MENA IT Spending to Reach $178.1B in 2023, Egypt named regional tech hotspot

A new report by Doha-based strategic communications agency BLJ Worldwide reveals that the MENA region is expected to witness a significant surge in information technology spending, reaching $178.1 billion in 2023.

The report, titled "MENA Tech 2023: Mapping the Technology Landscape," analyzed various aspects of the MENA technology sector, covering areas such as FinTech, gaming, and overall technological trends.

Egypt stands out as a leading player as one of the MENA region’s top tech hotspots, emphasized by its inclusion as one of the top five countries for startups. These countries were selected based on several factors, including substantial investment in future technologies, thriving startup ecosystems, and world-leading internet connectivity.

The United Arab Emirates (UAE) was named as the tech startup capital of the region, with local companies raising $1.85 billion in 2022. Saudi Arabia (KSA) follows closely behind with $907 million, while Egypt secured $736 million in startup funding.

In terms of funding for startups, the FinTech sector emerged as the most funded in the region during 2022, gathering $1.1 billion. CleanTech secured the second spot with $409 million, followed by logistics at $362 million.

The report also identifies KSA, the UAE, Egypt, Qatar, and Bahrain as the top locations for research and development within the MENA region.

Egypt, the UAE, KSA, Oman, and Morocco were recognized for having the highest representation of influential women in the region's tech industry, highlighting the progress made in promoting gender diversity and inclusion within the sector.

The MENA region's ecommerce market is currently valued at $37 billion, and the report predicts that it will exceed $57 billion by 2026, indicating significant growth potential.

Justin Kerr-Stevens, CEO of BLJ Worldwide, emphasizes the tremendous strides made by the MENA tech industry, citing major investments and global events such as the FIFA World Cup Qatar 2022 and Expo 2020. Kerr-Stevens also noted that the region has evolved from a collection of markets following the lead of the US and China to become a distinct technological hub with its own identity. The report also highlights the increasing adoption of Artificial Intelligence (AI) and the prominence of women in Arabic esports, as well as the region's significant investments in future technologies.