Amid the acceleration of global blockchain adoption, countries in the Middle East and Africa (MEA) are expected to tremendously increase their spending on blockchain technology during the next few years.
A new report by the US-based market research firm International Data Corporation (IDC) revealed that governments across MEA will see a 400 percent increase in their investment to blockchain-based solutions within the coming four years.
MEA Blockchain Spending to Rise From $21m in 2019 to $105m By 2023
The IDC report revealed that blockchain technology’s share in digital transformation initiatives in the MEA region is increasing. In particular, MEA countries are expected to increase their blockchain spending from $21 million in 2019 to nearly $105 million by 2023, with a compound annual growth rate of almost 50 percent.
Jyoti Lalchandani, vice president and regional managing director at the IDC’s division for the Middle East, Turkey and Africa, stressed that governments in the MEA region are facing the challenge of learning a whole new set of technologies such as blockchain.
Lalchandani also noted that many structures of government are not prepared for digital transformation:
“Governments across the region are under mounting pressure to become both more efficient and more effective. However, this is proving to be a troublesome task as many government organizations are simply not prepared for digital redesign. Whether it’s finding ways to integrate 5G, AI, and blockchain or protect against intrusions on digital trust, government agencies have a whole new set of IT skills to learn.”
Although blockchain is increasingly being explored in MEA countries, spending on blockchain still accounts for a small portion of the total digital transformation initiatives. According to the IDC, in 2019 MEA countries spent a combined $12.8 billion on digital transformation as a whole, and by 2023 the $15 billion mark is expected to pass.
Cryptolydian reported earlier that, Russian state-run Rostec is reportedly planning to cut spending on the blockchain development by half. The organization plans to spend up to 28.4 billion rubles ($453.2 million) by 2024 on developing blockchain technologies in Russia.