Total
Information and Communications Technology spend
in the Middle East this year is predicted to be
$73 billion (Dh268bn), and is expected to cross
the level of $95bn in the next three years, on
the back of an increased demand in the region
and the cooling of demand for ICT products in
the traditionally strong heartlands of America,
according to a recent report.
Purchases of Information and Communications
Technology (ICT) products and services within
Europe, the Middle East and Africa (EMEA) will
overtake the US in 2008, it is said.
With an economic slowdown in the US coupled with
a weak dollar, business growth in the country
stands at four per cent.
In comparison, Middle East is experiencing five
per cent growth, and the region along with
Asia-Pacific is becoming the two fastest growing
regions in the world in this sector, says a
research by Global Insight.
The reason for this growth is attributed to the
strategic position of the Middle East as a hub
of global technology.
Moreover, the region has more money than ever
and this capital is being used to diversify from
the traditional sectors of oil & has.
The ICT sector in the region is witnessing high
demands for products and services from both
public and private sectors.
In addition, the growing need for robust ICT
solutions is also being driven by massive
e-Government and e-Commerce initiatives, which
are aimed at
achieving economic diversification. As a result
a lot of ICT companies are now looking to
capitalise on this attractive market with
increased investment in the area.
This surging growth – and increasing
deregulation and investment within the Middle
East and Africa region – has stimulated the
development of cross regional partnerships and
business opportunities. Financial ties and
technology transfer between the Middle East and
Asia are strengthening by the day, creating a
phenomenon that banking giant HSBC calls
‘east-east’ transactions.
Data from a another study by global analyst
group Fusion Consulting, suggests that the
interaction between technology and
telecommunication groups from Asia-Pacific and
the Middle East regions is reaching the highest
level
in history. Firms from the Middle East and
Asia-Pacific have built strong working
relationships in recent years, particularly in
the areas of telecommunications, hardware, and
global satellite communications.
Currently, Saudi Arabia is the biggest regional
investor spending over $20 billion per year in
ICT investment. However, UAE is all set to
become the ICT hub in the Middle East region
having advantages of its free trade zones and
the Dubai Internet City, as put by a report
titled “Middle East ICT Market Analysis” which
was released in the beginning of this year.
Bahrain is forecasted to continue to be a
lucrative market for technology products and
services, benefiting from Free Trade Agreement (FTA)
as well as strong demand from the financial
sector and government ICT procurements
and broadband initiatives.
Total
Information and Communications Technology spend
in the Middle East this year is predicted to be
$73 billion (Dh268bn), and is expected to cross
the level of $95bn in the next three years, on
the back of an increased demand in the region
and the cooling of demand for ICT products in
the traditionally strong heartlands of America,
according to a recent report.
