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# Middle East and Africa IT services spending set to reach $30.3 billion by 2023
- URL: https://www.techloy.com/middle-east-africa-it-services-spending-2023/
- Published: 2023-04-26T16:44:03.000Z
- Updated: 2023-04-26T16:44:03.000Z
- Author: Acquah Nana Yeboah
- Tags: Middle East & Africa, / Insights

According to a recent report by the International Data Corporation (IDC), the Middle East and Africa (MEA) region is expected to spend $30.3 billion on IT and business services in 2023, a 5.0% increase from the $28.9 billion spent in 2022\. 

The report reveals that the region's stable and strong oil-producing economies, investments in mega projects and events, and expansion of in-country cloud services by hyperscalers are the reasons behind the region's growth.

Managed services and project-oriented services will be the fastest-growing market segments in 2023, followed by support and business services. IDC predicts that spending on managed services will grow at a CAGR of 7.6% between 2023-2027, while project-oriented services will have a CAGR of 5.7%.

[AI spending in the MEA region to reach $3 billion in 2023The Middle East and Africa (MEA), including Israel, are expected to spend $3 billion on artificial intelligence (AI) in 2023, according to International Data Corporation (IDC). While this only accounts for 2% of the global total, MEA is expected to experience the fastest growth rate worldwide, with…![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/size/w256h256/2021/07/techloy-dot.png)TechloyAcquah Nana Yeboah![](https://images.unsplash.com/photo-1488590528505-98d2b5aba04b?crop=entropy&cs=tinysrgb&fit=max&fm=jpg&ixid=MnwxMTc3M3wwfDF8c2VhcmNofDJ8fHRlY2hub2xvZ3l8ZW58MHx8fHwxNjgxMjAyMjkx&ixlib=rb-4.0.3&q=80&w=2000)](https://www.techloy.com/mea-region-fastest-global-growth-ai-spending/)

However, IDC warns that increased IT costs due to inflation, disruptions in the IT supply chain, and a shortage of skilled labour, and pressure to reduce IT expenses may pose challenges to growth.

IDC also highlights the acceleration of cloud journeys as organizations move mission-critical applications to the cloud, and cloud-related services drive growth in IT services revenue.

Recent announcements by cloud hyperscalers regarding the launch of in-country cloud services across the MEA region are enabling organizations to expand their cloud usage via a hybrid multicloud approach for added cost savings.