The Middle East and North Africa (MENA) region is one of the fastest growing ICT markets in the world. High growth prevails across all segments, and the market is driven by economic diversification and various e-government initiatives including finance, communications, and manufacturing. The region has robust economies, which despite downturns around the world, continues to enjoy high growth rates.
The ICT sector in the MENA region is currently worth US$ 10.69 billion,
according to IDC. Constantly fuelled by the development of new industries, it
is also supported by significant demands made by the oil and gas sectors. Both
private and public sectors are quick to implement cutting edge IT architecture
and communication technologies to be on par with developed countries, and this
has resulted in the last three years seeing consistently exceptional growth
rates.
High growth prevails across all ICT segments in the regional market. The
demand for products and services in these segments is not only facilitated
by a well developed channel infrastructure, but also an excellent logistical
infrastructure, with well-established air routes and sea ports handling incoming
products and resources.
Privatization of the telecommunications and utilities sectors, and notable
growth in the tourism, financial services and real estate segments characterize
the general economic scenario.
Source: IDC, Q42005
ICT spending in the Gulf States (Saudi Arabia, the UAE, Kuwait, Oman, Bahrain,
and Qatar) is expected to exceed US$ 10.10 billion by 2010, according to IDC.
They predict that economic diversification and various e-government initiatives
will drive the markets of the region, with the finance, communications, and
manufacturing verticals all investing heavily in ICT.
Forecasts show dramatic growth in mobile and internet penetration. IDC research
indicates that mobile Revenues in the GCC are expected to grow from around
US$ 9.8 billion in 2005 to US$ 12.7 billion in 2010 representing a CAGR of
5.3%. Internet Subscribers in the GCC are expected to grow from 2.4 million
in 2005 to 3.2 million in 2010, which represents a CAGR of just under 5.7%.
Iraq is set to spend over US$ 1.4 billion on IT by 2010, according to IDC.
IT spend will be fuelled by Iraq's need to build infrastructures that are either
heavily damaged or made obsolete by over a decade of strict UN sanctions. IT
hardware (PCs, servers, workstations, peripherals, storage) will comprise a
bulk of investments, representing almost 67% of overall expenditure.
The region has robust economies, which despite downturns around the world,
continues to flourish. In comparison to advanced economies that have produced
a GDP growth rate of 2.8 per cent the combined GDP of the Middle East has grown
at 3.5 per cent each year.
The region’s population is also very young and a digital generation is now providing added impetus to the ICT industry, with strong growth recorded across the region.
