The Middle East and African region will be one the world’s leading “hotspots” for technology investment in 2008, alongside China and India, according to new research from leading analyst house IDC.
This high investment forecast has created international interest in the potential of the Middle East market. However, if the investments are to result in genuine productivity benefits for companies – and concurrent social and economic benefits – then strong technology leadership is required across enterprises and organisations.
To support the decision-making processes of Chief Information Officers (CIOs) operating within the Middle East, IDC has organised one of the most significant gatherings of senior executives and technology companies ever held in the region.
Frank Gens, Senior Vice President and Chief Analyst, IDC, said: “Our forecast for 2008 is that the total IT market for Middle East and Africa will reach nearly $ 40.5 billion – an all-time high for this region. Set against the relatively flat growth of the US market, and the much lower growth levels of Europe, the Middle East will be a bright spot in the world market.”
“Capitalising on this growth, and utilising technology to its full potential to help develop the region’s economies, requires an informed, experienced management layer across all businesses. By bringing together some of the world’s leading technology companies and the region’s most senior technology decision-makers, we’re aiming to provide a key forum to add to the understanding and the skill-set of CIOs operating in the Middle East,” added John Gantz, Chief Research Officer and Senior VP, IDC.
The ongoing development of key industry sectors, including energy, the public sector, aviation, real estate and retail, is one of the factors driving the growth of the IT sector. Much of the forecast investment for 2008 will focus on building infrastructure, including security, storage, customer relationship management, and enterprise resource planning.
IDC’s forecast for 2007 – 2011 suggests that Egypt, Saudi Arabia, Kuwait and the UAE will emerge as the markets with the highest compound annual growth rate. Egypt is set to realise 14.1 percent over the five year period, Saudi Arabia is set to realise 12.8 percent, Kuwait is set for 11.9 percent and the UAE 11.3 percent CAGR.
Such significant sector growth – more than double the predicted GDP growth rates – indicates the long-term potential of the Middle East technology market.
By way of contrast, only fast-growing markets like India (17 per cent estimated CAGR) and China (8.6 percent) are likely to match the development levels of the Middle East market. Established markets like Western Europe (5.7 per cent), USA (5.1 per cent) and Japan (1.7 per cent) will record much lower rates.
According to IDC sustainable growth of Middle East economies requires strong technology leadership.
