$8 Million Data Breach Costs Soar in Middle East, IBM Warns

The Middle East saw a significant rise in data breach costs in 2026, according to IBM's latest Cost of a Data Breach Report. The average cost of a data breach for organisations in the region reached $8 million, with malicious breaches being a major contributor. In fact, 26 percent of these breaches were AI-enabled, while another 11 percent of respondents couldn't confirm whether attackers had leveraged AI.

The study found that organisations using AI and security automation to detect and respond to threats recorded average breach costs more than $3 million lower compared to those that didn't use these capabilities. However, despite the benefits of AI and automation, 23 percent of respondents still hadn't adopted them.

The financial and technology sectors were hit hardest by data breaches in 2026, with average breach costs reaching $10.67 million each. The industrial sector followed closely behind, with an average cost of $9.6 million per breach. According to Saad Toma, General Manager of IBM Middle East and Africa, 'As the number of cybercriminals harnessing the power of AI for malicious purposes rises, attacks are becoming faster and cheaper to launch, while breaches keep getting more expensive to find and fix.'