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IT Spending in MENA to grow in 2025: Gartner Forecasts

News Desk by News Desk
November 21, 2024
IT Spending in MENA to grow in 2025: Gartner Forecasts

IT spending in the Middle East and North Africa (MENA) region is forecasted to grow in 2025, reaching $230.7 billion in 2025, an increase of 7.4% from 2024, according to the latest forecast by Gartner.

Governments and private firms in the MENA region are making significant investments to set the region as a global hub for AI innovation. UAE and Saudi Arabia are at the forefront of initiatives such as Saudi Vision 2030 and the UAE’s National AI Strategy, which aim to harness AI across sectors like healthcare, finance, and energy.

“Governments and private sector enterprises in MENA are investing heavily to position the region as a world-leading AI innovation hub, supported by strong cybersecurity and cloud platforms to enable a highly scalable infrastructure,” said Mim Burt, Managing VP Analyst at Gartner.”

Data center systems will continue to be the segment with the highest annual growth rate in MENA, increasing by 14.9% in 2025.

“In 2025, chief information officers (CIOs) in MENA are expected to increase their spending on data center technologies to cope with the growing adoption of AI and cloud services, as well as the rise in consumption of data storage and processing capacity,” said Burt. “In addition, several major hyper-scalers in the region are investing in data center systems to provide sustainable, scalable AI-embedded cloud infrastructure, further bolstering the growth of this segment.”

Software spending in MENA is projected to grow 13.7% in 2025, fueled by increased CIO investments in generative AI applications.

Gartner’s IT spending forecast methodology relies heavily on rigorous sales analysis by over a thousand 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.

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News Desk

News Desk

by CXO VOICE team memebrs, [email protected]

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