Dubai Investment Fund To Invest in North African IT Sector
The Dubai Investment Fund (DIF), an international investment management business, with US$320 billion of assets under management, decided to engage in the information technology industry in North Africa after researching the fast-expanding telecoms technology market on the African continent. According to those who specialize in the telecommunications business, the fund’s objective is to make investments […]
The Dubai Investment Fund (DIF), an international investment management business, with US$320 billion of assets under management, decided to engage in the information technology industry in North Africa after researching the fast-expanding telecoms technology market on the African continent.
According to those who specialize in the telecommunications business, the fund’s objective is to make investments in ventures that give governments, investors, and operators the chance to address significant industry challenges. The initiatives that will assist the improvement of critical services and promote competition to create an environment that is beneficial for investment, increase productivity and growth, and better people’s lives are the ones investors are most interested in funding.
Given the history of the company’s investments, it is reasonable to believe that the Middle Eastern investment giant has prioritized investments in the technological area for most of its existence. The DIF has already invested in many companies operating in the information technology sector in the past, including Cisco, Qualcomm and SAP.
According to RationalStat, data center expenditures in the MENA region account for approximately 6-8% of overall ICT expenditures and the total investment in the information technology sector across the MENA area will rise to 170.91 billion dollars by 2023.
The entry of significant players in the telecommunications industry into the region would unquestionably provide African nations with a push toward further economic growth and expansion of their potential, as well as a boost toward further development. Africa presents a wealth of prospects for information technology projects, cloud services, and wireless carriers because of the continent’s sizable market and population. According to the DIF research, there is a growing interest in modern Internet technologies, such as streaming services among consumers. Based on their evaluation, over 50% of respondents shared that streaming is their primary method of digital entertainment. 65% of respondents believed that streaming offers better value for money. As a direct result, businesses have already demonstrated an interest in the area.
In an effort to attract investments from abroad, Middle Eastern nations are implementing digital transformation. The fourth industrial revolution, IoT, smart cities, and digital transformation are all fueled by the deployment of 5G networks. By the end of 2022, mobile internet penetration is expected to reach 50% of the population in MENA, with a total of 300 million users in 2021. The Arab states of the GCC have the greatest number of mobile internet users. Additionally, the region’s data consumption will rise by 400% between 2022 and 2028 as users become more engaged with bandwidth-intensive applications like video.
It is not surprising that such major players as the DIF are looking forward to the development of the information technology market. In particular, this is what they talk about on their Twitter page.
Due to their respective governments’ plans to transform the economy, Saudi Arabia and the United Arab Emirates dominate the regional market for data centers. The information and communications technology (ICT) industry is anticipated to continue expanding in the years to come thanks to aggressive investments in cloud computing made by regional governments, competitive business laws, and robust technological infrastructure.