To meet the evolving demands of executive leadership, chief information officers (CIOs) are increasingly realigning their technology investment strategies. Reflecting this trend, IT spending in the Middle East and North Africa (MENA) region is projected to reach $230.7 billion in 2025, an increase of 7.4 percent from 2024, according to Gartner’s latest forecast. This growth is fueled by significant investments from governments and private sector enterprises striving to establish the region as a global leader in AI innovation. These efforts are underpinned by robust cybersecurity measures and cloud platforms, indispensable for creating a highly scalable infrastructure.
Local organizations are intensifying their investments in research and development to forge new business models, enhance customer experiences, and cultivate a skilled workforce for global competitiveness. These strategic moves contribute to the overall boost in IT spending across the region.
Data center systems are expected to remain the segment with the highest annual growth rate in MENA, with an impressive 14.9 percent growth rate anticipated in 2025 (see Table 1). CIOs in the region are likely to increase their investments in data center technologies to accommodate the rising adoption of AI and cloud services, alongside the growing demand for data storage and processing capacity. Furthermore, several major hyper-scalers are investing in data center systems to deliver sustainable, scalable AI-embedded cloud infrastructure, further propelling this segment’s growth.
Table 1. MENA IT spending forecast, 2024-2025 (Millions of U.S. dollars)Â
| 2024 spending | 2024 growth (%) | 2025 spending | 2025 growth (%) | |
| Data center systems | Â 5,557 | 14.9 | Â 6,382 | 14.9 |
| Devices | Â 33,969 | 13.4 | Â Â Â Â Â Â Â 36,052 | 6.1 |
| Software | Â Â Â Â Â Â 17,581 | 12.3 | Â Â Â Â Â Â Â 19,984 | 13.7 |
| IT Services | Â Â Â Â Â Â 25,158 | 7.5 | Â Â Â Â Â Â Â 27,393 | 8.9 |
| Communications Services | Â Â Â 132,688 | 6.9 | Â Â Â Â 140,981 | 6.2 |
| Overall IT | Â Â Â 214,953 | 8.6 | Â Â Â Â 230,792 | 7.4 |
Source: Gartner (December 2024)
Software spending in MENA is also on the rise, with a projected growth of 13.7 percent in 2025. This increase is driven by heightened investments in generative AI (GenAI)-enabled applications. MENA CIOs are focusing on enhancing the digital workplace, improving customer experiences, and elevating product and service quality. They are leveraging the combined power of GenAI applications, cloud services, and cybersecurity software to ensure safe and accelerated innovation for competitive differentiation.
Starting in 2025, CIOs will adopt a more strategic approach to their GenAI projects, informed by lessons learned from previous pilots. This shift is necessary to address challenges related to data management and the cost versus value of GenAI initiatives. To succeed, CIOs must implement business outcomes in line with business priorities by investing in data and analytics (D&A) and AI literacy. They must focus on converting theoretical knowledge into practical application to maximize the value of their GenAI investments.
Gartner’s IT spending forecast methodology relies heavily on rigorous analysis of the sales by over a thousand vendors across the entire range of IT products and services. This forecast provides a unique perspective on spending across hardware, software, IT services, and telecommunications segments, helping clients identify market opportunities and challenges.
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Mim Burt is managing VP analyst at Gartner.
