GCC spending on information and communications technology (ICT) is predicted to hit nearly $180bn over the next three years, new research has said.
Investments in the sector are seen growing by an annual rate of 8-10 percent, a pace that has been slowing since 2004, Kuwait Financial Centre (Markaz) said in a report.
Analysts said the growth would continue to be driven by Saudi Arabia and the UAE which account for a total of 75 percent of the total GCC spend on ICT.
The report said that according to figures for 2008, the region still had potential for growth in internet penetration.
Only Kuwait and the UAE covered more than a quarter of its population while the likes of Saudi Arabia had reached just five percent of its population with internet services.
Earlier this month, a report by the US-based global technology consultancy IDC said it saw the UAE spending $5bn on technology this year.
Significant growth was also predicted in Saudi Arabia and Qatar.
It said companies in the Middle East and Africa were set to spend $49.77bn this year, with the Gulf region expected to contribute about 25 percent of the total.