World Expo to see UAE spend $20bn on IT by 2020
Total IT spend to reach $15bn in 2014 as country prepares for Expo 2020, IDC says
Total IT spending in the UAE is set to cross $15bn in 2014, as the country prepares for Expo 2020 with large-scale investments, according to the latest figures from IDC.
The research house predicted that, because of the UAE's strong infrastructure backbone and business-friendly government, the country is more prepared for growth than any of its regional peers. Overall IT spending is expected to reach $20bn by 2020, IDC said.
Much of that growth with come from government investment, as the Abu Dhabi and Dubai municipalities continue to spend heavily on their infrastructures ahead of Expo 2020, IDC said. Indeed, the research house said that government was the largest and fastest growing vertical market in the UAE.
Meanwhile, communications, finance, and oil & gas will continue to be other major sectors of IT spending, IDC added.
According to Jyoti Lalchandani, group vice president and regional managing director at IDC Middle East, Africa, and Turkey, there is immense opportunity for IT vendors to capitalise on this growth. However, he cautioned that vendors and IT decision makers needed to work more closely in order to see the gains that this growth promises.
"The Middle East region will be one of the fastest growing ICT markets in the world for the next few years. The growth in these markets will be driven by economic stability and resilience supported by increased government spending," he said.
"However, amid this period of phenomenal growth and the relentless rush to get going, there is a very real need for ICT vendors and decision makers to come together and properly weigh up their options, as the sheer volume of alternative technologies available on the market today has the potential to cause much confusion."