IT spending in the Middle East and North Africa (MENA) is projected to hit $169 billion in 2026, marking an 8.9% rise from 2025, according to Gartner. The Gulf Cooperation Council’s (GCC) stable infrastructure and forward-thinking policies are fueling this growth by attracting global partnerships and fostering digital skills.
Despite global uncertainties, CIOs in MENA are investing strategically in AI, intelligent automation, multi-cloud strategies, cybersecurity, and talent development. Data center systems will remain the fastest-growing IT segment, with spending expected to increase by 37.3% in 2026, driven by demand for generative AI and machine learning infrastructure. This demand mainly comes from governments, hyperscalers, and technology providers rather than traditional enterprises.
Software spending is forecasted to grow 13.9% to $20.4 billion, propelled by the accelerated adoption of generative AI (GenAI) capabilities. Gartner anticipates that by 2028, 75% of global software expenditure will involve GenAI functionality. CIOs will see more embedded GenAI features in enterprise applications, productivity tools, and AI-optimized servers supporting AI-as-a-service, alongside new pricing models for software and hardware.
IT services spending is also expected to grow by 8.3%, reflecting AI’s central role in innovation and reshaping IT priorities. Experts advise CIOs to embed AI deeply into business strategies by strengthening data foundations, technology platforms, and AI-skilled talent to unlock differentiated value.
Gartner’s forecast is based on extensive vendor sales data and primary and secondary research, offering insights across hardware, software, IT services, and telecommunications sectors. Further insights will be shared at Gartner’s CIO & IT Executive Conference in São Paulo and Dubai later this year.
