Gartner SaysIT Spending in Middle East and North Africa WillGrow 2.4% in 2020

 

Enterprise Software Spending to Achieve Highest Growth in 2020

 

— IT spending in theMiddle East and North Africa (MENA)willtotal$160billion in 2020, an  increase of 2.4% from2019, according to Gartner, Inc.
 
“Non-oil economic initiatives such as the Dubai Expo 2020 in UAE; theAl Qiddiya
entertainment, sports and arts complex;The Red Sea Project and the Neom living
laboratory in Saudi Arabia are boosting business activity in MENA, which will heavily
influence IT spending locally,” said John-David Lovelock, distinguished research vice-
president at Gartner. “In 2019, organizations in MENA disinvested in data center systems,
devices and communication services, which led to a decline of 2.8% in the overall IT
spending.”
 
In 2020, businesses in MENA are on pace to increase their IT budgets across all segments
with spending on enterprise software expecting to achieve the highest growth (see Table
1).
 
Spending on devices will achieve growth in 2020, following a double-digit decline in 2019.
The currency effects that raised prices on hardware will abate and business spending on
devices will grow 3.6% in 2020 locally. Enterprise spending on softwarecontinues to
grow,achieving double-digit growth in 2020. This trend is expected to continue for the next
three yearsas more organizations move to cloud-based products and services.
 
As local organizations continue to invest more resources and IT budget in theirdigital
transformation initiatives, technology consulting will increase among local companies. In
2020, IT services spending is expected to total $13.1 billion, an 8.4% increase year over
year.Compared to other regions, the levels of spending on IT services in MENA are
amongthe highest four in the world(after Greater China, Emerging Asia/Pacific and Latin America).
 
More detailed analysis on the outlook for the IT industry is available in the complementary webinar “IT Spending Forecast, 4Q19 Update: Emerging Technologies in 2020.”
 
Gartner’s IT spending forecast methodology relies heavily on rigorous analysis of sales by thousands of vendors across the entire range of IT products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.
The Gartner quarterly IT spending forecast delivers a unique perspective on IT spending across the hardware, software, IT services and telecommunications segments. These reports help Gartner clients understand market opportunities and challenges. The most recent IT spending forecast research is available to Gartner clients in “Gartner Market Databook, 4Q19 Update.” This quarterly IT spending forecast page includes links to the latest IT spending reports, webinars,

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