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Annual Spending on Digital Transformation Across the Middle East, Türkiye & Africa to Top $74B by 2026
December 27, 2022 | IDCEstimated reading time: 1 minute
Digital transformation investments in the Middle East, Türkiye, and Africa (META) are set to more than double across the 2021–2026 period, according to the latest forecast from International Data Corporation (IDC). The global technology research, consulting, and events firm says that digital transformation spending in the region will accelerate at a compound annual growth rate (CAGR) of 16% over the five-year period, topping $74 billion in 2026 and accounting for 43.2% of all ICT investments made that year.
"For many organizations, the digital and tech investments they made during the pandemic to build resilience could be put to test in 2023 across key business dimensions such as customer experience, operations, and financial management, among others," says Jyoti Lalchandani, IDC's group vice president and regional managing director for the META region. "The implementation of further digitalization in critical areas and a more rapid shift to a 'digital business' approach will be key to separating the thrivers from the survivors.
"No matter what the economy throws at us over the coming 12 months, organizations must not lose sight of their digital aspirations. The focus should be on enabling clear and measurable outcomes, and digital spending needs to transition from building to scaling. Indeed, IDC predicts that by 2027, at least 30% of the C-suite's focus will be on scaling innovation and operating a truly digital business. Automation will sit at the heart of this process, helping to reduce the cost of IT operations, address labor shortages, and increase the velocity of innovation."
Globally, IDC expects spending on digital technology by organizations to grow at eight times the economy in 2023, establishing a foundation for organizations to drive operational excellence, competitive differentiation, and long-term growth. IDC will expand on these insights as it hosts the META region's most influential technology vendors, telecommunications operators, and IT service providers at IDC Directions 2023 Middle East, Türkiye & Africa.
Taking place on February 1 at The Ritz-Carlton, Dubai International Financial Centre, this in-person event will address the theme 'Navigating Disruption in the Age of Digital Business'. It will examine the very latest digital acceleration trends shaping end-user investment priorities across the region, providing essential guidance to the region's foremost ICT vendors on proven best practices for transforming themselves into new-age digital partners for their customers.
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