The Middle East’s digital economy is projected to grow from $180 billion to about $780 billion by 2030. A 20% compound annual growth significantly outpacing the global average.
In a new report, Swiss bank UBS noted that, “Supported by favourable demographics, strong policy support, solid funding, rising innovation and low penetration rates, we expect the Middle East’s digital economy to grow.”
Spending on information and communications technology in the Middle East, plus Turkey and Africa, is projected to grow almost 4 per cent annually to surpass $234 billion in 2023, according to the International Data Corporation.
Saudi Arabia and the UAE, the Arab world’s two biggest economies, will likely spend $34.6 billion and $20 billion, respectively, to be among the leaders in the region’s digital economic transformation, the US research firm said.
UBS analysts wrote that, while the region is early in its ‘digital ascent’ it has benefitted from investments made during and after the Covid-19 pandemic. They suggest that the Middle East is, “at a point where China was 10 to 15 years ago and India five to 10 years ago when the digital inflection began in those countries.”
The report concludes that Software, “software is the best way to participate in the region’s continuing digital transformation, where we expect many traditional enterprises to upgrade their IT infrastructure by driving significant investments across software.”
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