Growth in IT Spending Across MENA
IT spending in the Middle East and North Africa (MENA) region is set to reach $230.7 billion in 2025, reflecting a 7.4% increase compared to 2024, according to Gartner’s latest forecast. This growth is fueled by substantial investments from both governments and private enterprises aiming to establish the region as a global AI innovation hub. These investments are supported by robust cybersecurity and cloud platforms, which are essential for enabling scalable infrastructure.
Strategic Focus on AI, Cybersecurity, and Cloud
Mim Burt, Managing VP Analyst at Gartner, emphasized the region’s commitment to positioning itself at the forefront of AI innovation. “Governments and private sector enterprises are investing heavily to make MENA a world leader in AI, supported by strong cybersecurity and cloud platforms,” Burt stated. As a result, local organizations are ramping up investments in research and development to create new business models, enhance customer experiences, and build a skilled workforce for global competitiveness. These efforts are expected to further boost IT spending in the region.
Key Insights from Gartner CIO & IT Executive Conference
At the ongoing Gartner CIO & IT Executive Conference, analysts are discussing the trends shaping the IT market. Data center systems, in particular, are expected to see the highest annual growth rate in the MENA region, increasing by 14.9% in 2025. This growth is driven by the rising demand for AI and cloud services, along with greater data storage and processing capacity.
Data Center Systems to Lead IT Growth
In 2025, CIOs in MENA are expected to significantly increase their spending on data center technologies to accommodate the growing adoption of AI and cloud services. “The rise in consumption of data storage and processing capacity, alongside investments from major hyper-scalers, will contribute to the growth of this segment,” said Burt. These hyper-scalers are investing in sustainable, scalable, AI-embedded cloud infrastructure, which will further fuel the region’s data center growth.
Shift Toward GenAI Investments
Software spending in the region is projected to grow by 13.7% in 2025, primarily driven by increased investments in generative AI (GenAI)-enabled applications. Gartner’s Burt noted that MENA CIOs are increasingly investing in GenAI applications, cloud services, and cybersecurity software to enhance the digital workplace and improve customer experience and product quality. As a result, CIOs are expected to adopt a more focused approach to GenAI projects starting in 2025, informed by lessons learned from their earlier pilots.
CIOs Adjusting Strategies for GenAI
Despite the early enthusiasm for GenAI, Gartner’s Eyad Tachwali, Sr Director Advisory, pointed out that CIOs are now reassessing their strategies. “Pilots and trials have cooled the hype around GenAI as CIOs begin to understand the complexities related to data and the cost versus value of these projects,” Tachwali explained. Moving forward, CIOs will take a more strategic, portfolio-based approach to GenAI, ensuring their use cases align with business priorities and focusing on data and AI literacy to maximize the value of their investments.
Gartner’s Forecast Methodology
Gartner’s IT spending forecast is based on rigorous analysis, using primary research techniques and secondary sources to create a comprehensive database of market size data. The forecast covers a wide range of IT products and services, including hardware, software, IT services, and telecommunications. This detailed analysis provides Gartner clients with a unique perspective on market opportunities and challenges, helping them make informed decisions in an evolving IT landscape.
