According to Gartner's latest survey, overall IT spending in the Mena region is expected to hit $230.8 billion in 2025, reflecting a notable 7.4 per cent increase from 2024.
The anticipated growth in software spending, pegged at an impressive 13.7 per cent, underscores the commitment of Chief Information Officers (CIOs) to invest in GenAI technologies. Gartner's analysis indicates that artificial intelligence and cloud services are poised to significantly influence expenditures across infrastructure, software, and services as CIOs adapt to support the burgeoning use of GenAI.
Globally, IT spending is on an upward trajectory, expected to reach $5.61 trillion in 2025 - an increase of 9.8 per cent compared to 2024. This global trend mirrors the MENA region's forecast, highlighting a broader shift toward technological investment across multiple sectors.
John-David Lovelock, VP analyst at Gartner, notes:“While budgets for CIOs are indeed increasing, a considerable portion will merely offset price increases within their recurrent spending.” He emphasises that in 2025, nominal spending versus real IT spending will show a skewed relationship, as rising prices may absorb a significant part of budget growth.“All major categories are reflecting higher-than-expected prices, prompting CIOs to defer and scale back their true budget expectations,” he adds.
A substantial portion of Mena's IT spending-over 70 per cent -will be allocated to IT services companies and hyperscalers, according to Lovelock. By 2028, hyperscalers are projected to manage $1 trillion worth of AI-optimised servers, but they may not follow their traditional business models or Infrastructure as a Service (IaaS) markets.“Hyperscalers are pivoting to become integral players in the oligopoly AI model market,” he states.
The rise in IT spending is largely attributed to both governmental initiatives and private sector investments, which aim to position MENA as a global leader in AI innovation. Analysts point out that the region is undergoing a fundamental transformation, with organisations ramping up efforts in research and development (R&D), digital infrastructure, and workforce upskilling.
Gartner emphasises that robust cybersecurity measures and the adoption of cloud platforms are critical for establishing flexible and scalable infrastructures. Investments in R&D are pivotal as local organisations seek to cultivate new business models, enhance customer experiences, and develop a competitive workforce prepared for the global market.
Among the various sectors, data center systems are expected to exhibit the highest annual growth rate, projected at an impressive 14.9 per cent in 2025. This growth is driven by the increasing demand for AI adoption, cloud services, and enhanced data storage and processing capabilities. Furthermore, CIOs in Mena are anticipated to adopt a more strategic approach to their GenAI projects starting in 2025. They will leverage insights gained from earlier initiatives to address data management challenges more effectively and strike a balance between costs and value.
As Mena CIOs refine their GenAI strategies post-pilot, emphasis will be placed on aligning use cases with business priorities and investing in AI literacy to harness the full potential of these technologies. Meanwhile, growth in device spending is expected to slow to 6.1 per cent in 2025, reaching $36.05 billion-contrasting with the global trend, which is experiencing accelerated growth.
Governments across the Mena region are also focusing heavily on digital transformation initiatives, recognising the need for agile and resilient infrastructures that can support the demands of a rapidly evolving technology landscape. These initiatives include substantial investments in digital infrastructure, workforce upskilling, and partnerships with tech innovators to drive economic diversification and bolster global competitiveness.
The region, analysts noted, stands on the cusp of a significant IT spending surge, driven largely by the transformative potential of generative AI and a collective commitment from both the public and private sectors to innovate and lead in the global tech arena.“As organisations continue to adapt to these changes, the emphasis on AI literacy, cybersecurity, and strategic investment will be crucial for navigating the challenges and opportunities that lie ahead.”