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IT spending in the Middle East, resilient and scalable

Beirut (FN) – IT spending in Middle East continues to grow, with predictions of five years in some markets closer to the mark of 5 billion U.S. market very lucrative. Saudi Arabia for technology products and services was valued at 3.5 billion dollars last year and expects growth of 4.8 billion dollars in 2013 – an annual growth rate of 8%.

Experts on information technology by RPN respondents predicted IT spending in the region is resilient despite the current financial turmoil in the region and global markets.

"We expect growth IT spending in the MENA region, next year despite the uncertain economic environment and the global financial crisis, "Johnny Karam, director of Symantec in the MENA region, told FN. "We expect spending on the region beyond which observed European markets, driven by pure necessity, "said Karam.

"The growing demand for more investment in infrastructure and technology values, improvements to communications infrastructure will remain a driving force, "he added.

Saudi Arabia Market IT is the largest in the region, driven by economic and demographic factors that analysts expect to maintain growth despite an unstable global economy.

"Saudi Arabia IT market has a number of positive factors that should help to avoid stagnation and even a growing population and government projects, "according to a report by Business Monitor International.

"Oil and gas will remain the key vault, with industry giants like Saudi Aramco spending on improving data flow, "adds the report.

Population per capita IT spending in the United States should reach $ 180 in 2013, the Saudi youth and growing population is an important driver for expenses IT in the GCC region. PC penetration should reach 30% in five years.

In addition to population demographics, government projects and improvement infrastructure, Johnny Karam Symantec believes that the growing threat of cybercrime will contribute to growth in IT spending, with enterprises to allocate more financial resources to protect data.

"Data is the industry – is a major asset that must be managed effectively and safely. The need to manage and effectively secure their data will be important drivers of growth in the IT market for the future, "said Karam FN.

As the second Gulf IT market, estimated at 2.8 billion dollars in 2009, Water should reach 8% contraction in IT spending, lower hardware sales. Despite this decline, analysts expect the UAE have registered a robust and sustained growth over five years.

"The total IT market in the UAE is expected by BMI to grow at a rate of compound annual growth (CAGR) 10% to approximately U.S. $ 4.1 billion in 2013. A number of key factors, including the efforts of local government and Federal, growth of population and development of non-oil sectors such as real estate and tourism, should help prevent stagnant market, "the report said.

With state-sponsored initiatives to promote electronic commerce and e-government services in the country, with the goal of providing 90% of government services electronically. The Chamber of penetration Internet in Dubai in the UAE has exceeded 54% at the end of 2008, well above the average for the MENA region.

"It is in UAE IT market conditions for the exponential growth … approximately 4.7 billion dollars in 2013, "says Dubai Chamber of Commerce and Industry.

"The fundamentals for this market include the initiatives of local and federal governments and development non-oil sectors, including real estate and tourism, "the ministry said.

With the third largest market in the Gulf IT spending to Kuwait approaching 800 million dollars in 2009 and should exceed 1 billion by 2013. Analysts credit the rich countries, the population of tech-savvy as an important engine of growth, and the efforts of the Kuwait Central Agency for Information Technology, or ACPI, to make more government services available online.

"ACPI led the initiative to launch the new portal of the Government of Kuwait for electronic services, making all government services available through a single site, and finally, on a mobile platform of Kuwait … ramp its e-government, deploying a series of new services for citizens in 2008 "Says the report by the IMC.

Overall, the market in Egypt is one of the fastest growing, projected to reach 1.9 billion dollars over five years, up from 1.2 billion in 2009, an annual growth rate of 12%

"While computers remain a luxury for many, a number of factors which should stimulate growth during the forecast period, including new oil and gas discoveries, a large proportion of Young and the stimulus package of salary increases for civil servants and other groups, "the report said.

"The emergence of Egypt as subcontracting regional instead of attracting more investment from suppliers and create opportunities in different sectors, " BMI.

400 million U.S. dollars from Qatar IT market should grow to U.S. $ 600 million in 2013, driven by oil prices, infrastructure expansion and the introduction of competition in the telecommunications sector.

Lebanon IT spending is expected to an annual growth rate up to par with those seen in other parts of the region.

Patrick Antoun is Lebanon Country Manager of Mindware, a distributor of IT. It is estimated that 100,000 units were sold in Lebanon in 2008 team, in a domestic IT market worth over 250 billion in 2008. Lebanese IT sector is expected CAGR 7% in 2009 on comprehensive reforms in key economic sectors, including telecommunications, education, government, banking and media.

"As for activities in the IT sector of Lebanon, we are confident that this market has considerable growth potential, and therefore a need for rapid expansion for more sophisticated equipment and applications designed for specific industries, "said Antunes.

In an interview with RPN said Antun where progress in the communications sector in Lebanon will contribute to strong growth of IT industry, including efforts to broaden the bandwidth and recruit users DSL.

"The steady increase in digital subscriber line (DSL), users are also a sign of an imminent expansion the domestic PC market, he added.

In an unexpected turn, analysts like Symantec Karam, forecasting growth in the industry, due to tougher The Economic Times.

"The equipment is more expensive than software, so that extracting every drop of performance materials becomes increasingly critical. Invest in software that helps to maximize the storage efficiency of existing equipment is an important engine of growth in investment IT right now, "said Karam.

"Companies want to maximize the return on investment yesterday in this difficult financial environment, This means finding ways to really maximize the return on hardware investments already made, "he says.

About the Author

Regional Press Network (RPN) is a MENA-based news agency and provider of original and analytical business and financial content about the region.

RPN’s diverse portfolio of authoritative databases, along with proprietary solutions enable clients to quickly find, analyze, package and present mission-critical business information.

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