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

GCC ICT Market Trends and Insights

Vision-led Digital-Economy Budgets Drive Unprecedented ICT Investments

National transformation programs are anchoring long-term demand as governments allocate ring-fenced budgets for cloud, AI, and cybersecurity. Saudi Arabia earmarked USD 40 billion for AI and launched a USD 1 billion accelerator that mandates on-shore operations for foreign firms, thereby stimulating local capacity building. The UAE’s We the UAE 2031 targets 11 million daily digital interactions, compelling agencies to modernize core systems. Qatar, Kuwait, and Oman are adopting scaled variants, which together create predictable multiyear project pipelines across the GCC ICT market.

5G/FTTx Infrastructure Rollouts Accelerate Digital Service Adoption

Telecom operators are racing toward ≥ 95% urban 5G and fiber coverage, enabling low-latency use cases that spur incremental spending on edge computing and IoT. Saudi Telecom Company deployed Nokia’s AI-driven MantaRay SON to optimize 5G performance during peak events. The UAE’s e& became the first regional operator to integrate Ciena’s WaveLogic 6 Extreme optics, raising backbone capacity to 1.6 Tbit/s. Such rollouts position the GCC ICT market for rapid uptake of cloud gaming, autonomous mobility, and remote surgery services.

Hyperscale Cloud Region Build-outs Transform Service Delivery Models

AWS committed USD 5.3 billion for local zones in Saudi Arabia, while Microsoft and G42 launched sovereign cloud regions in Abu Dhabi, reducing latency and meeting data-residency rules. Oracle is adding a second regional hub and pairing with Google Cloud for multicloud data services. These investments enable enterprises to decommission legacy on-premises estates, reinforcing cloud-only momentum within the GCC ICT market.

Smart-City Mega-Projects Create Technology Integration Opportunities

Projects such as NEOM, Masdar City, and Dubai Silicon Oasis function as living labs for integrated AI, IoT, and renewable-powered data-center fabrics. NEOM signed a USD 5 billion deal with DataVolt to build a 1.5 GW AI data-center campus, paired with Samsung C&T for construction robotics that can cut manual labor by 80%. Successful pilots in these mega-projects cascade across municipal smart-city deployments, broadening addressable demand for integrators and platform vendors in the GCC ICT market.

Chronic Cyber-Skills Gap Constrains Implementation Capabilities

With only 35% of required specialists available locally, organizations must import expertise, inflating project costs and delaying go-lives. Saudi and UAE initiatives aim to train 20,000 AI professionals, yet near-term shortages persist. Smaller economies experience deeper deficits, complicating cybersecurity posture across the GCC ICT market.

Oil-Price Cyclicality Impacts Enterprise Technology Spending

When Brent prices dip, Kuwait, Oman, and Bahrain often defer discretionary IT upgrades, dampening short-term cloud migration pipelines. Although diversification is reducing sensitivity, pockets of volatility remain a restraint on sustained uptake, particularly outside Saudi Arabia and the UAE.

Segment Analysis

By Component: Services Leadership Amid Infrastructure Acceleration

IT Services contributed 34.2% of 2024 revenue, underscoring the preference for end-to-end project delivery partners in the GCC ICT market. Hyperscale data-center build-outs and 5G rollouts are propelling IT Infrastructure to a 15.0% CAGR, signaling a pivot toward hardware refreshes and edge nodes that underpin AI workloads. Zain KSA’s cloud-based BSS/OSS migration cut product launch times by 50%, illustrating infrastructure modernizations that drive incremental service revenues ^{[1]Netcracker Technology, “Zain KSA Completes Major Digital Transformation Program,” netcracker.com}. The interplay between new hardware demand and managed services implies robust multi-year growth trajectories.

At the same time, GCC governments favor framework agreements that bundle consulting, integration, and support into multiyear contracts, sustaining IT Services dominance. However, hardware suppliers are capturing share in high-density servers, liquid cooling, and photonics interconnects as AI training clusters proliferate. This balanced expansion anchors long-term opportunities for vendors across the GCC ICT market.

Note: Segment shares of all individual segments available upon report purchase

By Enterprise Size: SME Acceleration Challenges Large-Enterprise Dominance

Large Enterprises accounted for 61.9% of expenditure in 2024, reflecting resource advantages in adopting multi-cloud and zero-trust architectures. Yet SMEs are registering an 11.5% CAGR to 2030 as SaaS subscription models democratize advanced capabilities. Ooredoo’s Kloudville marketplace brings AI, cybersecurity, and ERP tools to more than 400,000 regional SMEs via pay-as-you-grow plans. This model reduces capital barriers and narrows the digital divide within the GCC ICT market.

Government grants and incubation zones in Dubai Silicon Oasis and Bahrain’s FinTech Bay further accelerate SME digitalization. As localized AI copilots and no-code platforms mature, SMEs are expected to account for progressively larger slices of the GCC ICT market size across support, commerce, and creative sectors.

By Industry Vertical: Government Leadership Amid Gaming Sector Disruption

Government and Public Administration held 22.7% of outlays in 2024, driven by citizen-service portals, interoperable ID frameworks, and defense cybersecurity grids. Mandatory e-invoicing and cross-border customs digitization programs sustain steady demand. Simultaneously, Gaming and Esports is surging at a 20.1% CAGR as Saudi Arabia’s Public Investment Fund injects billions into studios, IP acquisition, and tournament infrastructure. Regional 5G rollouts eliminate latency barriers, catalyzing cloud gaming adoption and diversifying revenue streams within the GCC ICT market.

Banks, insurers, and energy firms continue modernizing core systems, yet face regulatory scrutiny on data localization. Healthcare’s permanent shift to telehealth and e-pharmacy platforms post-pandemic reinforces cross-vertical demand for secure cloud and analytics solutions.

Note: Segment shares of all individual segments available upon report purchase

By Deployment Model: Cloud-Only Momentum Reshapes Infrastructure Strategies

Cloud-only environments captured 25.9% share in 2024 and are rising at a 23.6% CAGR, aided by sovereign cloud zones that meet data-residency norms. Microsoft’s tie-up with G42 underpins a national AI-native government push, catalyzing lift-and-shift as well as cloud-native development^{[2]Microsoft. "Microsoft and G42 partner to accelerate AI innovation in UAE and beyond." April 15, 2024. https://blogs.microsoft.com/blog/2024/04/15/microsoft-and-g42-partner-to-accelerate-ai-innovation-in-uae-and-beyond/}. Hybrid models remain prevalent for regulated workloads, yet the cost-performance advantages of regional hyperscale nodes are accelerating full cloud adoption across the GCC ICT market.

Edge zones integrated with national 5G cores cut latency below 5 milliseconds, enabling industrial robotics and AR-assisted field maintenance. As zero-trust frameworks mature, security concerns that once favored on-premises deployments are diminishing.

Geography Analysis

Saudi Arabia and the UAE jointly generated nearly 70% of 2024 spending, underpinned by USD 100 billion AI allocations and USD 18 billion data-center commitments that dwarf regional peers. Saudi Arabia’s data-center capacity is projected to reach 854 MW by 2029, supporting multiple sovereign AI workloads. The UAE hosts 38 operational data centers and is expanding into green-powered facilities linked to its renewable portfolio. Both countries leverage diversified economies that sustain ICT outlays irrespective of oil-price volatility, positioning them as technology adoption bellwethers for the broader GCC ICT market.

Qatar maintains momentum through National Vision 2030 and mega-event infrastructure upgrades. Ooredoo’s 13% total shareholder return between 2019-2023 underscores telecom sector value creation, while a USD 550 million financing boosts regional data-center capacity beyond 120 MW ^{[3]SAMENA Council, “Qatar’s Ooredoo Secures Position as Ninth Highest Value Creator,” samenacouncil.org} . Qatar’s focus on AI-optimized data centers augments its role as a managed-service export hub to smaller GCC economies.

Kuwait, Oman, and Bahrain pursue selective modernization. Oman’s Vision 2040 emphasizes e-government and logistics tech, while Bahrain’s open-banking regulations spur fintech cloud uptake. Cross-border interconnection projects enable these markets to piggyback on Saudi and Emirati hyperscale regions, ensuring access to advanced cloud and AI services without duplicative capital spends. Collectively, diversified strategies across member states sustain resilient growth within the GCC ICT market.