MENA Region Emerges as Global Leader in Digital Transformation According to New GSMA Report

MENA's Rise to Digital Leadership

The Middle East and North Africa (MENA) region is increasingly gaining recognition as a leader in enterprise digital transformation, as outlined in the recently released GSMA report titled Accelerating Digital Industries in the GCC and Wider MENA Region. Announced during the inaugural MWC25 in Doha, this report reveals that businesses across MENA are outpacing their global counterparts in adopting advanced digital technologies such as artificial intelligence (AI), 5G, and cloud computing.

Insights from the GSMA Report

Conducted by the GSMA, the report is based on a comprehensive survey involving over 850 enterprises spanning ten different industries across eight countries—including Qatar, Saudi Arabia, the United Arab Emirates (UAE), Egypt, Iraq, Morocco, Tunisia, and Türkiye. The findings indicate that MENA enterprises are significantly investing in technologies that enhance various facets of daily life, from improved healthcare solutions and safer transport systems to energy efficiency and strengthened cybersecurity.

According to the report, enterprises in the MENA region are expected to allocate an average of 9.8% of their revenues on digital transformation initiatives between 2025 and 2030. This figure, particularly within the Gulf Cooperation Council (GCC), is indicative of the strong belief in the future of digital innovation in the region. Moreover, such investments are already initiating improvements in accessibility to government services, nurturing the growth of small businesses, and creating pathways for young digital talent.

Leadership in AI and 5G

The report designates the GCC as a global frontrunner in the implementation of advanced technologies. Notably, Qatar leads in enterprise adoption of AI, big data, and private 5G networks. The UAE stands out for its sophisticated use of cybersecurity measures, cloud services, generative AI, and edge computing technologies. Furthermore, Saudi Arabia has established its leadership in Internet of Things (IoT) deployment, boasting the world’s fastest expected return-on-investment (ROI) period of just 3.3 years, in contrast to the MENA average of 4.7 years.

As enterprises across the region invest in digital transformation, it is projected that AI, mobile connectivity, and related hardware will account for approximately 45% of total tech spending, cementing MENA’s dependence on mobile-first technologies as a core component of regional competitiveness.

The Rapid Evolution of AI

The usage of AI has transitioned from being a mere experiment to an essential requirement for many businesses, with 39% of MENA enterprises reported to be leveraging generative AI at an advanced level. This uptake is particularly evident within sectors such as financial services, automotive, and utilities. AI is anticipated to have a profound impact on all business domains, especially in areas relating to security, productivity, and operational efficiency, emphasizing its critical role in shaping MENA's digital landscape.

The Role of 5G in Industrial Growth

5G technology continues to serve as a cornerstone for enterprise digital transformation within the region. In Qatar, the significance of private 5G networks is recognized as among the highest globally, bolstered by forward-thinking regulatory policies. Sectors such as automotive, logistics, and utilities are expecting substantial transformative outcomes from IoT-driven 5G applications.

Additionally, the GCC has achieved global leadership in the deployment of 5G-Advanced networks, with telecom operators in the UAE and Kuwait being among the inaugural providers of commercial services.

Eyes on 6G and Future Opportunities

While the advent of 6G technology remains on the horizon, businesses throughout MENA are already looking ahead. Many enterprises express expectations that 6G will enhance capabilities related to AI, robotics, and autonomous mobility, thus strategically positioning the region for the impending next phase of technological innovation.

The report further underscores the enormous opportunity for telecom operators and policymakers alike. An impressive 18% of MENA enterprises recognize telecom operators as their favored collaborators in digital transformation—this percentage exceeds the global benchmark. As enterprises increasingly seek comprehensive, secure, and scalable solutions, telecom operators can leverage their positioning to evolve beyond basic connectivity providers to become integral long-term partners in enterprises’ digital journeys, particularly in sectors like healthcare, financial services, and the public domain.

Conclusion

The GSMA report paints a promising picture of the MENA region's commitment to leveraging advanced technologies for growth and development. With substantial investments in digital transformation, a dynamic workforce, and progressive government policies, MENA's trajectory positions it as a formidable leader in the future of global digital innovation.