International Data Corporation’s reports about the economies of Oman and Kuwait show that the IT sectors of these Middle East countries will experience an increased 5-year compound annual growth rate (CAGR) due to accelerated investments in public, private, and hybrid cloud solutions.
IDC found out that spending on public cloud services in Oman is expected to rise nearly 3.4 times, from approximately OMR 6.5 million in 2019 to OMR 22.4 million in 2024. Moreover, considering the impact of IT and cloud services, the Omani economy will enable businesses to generate nearly OMR 387 million in net revenues over the next five years.
The IT sector in Oman is expected to reach OMR 406 million by 2024, a five-year CAGR of 0.81% from 2019 to 2024, with the IT employment in the country projected to reach more than 60,900 at the end of 2024.
“The Sultanate of Oman has a very strong focus to transform the country into a digital economy by 2040. The country runs several initiatives including eOman, its national Digital Oman Strategy. Technologies such as cloud, AI, IoT, and analytics play a critical role in the country’s long-term digitalization and innovation strategies,” said Manish Ranjan, Program Manager for Software & Cloud at IDC Middle East, Turkey, and Africa (META).
On the other hand, Kuwait is accelerating its adoption of technology with large-scale investments causing nearly a 3.5 times increase in public cloud services in the country, from approximately KWD 9.7 million in 2019 to KWD 34.1 million in 2024.
In line with this, the Kuwaiti economy will enable businesses to generate nearly KWD 400 million in net revenues over the next five years because of cloud services. The IT sector in Kuwait is expected to reach KWD 534 million by 2024, representing a five-year CAGR of 0.93% from 2019 to 2024.
IT employment in Kuwait is also projected to reach more than 53,800 at the end of 2024. “Cloud and AI services have already given birth to new professions. As COVID-19 shifts the world into a “new normal,” there is a strong need for a workforce with digital skills, as companies are increasingly operating in a more digital and connected environment. This will, in turn, further drive rapid digital upskilling programs among non-technical workforce,” explained Ranjan.
The IDC report states that continued investments across Kuwaiti industries in digital services and emerging technologies such as artificial intelligence (AI), machine learning (ML), analytics, automation, and mobility are accelerating cloud adoption in the country.