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MENA IT spending to reach $160 billion in 2019

 MENA IT spending is projected to reach $160 billion in 2019, a 1.8% increase from 2018, according to the latest forecast by Gartner, Inc. placing MENA 7th out of the 11 regions tracked by Gartner in 2019.

Consumers are on pace to spend $532 million on upgrading or replacing their mobile phones in 2019 and expect to spend $63.7 billion on mobile services in 2019, up $1 billion from 2018.

In the enterprise sector, organizations are increasing their spending on software as a service (SaaS), expected to be 25.8% higher in 2019.

Enterprise Software to Achieve Double-Digit Growth in 2019

Software and IT services are projected to exhibit the strongest growth in 2019, with an 11.5 and 7.5% increase year over year respectively (see Table 1).

The communications services segment, the largest spending segment in MENA and the fourth fastest growing segment in the world, is set to increase by 1.8%.

The devices market, on the other hand, is projected to exhibit a decline of 2.2% in 2019.

Banking and Securities Industry Spending Set to Grow 5 Percent in 2019

The banking and securities industry is projected to total $13.2 billion in 2019, the largest IT spending among 11 industries.

It will also exhibit the fastest growth rate at 5% yoy.

“Banks in MENA must keep investing in IT in order to participate in the international banking system. At the same time, IT security has always been on the radar and has now become the No. 1 priority for senior banking executives,” said Miriam Burt, managing research vice president at Gartner.

The transportation, education and wholesale trade sectors are on pace to achieve growth of 1%, 2.4% and 2.8% this year respectively and are set to be the three industries achieving the weakest IT spending growth rates in 2019.

Data centre expenditures

The MENA data centre spending will reach a record high of nearly $5 billion in 2019, industry experts announced today, as organizations drive data centre modernization as the foundation of their digital transformation.

In 2019, the MENA’s data centre systems spending will grow by 2%, according to the Gartner report.

Organizations are modernizing data centre infrastructure to optimize costs, increase agility, foster innovation, and operate more efficiently, argues the UAE-based IT infrastructure and information management consultancy and solutions provider Condo Protego.

Dell EMC says proper automation tools can reduce data centre discovery from 4-6 months down to 4-6 weeks, and eliminate 98% of human errors.