MENA IT Spending to Reach a Record $169 Billion in 2026

-- Mim Burt, Practice VP at Gartner

IT spending in the Middle East and North Africa (MENA) region is poised to reach an unprecedented $169 billion by 2026, reflecting a robust 8.9% year-on-year growth. This surge underscores MENA’s evolution into a formidable player in the global digital economy. The region, particularly the Gulf Cooperation Council (GCC), has harnessed its political stability, forward-leaning regulatory environment, and strong digital infrastructure to attract foreign technology partnerships and develop homegrown innovation ecosystems. Despite a challenging global macroeconomic backdrop, CIOs across MENA are pursuing ambitious digital strategies anchored in artificial intelligence (AI), automation, multi-cloud deployments, and cybersecurity resilience, investments that are not only fueling IT expenditure but also shaping the contours of a diversified, AI-driven economic future.

Data Centre Infrastructure Remains a Core Investment Pillar

Among the various IT segments, data centre systems are expected to continue their upward trajectory, albeit with a moderated pace in 2026. Spending in this category is forecast to expand by 37.3%, maintaining its status as the region's fastest-growing IT domain. While this represents a slowdown from the prior year’s rapid build-out, the shift reflects a transition toward more measured, long-term investments. This recalibration aligns with the maturation of infrastructure strategies and a growing emphasis on sustainable capacity expansion.

The continued momentum in data centre investments is being propelled by rising demand for generative AI (GenAI) applications and advanced machine learning models that require high-throughput computing environments. Much of this demand is originating not from traditional enterprises or consumers, but from governments, hyperscalers, AI model developers, and cloud-native technology firms. These entities are prioritizing scalable, AI-optimized infrastructure capable of processing massive data workloads, thus making data centres a linchpin in the region’s digital transformation strategy.

AI-Driven Software Adoption Reconfigures Enterprise Priorities

As MENA economies intensify their focus on digital competitiveness, enterprise software spending is also accelerating. Software investments are expected to rise by 13.9% in 2026, reaching $20.4 billion. This growth is primarily driven by the integration of GenAI capabilities into enterprise applications, developer platforms, and productivity tools. By 2028, three-quarters of all global software expenditures will be directed toward AI-augmented solutions.

For MENA-based CIOs, this represents a paradigm shift. The availability of embedded AI features in core enterprise systems and the emergence of more sophisticated language models are compelling organizations to reassess how they derive value from software. Additionally, the evolution of pricing frameworks for AI-based software and infrastructure is prompting a reassessment of procurement strategies, particularly as providers explore usage-based and subscription-based monetization models tailored for AI workloads.

Services and AI Integration Define New Competitive Frontiers

The expanding role of AI is not limited to software alone; it is redefining the broader IT services market across MENA. With AI becoming a foundational layer of enterprise operations, IT services spending is projected to grow by 8.3% in 2026. This reflects not only increased demand for implementation and integration services but also the emergence of AI-as-a-service offerings that require deep customization and support.

As organizations across the region race to embed AI into their operational fabric, a key differentiator will be the ability to construct resilient digital foundations. This includes investing in modular, composable architectures, strengthening internal data governance frameworks, and cultivating a workforce fluent in AI technologies. CIOs who treat GenAI as more than just a productivity enhancer, and instead as a strategic enabler of business reinvention, will be best positioned to unlock long-term value.

Conclusion: Building the Architecture for AI-Led Growth

MENA’s trajectory toward becoming a global technology and innovation hub is gaining momentum. The region’s proactive stance in embracing emerging technologies, particularly AI, is reshaping the landscape of IT investment. While the growth figures are compelling, the deeper story lies in how CIOs are aligning IT strategy with long-term national development goals, economic diversification mandates, and global competitiveness. As AI continues to mature, the capacity to harness its full potential will depend on robust infrastructure, visionary leadership, and an unrelenting focus on talent and transformation.