Middle East and North Africa Set for Steady IT Growth in 2024

Information technology spending in the Middle East and North Africa (MENA) region is projected to reach $193. 7 billion in 2024, according to a recent report by Gartner, a leading IT research and advisory firm. This represents a 5. 2% increase compared to the previous year, indicating continued growth in the sector, albeit at a slightly slower pace.

The report highlights a shift in spending patterns within the MENA IT landscape. While overall expenditure is on the rise, the growth rate is expected to be lower than the 6. 6% observed in 2023. This moderation can be attributed to a rise in cloud-based solutions and alternative data center infrastructure options.

Gartner analysts point to a decline in data center system expenditures, which are forecast to dip from $4. 82 billion in 2023 to $4. 80 billion in 2024. This trend reflects a growing preference for software-defined storage, hyper-converged infrastructure software, and the "storage as a service" model. These cloud-based solutions offer businesses greater flexibility, scalability, and cost-efficiency compared to traditional on-premise data center setups.

On the other hand, the report predicts a significant increase in IT services spending within the MENA region. This segment is expected to surge by 9. 6% in 2024, reaching $19 billion compared to $17. 3 billion in the previous year. This growth is likely fueled by the rising demand for managed services, cloud services, and cybersecurity solutions. Businesses in the region are increasingly recognizing the value of outsourcing IT operations to specialized providers, allowing them to focus on their core competencies.

The MENA region boasts a burgeoning tech startup scene, with companies securing a record $429 million in funding during the first quarter of 2024. This robust investment activity is fueling innovation and driving the adoption of new technologies across various industries. As these startups mature and scale their operations, the demand for IT services is expected to remain strong in the coming years.

Gartner's report paints a picture of a MENA IT sector undergoing a period of transformation. While traditional data center spending may be plateauing, the rise of cloud-based solutions and managed services indicates a shift towards a more agile and cost-effective IT landscape. This trend, coupled with a thriving startup ecosystem, positions the MENA region for continued growth in the IT domain.

Previous Article Next Article