IT spending in the MENA region will grow 5.2% this year

The Middle East and North Africa (MENA) region have witnessed a remarkable surge in Information Technology (IT) spending in recent years with, for example, governments and businesses embracing technology’s transformative power to drive growth and innovation. According to Gartner, IT spending in the Middle East and North Africa (MENA) region is forecast to total 193.7 billion USD in 2024, an increase of 5.2% from 2023.

Digital transformation initiatives spearheaded by governments are reshaping the IT landscape, fostering investments in cloud computing, cybersecurity, and emerging technologies such as AI and IoT. The MENA region’s e-commerce sector is experiencing unprecedented growth, fueled by changing consumer behaviours and improved digital infrastructure. However, cybersecurity remains a pressing concern, with organizations striving to fortify their defenses against evolving threats. Regulatory complexities and infrastructure gaps pose challenges to IT spending, hindering innovation and market entry. Nonetheless, the MENA region presents abundant opportunities for IT investment, driven by the adoption of emerging technologies, digital infrastructure development, and strategic partnerships. By addressing challenges and leveraging opportunities, the MENA region can chart a course towards sustainable growth and leadership in the digital economy.

“CIOs in the MENA region are expected to increase their spending on cloud services. While AI/GenAI has some influence on cloud services spending, it is not expected to have an immediate and significant impact on IT spending levels in MENA in 2024,” said Eyad Tachwali, Senior Director Advisory at Gartner. “Regional CIOs’ focus today is primarily on everyday lower cost use cases, rather than on costly game-changing AI.”

Furthermore, global hyperscalers, with the ability to offer extensive infrastructure for storage and computing facilities for AI and GenAI, are accelerating investments in in-country data centers, particularly world-class green data centers. “Some have launched sovereign cloud services tailored to the unique needs of specific Gulf Cooperation Council (GCC) markets,” said Burt.

CIOs expect organizations to explore and invest in emerging technologies such as artificial intelligence and the Internet of Things to drive innovation and competitive advantage. AI technologies enable organizations to automate processes, personalize customer experiences, and uncover insights from vast amounts of data. Similarly, IoT technologies facilitate connectivity and data exchange between devices, enabling organizations to optimize operations, enhance decision-making, and create new business models. These investments are driven by a desire to enhance organizational agility, improve customer experiences, and drive innovation. By embracing digital transformation initiatives encompassing cloud computing, data analytics, cybersecurity, and emerging technologies, organizations in the Middle East region aim to position themselves for long-term success in an increasingly digital and competitive landscape.