The MENA region is poised for a transformative leap in its digital economy in 2025, with 5 major predictions shaping the landscape:
Expanding Digital Economy
- The digital economy is expected to grow by 19% from 2024, reaching a total value of USD 200 billion.
- It will contribute over 11% of private consumption, reflecting its increasing role in everyday spending.
- Key sectors driving this expansion are e-commerce, foodtech, healthtech, edtech and digital payments.
The Evolution of Quick Commerce
- The quick commerce market is projected to reach USD 6.1 billion in value.
- It will account for 10% of online retail sales, up from 8% in 2023.
- Once focused on groceries, quick commerce is now expanding into categories like beauty, pharmaceuticals, electronics and fashion.
Surge in Tech IPOs
- The market is set to see a record-breaking 10 tech IPOs this year.
- Digital-first companies will contribute 32% of total IPO proceeds, signaling strong investor interest.
- Over 25 digital-first companies have been identified as IPO-ready, highlighting the region’s growing tech ecosystem.
Shift in Digital Media Consumption
- One-third (33%) of digital media time will be spent on learning-focused content, up from 17% in 2022.
- Gen X is leading this transformation, increasingly using digital media for personal and professional development.
- 63% of digital media users now engage with content for education and growth, compared to 37% for entertainment.
Growth of the Subscription Economy
- Digital subscriptions are expected to surpass active users, reflecting increased engagement in paid content and services.
- The region has 200 million internet-connected individuals aged 13+, driving demand for subscription-based models.
- The United Arab Emirates leads in market penetration, with advanced markets averaging four subscriptions per user.
This evolution marks the MENA region’s emergence as a significant player in the global digital economy, driven by changing consumer behaviors and maturing business models.
