MENA IT Spending Projected to Hit $169 Billion in 2026, Fueled by AI and Data Centers
IT spending in the Middle East and North Africa (MENA) region is projected to total $169 billion in 2026, marking an 8.9% increase from the previous year, according to Gartner's latest forecast. The growth is primarily driven by surging investments in artificial intelligence infrastructure, data center expansion, and government-backed digital transformation initiatives.
Saudi Arabia and the UAE continue to lead the charge, with sovereign wealth funds directing significant capital toward AI compute deals, cloud infrastructure, and smart city projects. The PwC TransAct Middle East 2026 report shows that intra-regional M&A activity surged to 320 deals — a 35% increase from 237 deals in 2024 — with capital circulating primarily between the UAE, Saudi Arabia, and Egypt. This regional integration is reinforcing these markets as the core M&A hubs for Middle Eastern technology.
The software and IT services segments are seeing the fastest growth, as enterprises across the region shift from traditional IT procurement to cloud-first strategies. AI adoption is no longer limited to large enterprises; mid-market companies in fintech, logistics, and healthcare are increasingly deploying AI-powered solutions.
For builders in the MENA region, this spending surge translates to expanding job markets, more venture capital availability, and growing demand for AI and cloud expertise. The region's digital transformation is creating opportunities for local startups that can offer culturally and linguistically adapted solutions, particularly in Arabic-language AI applications.
Egypt's position as a key M&A hub alongside the Gulf states also signals growing investor confidence in North Africa's tech ecosystem, particularly in fintech and e-commerce.
The $169B spending forecast combined with 35% growth in intra-regional deals signals that MENA is no longer just consuming technology — it's building and investing in it as a regional ecosystem, with Egypt emerging as a North African anchor alongside the Gulf.
How much will MENA spend on IT in 2026?
Gartner projects MENA IT spending will reach $169 billion in 2026, an 8.9% increase from 2025, driven primarily by AI and data center investments.
Which countries lead MENA tech investment?
Saudi Arabia and the UAE lead regional tech investment, with Egypt emerging as a key North African hub. PwC reports 320 intra-regional M&A deals in 2025, primarily between these three markets.