MENA IT spending to reach $169bn in 2026 

Data center systems will remain the highest-growth segment in 2026, with spending projected to increase by 37.3 percent to $13 billion. 
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Updated 05 August 2025
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MENA IT spending to reach $169bn in 2026 

RIYADH: Information technology spending in the Middle East and North Africa region is forecast to reach $169 billion in 2026, marking an 8.9 percent increase from 2025, according to the latest projections from Gartner.

The surge is driven by accelerated adoption of artificial intelligence, intelligent automation, and AI-optimized infrastructure upgrades, as organizations across the region prioritize digital transformation amid global economic and geopolitical uncertainties. 

Gartner’s forecast is already taking shape in Saudi Arabia, where AI adoption is surging, as seen with the launch of Humain, a state-backed AI company unveiled in May by the Public Investment Fund.

Positioned at the forefront of the Kingdom’s ambition to become a global AI hub, Humain focuses on deploying advanced AI infrastructure, developing Arabic multimodal large language models, and forging strategic partnerships with global technology leaders such as Nvidia, AMD, and Amazon Web Services. 

“The MENA region is rapidly emerging as a global tech powerhouse, with the Gulf Cooperation Council leveraging its stability, infrastructure and forward-looking policies to attract global partners and build digital skills that empower innovation and support resilient AI-driven economies,” said Mim Burt, practice vice president at Gartner. 

“Even amid global economic and geopolitical uncertainty, chief information officers in MENA are making strategic investments in AI, intelligent automation and multi-cloud strategies, while strengthening cyber defenses and advancing talent upskilling,” Burt added. 

Data center systems will remain the highest-growth segment in 2026, with spending projected to increase by 37.3 percent to $13 billion. 

However, Gartner noted that the pace will moderate compared to 2025’s 69.3 percent growth, as the market transitions from rapid buildouts to more incremental and sustained investments. 

“Data center system spending is expected to accelerate as MENA CIOs and technology leaders invest in AI-enabled software and AI-optimized infrastructure,” said Eyad Tachwali, vice president, advisory at Gartner. 

“This surge is largely fueled by pent-up demand for generative AI and advanced machine learning, which depend on robust computing power for large-scale data processing,” Tachwali added. 

“Most of this demand is being driven by governments, hyperscalers, technology providers and organizations focused on developing and deploying AI models, rather than traditional enterprises or consumers,” he noted. 

Software spending is also expected to see significant growth, rising 13.9 percent to $20.4 billion in 2026, as organizations across MENA integrate GenAI capabilities into their operations. 

Gartner projects that by 2028, 75 percent of global software spending will be directed toward solutions embedded with GenAI functionality. 

“CIOs will increasingly be offered embedded GenAI capabilities in enterprise applications, productivity and developer tools, more advanced large language models as well as AI-optimized servers to support AI-as-a-service,” said Burt. “Providers are also exploring new pricing models across software and hardware to drive revenue.” 

IT services spending in the region is projected to grow 8.3 percent in 2026, reflecting the shifting priorities as AI becomes a central component of enterprise strategies. 

“With the rapid acceleration of AI infrastructure and adoption in MENA, CIOs must move beyond GenAI as a productivity tool and embed it into the heart of their business strategy,” said Tachwali. 

“The real competitive edge will come from building strong data foundations, composable technology platforms and cultivating AI-fluent talent — core enablers for unlocking differentiated value from AI,” he added. 

Initiatives in this field across the region include those contained in Saudi Arabia’s broader Vision 2030 strategy, under which the Saudi Data and AI Authority is spearheading nationwide efforts to embed AI across economic sectors and elevate the country’s competitiveness. 

Similarly, the UAE continues to reinforce its leadership in the sector with its UAE AI Strategy 2031, which aims to position the nation among the top AI-driven economies worldwide. 

The UAE’s partnership with OpenAI under the Stargate UAE initiative will establish a 5-gigawatt AI campus in Abu Dhabi, providing nationwide ChatGPT access and positioning the country as a regional AI hub with global-scale compute infrastructure. 


New SPARK launch ushers Eastern Province from black gold to EV charging and AI mobility

Updated 10 December 2025
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New SPARK launch ushers Eastern Province from black gold to EV charging and AI mobility

DAMMAM: The lavender carpet was rolled out and the symbolic shovels were placed in decorative sandboxes as Smart Mobility broke ground, bringing Saudi-made EV charging to life at its first manufacturing facility at King Salman Energy Park in Dammam.

As part of the ceremony, Smart Mobility inaugurated SPARK’s first electric vehicle charging station.

The project brought together Foxconn Interconnect Technology, a unit of Taiwan’s Foxconn that makes components used for connectivity, and Saudi’s Saleh Suleiman Alrajhi & Sons. 

It also represented a significant milestone in supporting foreign investment in the Kingdom and a major step toward localizing advanced manufacturing capabilities in order to support the rapidly-growing EV market.

“As we gather today to celebrate a groundbreaking of an important edition in this ecosystem …we’re creating a community— with all that comes with a community,” SPARK President and CEO Mishal Al-Zughaibi said.

He highlighted the park’s proximity to the Kingdom’s core energy infrastructure.

It will be headquartered in the Eastern Province, notably near to where Aramco’s Well No. 7, later named “Prosperity Well,” struck black gold in 1938, six years after the country unified as a Kingdom. That discovery changed the country — and the world. 

In recent years, there has been a tremendous effort to diversify beyond oil and, once again, the Eastern Province is at the forefront, but this time, it is using innovation and AI to catapult the Kingdom into that new realm. 

The location was also ideal, it was noted, on several levels, including how it would allow for ample access to ports, and the planned integration with the future GCC Railway network would additionally create a unified regional manufacturing and export corridor. 

According to Smart Mobility, SPARK facility was created with the aim to produce Saudi-made EV charging solutions, including the Charging Point Management System. Three products are already certified by the Saudi Standards, Metrology and Quality Organization. 

Launching in 2026, the project aims to align with Vision 2030 and to support local content goals, which will be overseen by the Local Content and Government Procurement Authority.

Smart Mobility CEO, Prince Fahad Nawaf Al Saud, who was on hand, said the decision to build at SPARK was strategic.

“SPARK is the Kingdom’s primary hub for energy, logistics and industrial innovation. For EV infrastructure to scale reliably, it must be integrated with the country’s most critical energy assets,” he said.

Prince Fahad also addressed the evolving and morphing nature of the industry, saying: “Mobility is being reshaped by artificial intelligence. Vehicles are becoming intelligent systems that think, react and connect. Level-4 autonomous capability is accelerating globally and these systems depend on electric platforms.”

He added that if the Kingdom aims to lead in AI, automation and smart city technologies, it must develop EV infrastructure as a foundational national pillar.

“EVs are not simply a fuel alternative — they are the operating system of the AI era,” he said.

Prince Fahad stated: “This groundbreaking ceremony is not only a milestone for Smart Mobility, it is a milestone for the Kingdom.”

He added: “Guided by his Royal Highness Crown Prince Mohammed bin Salman, we built this with the support from the Ministry of Energy, Ministry of Industry, and Ministry of Investment and many government entities that continue to empower our national ambitions to localization and advanced manufacturing.” 

Continuing to address the crowd, Prince Fahad said: “Some people in Saudi love petrol cars, fuel is cheap — why would anyone shift it to electric? And they are right (to question that). Traditional vehicles are still deeply loved, but we must also recognize the truth.” 

The truth, to him, is that AI is “no longer science fiction,” it is reality now. “We are entering an age where we must respond quickly to global changes … we have much work ahead to test, to certify, to scale and to deliver on the promise,” he said.

“The world is entering a new chapter defined not by horsepower but by computing powe r— and Saudi Arabia must lead, not follow in this transition,” Prince Fahad added.. 

FIT Chairman and CEO Sidney Lu noted that next year the Chinese calendar will welcome the Year of the Horse, an apt metaphorical transition as it signals powerfully moving forward from old to now.

He was excited to be on the ground on his first visit to the Eastern Province. 

“FIT brings decades of experience in precision manufacturing, high-reliability electronics, and large-scale global production,” Lu said, adding: “Our shared objective is clear: bring world-class technologies into Saudi Arabia, embed them locally and position Saudi-made solutions for future export.”

While Lu headed back to his home in Taiwan following the meeting “to recharge,” he said the joint venture will be showcasing FIT’s global manufacturing expertise with Saudi Arabia’s industrial ambitions — and that gives him much energy. 

 “I love this place. Every time I come over here, I get inspired; inspired by the spirits, by the energy, by the youth. And I really get inspired with how people are willing to move forward,” Lu told Arab News.