By 2026, the Middle East’s technology landscape will be defined by the integration of artificial intelligence (AI), cyber security, and significant infrastructure investments amidst robust but uneven regional growth. The global tech market is projected to grow by 10.2% annually, reaching over $6 trillion, while the Middle East is expected to expand at a slightly slower rate of 7.94%, reaching $174.9 billion, highlighting its strategic significance.
AI is transitioning from a supportive tool to a core business platform, with organizations moving from pilot projects to full-scale implementations. This shift is particularly evident in government, finance, and energy sectors, where AI is becoming integral to operations. The convergence of AI with the Internet of Things (IoT) is also accelerating, enabling AI to interact with the physical world through sensors and actuators, thus enhancing industries like energy, utilities, transport, and smart cities.
The demand for AI-ready infrastructure is growing, with data centers becoming essential national assets. This expansion is driven by hyperscalers, telecom operators, and emerging “neocloud” providers, although it raises concerns about power consumption and sustainability.
As AI adoption grows, cyber security strategies are evolving from static defenses to adaptive frameworks, utilizing AI to counter increasingly sophisticated threats. Sovereignty concerns are shaping national AI strategies, focusing on infrastructure, model development, and skills.
Cloud expansion continues, but success will depend on the strength of channel partner ecosystems, which will play a crucial role in determining the most influential cloud platforms in the region by 2026.
