ICT spending in region to top $233bln this year

ICT spending in region to top $233bln this year

Overall spending on information and communications technology (ICT) across the Middle East, Türkiye, and Africa (META) will top $233.8 billion this year, an increase of 3.9% over 2022, according to the latest predictions presented by International Data Corporation (IDC).

The forecast was revealed as more than 400 senior executives from the region's most influential technology vendors, telecommunications operators, and IT service providers gathered at The Ritz-Carlton, Dubai International Financial Centre for the 2023 edition of IDC Directions Middle East, Türkiye, and Africa.

IDC revealed that it expects telecommunications services spending to increase 3.6% year on year (YoY) in 2023 to reach $133.9 billion, with IT spending set to grow 4.3% YoY to $99.9 billion.

As the region's digital economy increasingly takes shape, IDC forecasts that digital transformation spending in the META region will top $48.8 billion in 2023 and accelerate at a compound annual growth rate (CAGR) of 16% over the coming years to cross the $74 billion mark in 2026.

"The region will continue to face several headwinds throughout 2023, including volatile demand, high inflation, interest rate hikes, supply chain uncertainties, and currency fluctuations," says says Jyoti Lalchandani, IDC's group vice president and regional managing director for the META region. "In order to