GCC Digital Transformation Market Overview

Market Growth Rate 2025-2033: 23.51%

According to IMARC Group’s latest research publication, “GCC Digital Transformation Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033”, the GCC digital transformation market size is projected to exhibit a growth rate (CAGR) of 23.51% during 2025-2033.

How AI is Reshaping the Future of GCC Digital Transformation Market

• AI is driving GCC digital transformation beyond efficiency, turning centers into innovation engines that create digital IP and real-time business intelligence for smarter decision-making.
• About 75% of GCC businesses adopt generative AI models in operations, while 76% of the population uses AI-powered government and private services, boosting personalized and accessible digital experiences.
• Governments under national visions like UAE Digital Government Strategy massively invest in AI and cloud technologies, streamlining e-government services and diversifying economies away from oil reliance.
• One in four GCC companies plans to spend over $25 million on AI, focusing on reshaping business functions and building new AI-driven models supported by workforce training and organizational readiness.
• The GCC public sector leads globally in AI readiness, with nearly half leveraging AI for significant value gains, faster product launches, and enhanced citizen services in finance, healthcare, and telecom sectors.

Grab a sample PDF of this report: https://www.imarcgroup.com/gcc-digital-transformation-market/requestsample

GCC Digital Transformation Market Trends & Drivers:

The GCC digital transformation market is surging forward, propelled by ambitious national visions like Saudi Arabia's Vision 2030 and the UAE's Digital Government Strategy 2025, which prioritize cloud adoption, AI integration, and 5G rollout to fuel economic diversification. Valued at approximately USD 127.91 billion in ICT-related spending in 2024, the market is set to reach USD 141.32 billion in 2025, growing at a robust 23.51% CAGR through 2033, driven by surging demand for data centers projected to hit USD 9.49 billion by 2030. Urbanization and mega-projects, including Qatar's National Vision 2030 and NEOM, are accelerating IoT and blockchain deployments, enhancing efficiency in logistics and public services while attracting USD 56 billion in FDI inflows.

Rapid advancements in fintech and cybersecurity are key trends, with the UAE and Saudi Arabia leading in regulatory sandboxes that have spurred an 80-fold increase in funding deals since 2019, alongside initiatives like Bahrain's Tawasul platform for citizen engagement. Government investments exceeding USD 30 billion in signature projects across Bahrain and Kuwait are fostering hybrid cloud solutions and AI governance, addressing the region's 5.9% GDP expansion through tech-enabled sectors. Despite global headwinds, the focus on sustainable digital infrastructure, including green data centers, supports moderate growth in e-commerce and smart cities, with mobile payments reaching 94% of POS sales in Saudi Arabia.

Economic reforms and workforce localization strategies are major catalysts, as seen in Oman's push for digital nomad visas and Kuwait's 5G expansions, creating over 17,000 jobs in tech and engineering by mid-2025. The rise of sovereign AI and CBDC pilots, like the UAE-Saudi Aber project, is enhancing financial inclusion and cross-border transactions, countering challenges from oil volatility. With non-oil sectors forecasted to grow 4% in 2025, these drivers underscore the market's resilience, offering vendors opportunities in AI upskilling and edge computing amid a youth-driven digital boom.

GCC Digital Transformation Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• Solution 
  • Analytics
  • Cloud Computing
  • Mobility
  • Social Media
  • Others
• Service 
  • Professional Services
  • Integration and Implementation

Deployment Mode Insights:

• Cloud-based
• On-premises

Enterprise Size Insights:

• Large Enterprises
• Small and Medium-sized enterprises

End Use Industry Insights:

• BFSI
• Manufacturing and Retail
• Government
• Healthcare
• IT and Telecom
• Others

Country Insights:

• Saudi Arabia
• United Arab Emirates
• Qatar
• Kuwait
• Oman
• Bahrain

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in GCC Digital Transformation Market

• April 2025: UAE Launches National AI Strategy Update The UAE government unveiled enhancements to its AI Strategy 2031, allocating USD 1 billion for AI research hubs in Dubai and Abu Dhabi, aiming to train 100,000 professionals and integrate AI into 80% of public services by year-end.
• May 2025: Saudi Arabia Partners with Huawei for 5G Expansion Saudi Arabia signed a deal with Huawei to deploy advanced 5G networks across NEOM, boosting digital connectivity for smart city features and supporting Vision 2030's goal of 100% broadband coverage in urban areas.
• June 2025: Qatar Introduces Blockchain for Supply Chain Qatar's Ministry of Commerce adopted blockchain technology for transparent supply chain tracking in logistics, reducing fraud by 40% and attracting international investments worth USD 500 million in digital trade platforms.
• August 2025: Bahrain Opens Fintech Innovation Lab Bahrain Central Bank inaugurated a new fintech lab in Manama, hosting 50 startups focused on AI-driven financial solutions, which has already secured USD 200 million in venture funding for regional digital payment systems.
• September 2025: Oman Rolls Out E-Government Portal Upgrade Oman's Information Technology Authority launched an upgraded e-government portal with AI chatbots, serving over 1 million users monthly and cutting service delivery times by 50% for visas and business registrations.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us:

IMARC Group

134 N 4th St., Brooklyn, NY 11249, USA

Email: sales@imarcgroup.com

Tel No:(D) +91 120 433 0800

United States: +1-201971-6302