Banks across the Gulf and wider Middle East significantly increased technology spending in 2025 as financial institutions accelerated digital transformation and infrastructure upgrades. Industry research shows that banking technology investment across the Middle East and Africa is growing rapidly, driven by demand for digital banking services, cloud adoption, cybersecurity upgrades, and artificial intelligence deployment.
Banking Technology Spending Is Rising Rapidly
According to research from International Data Corporation (IDC), financial institutions across the Middle East and Africa are expected to spend more than $17 billion annually on information technology by 2026, with the banking sector representing the largest share of that spending.
Across the Gulf Cooperation Council (GCC), banks have been allocating a growing portion of their operating budgets toward digital infrastructure, mobile banking platforms, and advanced analytics systems.
Separate research from Gartner indicates that global banking IT spending reached approximately $650 billion in 2024, with Middle Eastern banks increasing spending at a faster rate than many mature markets as institutions modernise infrastructure.
Digital Banking Platforms Are Expanding
Investment in digital banking platforms has also accelerated across the region. Market research suggests the Middle East digital banking platform market was valued at roughly $2.6 billion in 2024 and is projected to grow significantly over the coming years as banks expand mobile-first services.
Within the GCC, smartphone penetration rates exceed 90 percent in several markets, creating strong demand for mobile banking and digital financial services.
Countries such as the United Arab Emirates and Saudi Arabia have seen rapid growth in digital banking adoption, with millions of customers now using mobile banking applications for payments, transfers, and account management.
Fintech Investment Continues to Grow
The broader fintech ecosystem is also expanding rapidly. According to regional investment data, fintech startups across the Middle East and North Africa raised approximately $700 million in 2024, representing one of the largest sectors for venture capital investment in the region.
Saudi Arabia and the UAE accounted for a large share of that funding as governments introduced fintech licensing frameworks and regulatory sandboxes designed to encourage innovation in financial services.
The number of fintech companies operating across the MENA region has also grown steadily, contributing to increased collaboration between banks and technology startups.
Artificial Intelligence and Cybersecurity Are Key Spending Areas
Artificial intelligence and cybersecurity are among the fastest-growing areas of banking technology investment.
Banks across the Gulf are deploying AI-powered systems to improve fraud detection, automate customer service, and enhance credit risk assessment.
At the same time, financial institutions are investing heavily in cybersecurity systems as digital banking activity increases. The global financial sector is estimated to account for one of the largest shares of cybersecurity spending worldwide, reflecting the need to protect digital payments and online banking infrastructure.
Cloud Migration Is Transforming Banking Infrastructure
Cloud computing is also becoming a core component of banking technology strategies in the region.
Many Gulf banks are migrating core banking systems to cloud-based platforms to improve scalability and reduce operational costs. Cloud infrastructure enables financial institutions to deploy new digital services faster and integrate emerging technologies such as artificial intelligence and advanced analytics.
Research suggests that cloud adoption across the financial services sector in the Middle East is expected to grow rapidly over the coming years as banks continue modernising legacy systems.
What this means for the industry
- Banking technology spending across the Middle East and Africa is expected to exceed $17 billion annually by the middle of the decade.
- The regional digital banking platform market is already worth more than $2.6 billion and continues to expand rapidly.
- Fintech startups raised approximately $700 million across MENA in 2024, strengthening collaboration between banks and technology firms.
- Smartphone penetration above 90 percent in several Gulf markets is accelerating digital banking adoption.
- Artificial intelligence, cybersecurity, and cloud infrastructure are becoming the largest areas of technology investment for banks in the region.
