartner.
Tech Startups in MENA Secure $429 Million in Funding
During the first quarter of the year, tech startups in the region secured $429 million in funding. Additionally, venture capitals committed around $1 billion to tech investments in the first half of 2024.
Challenges in IT Expenditure Growth
Miriam Burt, managing vice president analyst at Gartner, highlighted that the slowing growth in IT spending is influenced by factors beyond the sector, such as ongoing uncertainty due to geopolitical tensions and supply chain disruptions.
Data Center Spending Decline Projected
The report predicts a 0.3 percent decline in spending on data center systems in 2024, shifting towards alternative capabilities like software-defined storage and storage as a service model.
IT Services Spending on the Rise
MENA IT services spending is expected to increase by 9.6 percent in 2024, reaching $19 billion. Professional and consulting services are prioritized for cloud migration and AI implementations.
Drop in Demand for New Devices
Device spending is expected to decrease by 4.5 percent in 2024 due to uneven demand for newer devices in different countries. Software spending is forecasted to grow, while communications services will dominate IT spending.
Focus on Cloud Services and AI
CIOs in the MENA region are expected to increase spending on cloud services, with a focus on lower-cost use cases. Global hyperscalers are investing in in-country data centers tailored to specific GCC markets.
Saudi Arabia’s Growing IT Market
Saudi Arabia is identified as the fastest-growing IT market in the region, with ICT market spending expected to reach $37.5 billion by 2024. Innovative technologies like AI, big data analytics, IoT, and cybersecurity are driving growth in IT spending.