MENA firms plan 9.3% of revenue for digital transformation

Middle East and North Africa (MENA) enterprises plan to spend an average 9.3% of revenues on digital transformation between 2026 and 2032, expecting a 197% return. That sits close to the global spending average of 9.6%, but below the 207% global return forecast.

The UAE and Saudi Arabia plan above the global average, at 10.9% and 10.7% of revenues, respectively. The investment case is clear; regulatory delivery is less so.

The findings come from GSMA Intelligence’s MENA Enterprise Digital Transformation Report 2026, presented at MWC26 Doha in November 2026. It covers 885 enterprises across 10 MENA countries, including 423 in five GCC states, and forms part of the Global Digital Transformation Survey 2026: 6,342 enterprises across 50 countries and 10 vertical sectors.

Respondents either lead digital transformation projects or advise those who do, surveyed between May and July 2026. The figures describe intended spending, not money already deployed.

Where do regulatory barriers bite?

Implementation cost and the difficulty of integrating new technologies with existing systems each affect 41% of MENA enterprises. Only 3% say they face no implementation challenges.

Across MENA, 61% say current telecoms frameworks support their digital transformation or the commercialisation of connected products and services, matching the global average. The GCC result is higher, at 70%, while 28% across MENA say frameworks hinder transformation.

Among the obstructed group, half cite licensing and authorisation regimes. Another 43% cite data protection, privacy and digital identity requirements, while 42% point to sector-specific rules.

These effects reach the investment timetable. Across all MENA respondents, 11% postponed some digital transformation investment and 8% cancelled projects outright because of telecoms policy and regulatory requirements in the past 24 months.

Another 15% changed technology choices, while 13% lowered expected returns. Overall, 27% report a negative effect on transformation projects, compared with 24% globally and 23% in the GCC.

GSMA Intelligence’s Pablo Iacopino, Head of Research and Commercial Content, said: “Our global research shows that enterprises are committing substantial investment to digital transformation, but cost, integration and regulatory barriers continue to affect delivery.” He added that MENA reflected the broader picture, with investment plans and expected returns close to global averages.

What do policymakers need to fix?

Accelerating modern digital infrastructure, including 5G, AI, cybersecurity and cloud, leads the policy modernisation agenda at 44%. Enterprises also want more agile regulation and reform of legacy frameworks; secure, resilient connectivity; a pro-investment and pro-innovation environment; and clear, consistent data governance and cross-border data-transfer rules.

Priorities then narrow by market rather than following one regional template. The reported differences make that plain.

• Qatar: Regulatory agility and legacy-framework reform come first, including faster, more predictable approvals and more flexible licensing. Infrastructure deployment and secure, resilient connectivity complete the top three.
• UAE: Regulatory agility ranks first.
• Saudi Arabia: Faster deployment of modern digital infrastructure is the leading priority.
• Morocco: Faster deployment of modern digital infrastructure ranks first, followed by secure, resilient connectivity and clear data governance with cross-border data-transfer rules.

Nadia Brahmi, Technology Director, GSMA MENA, said: “Enterprises across MENA have clear ambitions for digital transformation, but their priorities vary from market to market.” She said businesses in Qatar put faster, more predictable approvals and more flexible licensing at the top of their policy modernisation agenda.

Brahmi added that MWC Doha could bring enterprise voices into policy discussions and agree practical steps to move investments forward. Iacopino called stronger GCC policy support encouraging, while differences between markets underlined the need to understand local conditions.

Which technologies anchor the plans?

AI and 5G together should account for 32% of MENA enterprises’ transformation spending through 2032. Almost seven in ten respondents, 69%, name 5G as the most important connectivity network for transformation success, compared with 66% globally.

Among MENA enterprises undertaking digital transformation, 44% already make advanced use of AI. Of that group, 60% report a clear positive impact across their business.

The budget and the technology agenda now converge on the same two tools. That part of the plan at least has numerical backing.

How firm are the underlying numbers?

GSMA Intelligence surveyed 6,342 enterprises undertaking digital transformation across 50 countries and 10 sectors between May and July 2026. The global sample comprises 30% SMEs with 20–249 employees, 63% large enterprises with 250–9,999 employees, and 8% mega enterprises with 10,000 or more.

The 10 verticals are financial services, manufacturing and industrial businesses, utilities and energy, automotive and mobility, transportation, logistics and warehousing, retail, healthcare, the public sector, media and entertainment, and agriculture, forestry and fishing. Unless stated otherwise, the results are weighted aggregates across countries and sectors.

GSMA Intelligence is the research and consulting arm of the GSMA, which represents more than 1,100 mobile operators. Its data platform covers more than 1,000 operators, 4,500 networks and over 50 million data points.

The MENA report also forms part of GSMA Intelligence’s Enterprise in Focus research series. Its accompanying global report and interactive dashboard support comparisons across regions, countries, sectors and enterprise sizes.

Over the next three years, enterprises want AI and cybersecurity prioritised, each cited by 57%, followed by connectivity networks at 56%. The 197% return forecast then depends on approvals, infrastructure deployment and integration with existing systems, rather than intent alone.