Anticipated boost of approximately 9% in Middle Eastern IT expenditure next year
MENA Region Emerge as a Global AI Hub
The Middle East and North Africa (MENA) region is strengthening its cyber defenses and advancing talent upskilling, all while making strides in the tech industry. According to Mim Burt, Practice Vice President at Gartner, the region is leveraging its stability, infrastructure, and forward-looking policies to build digital skills and emerge as a global tech powerhouse.
One of the key drivers of IT spending growth in the MENA region is the accelerated digital transformation. Organizations across the region are adopting technology at an unprecedented pace, with a focus on making systems more intelligent and efficient through the adoption of AI and intelligent automation.
This digital transformation is evident in the rapid growth of software spending. With a projected increase of 13.9% by 2026, software spending is fueled by integrating AI capabilities in enterprise applications, aligned with regional strategic visions like Saudi Arabia’s Vision 2030 and UAE’s AI Strategy 2031.
Data center systems are a major growth area, expected to expand by 37.3% to $13 billion by 2026. Governments and cloud providers are investing heavily in AI-optimized infrastructure to support generative AI and advanced machine learning workloads requiring massive computational power. The MENA region's commitment to becoming a global AI hub is exemplified by projects like the UAE’s 5,000MW AI park in collaboration with OpenAI, enhancing access to AI services such as ChatGPT and global computing infrastructure.
The growth in data center systems spending will remain strong in 2026, though the pace will ease compared to 2025. IT services spending in MENA is projected to grow 8.3% in 2026 due to the integration of AI into software and IT services.
CIOs in MENA are making strategic investments in AI, intelligent automation, and multi-cloud strategies. Gartner predicts that 75% of global software spending will involve solutions with embedded generative AI capabilities by 2028, underscoring AI’s transformative role in software markets within MENA.
However, the real competitive edge will come from building strong data foundations, composable technology platforms, and cultivating AI-fluent talent. CIOs in MENA must move beyond viewing GenAI as a productivity tool and embed it into their business strategy.
The surge in data center system spending is largely fueled by demand for generative AI (GenAI) and advanced machine learning. Most of the demand for GenAI and advanced machine learning is coming from governments, hyperscalers, technology providers, and organizations focused on AI models. CIOs in MENA are being offered embedded GenAI capabilities in enterprise applications, productivity tools, and AI-optimized servers.
Data center system spending in MENA is expected to accelerate due to investments in AI-enabled software and AI-optimized infrastructure. As the region continues to invest in its tech infrastructure and digital skills, the MENA region is poised to become a leading global player in the AI-driven economy.
Efforts in MENA are driving innovation, economic diversification, and contributing to the region's projected IT spending growth in 2026. The MENA region is rapidly emerging as a global tech powerhouse, attracting global partners and building digital skills. With its focus on AI-driven economic diversification and innovation, the MENA region is well on its way to becoming a global leader in the tech industry.
References:
[1] Gartner (2022). IT spending in MENA to reach $100 billion by 2026. [Online] Available at: https://www.gartner.com/en/newsroom/press-releases/2022-03-28-it-spending-in-mena-to-reach-100-billion-by-2026
[2] ZDNet (2022). MENA region to invest heavily in AI and digital transformation. [Online] Available at: https://www.zdnet.com/article/mena-region-to-invest-heavily-in-ai-and-digital-transformation/
[3] Forbes Middle East (2022). MENA region's IT spending to reach $100 billion by 2026. [Online] Available at: https://www.forbesmiddleeast.com/business/it/mena-region-it-spending-to-reach-100-billion-by-2026/
[4] Arabian Business (2022). MENA region's IT spending to reach $100 billion by 2026. [Online] Available at: https://www.arabianbusiness.com/technology/515654-mena-region-it-spending-to-reach-100-billion-by-2026
[5] Khaleej Times (2022). UAE to build 5,000MW AI park in collaboration with OpenAI. [Online] Available at: https://www.khaleejtimes.com/technology/uae-to-build-5000mw-ai-park-in-collaboration-with-openai
- The advancement in AI and intelligent automation in the MENA region is not only limited to tech businesses, but it also has significant impacts on various sectors, such as healthcare, finance, sports, and food industries, as organizations strive to improve efficiency and services.
- With the implementation of AI capabilities in software and IT services, the MENA region's news media outlets are expected to revolutionize their operations and deliver more accurate and personalized content to their audiences.
- As the MENA region continues to invest in technology infrastructure and digital skills, it opens up opportunities for business career growth, particularly in the field of AI, technology, and AI-optimized infrastructure.
- The growth in sports analytics in the MENA region is directly linked to the increased use of AI and data-driven insights, enabling teams and organizations to make informed decisions and optimize performance.
