AI and Cybersecurity Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028) for the Middle East & Africa

The Middle East & African AI, Cyber Security and Big Data Analytics Market is poised for remarkable growth with an anticipated Compound Annual Growth Rate (CAGR) of 20.4% during the forecast period. Across the Middle East and African nations, there has been a notable surge in the adoption of advanced technology. Recent years have witnessed a rapid wave of digitalization, notably in countries such as the United Arab Emirates and Saudi Arabia, leading to a proliferation of connected devices in the region.

Enterprises across various industries are increasingly turning to AI to reap cost benefits, enhance productivity, and bolster safety standards. Government-driven initiatives are reshaping the industrial landscape in key economies within the Middle East & African region. These initiatives are establishing robust institutional frameworks and pragmatic regulatory environments to stimulate private sector investments. Furthermore, regional governments have embarked on long-term plans to leverage AI and Machine Learning (ML) as economic stimuli and tools to enhance workforce efficiency and government structure agility. These AI programs now enjoy direct government support, with the UAE government taking a pioneering role as the first country in the Middle East to launch its AI strategy and establish the Ministry of Artificial Intelligence. The government has also committed significant investments in AI technologies across nine sectors.

Additionally, Saudi Arabia, a prominent player in creating an AI-friendly ecosystem, has invested heavily in high-speed broadband and 5G deployment, data access, and security. For example, in the first quarter of the current year, the Communications and Information Technology Commission (CITC) of Saudi Arabia advanced its fifth-generation (5G) technology deployment plan. In collaboration with UK-based Stratospheric Platforms Limited, the CITC tested the High-Altitude Platform System, which offers 5G network coverage from the stratosphere. However, the market's growth in the Middle East & African region may face challenges due to overall operational hurdles stemming from inadequate supporting infrastructure.

With the emergence of COVID-19 as a new reality, organizations worldwide must proactively address the surge in cyber threats observed during the pandemic. This has made cyber resilience, the ability to respond to, prepare for, and recover from cyberattacks, an absolute necessity rather than an optional measure. Moreover, over the past few decades, the technology sector and key regulatory agencies in the Middle East and North America have progressively embraced initiatives aimed at enhancing online privacy and security for both consumers and businesses.

Here are the major market trends shaping the MEA Artificial Intelligence, Cyber Security & Big Data Analytics Market, according to our research experts:

1. Africa is playing a pivotal role in the global AI supply chain, particularly in the early production phase. Countries like Egypt, Rwanda, and Mauritius have formulated comprehensive AI strategies. African governments are intensifying efforts to adopt Artificial Intelligence (AI) to gather crucial data that can enhance public service delivery and governance. For example, South Africa's National Infrastructure Plan 2050 aims to connect all government buildings to high-speed fibre-optic broadband, universal access, and public sector connectivity, with the government overseeing procurement and regulation while SOEs and the private sector implement these plans.

2. Furthermore, Egypt's Ministry of Communications and Information Technology (MCIT) is working to establish a secure, dependable, and accessible infrastructure to realize Digital Egypt and transition to a digital society. Collaboration agreements, such as the MoU signed between the Egyptian National Telecommunications Regulatory Authority (NTRA) and the Saudi Communication and Information Technology Commission (CITC), underscore the commitment to knowledge exchange in areas like radio spectrum management, smart cities, and digital transformation capacity building.

3. Saudi Arabia stands out in the Middle East due to substantial government expenditure on advanced technology. The country is poised to become a leader in the artificial intelligence and big data sector, driven by favourable regulations, government funding, and initiatives. Saudi Arabia has emerged as a digital hub, particularly in the shift to 5G, with investments like STC's Mena HUB, a USD 1 billion infrastructure and connectivity project supporting the country's burgeoning digital and cloud sector. The nation is enthusiastic about adopting AI, as evidenced by the launch of the Saudi Vision 2030 plan, where approximately 70% of the 96 strategic goals are related to data and AI.

 

According to the General Authority for Statistics in Saudi Arabia, it is projected that by 2024, the optical, electrical, and computer manufacturing sector will generate around USD 231.7 million in sales, indicating significant growth prospects for the IT sector and substantial market opportunities throughout the forecasted period.