DUBAI, 23 January 2007 — The GCC countries’ spending on information technology (IT) increased 19 percent to more than $6.8 billion in 2006, a research report said.
With oil revenues touching record high and economic diversification maintaining its momentum, the Gulf states are expected to maintain their spending spree by investing 15 percent more this year, premier global market intelligence, advisory services providing company IDC said in its research report.
Saudi Arabia — the largest IT market — accounted for nearly 45 percent of IT spending.
Communications sector invested more in IT than any other sector in the country. While mobile subscription growth is beginning to slow, the Saudi market is opening to wider competition.
“High oil prices helped boost government spending on IT, which had repercussions in other government controlled or influenced industries like manufacturing (oil and gas), transportation and utilities,” said IDC MEA Program Manager Philip van Heerden said. “The revenue surge has also helped spur IT implementation initiatives in healthcare and education, making the Saudi IT market one of the more dynamic in the Middle East.” UAE came second, accounting for 33 percent of the spending, according to the report.
The report stated that the UAE has been experiencing a soaring economy due to diversification and a carefully executed plan to be the Gulf’s main business and trade center. The UAE’s communications sector was the single largest in terms of IT investments last year.
