The average cost of a data breach for organisations in the Middle East reached $8M in 2026, according to IBM’s Cost of a Data Breach Report, conducted by the Ponemon Institute.
AI is shaping both sides of the threat landscape. Among malicious breaches, 26% were AI-enabled, while 11% of respondents could not confirm whether attackers had used AI. Organisations with extensive AI and security automation recorded breach costs more than $3M lower than those without these tools, although 23% had not adopted them.
Lost business was the largest cost category, averaging $3.57M per breach, followed by post-breach response at $2.17M and detection and escalation at $1.9M. Financial and technology organisations recorded the highest average breach costs at $10.67M each, followed by industrial organisations at $9.6M.
Phishing, including voice and SMS phishing, was the most common initial attack method, accounting for 18% of incidents and carrying an average cost of $10.41M. In response, 59% of surveyed organisations planned to increase investment in security tools and governance, with identity and access management the top priority for 44%.
Globally, the average breach cost rose 12% year-on-year to $4.99M, while AI-driven attacks increased 56%, according to IBM.
Source: Middle East AI News
