IT spend in META region expected to grow in 2023 despite challenges

The year ahead is likely to be characterised by recessionary pressures in key global economies, increasing borrowing costs, unpredictable supply chains, oil price uncertainty, and volatile demand. 

Regardless of the challenges of the past few years and the hurdles ahead, digital transformation investments in the Middle East, Türkiye, and Africa (META) are set to more than double across the 2021–2026 period, according to the latest forecast from IDC. 

The global technology research, consulting, and events firm says that digital transformation spending in the region will accelerate at a compound annual growth rate of 16% over the five-year period, topping 74 billion USD in 2026 and accounting for 43.2% of all ICT investments made that year.

At the recent IDC Directions event in Dubai, Steven Frantzen, Senior Vice President and Regional Managing Director EMEA at IDC stressed how crucial it is for tech leaders to keep focused on the future and be customer-centric.  “It’s important for every tech leader to think about the near, mid and long-term when it comes to technology. You need to work with your customer by continuing investment in digital transformation, but how do we help our customers?”

“We heard about the global recession, in the Middle East we continue to see economic growth in every sector, but if you are a large market in the USA or Europe, it will also affect your business here.”

Frantzen said many are expecting a recession in the coming year. “According to a survey made by IDC, 75% say yes, so we need to manage the recession for the long term because companies are not cutting spending in technologies, spending on digital technology by organizations will grow at eight times the economy in 2023, establishing a foundation for operational excellence, competitive differentiation and long term growth.”