Mena IT spending to grow more slowly 2024

The pace of IT spending in the Mena region is expected to slow in 2024 as a result of heightened economic risks and supply chain issues.
 
IT spending is forecast to increase 5.5 percent this year, down from 6.6 percent in 2023, to $193.7 billion, technology research firm Gartner said.  

Mena organisations continue to face challenges from oil production cuts, regional geopolitical tensions and supply chain disruptions in key shipping routes, said Miriam Burt, managing vice president analyst at Gartner.

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The uncertainty is leading local companies to adopt a more cautious approach to IT expenditures, she added.
 
Despite a rise in 2023, spending on data centre systems is projected to decline 0.3 percent this year, mainly due to reduced regional investment in external controller-based storage.

However, IT services spending is forecast to grow by 9.6 percent in 2024, fuelled by higher investments in professional and consulting services for cloud migration, artificial intelligence, generative AI and “internet of things” implementations.

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Device spending is anticipated to decline by 4.5 percent in 2024, driven by uneven demand for new devices, such as mobile phones, across different Mena countries.

While AI and generative AI will influence cloud services spending, they are not expected to significantly impact overall regional IT spending levels, said Eyad Tachwali, senior director advisory at Gartner.