IT spending in the Middle East and North Africa (MENA) is projected to reach $169 billion in 2026, an 8.9% increase over 2025, according to a forecast by global research and advisory firm Gartner.

Data center systems are expected to be the fastest-growing IT segment in the region, with spending forecast to rise by 37.3% in 2026. However, Gartner notes that growth is likely to stabilize in the short term as the market shifts from rapid expansion to more sustainable investment strategies.

Mim Burt, Practice Vice President at Gartner, said the region is rapidly positioning itself as a global technology hub, with GCC countries leveraging advanced infrastructure and progressive policies to attract international partners and accelerate digital transformation. These efforts, she added, are aimed at building AI-enabled, innovation-driven economies.

“Even amid global economic and geopolitical uncertainty, chief information officers (CIOs) in MENA are making strategic investments in AI, intelligent automation, and multi-cloud strategies, while strengthening cyber defenses and advancing talent upskilling,” added Burt.

Software spending across MENA is also expected to grow sharply, with Gartner projecting a 13.9% increase to US$20.4 billion in 2026. This growth is tied to the rapid adoption of generative AI tools across organizations.

Eyad Tachwali, Vice President of Advisory at Gartner, said the increase is being driven by demand for generative AI and machine learning applications, which require robust computing infrastructure.

He noted that much of this growth will come from governments, major cloud providers, technology firms, and institutions developing AI models, rather than from traditional enterprises or consumers.

Looking ahead, Gartner expects that by 2028, 75% of global software spending will be directed toward solutions incorporating generative AI capabilities.