Saudi IT spending to hit $11bn in 2021

by Jeremy

This year, Saudi Arabian organizations will spend $11bn on IT as emerging technologies adapt to the post-pandemic business environment. Post-pandemic challenges will fuel IT spending alongside existing strategies to diversify the local economy, where IT will play a key role in reducing reliance on oil revenues. According to IDC, spending on IT services and devices will account for more than half of the IT spend. The total spent on IT will be 4.2% higher than last year, and the Saudi government, finance, and communications organizations will spend about $3.6bn on IT.

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Speaking at the virtual edition of IDC Directions Middle East, Turkey & Africa event, regional director for Saudi Arabia and Bahrain, Hamza Naqshbandi, “IDC expects that emerging technologies will continue to play a critical role in the post-pandemic digital economy as business and IT leaders in Saudi Arabia look ahead to 2021 and the new normal.”

“Saudi Arabia’s vision for a smart economy relies heavily on digital transformation initiatives, an area the government has always focused on and heavily invested in long before Covid-19,” added Naqshbandi. “The ongoing pandemic has validated the country’s strategic direction, acting as a catalyst to spur the adoption of emerging technologies.”

TIDCfigures falso predictthat almost $33bn will be sspenton IT and communications technology combined. IDC said the public sector would remain the kingdom’s most significant spending on IT and communications through 2024, followed by finance and communications. The education and healthcare sectors are expected to be the fastest-growing over that period. According to Saudi Arabian government statistics, more than 99% of active national organizations are small and medium-sized enterprises (SMEs). Still, these types of businesses contribute to less than a quarter of the IT spending in Saudi Arabia, IDC noted. Most large spending still originates from mass-scale government projects.

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