U.S.-based enterprise software company ServiceNow has flagged delays in closing major deals in the Middle East, citing the ongoing conflict as a key factor impacting business operations.

The company reported that delayed government contracts in the region reduced its subscription revenue growth by approximately 75 basis points, leading to a 12% drop in its share price in extended trading.

The development highlights the broader impact of geopolitical instability on global technology companies operating in the Middle East.

From a business standpoint, delays in government spending and project approvals are affecting multiple sectors, including AI, cloud computing, and digital transformation initiatives.

Economically, the slowdown in tech investments could impact long-term growth strategies for Gulf economies, which are heavily focused on digital transformation and diversification.

Looking ahead, analysts expect companies to adopt more cautious expansion strategies in the region while closely monitoring geopolitical developments.

Source : Reuters.