Miriam-Burt - Managing-VP- Gartner -MENA IT -Investment - techxmedia

Gartner forecast on MENA IT spending in 2022

Middle East And Africa
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According to a new prediction by Gartner, Inc., IT investment in the Middle East and North Africa (MENA) area would amount $1.7 billion in 2022, up 2.6 percent from 2021.

“The recovery of the IT sector in MENA will continue in 2022,” said Miriam Burt, managing vice president at Gartner.

She said, “In 2022, digital transformation projects will advance moderately from 2021. Underpinned by the GCC Country Visions, the rapid shift of the Gulf Cooperation Council (GCC)countries from an oil-exporting economy to a knowledge-based economy will be a major influence.”

The increase of renewable energy and the accompanying drop in oil prices as a result of COVID-19 has accelerated the shift to a knowledge-based economy, reducing the region’s reliance on oil exports. Furthermore, the direction and guidance provided by the GCC governments in their country vision statements, the introduction of 5G, an increase in the number of digitally skilled local workers, and rapid digitalization of sectors such as banking and retail will all contribute to a growth-friendly environment for IT spending in the region through 2022.

Communication services will continue to be the most popular area in 2022, accounting for 66% of overall IT investment. In 2022, IT services will be the fastest expanding segment in MENA, with a projected growth rate of 8.6%, followed by software with an expected growth rate of 8.2%. (see Table 1.)

Table 1. MENA IT Spending Forecast (Millions of U.S. Dollars)

 2020 Spending2020 Growth(%)  2021 Spending2021 Growth (%)  2022 Spending2022 Growth (%)  
Communications Services109,642-0.6110,4020.6112,5832
Data Center Systems3,14533,3145.43,4153
Devices26,870-5.628,1524.828,083-0.2
IT Services13,5551.714,8879.816,1748.6
Software8,05212.48,89310.49,6288.2
Overall IT161,264-0.6165,6482.7169,8832.6
Source: Gartner (November 2021)

In 2022, only the devices segment is predicted to fall, and the pandemic reaction was a major driver of increased device spending in 2021. As MENA CIOs continue to advance their remote/hybrid working methods, virtual learning, digital commerce, and telemedicine projects, this trend will stabilize in 2022.

More detailed analysis on the outlook for global IT spending is available in the Gartner webinar “IT Spending Forecast, 3Q21 Update: Help Employees and Customers Stay Connected.”

Gartner’s methodology for forecasting IT spending is based on a thorough examination of sales from thousands of vendors across the whole spectrum of IT goods and services. Gartner builds a comprehensive database of market size data on which to base its projection using primary research approaches supplemented by secondary research sources.

Gartner’s quarterly IT spending projection provides a unique view on IT spending spanning hardware, software, IT services, and telecommunications. Gartner clients can use these studies to understand market possibilities and challenges better. Gartner clients can get the most recent IT spending forecast information in “Gartner Market Databook, 3Q21 Update.” Links to the most recent IT spending reports, webinars, blog articles, and press releases can be found on this quarterly IT spending forecast page.

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