Blockchain adoption is growing stupendously around the globe lately. Middle East and African (MEA) countries are expected to contribute massively in increasing their technological development over the next few years.
A surge of 400% is expected across the MEA government’s investments in blockchain in the next 4 years, according to a report by United States-based market research firm International Data Corporation (IDC).
Issued on Feb. 12, the report concludes that blockchain tech is a big part of the digital transformations initiatives in the Middle East and Africa region. It is estimated that the expenditure would grow from $21 million in 2019, to as much as $105 million by 2023, a sublime annual growth rate of 50%.
MEA region’s authorities are constantly developing blockchain-based solutions in an attempt to enhance security, cut down on fraudulent activities and improve public administration.
Jyoti Lalchandani, vice president and regional managing director at the IDC's division for the Middle East, Turkey, and Africa, highlighted the fact that governments who belong to the MEA region are facing an uphill task to acclimatize themselves in in the wide range of technologies, including blockchain. Lalchandani also emphasized that the governmental structure, which is required to be ready for digital transformation has not been prepared yet.
"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.”
Blockchain exploration is on the rise in MEA countries, but even then the total expenditure is still short in comparison with the amount spent on total digital transformation. However, with the increased spending, it pales in comparison against regions like Asia/Pacific, which are certainly going to go beyond the $105 million mark in the next few years.