Page 12 - SAMENA Trends - October 2019

UAE LEADS ON IN 5G, AI, IT, AND SPACE SAMENA TRENDS

UAE’s IT Spend to Top US$6 Billion in 2019

IT spending in the UAE is expected to personal computers and servers, were Demand for Cybersecurity software
grow by a compound annual growth rate mainly driven by strong demand from and services is projected to increase as
(CAGR) of 8 per cent to reach Dh23.1 businesses and consumers, as well as public and private sector players look
billion ($6.28 billion) by the end of 2019, economic diversification plans. Personal to reduce the risk of Cyberattacks and
new analysis from Dubai Chamber of computers (PCs) and server sales are the adopt cloud computing and Internet of
Commerce and Industry has revealed. The major components of computer hardware. Things solutions. Companies operating
analysis, based on recent data from Fitch According to the findings, the UAE has one in key economic sectors such as energy
Solutions, was released on the sidelines of the highest household PC penetration and financial services are expected to
of Gitex Technology Week 2019. The data rates in the region. Purchases of PCs maintain high levels of spending on IT
showed IT spending in the UAE increasing by consumers are expected to maintain products. Financial firms are mainly
at a CAGR of 2.3 per cent between 2014 momentum as Smartphones are seen as focused on buying IT products related
and 2018, with this value forecast to grow complementary products to computers to banking, mobile banking, payment
by 7.2 per cent annually over the next five rather than substitutes. Several global solutions, customer data analysis, stock
years. Digitization of the UAE economy, companies like Amazon Web Services trading and asset management platforms.
growing adoption of Internet of Things and Alibaba have invested in the UAE’s On the other hand, oil and gas companies
(IoT) technologies and Expo 2020 Dubai IT market in recent years which have will likely to spend on smart mining
were identified as key factors supporting strengthened business confidence in solutions as part of their aims to enhance
the robust outlook for the sector. According the market. As a result, the supply of operational efficiency. More businesses
to the findings, the IT sector accounted for IT services has increased in line with are purchasing IT products which monitor
Dh21.4 billion or 1.4 per cent of the UAE’s consumer demand in the region. The UAE production and employee performance as
GDP in 2018. IT services sales in UAE remains the most attractive IT market in there is strong demand for data collection,
reached a record Dh11.4 billion in 2018 the region and the country continues to analysis and automation services. In
and recorded double-digit year-over-year attract industry leaders from around the addition, the UAE is expected to scale up
(y-o-y) growth of 10.2 per cent. Computer world. Companies will likely continue to investments in artificial intelligence and
hardware sales in the UAE registered a invest in IT infrastructure, especially in blockchain solutions – a trend that should
6.7 per cent y-o-y uptick last year to hit network systems, hardware and software lead to more growth opportunities for
Dh6.9 billion, while software sales grew over the next few years. The UAE’s IT businesses.
by 9.7 per cent, reaching a value of Dh3 market offers a wealth of business
billion. Hardware sales, which include opportunities for vendors and investors.

12 OCTOBER 2019