As the Middle East continues to diversify, the region's digital economy is set to double over the next three years to USD 30 billion after clocking nearly 30 per cent growth this year, according a report.
The business landscape is quickly adopting latest technologies to capture competitive advantages arising from leveraging the Internet of Things, big data & predictive analytics and further leveraging mobile technology in heart of their core businesses, said the report by SAP and Economist Intelligence Unit (EIU).
It indicates that organisations are observing unforeseen benefits to their business performance as a result of increasing the accessibility of information across organisations.
Demonstrating the demand for solutions in the Digital Economy, according to McKinsey & Company, businesses that embrace digital transformations could see increased revenue as much as 30 per cent.
"This will be not just another evolution in technology. It will be a revolution for both: the way business are run, and also how new business models are suddenly possible.
"As the Middle East continues to be an early adopter of latest innovations, businesses in the region, local businesses will have to define their approach now to stay relevant in this new digital economy," said Hannes Liebe, COO, SAP MENA.
"Those new technologies such as cloud, Big Data, predictive analytics, and Internet of Things are already reshaping a new reality, and companies will have two choices: either invest or they face the risk of becoming irrelevant," Liebe said.
This new digital economy in the Middle East is set to exceed USD 30 billion by 2018, following almost 30 per cent growth this year, according a recent report.
Another report indicates that the digital economy accounts for approximately USD 450 billion a year of the global GDP from traffic and trade flows.
Adding to the digital economy's growth is the rise of the Internet of Things, which will see connected devices grow from 9 billion to at least 50 billion by 2020, and create USD 14.4 trillion in total value at stake, according to a report by SAP and Stephenson Strategies.
