UAE consumers will spend an estimated $2.04 billion (Dh7.48 billion) on IT products and services, including smartphones, laptops, computers and others, according to latest figures published today by International Data Corporation (IDC).

Total IT spending in the UAE is expected to reach $6.67 billion (Dh24.5 billion) this year, according to IDC. Spending by businesses will rise 8.3 per cent year-on-year to $4.63 billion (Dh17 billion) while consumers spending is estimated at $2.04 billion (Dh7.48 billion) in 2014 or 31 per cent of the total, Jebin George, a senior research analyst at IDC Middle East, Africa, and Turkey, told Emirates 24|7.

Among the business sub-sectors, George said government IT spending is estimated at $806 million (Dh2.95 billion), followed by financial sectors at $719.77 million (Dh2.64 billion), communication at $678.7 million (Dh2.49 billion) , oil and gas at $468.9 million (Dh1.72 billion) and others at $1.96 billion (Dh7.2 billion).

Referencing its recently released United Arab Emirates Vertical Markets 2013-2017 IT Spending Forecast, IDC anticipates a healthy growth over the 2013–2017 forecast period as the governments of Abu Dhabi and Dubai continue to spend on upgrading the country's infrastructure.

The public sector, which includes government, education and healthcare organisations, will account for most of the business IT spending in 2014.

Organisations in this vertical market are predicted to invest $1.12 billion in IT and account for 24.3 per cent of the spending, driven primarily by government-led initiatives to bring more public services to online and mobile platforms.

Government-backed projects to increase the use of ICT in educational institutions, together with regulations in the healthcare sector that mandate a reduction in paper-based processes, are other major factors driving IT spending in this sector.

“Combined Finance” is the second-biggest vertical market in the UAE with respect to business IT spending. Organisations in this vertical, which includes banking, insurance, and securities services providers, are predicted to invest $719.77 million (Dh2.64 billion) in IT in 2014. The rapid expansion of branch and ATM networks, investments in online and mobile banking channels, and the need for better regulatory compliance are the primary drivers of ICT investments in the banking sector.

The strong infrastructure backbone, business-friendly government, and ongoing and planned large-scale investments make the UAE more prepared for growth than its regional peers. IDC expects total IT spending in the UAE to total $8.06 billion (Dh29.5 billion) in 2017.

“Robust growth of the UAE’s IT market is expected to continue throughout the 2013-2017 forecast period,” said George.

“IT vendors will find the biggest opportunities in the government sector, as it is the largest and fastest growing market. Communications finance, and oil and gas will continue the other major vertical markets for IT spending, while healthcare, transport, and utilities are growing the fastest,” he added.