Digital Transformation Industry Analysis in MENA

MENA Digital Transformation Industry Outlook for 2024 to 2034

The MENA Digital Transformation Industry is estimated to be valued at USD 55 billion in 2024 and reach USD 418.54 billion by 2034, expanding at a CAGR of 22.5% over the forecast period.

The region is undergoing a robust digital transformation, providing opportunities for advanced connectivity use cases and capturing hyperscale demand for content availability and business prospects.

The digital revolution in MENA is helping enterprises embrace the cloud, with the adoption of technologies like AI propelling the development of the latest digital infrastructure by regional government bodies.

The region is reshaping connectivity across economic, regulatory, political, and infrastructure levels. This evolution is capturing international interest as MENA continues to refine its regional interconnectivity ecosystem, thus bridging the gap between the East and the West.

Emerging Trends in the MENA Digital Transformation Industry

• Accelerating government initiatives and significant investments by industry players are supporting digital transformation in the MENA region.
• Well-established presence of multinational firms providing digital transformation services and solutions is lifting the bar for entry and competition in the industry.
• Widespread Internet penetration and rising demand for enhanced productivity and cost reduction are contributing to industry growth.
• Increasing demand for digital transformation services and solutions to meet customer expectations and successful completion of business motives.
• Several companies are collaborating and partnering to offer cloud solutions across the region. For instance, Saudi Aramco recently partnered with VMware to use cloud computing.

This is an exciting time for digital transformation solution providers in the MENA region and the industry is projected to observe a significant growth trajectory from 2024 to 2034.

Attributes	Key Insights
Estimated MENA Digital Transformation Industry Size (2024E)	USD 55 billion
Projected Industry Value (2034F)	USD 418.54 billion
Value-based CAGR (2024 to 2034)	22.5%

Category-wise Insights

Cloud-based Deployment to Obtain a Considerable Value Share

Leading Product Type	Cloud-based
Industry Share (2024)	52.30%

The cloud-based deployment is projected to acquire a massive industry share in 2024. The following factors contribute to this industry expansion:

• An increasing count of organizations are opting for cloud-based deployment as they are high in productivity. For competitive advantage, end-use industries across the MENA region are opting for cloud technologies.
• Government initiatives are increasing the implementation of cloud technologies in the region. Numerous digital transformation firms operating in the country have commenced services that permit the migration to the cloud.

BFSI Sector to Account for a Significant Industry Share

Leading Industry	BFSI
Value Share (2024)	20.60%

The BFSI segment is projected to acquire an industry share of 20.60% in 2024. Over the forecast period, the industry is propelled by:

• Rising demand for seamless mobile and online banking, personalized offerings, and quick approvals are propelling the demand for digital transformation in the BFSI sector.
• Surging demand for data-driven financial advice, AI-powered chatbots, and frictionless digital interactions among tech-savvy customers.
• Increasing complexity of regulations is compelling end users to utilize digital solutions to assist with data management, reporting, and automation, thus ensuring compliance and lowering risks.

Business Intelligence and Analytics Software to Capture a Prominent Portion

Leading Solution	Business Intelligence and Analytics Software
Value Share (2024)	23.40%

The business intelligence and analytics software is estimated to acquire an industry share of 23.40% in 2024. The segment is anticipated to be augmented by:

• Increasing accessibility and user-friendliness of BI and analytics software with the help of self-service BI tools, the evolution of cloud-based solutions, and integration with machine learning (ML) and artificial intelligence (AI) to drive wider adoption among organizations.
• Surging use of BI and analytics software to generate reports, track compliance metrics, and identify potential risks to ensure adherence to regulations and prevent costly penalties.

MENA Digital Transformation Industry Analysis by Country

Implementation of 5G Technology to Propel Rapid Digital Transformation in the United Arab Emirates

The digital transformation industry in the UAE is backed by the following factors:

• The government in the UAE is expected to enhance its functioning and governance by executing digital transformation. These services and solutions are expected to create a future foresight platform to assist the government in building future models for the healthcare and environmental sectors. The government is also planning to execute measures to prepare the country for Industry 4.0.
• Firms in the UAE are swiftly evolving to reach out to customers digitally, thus spearheading the digital transformation in the country.
• Large-scale implementation of 5G technology and rapid internet penetration in the UAE.

Partnerships Between Large IT Companies and Government to Boost Digital Transformation in Qatar

The digital transformation industry in Qatar is forecast to witness substantial growth opportunities over the forecast period. The industry is driven by:

• Surging penetration of top digital transformation solution providers, rapid industrialization, and an upsurge in partnerships with IT companies.
• Qatar National Vision 2030 intends to enhance and modernize the healthcare and educational sectors in the country. Identifying these development plans, many companies are attempting to offer digital transformation solutions and services to government and private institutes in the country.
• The government came into a partnership with Microsoft to provide a national skilling program to digitally upskill 50,000 people to enhance digital transformation in the country.

Favorable Government Support and Growing ICT Industry to Boost the Industry in Egypt

The Egypt digital transformation industry is projected to assume a rapid growth rate over the forecast period. Top factors that are contributing to industry growth are:

• Robust expansion of the ICT industry, increasing count of digital transformation solution providers, and favorable government initiatives.
• The government in the country is taking initiatives to enhance the digital skills of people and develop an ecosystem where the public can also contribute toward innovation. This is projected to appreciate the digital transformation industry value over the next ten years.

Rapid Growth of Digital Transformation Industry in Saudi Arabia

• The ambitious Vision 2030 plan is driving substantial investments in skills development, digital infrastructure, and technology adoption across different sectors.
• Increasing government initiatives to promote digital transformation via initiatives like Digital Government Authority and National Digital Strategy. These efforts are giving a solid push to government agencies and businesses to integrate digital solutions.
• Rising adoption of digital solutions in the banking sector like online payments and mobile banking to ensure financial inclusion and customer experience.
• Surging adoption of online storefronts, digital markets, and efficient logistics solutions in the eCommerce sector.

Competitive Landscape

The primary factors that are driving the growth in the MENA digital transformation industry are government initiatives and numerous large firms that are enhancing their technological capabilities in the region. Industry participants are collaborating and partnering with end-use industries to offer different digital transformation services and solutions.

Industry players are also acquiring smaller and innovative firms to access new talents and technologies to expand their service offerings. The companies are building their regional talent pool by investing in hiring and training local talent to ensure industry knowledge and increase customer trust.

Established leaders are investing in research and development to offer cutting-edge solutions to future-proof their offerings. Additionally, players are seen sponsoring thought leadership initiatives, performing in industry events, and establishing themselves as the driving force for digital transformation.

By implementing these tactics, industry players are raising their industry share and driving regional industry growth. The combination of technological innovation, local knowledge, and strategic partnerships is expected to be critical for constant success in this dynamic region.

Latest Developments in the MENA Digital Transformation Industry

• In June 2023, Mowah entered a digital transformation deal with SAP SE to boost innovation, drive growth, and achieve its sustainability goals.
• First Abu Dhabi Bank of UAE came into a partnership with IBM in April 2022 to facilitate the bank’s digital transformation. IBM aims to enhance FAB’s digital platforms in a hybrid cloud environment. The company further plans to upgrade the application of bank and enhance FAB’s digital footprint.
• The Abu Dhabi Department of Economics entered an MoU with SAP in May 2022 to boost digital transformation. This partnership is expected to boost industrial innovation, build sophisticated business models, enhance local digital competencies, and facilitate digital transformation.

Manufacturers in the MENA Digital Transformation Industry

• Protiviti
• Deloitte
• Siemens
• IBM
• Palo Alto Networks
• Digital Qatalyst
• Torry Harris
• Tech Carrot
• Baariz
• Zealous Web
• Alareeb ICT
• Ducont
• DXC Technologies
• Cognizant
• Etisalat
• Others

Key Coverage in the MENA Digital Transformation Industry Report

• Adjacent Study of the MENA Downstream Digital Transformation Industry, MENA Digital Technology Industry, MENA Digital Innovation Industry, and MENA Digital Strategy Industry
• Lucrative Digital Transformation Opportunities in Arab Countries
• Comprehensive List of Emerging Digitization Trends in the Middle East and North America

MENA Digital Transformation Industry by Category

By Solution:

• Business Intelligence and Analytics Software
• AI Platform
• IoT Platform
• Enterprise Mobility Management Suite
• Cloud Enablement Platform
• Enterprise Collaboration and Communication
• Others

By Services:

• Digital Transformation Consulting
• Digital Transformation Technology Implementation
• Digital Transformation Technology Integration
• Digital Business Operations and Management
• Others

By Deployment:

• Cloud
• On-premises

By Enterprise Size:

• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises

By Industry:

• BFSI
• Healthcare and Life Sciences
• IT and Telecom
• Retail and eCommerce
• Travel and Hospitality
• Media and Entertainment
• Automotive
• Others

By Region:

• Saudi Arabia
• United Arab Emirates
• Qatar
• Egypt
• Israel
• Rest of MENA

Frequently Asked Questions

How Big is the MENA Digital Transformation Industry in 2024?

The industry is estimated to account for USD 55 billion in 2024.

At What Rate will the MENA Digital Transformation Industry Grow?

Throughout the forecast period, the MENA digital transformation industry is projected to register a CAGR of 22.5%.

What is the Expected Value of the MENA Digital Transformation Industry by 2034?

By 2034, the MENA digital transformation industry is forecast to be worth USD 418.54 billion.

Which Deployment Mode is Expected to Acquire Significant Growth in the MENA Digital Transformation Industry?

Cloud-based deployment mode is expected to obtain a substantial value share in the MENA digital transformation industry.

Which Industry Segment is Projected to Procure a Substantial Industry Share?

BFSI is anticipated to hold a considerable industry share.

Which are the Leading Companies in the MENA Digital Transformation Industry?

Leading companies in the MENA digital transformation industry include Zealous Web, Alareeb ICT, and Ducont.