AI to drive MENA software & services spending in 2025
Generative AI and cloud fuel MENA"s 2025 software & services spending
#MENA #spending - Software spending in the Middle East and North Africa (MENA) is projected to grow 13.7% in 2025, fueled by increased CIO investments in generative AI, according to Gartner. The analyst group predicted that artificial intelligence and cloud services would have an impact on infrastructure, software and services spending, as CIOs move to support increased usage of GenAI. Software spending, led by the demands for GenAI, is projected to see the largest increase, growing to $19.98 billion. Overall, IT spending in MENA is forecast to hit $230.8 billion in 2025, an 7.4% increase compared to 2024.
SO WHAT? - Gartner’s predictions for MENA’s IT overall spending are in line with global trends, with software and IT services spending increasing significantly globally and across MENA. Gartner believes that CIOs will become more focused in their approach towards GenAI projects during 2025, as they draw on experience gained from pilot projects during 2023-2024. Software spending in the region is projected to grow by 13.7% in 2025, fueled by increased investments in GenAI-enabled applications. Notably growth in spending on data centre systems has slowed by more than half globally, while MENA growth remains steady at 14.9%, reaching a total spend of $6.4 billion in 2025.
Here are the highlights from Gartner’s data:
Gartner has announced its 2025 IT spending predictions for the Middle East and North Africa (MENA), in conjunction with the Gartner CIO & IT Executive Conference 2024 in Dubai, taking place November 19-21.
Gartner expects total MENA IT spending to rise by 7.4% in 2025 (compared with 8.6 growth in 2024), to total $230.8 billion, compared with $215 billion in 2024.
Projected to grow by 13.7%, MENA software spending will total $19.98 billion in 2025, driven by increased adoption of GenAI-enabled applications for enhancing workplace productivity and customer experiences.
The MENA market’s data centre systems segment will see the highest annual growth at 14.9%, similar to 2024, fueled by investments in AI-embedded, scalable cloud infrastructure by regional hyperscalers.
MENA CIOs are refining GenAI strategies post-pilot, emphasising use cases aligned with business priorities and investing in AI literacy to maximise value.
Growth in device spending is set to slow to 6.1% in 2025, reaching $36.05 billion, in contrast to the global trend which is seeing accelerated growth.
Governments and enterprises are investing heavily in R&D, digital infrastructure, and workforce upskilling to boost global competitiveness and innovation.