MENA IT Spending To Hit $169 Billion By 2026

(MENAFN- The Arabian Post)

Information technology expenditure across the Middle East and North Africa region is poised to climb to $169 billion by 2026, reflecting a notable 8.9 percent growth from 2025, according to projections from Gartner. The surge in IT spending underscores a region-wide shift towards digital transformation, fuelled by the increasing reliance on artificial intelligence, intelligent automation, and AI-optimised infrastructure enhancements. This rise in spending is taking place against the backdrop of global economic and geopolitical challenges, prompting businesses to rapidly adopt cutting-edge technologies to remain competitive.

A key factor driving this growth is the accelerated deployment of AI technologies. Governments and private enterprises across the MENA region are investing heavily in AI solutions to streamline operations, improve decision-making, and enhance customer experiences. This trend is particularly evident in sectors such as banking, healthcare, and manufacturing, where automation and data analytics are increasingly integral to operational efficiency and service delivery.

The rise of AI has prompted a wave of investments in intelligent automation, as businesses seek to optimise their workforce and reduce operational costs. Robotic process automation, AI-powered chatbots, and machine learning algorithms are being deployed to automate repetitive tasks, improve productivity, and drive innovation. These technologies are particularly sought after in industries that rely heavily on manual processes, such as finance and logistics.

AI-optimised infrastructure upgrades are also contributing to the IT spending boom. The shift towards cloud computing, 5G networks, and edge computing is reshaping how businesses operate and deliver services. Cloud-based infrastructure, for example, provides companies with scalable solutions, reducing the need for significant upfront capital expenditure while increasing agility. As a result, IT infrastructure spending is expected to see a substantial rise in the coming years, as more businesses seek to migrate their operations to the cloud.

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The urgency to modernise IT infrastructure is further amplified by the geopolitical landscape in the MENA region. Ongoing political tensions, trade uncertainties, and the fallout from the COVID-19 pandemic have underscored the importance of resilient and secure digital systems. The rapid adoption of cloud services, AI, and automation technologies is viewed as a strategic move to ensure business continuity and agility in a volatile environment. Governments in the region are also pushing for digitalisation, with policies and incentives designed to support the adoption of emerging technologies.

In Saudi Arabia, the government's Vision 2030 initiative is acting as a significant catalyst for IT investments. The programme aims to diversify the economy by investing in technology and innovation. Similarly, the United Arab Emirates has positioned itself as a regional technology hub, focusing on the adoption of AI and smart city initiatives. These national strategies are creating a conducive environment for IT spending, driving demand for advanced technologies across various sectors.

The private sector is equally proactive in its digital transformation efforts. Major corporations, particularly in the banking and finance sectors, are spearheading initiatives to integrate AI and automation into their operations. The region's financial institutions are increasingly relying on AI for fraud detection, risk management, and customer engagement. For instance, several banks in the UAE and Qatar have deployed AI-based systems to streamline loan processing and enhance customer support through chatbots.

However, while the outlook for IT spending is largely positive, challenges remain. The rapid pace of technological adoption can strain the region's talent pool, with companies struggling to find skilled workers in fields such as AI, cybersecurity, and data science. As a result, the demand for tech talent is intensifying, prompting governments and businesses to invest in training and upskilling programmes to bridge the talent gap. Additionally, concerns around data privacy, cyber threats, and regulatory compliance are posing obstacles to the seamless integration of new technologies. Cybersecurity investments, therefore, are expected to increase significantly as companies prioritise data protection in an increasingly digital world.

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