IT spending in the Middle East and North Africa (Mena) region is expected to reach $230.7 billion in 2025, marking a 7.4 per cent increase from 2024, according to a recent forecast by Gartner, Inc.
"Governments and private sector enterprises in Mena are making significant investments to establish the region as a global leader in AI innovation, supported by robust cybersecurity and cloud platforms that facilitate scalable infrastructure," said Mim Burt, managing VP analyst at Gartner. "Local organizations are increasing their investments in research and development to innovate new business models, improve customer experiences, and develop a skilled workforce that can compete globally, thereby driving IT spending in the region."
Data center systems are anticipated to see the highest annual growth rate in Mena, with a projected increase of 14.9 per cent in 2025. Software spending in the region is also expected to grow by 13.7 per cent in 2025, driven by increased investments from chief information officers (CIOs) in generative AI (GenAI)-enabled applications.
"To enhance the digital workplace, customer experience, and product and service quality, Mena CIOs are investing more in the combined power of GenAI applications, cloud services, and cybersecurity software to ensure the safe acceleration of innovation for competitive differentiation," Burt added.
Starting in 2025, CIOs are expected to adopt a more focused approach towards their GenAI projects, leveraging insights gained from initial pilots. This shift reflects a deeper understanding of the complexities and challenges involved.
"Pilots and trials have tempered the initial hype around GenAI as CIOs are starting to recognize the challenges related to data and the cost versus value of these GenAI pilots," said Eyad Tachwali, senior director advisory at Gartner. "To overcome these barriers, CIOs will need to adopt a portfolio approach to their use cases, aligning them with business priorities and investing in data and AI literacy that emphasizes both understanding and practical application to derive value from their GenAI investments."
Gartner's IT spending forecast methodology heavily relies on rigorous analysis of sales data from over a thousand vendors across various IT products and services. The company uses primary research techniques, supplemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecasts.
The Gartner quarterly IT spending forecast provides a unique perspective on IT spending across hardware, software, IT services, and telecommunications segments.
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