Middle East and Africa IT spending set to boom


IT spending continues to increase in the emerging regions including the Middle East and Africa, at a pace far outstripping that of the industrialized world, according to Gartner, Inc. The emerging regions will generate IT spending of $1.1 trillion in 2008, and will grow to $1.3 trillion in 2011, becoming a major force of IT growth worldwide.

The compound annual growth rate (CAGR) for IT spending in emerging regions for 2006 through 2011 will be 8.5 percent versus 4.3 percent for mature markets. Gartner predicts that IT will become more of a catalyst for gross domestic product (GDP) increases in the years to come via more-efficient private organizations and competitiveness among countries.

“Current GDP growth is impacting IT spending because it offers larger financial resources promoting, in many cases, more-balanced development within nations with significant consumer middle-class growth, stronger business base expansion and larger demand for IT products and services beyond Tier 1 cities,” said Luis Anavitarte, research vice president at Gartner. “This growing ecosystem of economics and IT also provides credibility for countries to international lenders, boosting financial resources and investments that are so critical for IT expansion.”

The forecast for 2011 IT spending in Africa and the Middle East is $259 billion, up from $182 billion in 2007. Africa and the Middle East are strongly advancing in all IT areas and are narrowing the gap in IT spending with Latin America, the U.S. company said. The large size of the region, with its relatively lower IT penetration and its engagement in major telecommunication deployments, is making a strong IT trend. This region shows a forecast CAGR from 2006 through 2011 of 77 percent, which is the strongest of all the emerging regions.