In 2024, the Gulf Cooperation Council (GCC) region is experiencing various significant investment and trade trends that reflect its dynamic economic environment and its response to global changes and challenges. Here are some key themes influencing the region;

Emphasizing Digital Transformation through Investments: GCC countries are prioritizing digital transformation as a crucial aspect of their economic and social growth strategies. This focus involves substantial investments in digital infrastructure and projects aligned with their Vision 2030 plans. Countries like the UAE, Saudi Arabia and Kuwait are spearheading major digital initiatives. It is estimated that by 2025, more than 40% of ICT investments in the region will be dedicated to driving digital transformation endeavors.

Enhanced Digital Services for Citizens: The GCC has witnessed rapid progress in digital technologies, leading to an improvement in online government services scope and quality. This advancement has set a new standard for service delivery that is tailored, convenient and user centric — drawing inspiration from innovations seen in the private sector.

Rise of ‘Cloud First’ Approaches: The adoption of multi cloud strategies is on the rise across the GCC driven by factors such as cost competitiveness, reducing dependence on single vendors and minimizing service disruptions.
The anticipated growth in public cloud expenditure in the GCC is set to more than double, increasing from $956 million in 2020 to $2.5 billion by 2024. This surge underscores the pivotal role of cloud services in facilitating the development of new platforms, services and infrastructures.

In response to the escalating digital landscape, cybersecurity threats have become more prevalent across the GCC nations. Governments are ramping up their cybersecurity capabilities to combat these challenges. Notably, the UAE encountered a significant 250% surge in cyber attacks in 2020. Efforts are underway within GCC countries to bolster their cybersecurity resilience and capacity, with Saudi Arabia and the UAE ranking among the top five globally according to the ITU Global Cybersecurity Index for 2020.

Investment strategies within the GCC are influenced by various factors such as business environment evaluations, cost considerations, growth risks assessment and opportunities for market expansion. Local investments are favored by many investors in the region, alongside a growing trend towards regional cooperation evident through framework agreements on trade, economic activities, investments and technical collaborations with nations beyond the GCC like Peru, United States as well as European Free Trade Association (EFTA).