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Growing IT outlays intensify MENA’s transformation

A general view from the Third International Conference on Computing and Information Technology at Tabuk University. IT services in MENA are set to see double-digit growth. (SPA)
  • The region's IT spending is projected to rise by 4% to $183.8 billion in 2024, with software and IT services witnessing double-digit growth
  • This surge aligns with the MENA region's push for digital transformation, enhanced cybersecurity, and a focus on generative AI initiatives

DUBAI, UAE — The Middle East and North Africa (MENA) region is on the brink of a significant IT transformation. According to a recent report by Gartner, Inc, IT spending in MENA is set to witness a 4 percent increase in 2024, with the total expenditure forecasted to touch a staggering US$ 183.8 billion. This surge is not just a random spike; it’s a reflection of the region’s concerted efforts towards digitizing its IT infrastructure.

Miriam Burt, a top analyst at Gartner, attributes this growth to the GCC region’s focus on digitization, aligning with government initiatives aimed at economic diversification and sustainability. But what’s truly exciting is the anticipated double-digit growth in software spending, projected at 12.3 percent for 2024.

Close on its heels, IT services spending is expected to rise by 11.1 percent. The driving force? A robust push towards digital transformation, cloud migration, and enhancing IoT capabilities.

But it’s not just about software and services. After a dip in 2023, device spending in MENA is gearing up for a comeback, thanks to the region’s growing smartphone affinity, aggressive brand campaigns, and the shift to 5G. Innovative financing options like “buy now, pay later” and the proliferation of digital payment methods are further fueling this revival.

The Fujairah E-Government and the Telecommunications and Digital Government Regulatory Authority recently launched the Digital Government Academy. (WAM File)

One of the standout revelations from the report is the growing emphasis on generative AI (GenAI). From just 5 percent in 2020, a whopping 40 percent of enterprise applications are expected to integrate conversational AI by 2024. The goal? To redefine customer experiences. MENA’s business leaders are not just stopping at GenAI; they’re exploring a plethora of emerging AI techniques, from AI simulation to reinforcement learning, all aimed at enhancing digital customer interactions.

Also, the concept of “developer experience” (DevX) is gaining traction. As businesses realize the importance of a seamless developer journey, technologies like AI-enhanced software engineering and GitOps are coming to the forefront. Gartner’s insights suggest that cloud computing, in the next decade, will transition from being a mere tech platform to a catalyst for business breakthroughs.

Intrigued by these revelations? Dive deeper into the full report to understand the nuances of MENA’s IT landscape and its transformative journey ahead. For full report, click here.