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Thursday, Oct 02, 2025

Digital transformation spending to top $74bn a year by 2026 across region

Digital transformation spending to top $74bn a year by 2026 across region

Digital transformation investments in the Middle East, Türkiye, and Africa are set to more than double across the 2021–2026 period, according to the latest forecast from International Data Corporation. 
The global technology research, consulting, and events firm says spending in the region will accelerate at a compound annual growth rate of 16 percent over the five-year period, topping $74 billion in 2026 and accounting for 43.2 percent of all information and communications technology investments made that year.

“For many organizations, the digital and tech investments they made during the pandemic to build resilience could be put to test in 2023 across key business dimensions such as customer experience, operations, and financial management, among others,” says Jyoti Lalchandani, IDC’s group vice president and regional managing director for the META region. 

“The implementation of further digitalization in critical areas and a more rapid shift to a ‘digital business’ approach will be key to separating the thrivers from the survivors.

 Lalchandani added that organizations must not lose sight of their digital aspirations "no matter what the economy throws at us over the coming 12 months.”  

He called for a focus on “clear and measurable outcomes”, with digital spending needed to transition from building to scaling.

“Indeed, IDC predicts that by 2027, at least 30 percent of the C-suite’s focus will be on scaling innovation and operating a truly digital business. Automation will sit at the heart of this process, helping to reduce the cost of IT operations, address labor shortages, and increase the velocity of innovation,” he said.

Globally, IDC expects spending on digital technology by organizations to grow at eight times the economy in 2023, establishing a foundation for organizations to drive operational excellence, competitive differentiation, and long-term growth.
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