According to estimates, the area including the Middle East, Turkey, and Africa is expected to spend more on information and communications technology (ICT) than $234 billion this year.

 

According to a US research firm at its Directions conference in Dubai on Wednesday, the two largest economies in the Arab world, Saudi Arabia and the UAE, which rank first and third in the Middle East, Turkey, and Africa, respectively, are expected to spend $34.6 billion and $20 billion, respectively, to be among the leaders in the region's digital economic transformation.

 

South Africa would be second with $28.6 billion. Only Nigeria and Turkey are anticipated to have expenditures in double digits, with $12.6 billion and $18.6 billion, respectively.

 

Particularly in the Middle East, Turkey, and Africa area, information technology investment is anticipated to increase 4.3% year over year to $99.9 billion this year, the first time it will approach the $100 billion threshold.

 

The UAE and Saudi Arabia stand out due to their strong government and public sector leadership. To update infrastructure and the industrial area and make it more appealing, there is a deliberate plan to diversify their economies and draw in more international investment.

 

As the globe gets ready for a future powered by technology, businesses, and governments have praised the crucial role that digital transformation plays in the economy and society.

 

To encourage the use of technology in routine activities and business transactions, Saudi Arabia and the UAE have launched many programs.

 

The kingdom benefits from being a sizable nation going through extensive change on many fronts, including infrastructure, society, and laws.

 

The Emirates, on the other hand, has two major plans that will further its digital goals.

 

These are Operation 300bn, a second 10-year strategy, and the Dubai Economic Agenda (D33), which seeks to boost the industrial sector's contribution to gross domestic product to Dh300 billion over the next ten years.D33 has a target of Dh32 trillion ($8.71 trillion), which intends to double the size of the Emirate's economy.

 

According to a survey released last month by McKinsey, the UAE has the greatest level of digitalization, with 99 per cent of the population having internet access, compared to 90 per cent in Saudi Arabia.

 

When compared to any other developed market in the world, the pace and speed of development in these countries stand in stark contrast.

 

The Middle East, Turkey, and Africa are expected to spend $74 billion on digital transformation by 2026, up from around $49 billion this year, expanding at a compound annual rate of 16%.

 

Between 2021 and 2026, that growth rate would more than double. More significantly, in 2023, corporate investments in digital transformation will expand eight times faster than the economy as a whole.

 

While this is going on, businesses are hampered in their efforts to invest more in innovation by macroeconomic issues including high inflation, high-interest rates, and the aftereffects of the Russia-Ukraine war, among others.

 

By adopting a digital-first strategy and moving away from conventional infrastructure, which is ineffective, rigid, and challenging, businesses would be able to navigate through these. Scalable infrastructure is also more responsive, robust, and adaptable.

 

Different techniques influence businesses. They are worried about supply chain interruptions, rising prices, and inflation. Utilizing technology to increase efficiency in the delivery of goods and services via digital channels is essential.

 

The public sector, led by the UAE and Saudi Arabia, is one of the sectors that has improved productivity via the delivery of services via digital methods.

 

Healthcare and education are the two industries with the most investment and the quickest growth rates. In contrast to the traditional models, new digital ones would significantly increase the money generated by retail and transportation.

 

While spending on cloud-managed services will increase by more than 16.1% to reach $1 billion this year and $1.4 billion by 2025, Spending on public cloud services will reach $10.4 billion in 2023 after growing by a quarter yearly.

 

Big data analytics investment is anticipated to increase by 11.4% every year to more than $4.1 billion, while artificial intelligence spending is anticipated to increase by more than 16% to nearly $8 billion.