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Mena Region’s Digital Economy to Hit $400bn Mark by 2030 – Research

The Middle East and North Africa (MENA) region’s digital economy is predicted to hit a whopping $400 billion mark by 2030 from the estimated $91 billion in 2021, new research said.

 

The run-up to the $400 billion mark is also forecast to see major structural changes in the region’s digital economy, with sectors such as edtech and healthtech emerging as top performers, while online travel, food and bill payment sectors projected to see decline in their growth rates, said the study by RedSeer Strategic Consultants, a global digital services consultancy. 

 

The region’s digital economy is also forecast to see a geographical shift, with the contribution of the rest of MENA countries catching up with that of UAE and Saudi Arabia together – the current leaders. MENA’s digital economy is predicted to leapfrog to $100bn by 2023.

 

The region’s Gen Z is predicted to become economically more active this decade, with their contribution jumping three times to account for 30 percent of the overall online retail spend from the current 10 percent.

 

“Historically, growth [in MENA’s digital economy] used to be broad-based. Now it will be more focused on a few sectors,” RedSeer said. It said as for the geo-shift, historically UAE and Saudi Arabia contributed significantly to the growth. However, going forward, the growth is expected to be more balanced, with the rest of MENA countries led by Egypt accounting for almost 50 percent of the region’s overall digital economy, with the remaining 50 percent coming from the two current leaders.

 

“There have been large-scale changes ushered by technology, especially in the developing economies of MENA such as Egypt. The climb up in the economic chain by the micro-entrepreneur is revitalising developing MENA economies from bottom-up and bringing about long overdue fundamental changes across financial access, education and healthcare,” said Ankit Sarwahi, venture capitalist and managing director of Dubai-headquartered Middle East Venture Partners (MEVP). “More and more traditional sectors will undergo rapid tech transformation and first-time founders hungry to break away will be at the core of this,” Sarwahi said.

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