Digital transformation will drive Mideast IT spending this year

Dubai: The transition to all things digital will play a key role in driving information and communications technology (ICT) investments in the Middle East and Africa, expected to hit $213 billion (Dh781.71 billion) this year compared to $208 billion in 2018, according to IDC (International Data Corp.) estimates. This includes potential investments made in Turkey as well.

Spending on digital transformations (DX) in the region should cross $25 billion mark this year as more organisations experiment with technologies such as robotics, artificial intelligence (AI), augmented and virtual reality, and the internet of Things (IoT) to spur innovation and boost customer experience.

Spending on IT alone would be in the region of $84 billion, up 2.5 per cent from a year ago and continuing to make up 40 per cent of overall ICT spend. On IT spend, the UAE will contribute $8 billion as it scales up for its UAE Vision 2021 and the Expo 2020, while Saudi Arabia will contribute $11 billion to the overall region’s tally.

“DX initiatives will top the chief information officer’s agenda, as emerging technologies are increasingly leveraged to drive desired business outcomes,” said Lalchandani.