Investments in digital transformation and innovation will account for 30% of all IT spending in the Middle East, Turkey, and Africa (META) by 2024, up from 18% in 2018.

That's according to the latest predictions revealed by the International Data Corporation (IDC) at its IDC Directions 2020 event, hosted recently in Dubai.

The IDC's group vice president and regional managing director, Jyoti Lalchandani said spending in these two areas is leaving the rest of the market in its wake, increasing at a compound annual growth rate (CAGR) of 18% versus 1.5% for the rest of IT.

Lalchandani also predicted that government enterprise IT spending is increasing at a CAGR of 5.7% and will top US$8-billion in 2021, at over US$6-billion, manufacturing will account for 23% of all digital transformation spending in 2020, and annual security spending will top US$3.6-billion by 2023 as digital trust becomes a priority.

Additionally, spending on artificial intelligence will top US$600-million in 2023, doubling from 2018 levels, while IOT spending will reach US$17-billion in 2023, six times the value seen in 2018.

IDC's chief research officer, Meredith Whalen, said: "The digital economy is at a critical tipping point. In just a few short years, IDC forecasts that nearly half of all GDP worldwide will come from products and services offered by digitally transformed organisations. In order to thrive, organisations must define their new role in this digital economy and proactively address new customer requirements around personalisation and trust. They must also develop new capabilities around digital innovation, work, and intelligence, and build a digital IT infrastructure that supports resilient operations and pervasive experiences."

The event focused on several topics, including 5G, IoT, AI, cloud, Smart Cities, hyperconverged systems, software-defined infrastructure, automation, security, managed services, digital document solutions, mobile phones, PCs, and wearables.

According to the IDC there were also in-depth discussions on the emerging opportunities that exist in key markets such as Saudi Arabia, Egypt, Africa, and the UAE, with IDC forecasting the latter to see a 5.1% year-on-year jump in IT spending this year to US$8.45-billion.

"From ecommerce and cloud computing to FinTech and cybersecurity, the UAE is leading the region in digital transformation," said Ammar Al Malik, managing director of Dubai Internet City, which was the Strategic Partner at IDC Directions 2020.

"We believe that the biggest budget in the history of Dubai, announced earlier this year, sends a strong message to the business community. It will be a catalyst for growth that stimulates entrepreneurship, innovation, and the ecosystems supporting a diversified, knowledge-based economy."