GCC Digital Transformation Market Report, Share & Analysis 2025-2033
ashish kumar
GCC Digital Transformation Market Overview
Market Size in 2025: USD 25.1 Billion
Market Size in 2034: USD 171.0 Billion
Market Growth Rate 2026-2034: 23.75%
According to IMARC Group’s latest research publication, “GCC Digital Transformation Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034”, The GCC digital transformation market size reached USD 25.1 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 171.0 Billion by 2034, exhibiting a growth rate (CAGR) of 23.75% during 2026-2034.
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.
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How Vision 2030 is Revolutionizing GCC Digital Transformation Industry
The national visions of the GCC countries, most of which are anchored in Saudi Vision 2030, including the UAE Vision 2021, Qatar National Vision 2030, Vision 2030 Saudi Arabia and others, fundamentally reshaping digital transformation, focus on digital transformation to reduce their oil dependence. These plans include major investment plans for AI, cloud, 5G and data centers to build knowledge economies. As a part of Vision 2030, Saudi Arabia seeks to become one of the top 10 AI economies through the National Strategy for Data and Artificial Intelligence to create jobs in the technology sector. UAE's AI initiatives include a sovereign cloud and smart government services, achieving high citizen satisfaction with digitized services.
It includes advanced telecom networks, cheap internet access, startup ecosystems alongside access to venture capital, and government encouragement of usage of cashless payments, open banking, and fintech companies. Dubai seeks to reach 90% payment transactions via a cashless economy by 2026. Other examples include support for SMEs. They digitize, reskill, and collaborate regionally on AI centers of excellence. They envision that the GCC will lead the world among enterprise artificial intelligence, IoT, and cloud, so they help accelerate non-oil growth through building resilience against global volatility with driving innovation toward sustainable post-oil prosperity.
GCC Digital Transformation Market Trends & Driver
Various national digital transformation initiatives and agendas to diversify economies and embrace technologies have led to the rapid growth of the GCC digital transformation market. Government spending on AI, cloud migration and 5G deployments, coupled with smartphones penetration and increased demand for digital services, have also increased the market. GCC enterprises spent more than 10% of their revenues on digital applications such as automation, cybersecurity and edge computing.
Related themes include AI (predictive analytics and preemptive workflows), SWF investments in data centers and cashless societies (open banking), fintech, smart ports and IoT (with superfast broadband and re-skilling). Each of these themes is particularly relevant in the GCC which is generally ahead of global trends in these areas and they represent the backbone of diversification away from hydrocarbons and long-term sustainability of the economy.
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.
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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.
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