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IT Spending in UAE to Witness 9.1% Growth in 2010
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IT Spending in UAE to Witness 9.1% Growth in 2010

Mar 02, 2010
UAE is expected to experience radical growth in its IT spending this year with consumer spending surpassing enterprise spending.

According to Gartner, a US-based information technology research and advisory firm, as compared to previous year, IT spending in the UAE is projected to enjoy a growth of 9.1% this year (2010), going up from $14.54 Billion and reaching $15.91 Billion, as per the news published by AMEinfo.com.

This year, consumer spending is likely to surpass enterprise spending; the total spending by enterprises will account for nearly 25% of the overall IT spending whereas consumer spending will account for the rest.

With 79% of the overall IT spending (amounting to $12.53 Billion), telecom sector is the main growth area. Then comes the hardware sector at 14% spending ($2.21 Billion), followed by IT services at 6% ($1 Billion), software sector with nearly 1% ($147 Million) of the total IT spending.

Moreover, a leading market research firm RNCOS has claimed in its industry research report titled “Middle East ICT Market Analysis” that growth will also be seen in the real estate segment. The segment has grabbed huge investments during past few years. The National Bank of Dubai is anticipating to spend a minimum of US$ 50 Billion in developing property in the UAE until 2010.

IT services are anticipated to gain interest in the UAE this year because of a noticeable transformation in the enterprise IT expenditure profiles, which have shifted more towards service-oriented spending from infrastructure spending. Back office is set to attain focus in 2010 in comparison to front office, which, being critical, has been gaining attention until now.

The adoption of alternative models of delivery, such as cloud computing and software-as-a-service (SaaS), will transform the buying trends of the IT services segment with businesses paying greater attention towards them.

According to a Research Analyst at RNCOS, “To increase the sector’s growth, it is extremely essential that the population is aware, and to solve this purpose, the government needs to concentrate more on the development of e-government. To make UAE a regional IT hub, it is important to cater to the requirements of the region’s IT firms.”

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