GCC ICT Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

GCC ICT Market Analysis

The GCC ICT Market size is estimated at USD 141.32 billion in 2025, and is expected to reach USD 222.37 billion by 2030, at a CAGR of 9.49% during the forecast period (2025-2030).

The GCC region's ICT landscape is experiencing unprecedented digital infrastructure development, particularly in network connectivity and cloud computing capabilities. According to CITRA data from 2023, 5G network coverage has reached 97% of Kuwait's population, demonstrating the region's commitment to advanced telecommunications infrastructure. Major telecommunications providers are actively expanding their networks, with several countries implementing comprehensive fiber optic networks and establishing robust data center ecosystems. This digital foundation is enabling the adoption of emerging technologies across various sectors, from smart city initiatives to industrial automation applications.

Cloud computing and data center investments are reshaping the region's technological capabilities, with cloud traffic growing at an impressive 41% annually in the Middle East and North Africa region. This growth is supported by significant investments from global technology leaders, including the establishment of new cloud regions and data centers across GCC countries. These developments are enabling organizations to leverage advanced computing capabilities, artificial intelligence, and data analytics solutions while maintaining data sovereignty and reducing latency for critical applications.

The tourism and hospitality sector is emerging as a significant driver of ICT adoption, with the UAE's travel and tourism sector contributing AED 167 billion, equivalent to 9% of the total GDP in 2022. This has led to increased implementation of smart digital solutions across the hospitality value chain, from automated check-in systems to IoT-enabled room management and personalized guest services. The sector's digital transformation is creating new opportunities for technology providers while enhancing operational efficiency and guest experiences.

The region is witnessing substantial private sector investment in ICT infrastructure and solutions, exemplified by Bahrain's attraction of USD 295 million in ICT sector investments in 2023, which is expected to create over 1,600 jobs within three years. This investment momentum is accompanied by the emergence of technology parks, innovation hubs, and startup ecosystems across the GCC. Financial institutions are increasingly adopting blockchain and artificial intelligence solutions for enhanced security and operational efficiency, while healthcare providers are implementing electronic health records and telemedicine platforms to improve patient care delivery.

GCC ICT Market Trends

Ongoing Events and Tourism Demanding Automation

The robust growth of the tourism and events sector in the GCC region is creating substantial demand for digital transformation and automation technologies across various touchpoints. According to the UAE Ministry of Economy, in 2022, the contribution of the travel and tourism sector to the UAE's GDP reached AED 167 billion, equivalent to 9% of the total GDP, with international tourists' spending amounting to AED 117.6 billion. This surge in tourism has led to increased implementation of automated digital solutions across hospitality services, including smart ticketing systems at cultural events, automated check-in processes at hotels using self-service kiosks, smart room controls, and automated baggage handling systems at airports.

The development of mega tourism projects is further accelerating the adoption of automation technologies. For instance, in July 2023, Saudi Arabia's NEOM megacity project announced plans to integrate Digital Twin technology for urban planning and operations management. Additionally, in November 2023, Ooredoo Kuwait developed smart poles as part of a smart city solution at the iconic Souq Al-Mubarakiya, enabling seamless high-speed Wi-Fi connectivity throughout the area. These initiatives demonstrate how tourism growth is driving the implementation of advanced business technology solutions to enhance operational efficiency and visitor experiences.

Government Policies and PPP Initiatives

Government policies and public-private partnerships (PPP) are playing a pivotal role in advancing the ICT landscape across the GCC region. In August 2023, the UAE government signed a strategic memorandum of understanding with Mastercard to boost artificial intelligence capabilities, focusing on securing the digital ecosystem and driving inclusive growth. This collaboration aligns with the UAE Strategy for Artificial Intelligence 2031, which aims to establish the UAE as a leading hub for artificial intelligence. Furthermore, the establishment of Mastercard's global Center for Advanced AI and Cyber Technology in Dubai exemplifies how government initiatives are attracting significant private sector investments.

The commitment to digital transformation is evident through various government programs and partnerships. In September 2023, G42 and Microsoft embarked on a multifaceted collaboration to provide sovereign cloud offerings and advanced AI capabilities while extending the existing data center infrastructure in the UAE. Similarly, Saudi Arabia's strategic partnership with Huawei, announced in December 2022, aims to realize a '10Gbps Society' through the development of superfast broadband infrastructure. These initiatives demonstrate how government policies are creating an enabling environment for technological advancement while fostering innovation through strategic partnerships with private sector leaders.

Rising Digital Transformation in the Industries

The acceleration of digital transformation across various industries is fundamentally reshaping the GCC's business landscape. In October 2023, Core42, formed through the merger of G42 Cloud, Inception, and Injazat, launched a comprehensive platform focusing on sovereign cloud, generative AI, cybersecurity, and professional managed services. This consolidation reflects the growing demand for integrated digital solutions across industries. Additionally, the implementation of advanced technologies such as AI, cloud computing, and data analytics is enabling companies to enhance efficiency, optimize operations, and improve customer experiences across sectors including finance, healthcare, and manufacturing.

The industrial sector is witnessing significant digital evolution, particularly in the oil and gas segment. In 2023, DEWA launched the third phase of its Supervisory Control and Data Acquisition Centre, employing real-time hydraulic modeling and more than 10,000 smart devices to monitor Dubai's extensive water network. The Smart Grid Strategy leverages AI, blockchain, drones, and IoT to ensure seamless services, focusing on grid automation and smart energy solutions. Furthermore, in June 2023, Immensa established a USD 15 million factory in Dammam, Saudi Arabia, to enhance 3D printing capabilities for petrochemicals, energy, and oil and gas industries, demonstrating the industrial sector's commitment to embracing enterprise technology for operational excellence.

Segment Analysis: By Technology

Mobility and Telecom Segment in GCC ICT Market

The Mobility and Telecom segment holds a dominant position in the GCC ICT market, commanding approximately 16% market share in 2024. This segment's prominence is driven by the rapid deployment of 5G services across the GCC region, with the UAE being recognized as the fourth nation worldwide to launch a 5G network. Leading telecom operators in the region, including Du and Etisalat, have launched extensive 5G networks and are actively expanding their service offerings. The segment's growth is further supported by smart city initiatives across the GCC, including projects like Neom and King Salman Energy Park in Saudi Arabia, Lusail City in Qatar, Smart Muscat in Oman, and Masdar City in the UAE, which require robust mobility and telecom infrastructure.

Cloud Computing Segment in GCC ICT Market

The cloud computing segment is emerging as the fastest-growing technology segment in the GCC ICT market, with a projected growth rate of approximately 10% during 2024-2029. This remarkable growth is driven by increasing cloud computing adoption across various sectors and government initiatives supporting cloud-first policies. Saudi Arabia has implemented a cloud-first policy to accelerate government organizations' transition from traditional IT systems to cloud computing-based ones, aligning with Vision 2030's goal of digitalizing governmental processes. The segment's growth is further bolstered by collaborations between cloud infrastructure providers and local organizations, exemplified by partnerships with AWS and Oracle to expand their operations in the region.

Remaining Segments in Technology

The other significant segments in the GCC ICT market include Big Data Analytics, Storage, and Business Process Outsourcing, each playing crucial roles in the region's digital transformation. The Big Data Analytics segment is driving innovation in data-based decision-making and artificial intelligence applications across industries. The Storage segment is evolving to meet the growing demands of cloud computing services and data center requirements, while the Business Process Outsourcing segment is facilitating operational efficiency and cost optimization for organizations. These segments collectively contribute to the comprehensive digital ecosystem being developed across the GCC region, supporting various industry verticals from finance to healthcare.

Segment Analysis: By Component

Software and Services Segment in GCC ICT Market

The software and services segment dominates the GCC ICT market, commanding approximately 54% of the total market share in 2024. This segment's prominence is driven by the increasing demand for advanced technological solutions, including artificial intelligence, enterprise software, and cybersecurity solutions across various industries. The segment's growth is further fueled by continuous advancements in software technologies, including AI, cloud computing, big data analytics, and IoT, which drive the demand for software solutions that can leverage these technologies to enhance efficiency, productivity, and innovation. Major developments in this segment include G42's introduction of Core42 in October 2023, which merges G42 Cloud, research and development arm Inception, and ICT unit Injazat to focus on delivering AI solutions and services nationwide. Additionally, Microsoft's partnership with G42 in September 2023 to enhance AI capabilities and provide a platform for the UAE's public sector demonstrates the segment's dynamic growth trajectory.

Communication and Connectivity Segment in GCC ICT Market

The communication and connectivity segment represents a vital component of the GCC ICT market, focusing on providing essential telecommunications infrastructure and services. This segment encompasses mobile communication services, internet connectivity, and network infrastructure solutions that are crucial for digital transformation initiatives. The segment's growth is driven by the rapid deployment of 5G networks, increasing internet penetration, and the growing demand for high-speed connectivity services. Recent developments include the UAE's achievement in the second phase of its '5G-Advanced' trials project, reaching 10 Gbps speeds using the 6 GHz spectrum in August 2023. The segment also benefits from strategic initiatives such as Qatar's integration of specialized health services and the launch of telemedicine clinics to enhance complementarity in technical services among GCC nations.

Hardware/Devices Segment in GCC ICT Market

The hardware/devices segment plays a fundamental role in the GCC ICT market by providing the physical infrastructure necessary for digital transformation. This segment encompasses personal computers, servers, networking devices, storage devices, and data center infrastructure. The segment's significance is highlighted by major developments such as the increasing adoption of advanced hardware components to support emerging technologies like IoT, artificial intelligence, and edge computing. The segment is particularly important in supporting the BFSI sector's high demands for robust and secure infrastructure for financial transactions, data storage, and customer information management, as evidenced by recent initiatives like the introduction of prepaid cards for businesses in Bahrain and Oman through the SME Partner Programme from AFS and Visa in 2023.

Segment Analysis: By End-User Industry

Oil, Gas and Utilities Segment in GCC ICT Market

The oil, gas, and utilities segment maintains its position as the dominant vertical in the GCC ICT market, commanding approximately 19% market share in 2024. This segment's prominence is driven by the extensive digital transformation initiatives across the region's energy sector, with major players investing heavily in enterprise systems, data analytics, and operational technology solutions. The adoption of advanced technologies like AI and IoT for optimizing operations, improving efficiency, and enhancing sustainability across value chains has become increasingly prevalent. Companies in this sector are particularly focused on implementing smart grid technologies, predictive maintenance systems, and digital twin solutions to modernize their infrastructure. The segment's growth is further supported by government initiatives promoting digital transformation in critical infrastructure sectors, with countries like Saudi Arabia and the UAE leading the way in implementing advanced digital solutions across their energy operations.

Healthcare Segment in GCC ICT Market

The healthcare segment is emerging as the fastest-growing vertical in the GCC ICT market, with a projected growth rate of approximately 11% during 2024-2029. This remarkable growth is driven by the increasing adoption of electronic medical records (EMR), telemedicine platforms, and advanced healthcare analytics solutions across the region. Healthcare providers are increasingly embracing digital transformation to enhance patient care delivery, streamline operations, and improve overall healthcare outcomes. The implementation of AI-powered diagnostic tools, cloud-based healthcare management systems, and digital health platforms is revolutionizing the healthcare landscape in the GCC region. This transformation is further accelerated by government initiatives promoting smart healthcare solutions and the increasing demand for remote healthcare services. The sector is witnessing significant investments in digital infrastructure, with healthcare facilities upgrading their technology capabilities to meet the evolving needs of patients and healthcare professionals.

Remaining Segments in End-User Industry

The GCC ICT market encompasses several other significant segments including financial services, manufacturing and construction, and travel and hospitality, each contributing uniquely to the market's dynamics. The financial services sector is driving innovation through digital banking solutions, blockchain technology, and fintech initiatives. The manufacturing and construction segment is focusing on Industry 4.0 technologies, smart building solutions, and digital twin implementations. The travel and hospitality sector is leveraging digital solutions for enhanced customer experiences, automated operations, and smart tourism initiatives. These segments collectively represent the diverse digital transformation landscape in the GCC region, with each vertical adopting specialized ICT solutions tailored to their specific operational needs and customer requirements. The continued evolution of these segments is shaped by regional digital transformation strategies, regulatory frameworks, and changing consumer preferences.

GCC ICT Market Geography Segment Analysis

GCC ICT Market in UAE

The United Arab Emirates stands as the dominant force in the GCC ICT market, commanding approximately 37% of the total market share in 2024. The country's leadership in digital transformation is driven by comprehensive initiatives like the UAE Digital Government Strategy 2025, which aims to embed digital aspects into overall government strategies. The UAE has positioned itself as a pioneer in 5G technology deployment and has made significant strides in artificial intelligence adoption through its UAE AI Strategy 2031. The country's commitment to becoming a global technology hub is evident through its substantial investments in data centers, cloud computing infrastructure, and cybersecurity capabilities. The establishment of various technology parks and free zones has created a conducive environment for both local and international ICT companies to thrive. Furthermore, the UAE's focus on smart city initiatives and the integration of emerging technologies across various sectors has created a robust ecosystem for digital innovation and growth.

GCC ICT Market in Qatar

Qatar's ICT market demonstrates remarkable dynamism, projected to grow at approximately 12% annually from 2024 to 2029. The country's aggressive digital transformation agenda is anchored by the Qatar Smart Nation Program, which focuses on harnessing innovation and technology across five key sectors: logistics, transportation, healthcare, environment, and sports. Qatar's commitment to becoming a leading digital hub is evident through its substantial investments in cloud computing infrastructure, with major players like Google Cloud establishing a regional presence. The country's emphasis on developing local talent and fostering innovation has led to the creation of various technology incubators and accelerators. Qatar's strategic focus on cybersecurity and data protection has strengthened its position as a secure destination for digital businesses. The nation's comprehensive approach to digital transformation, coupled with its robust telecommunications infrastructure, has created an environment conducive to technological advancement and innovation.

GCC ICT Market in Saudi Arabia

Saudi Arabia's ICT market demonstrates remarkable transformation driven by the ambitious Saudi Vision 2030 initiative. The kingdom has established itself as a pioneer in digital innovation through comprehensive regulatory reforms and substantial investments in emerging technologies. The country's focus on developing smart cities, including the revolutionary NEOM project, showcases its commitment to creating technology-driven urban environments. Saudi Arabia has made significant strides in artificial intelligence adoption, cloud computing implementation, and digital government services. The establishment of the Saudi Data and AI Authority reflects the kingdom's dedication to creating a data-driven and AI-supported economy. The country's emphasis on developing local talent through various digital skills programs and partnerships with global technology leaders has strengthened its position in the regional ICT landscape. Additionally, the kingdom's efforts to diversify its economy have led to increased adoption of digital solutions across various sectors.

GCC ICT Market in Kuwait

Kuwait has emerged as a significant player in the GCC ICT landscape, driven by its comprehensive digital transformation initiatives and strong telecommunications infrastructure. The country's ICT sector is characterized by sophisticated 5G service deployment, extensive fiber optic networks, and advanced satellite connectivity capabilities. Kuwait's emphasis on cybersecurity is evident through the establishment of a national cybersecurity center, which focuses on protecting critical infrastructure assets and government networks. The country's cloud computing sector has witnessed substantial growth, supported by strategic partnerships with global technology leaders. Kuwait's commitment to modernizing government services through digital transformation has created numerous opportunities for ICT solution providers. The nation's focus on developing smart city infrastructure and implementing emerging technologies has fostered an environment conducive to digital innovation. Furthermore, Kuwait's strong regulatory framework, overseen by the Central Information Technology Regulatory Authority (CITRA), ensures structured growth and development of the ICT sector.

GCC ICT Market in Other Countries

The ICT markets in Oman and Bahrain complement the broader GCC digital transformation landscape, each bringing unique strengths and opportunities to the regional ecosystem. Oman's focus on developing its digital infrastructure and implementing e-government services has created a strong foundation for ICT growth. The country's emphasis on fostering innovation and supporting technology startups has contributed to a dynamic digital economy. Meanwhile, Bahrain has distinguished itself through its progressive regulatory environment and early adoption of cloud-first policies. Both countries have implemented comprehensive digital transformation strategies aligned with their respective national visions, focusing on areas such as artificial intelligence, cloud computing, and smart city development. Their commitment to developing local talent and attracting international technology companies has strengthened the overall GCC ICT ecosystem, creating a collaborative environment for digital innovation and growth.