MENA IT Spending to Hit $230.7B in 2025

IT spending in the Middle East and North Africa (MENA) region is expected to total $230.7 billion in 2025, marking a 7.4% increase from 2024, according to Gartner, Inc.’s latest forecast.

Mim Burt, Managing VP Analyst at Gartner, highlighted that both governments and private enterprises in MENA are making significant investments to position the region as a leading hub for AI innovation. These efforts are supported by robust cybersecurity and cloud platforms, fostering a highly scalable infrastructure. “Local organizations are focusing on research and development to create new business models, enhance customer experiences, and build a competitive workforce,” said Burt.

AI and Cloud to Drive Data Center Systems Growth in 2025

Data center systems are projected to see the highest annual growth rate in MENA, with a 14.9% increase in 2025. This growth is largely driven by the rising demand for AI and cloud services, along with an increase in data storage and processing needs. Hyper-scalers in the region are also investing in sustainable, AI-embedded cloud infrastructure to support this surge in demand.

Strategic Shift in GenAI Investments for MENA CIOs in 2025

In the software segment, spending is expected to grow by 13.7% in 2025, with MENA chief information officers (CIOs) focusing on generative AI (GenAI)-enabled applications. CIOs are investing in the combined power of GenAI, cloud services, and cybersecurity to enhance digital workplaces, customer experiences, and product quality. Burt noted that MENA CIOs are taking a more focused approach to GenAI projects, building on lessons learned from previous pilots.

“While GenAI pilots have cooled the initial hype, CIOs are now focusing on aligning use cases with business priorities and investing in data and AI literacy to maximize the value of their investments,” said Eyad Tachwali, Sr. Director Advisory at Gartner.

MENA IT Spending Forecast Breakdown for 2024-2025

• Data Center Systems: $5,557M in 2024 (14.9% growth), $6,382M in 2025 (14.9% growth)
• Devices: $33,969M in 2024 (13.4% growth), $36,052M in 2025 (6.1% growth)
• Software: $17,581M in 2024 (12.3% growth), $19,984M in 2025 (13.7% growth)
• IT Services: $25,158M in 2024 (7.5% growth), $27,393M in 2025 (8.9% growth)
• Communications Services: $132,688M in 2024 (6.9% growth), $140,981M in 2025 (6.2% growth)
• Overall IT Spending: $214,953M in 2024 (8.6% growth), $230,792M in 2025 (7.4% growth)

Gartner’s IT spending forecast methodology combines rigorous analysis of sales data from over a thousand vendors, utilizing both primary and secondary research techniques to provide a comprehensive market outlook.