IT spending across the Middle East and North Africa is forecast to reach $169 billion in 2026, representing an 8.9 per cent increase from $155 billion this year, according to Gartner. The outlook reflects strong momentum across Gulf Cooperation Council countries that are leveraging their economic resilience and digital-first strategies to accelerate technology adoption. Policymakers and enterprises in the region are actively seeking global partnerships, expanding digital education initiatives, and creating frameworks that enable faster integration of advanced technologies into both public and private sectors. Despite macroeconomic uncertainties worldwide, Gartner notes that CIOs in the region continue to prioritize investment in artificial intelligence, automation, cloud, and cybersecurity, while also directing resources into workforce upskilling. These measures are not only supporting digital continuity but are also positioning MENA economies to compete more effectively in an increasingly AI-driven global market.
Within the broader IT market, data centre systems are emerging as the most significant growth driver. Spending on data centre infrastructure is expected to climb 37.3 per cent in 2026, a rate that outpaces all other IT categories. However, Gartner highlights that while growth will remain strong, the pace of expansion is set to ease compared to this year as the region transitions from rapid rollout to steady, long-term investment. Demand is being fuelled by the rising adoption of generative AI and machine learning, technologies that require advanced computing capacity and high-performance infrastructure. Eyad Tachwali, VP of Advisory at Gartner, explained that governments, hyperscale cloud providers, and leading technology firms are at the forefront of this push, driving capacity upgrades and shaping the competitive landscape, while legacy enterprises and consumers play a smaller role in this transformation.
Software spending is also on an upward trajectory, forecast to grow 13.9 per cent and reach $20.4 billion in 2026. Generative AI is the catalyst behind this rise, with businesses increasingly incorporating AI-powered tools into daily operations. Gartner predicts that by 2028, three-quarters of global software spending will be directed toward solutions enabled by generative AI. According to Mim Burt, Practice VP at Gartner, AI integration is expected to become a standard feature across business applications, productivity platforms, developer environments, and server systems designed specifically for AI services. Vendors are also exploring new approaches to packaging and pricing to encourage adoption across diverse industries. Alongside software, IT services are anticipated to expand by 8.3 per cent as organizations emphasize the practical integration of AI into operations, ranging from customer engagement to internal process optimization.
Tachwali advises regional CIOs to look beyond short-term efficiency gains and instead build competitive advantages through strong data foundations, adaptable technology architectures, and a workforce capable of navigating AI-centric environments. These priorities, combined with the commitment of MENA governments to digital transformation, are helping reshape the region’s role in the global technology landscape. Far from being passive adopters, countries in the region are using large-scale investments in AI, data centres, and software to establish themselves as influential contributors to international innovation. The scale of these commitments suggests that by 2026, MENA will not only record impressive spending figures but also strengthen its position as a hub for technology-driven growth.
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