news-details
Technology

Gartner Forecasts MENA IT Spending to Grow 5% in 2024

According to the latest forecast by Gartner, Inc., IT spending in the Middle East and North Africa (MENA) region is projected to reach $193.7 billion in 2024, marking a 5.2% increase from 2023. This growth, however, is a slight deceleration from the 6.6% increase recorded in 2023.

“While inflation has subsided, organizations in the Middle East are navigating challenges from oil production cuts, economic uncertainties tied to regional geopolitical tensions, and supply chain disruptions. Consequently, these factors are prompting local organizations to exercise more caution with their IT expenditures,” stated Miriam Burt, Managing VP Analyst at Gartner.

Shifting Trends in IT Spending

Despite previous growth, spending on data center systems is expected to decline by 0.3% in 2024, driven by a reduced focus on external controller-based storage (ECB) in favor of software-defined storage (SDS), hyperconverged infrastructure software (HCIS), and storage-as-a-service models.

Table 1. MENA IT Spending Forecast, 2023-2024 (Millions of U.S. Dollars)

Segment 2023 Spending 2023 Growth (%) 2024 Spending 2024 Growth (%)
Data Center Systems 4,826 5.5 4,809 -0.3
Devices 28,379 -1.8 27,092 -4.5
Software 13,555 8.0 15,229 12.3
IT Services 17,338 4.6 19,016 9.6
Communications Services 120,026 9.0 127,584 6.3
Overall IT 184,124 6.6 193,731 5.2

Source: Gartner (June 2024)

IT Services and Security to See Significant Growth

MENA's IT services spending is projected to rise by 9.6% in 2024. Burt noted that IT leaders are prioritizing expenditures on professional and consulting services to facilitate cloud migration, AI, generative AI (GenAI), and IoT implementations, as well as data monetization opportunities from these technologies. Security and 'Anything as a Service' (XaaS) models are also significant growth drivers in this segment.

Conversely, devices spending is anticipated to decline by 4.5% in 2024 due to uneven demand across the region.

Limited Immediate Impact of Generative AI

Generative AI is not expected to have a significant immediate impact on IT spending levels in MENA for 2024. Eyad Tachwali, Senior Director Advisory at Gartner, explained, “CIOs in the MENA region are more focused on practical, lower-cost use cases rather than expensive, transformative AI applications.”

Global hyperscalers are investing in local data centers, including green data centers and sovereign cloud services tailored to specific Gulf Cooperation Council (GCC) markets, to support AI and GenAI infrastructure needs.

Gartner’s IT spending forecast utilizes a comprehensive analysis of sales data from over a thousand vendors, combined with primary and secondary research, to deliver insights on market opportunities and challenges. Detailed findings are available in the “Gartner Market Databook, 1Q24 Update.”

Related News

Applications Open for MBZUAI’s ...

Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) invites thirty local and international executives to apply for its upcoming six-day intensive program, the MBZUAI E...

Fourth Phase of Riviera by Azi ...

Azizi Developments, a prominent private real estate developer in the UAE, has announced significant progress in the fourth phase of Riviera, their French Mediterranean-inspired wat...

GPCA to Recognize Young Talent ...

The Gulf Petrochemicals and Chemicals Association (GPCA) is set to celebrate the innovative ideas and talents of GCC university students in the field of agri-nutrient sustainabilit...

TOYOTA GAZOO Racing Achieves O ...

The TOYOTA GAZOO Racing (TGR) World Rally Team (WRT) celebrated a spectacular one-two finish at the 2024 FIA World Rally Championship's (WRC) first Rally Latvia. Reigning world cha...

Federal Tax Authority Launches Tax ...

The Federal Tax Authority (FTA) has unveiled the Tax Professionals Qualification Initiative, a significant program aimed at developing a new cadre of qualified tax experts to enhan...

UAE Residents Seek Personal Touch i ...

A recent survey conducted by Researchscape International, commissioned by Yango, highlights the growing desire among UAE residents for more personalized and human-like interactions...

Al Ansari Exchange Launches Corpora ...

 Al Ansari Exchange, the largest remittance and foreign exchange company in the UAE and a subsidiary of Al Ansari Financial Services PJSC [DFM: ALANSARI], has introduced a cor...

Qatar Airways Expands Boeing 777-9 ...

 Qatar Airways has announced a significant expansion of its Boeing 777X aircraft order during the Farnborough International Airshow 2024. The airline has added 20 Boeing 777-9...

Nitya Capital Unlocks $218 Million ...

Nitya Capital, LLC, a prominent international real estate investment firm based in Houston, has successfully completed a $218 million refinancing deal. This strategic move resulted...

LPG Expo Announces ‘Middle East LPG ...

LPG Expo, a premier exhibition and conference organizer in the Liquefied Petroleum Gas (LPG) industry, has announced the ‘Middle East LPG Expo - Saudi Arabia 2024’, set...