Research and Markets: Mid-East has world's highest growth potential

Details: Category: Trends & Forecasts; 06 July 2009; 10559 views

ICT's highest growth potential anywhere in the world lies in the Middle East, according to a new report from Dublin-based Research and Markets. Difficulties in the oil sector and in the global economy will generate a need for continuous ICT development. In turn, security, Internet, IPTV, WiMAX and 3G make for attractive opportunities. Michael Schwartz reviews...

Research and Markets (R&M) has announced the publication of its Middle East ICT Market Analysis 2009 report. It is all too apparent that R&M's motivation to write the report reflects the exceptionally strong growth in ICT in the region in the last few years. On a more ironic note, R&M predicts enhanced growth because problems in the oil sector and global economic downturn will create more ICT demand.

The Middle East has indeed been witnessing growth in its ICT sector for the past few years as governments across the region invest huge amounts of funds to develop ICT - precisely to reduce their dependency on oil. The global economic downturn comes into the picture in a similar fashion as Middle Eastern countries strive to find new ways of generating economic development and keeping their peoples in work.

Industrial development in areas such as Dubai also contribute growth. The region offers a plethora of opportunities to foreign players, eg, security for corporate and government networks, Internet services, IPTV, WiMAX, 3G and content and application development. Each of these opportunities is analysed in the report. Indeed, for all the reasons mentioned so far, R&M concludes that the ICT market in the Middle East has the highest growth potential in the world.

There are, of course, some factors which are not Middle-East- specific. Reforms and global competitiveness are making their presence felt worldwide. Initiatives such as liberalisation, privatisation, developing Internet infrastructure and the setting up of technology parks are infusing growth into the ICT industry. These will all be familiar to ICT observers.

On a more detailed note, Middle East ICT Market Analysis 2009 focuses on some specialised factors which are behind its key conclusion. regional market drivers, as well as the more globally oriented, include a younger population in the region, and the Middle East's previously mentioned industrialisation and healthier business environment.

The report also examines certain individual countries. This is somewhat surprising as there are only five countries selected: Israel, Turkey, Saudi Arabia, UAE and Egypt. All the others are indeed classified as "others." Is there so little going on in Kuwait that she can not be mentioned? Are things so normal in Lebanon that they can not be focused on? R&M itself mentions Jordan, Iran, Qatar, Oman and Bahrain as "having shown interest in the region's ICT market expansion."

Of course, not everything can be perfect in any region. The report identifies what it calls growth inhibitors. Four of the latter are singled out: infrastructure constraints, software piracy, shortage of skilled manpower and lack of ICT R&D. Yet surely all of these problems can be tackled? Does Middle Eastern telecoms have to follow Middle Eastern oil in being operated by Western specialists rather than by local personnel who can become the CEOs and Presidents of the future?

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