Excerpt from Computer Weekly Article, Published on December 29, 2025
The Middle East is poised for a major technology shift in 2026 as artificial intelligence (AI), cyber security and sovereign infrastructure become defining forces in its digital transformation. According to industry research, global tech spending will grow strongly next year, and while the Middle East may expand slightly slower than other regions, its market is still expected to reach significant value and strategic influence.
Analysts now see AI evolving from experimental pilots into core business platforms across government, finance and energy sectors. This shift marks a long – term commitment in the Middle East to embed AI deeply into enterprise operations rather than treat it as an add – on tool. Organisations are moving toward scaled, production – grade implementations of AI that improve automation, prediction and decision – making.
In 2026, AI’s role will expand beyond digital services and software into the physical world through integrations with the Internet of Things (IoT), robotics and edge computing. This trend will unlock new capabilities for smart infrastructure across smart cities, utilities and transport systems. Driving these advancements is heavy investment in data centres — now considered critical national assets to support AI compute workloads and national digital ambitions.
Cyber security is also rapidly evolving in response to this acceleration of AI and digital infrastructure growth. Traditional defensive systems are being replaced with adaptive, AI – enabled security frameworks that can respond faster to threats such as AI – augmented phishing or ransomware campaigns. As organisations in the Middle East modernise their security postures, they are increasingly focused on resilience and real – time threat response rather than static defence approaches.
Another strategic shift is the emphasis on sovereign infrastructure and sovereign AI. Governments and critical sectors are prioritising technology ownership, local model development and skills growth to enhance digital sovereignty and reduce dependence on global vendors. However, industry experts stress that the pace of investment will be crucial to maintaining competitiveness in this global innovation landscape.
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