There’s also much innovation with ‘newer’ technologies such as AI (Artificial Intelligence) and Internet of Things (IoT) to name but two – so the key ingredients are there for good returns on investment in companies involved in the tech arena.
In the Middle East certain tech sectors are soaring and set to grow further. Choose your stock in one or more of the following sectors with the help of a financial trading expert such as IG.
A surprise tech growth sector in the Middle East when the IT market is, generally speaking, slowing in other parts of the world. According to Gartner, research and advisory specialist to the IT industry, spending in the sector is projected to hit over $212 billion by the end of 2016 – an increase of 3.7% from 2015.
Bucking the worldwide trend are buoyant sales for PCs and tablets while demand is falling in other world markets. It’s forecast that some $8 billion will be spent on PCs and tablets in 2016 – a figure set to pass $10 billion in 2018.
Mobile phone sales similarly are set to increase from $30 billion in 2016 to some $37 billion in 2019. Again, compared to other world markets where companies like Apple have seen a slowdown in demand for its iconic iPhone, this represents healthy growth.
With major events scheduled for the Middle East in the coming years such as Expo 2020 and the 2022 football World Cup in Qatar, investment in the Middle East’s general communications infrastructure will continue and increase. Those involved in this area such as telecoms companies should enjoy significant growth.
‘Young’ tech industries – IOT, AI, Big Data and cloud computing
Interconnectivity for devices, the enormous growth in data generation and thus the need to store, manipulate and analyse data, are seeing many investment opportunities in the above sectors.
While new companies serving the new tech sectors might make tempting investments – the tech growth has seen the appearance of over 100 new funds investing in the region – there’s the age old issue of which ones to choose? Also, while some of these companies might be enjoying spectacular turnover figures, they are also investing heavily in their often rapid growth – so returns might not be especially high in the short term.
The ‘safe hands’ option may be to look at traditional IT names who are heavily involved in some of the newer technologies, especially cloud computing; heavyweights such as Microsoft, Google, Oracle and Amazon are fully established and enjoying huge growth in this sector.
Maybe not a tech sector in itself, but with so many games being played online or at least on devices such as smartphones and tablets there is a positive implication for other tech related companies. For example, the spectacular growth of Pokémon Go could have beneficial effects on data companies and certainly for Google who own the game’s developer and distributor, Niantic.
The potential for gaming in the Middle East is attracting talented people to develop the sector in the region and build on the success of Pokémon Go with similarly popular products.