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UAE Freezones Biz News Updates
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Business IT spending in the UAE to reach $4.63b in 2014
IT spending to grow six per cent until 2017
Business IT (information technology) spending in the UAE is expected to
increase 8.3 per cent year-on-year in 2014 to reach $4.63 billion, according
to the latest figures released on Sunday by International Data Corporation
(IDC).
The report anticipates IT spending in the UAE to increase at a compound
annual growth rate of six per cent over the 20132017 period to total $8.06
billion in 2017.
The public sector, which includes government, education and health care,
will account for most of the business IT spending in 2014. Organisations in
this sector are predicted to invest $1.12 billion in IT, accounting for 24.3
per cent of the spending. This will be driven primarily by government-led
initiatives to bring more public services to online and mobile platforms, as
per the IDC report.
Other factors driving IT spending in this sector include government-backed
projects designed to increase the use of ICT in educational institutions,
along with regulations in the health care sector that mandate a reduction in
paper-based processes.
Combined Finance was ranked as the second biggest sector in the UAE with
respect to business IT spending. Organisations in this sector, which
includes banking, insurance and securities services providers, are predicted
to invest $719.8 million in IT in 2014. The investments stem from the rapid
expansion of branch and ATM networks, and developments in online and mobile
banking channels.
Meanwhile, consumer IT spending in the UAE is expected to account for 30.5
per cent of total IT spending in 2014, though it will contract 8.4 per cent
year-on-year. The drop is a result of the stagnating PC market, which is
being replaced by a growing demand for tablets.
IT vendors will find the biggest opportunities in the government sector, as
it is the largest and fastest growing market. Communications finance, and
oil and gas will continue the other major vertical markets for IT spending,
while health care, transport, and utilities are growing the fastest, said
Jebin George, a senior research analyst at IDC Middle East, Africa, and
Turkey.
He added that the UAE IT market is expected to witness robust growth until
2017.
March 30, 2014
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Courtesy Al Nisr Publishing LLC
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