This report identifies key demand-side trends in the Gulf Cooperation Council (GCC) region that can help enterprises fine-tune their digital strategies. It also provides an overview of enterprise challenges in this region based on Avasant’s assessment.

Why read this Market Insights?

The GCC region is undergoing a dynamic economic transformation driven by strategic reforms, digital upskilling, and foreign direct investment (FDI). Regional governments are addressing talent gaps by fostering local expertise, while regulatory relaxations attract global technology enterprises and fuel growth. AI adoption, backed by Saudi Arabia and the UAE, is accelerating, positioning the region as a global leader. With rapid advancements in digital finance, while having sustainability at the core, regional firms are actively collaborating with service providers to develop innovative digital solutions, enhance efficiency, and manage costs.

The Gulf Cooperation Council (GCC) Region Digital Services 2025 Market Insights™ aids GCC region enterprises in identifying important market trends and challenges for any digital project that they take part in.

Methodology

The regional insights presented in this report are based on our ongoing interactions with enterprise CXOs and other key executives, targeted discussions with service providers, subject matter experts, and Avasant Fellows, analyst insights from primary and secondary research, and lessons learned from consulting engagements.

Table of contents

About the report (Page 3)

Executive summary (Pages 4–7)

• • Regional scope of the report
  • Key drivers and regional response
  • Avasant recognizes 23 top-tier service providers supporting the GCC region in digital transformation

Demand-side trends (Pages 8–13)

• • With the non-oil sector projected to grow by 4% in 2025, the GCC region is prioritizing a digital tech-enabled sustainable and green economy
  • With a $56B FDI net inflow boost in 2023 and a projected 4.2% real GDP growth in 2025, the GCC region is witnessing the expansion of global tech enterprises
  • The UAE and Saudi Arabia have emerged as AI powerhouses and are spearheading initiatives to solidify the GCC region’s position as an AI hub
  • Heavy reliance on expatriates has widened the local talent gap and requires a localization strategy upgrade, focusing on digital skills in the GCC region
  • With the MENA region becoming one of the fastest-growing digital currency markets, the UAE is emerging as an epicenter of blockchain innovation in the GCC

Key contacts (Page 14)

Read the Research Byte based on this report. Please refer to Avasant’s Gulf Cooperation Council (GCC) Digital Services 2025 RadarView™ for detailed insights on the service providers and supply-side trends.