- Gartner forecasts MENA IT spending to reach $169 billion in 2026 — an 8.9% increase from 2025, driven by AI infrastructure, generative AI software, and cybersecurity investment.
- Software spending in MENA is growing 13.9% to $20.4 billion as organisations accelerate generative AI adoption — the fastest-growing segment in the region.
- The GCC — including the UAE — is identified by Gartner as the primary growth engine in the MENA forecast, leveraging stability and forward-looking digital policies to attract global technology investment.
- For UAE businesses, this forecast signals a clear direction: competitors and clients are investing in technology. Businesses that delay digital infrastructure risk falling behind.
- Middle East and Africa is projected to record 89% growth in sovereign cloud spending in 2026 — the highest of any region globally — directly relevant to UAE organisations evaluating cloud strategy.
Every year, Gartner publishes its IT spending forecast for the MENA region — and every year, the same pattern emerges: the numbers go up, the Gulf leads, and the gap between digitally mature businesses and laggards widens.
The 2026 forecast is the most significant in years. MENA IT spending is projected to hit $169 billion — an 8.9% increase from 2025. Behind that number is a story about where the UAE and Gulf region is heading, what technology decisions are being prioritised, and what it means for any business operating here.
This article breaks down the forecast by category and translates each number into practical implications for UAE business owners, IT managers, and decision makers.
The numbers at a glance
"The MENA region is rapidly emerging as a global tech powerhouse, with the GCC leveraging its stability, infrastructure and forward-looking policies to attract global partners and build digital skills."
— Mim Burt, Practice VP, GartnerWhat each spending category means for UAE businesses
AI infrastructure and software — the dominant driver
Gartner identifies generative AI as the primary force behind the forecast upgrade. Software spending in MENA is growing 13.9% to $20.4 billion — faster than any other category — as organisations embed AI capabilities into enterprise applications, productivity tools, and developer platforms. For UAE businesses, this means the AI tools your competitors are evaluating today will be standard operating procedure within 18 months. Waiting to adopt AI tools is not a neutral position — it is a falling-behind position. See our guide on what AI actually does for UAE businesses in 2026 — cutting through the hype.
Cybersecurity — $4 billion and growing
Information security spending in MENA is projected to reach $4 billion in 2026 — a 10.1% increase from 2025. Gartner notes that persistent threat environments and rapid cloud adoption are keeping security at the top of MENA CISO budgets. For UAE businesses, this means your clients, partners, and procurement teams are increasingly asking about your cybersecurity posture before signing contracts. A business without basic security infrastructure is a liability in the supply chain. See our complete guide: How UAE Business Owners Can Protect Their Website and IT Assets in 2026 and our companion article on what the $4 billion MENA cybersecurity forecast means specifically.
Sovereign cloud — 89% growth in MEA
Middle East and Africa is projected to record 89% growth in sovereign cloud IaaS spending in 2026 — the highest growth rate of any region globally. Sovereign cloud refers to cloud infrastructure where data processing and storage remain within defined geographic or regulatory boundaries. For UAE businesses operating under TDRA digital infrastructure requirements, and for organisations serving Saudi clients under PDPL, sovereign cloud is moving from a compliance consideration to a procurement requirement. Gartner projects that by 2030, more than 75% of Middle Eastern enterprises will move virtual workloads to reduce geopolitical risk.
Data centre and infrastructure — AI compute driving acceleration
Data centre system spending is accelerating as MENA CIOs invest in AI-enabled software and AI-optimised infrastructure. This is largely driven by governments, hyperscalers, and technology providers — but it signals the broader infrastructure modernisation happening across the region. For UAE businesses running on ageing server infrastructure or shared hosting environments, the question is increasingly whether their infrastructure can support the AI-enabled tools their business needs. See our guide on why UAE enterprises are moving to Red Hat Enterprise Linux for context on enterprise infrastructure modernisation.
IT services — managed services and implementation
IT services — including application implementation, managed services, and infrastructure management — remain the largest overall spending category globally, surpassing $1.87 trillion in 2026. In the UAE context, this reflects the growing demand for professional IT services as businesses move from managing infrastructure in-house to engaging managed service providers for hosting, security monitoring, and application management. For SMEs in the UAE, this is the most accessible point of entry into the technology growth story — professional IT services that handle complexity on your behalf.
What this means if you are a UAE business owner right now
The Gartner forecast is not just a statistic for CIOs at large corporations. It has direct implications for any business operating in the UAE in 2026:
- Your clients are investing in technology. Procurement teams and enterprise buyers in the UAE are increasingly evaluating suppliers on digital maturity — professional website, secure email, documented IT practices. The bar is rising.
- Your competitors are investing in AI tools. The 13.9% software growth is not coming from new companies — it is coming from existing businesses upgrading their capabilities. Businesses not adopting AI workflows are operating at a cost and speed disadvantage that will compound over 12-24 months.
- Cybersecurity is now a procurement requirement. The $4 billion security spending reflects a market that is taking threats seriously. A UAE business without basic security infrastructure is increasingly seen as a supply chain risk by enterprise clients.
- Cloud strategy matters for compliance. The sovereign cloud growth reflects PDPL and regional data requirements tightening. Businesses serving Saudi clients or handling personal data need to understand where their data lives and whether that aligns with regulatory requirements.
Ready to align your business with the UAE technology growth story?
House 35 Global Infotech provides software development, IT consulting, web hosting, and AI automation for UAE and Gulf businesses. From AED 1,100.
Related reading on House 35
- MENA Cybersecurity Spending Hits $4 Billion — What UAE Businesses Need to Do Now
- Qualys for UAE Businesses: What TruRisk Means for NCA ECC Compliance
- Why UAE Enterprises Are Moving to Red Hat Enterprise Linux in 2026
- How UAE Business Owners Can Protect Their Website and IT Assets in 2026
- AI and the Millionaire Dream: What UAE Residents Are Actually Experiencing in 2026
- Why UAE Businesses Still Need IT Professionals in the Age of AI
Frequently asked questions
Gartner forecasts MENA IT spending to reach $169 billion in 2026 — an 8.9% increase from 2025. Software spending is the fastest-growing segment at 13.9% growth to $20.4 billion, driven by generative AI adoption. The full forecast is available on the Gartner newsroom.
The forecast signals accelerated technology investment across the region — in AI, cybersecurity, cloud, and digital infrastructure. For UAE businesses, this means competitors and clients are investing more heavily in technology. Businesses that delay digital infrastructure investment risk falling behind companies that are actively modernising.
The fastest-growing areas are generative AI software (13.9% growth), data centre systems (driven by AI compute demand), cybersecurity ($4 billion, 10.1% growth), and sovereign cloud infrastructure (89% growth in Middle East and Africa — highest globally).
Yes. The UAE and broader GCC are identified by Gartner as the primary growth drivers within the MENA forecast. Gartner specifically notes the GCC is leveraging stability and forward-looking digital policies to attract global technology partners.
House 35 Global Infotech provides software development, IT consulting, web hosting, and AI automation for UAE and Gulf businesses. We help businesses build the digital infrastructure needed to participate in the region's technology growth. Contact us or WhatsApp +91 9082730445.