The pace of digital transformation across the GCC has surged, accelerated by shifting work patterns, evolving digital behaviours and rising consumer expectations. Catering to one of the world’s youngest, most digitally native populations, the region’s businesses are under pressure to keep up with a consumer base that expects seamless and personalised experiences across channels, devices and moments.
According to the IMF’s 2025 paper on digital transformation in the GCC, digital literacy across the region now exceeds that of many developed nations. Despite this, a surprising number of organisations still rely on business models built for a different era, often prioritising incremental tech adoption over true structural change.
Many companies are optimising what exists, rather than rethinking what’s needed. And while improvements to process and interface might deliver short-term gains, they won’t meet the demands of a digital-first economy. In doing so, these businesses risk reinforcing the very inefficiencies they should be moving beyond.
Structural change, not cosmetic updates
In the race to modernise, some organisations jump headfirst into technology investments without asking the most critical question: what are we solving for?
Before introducing a new platform, businesses need a clear, strategic vision – one grounded in a deep understanding of the organisation’s structure, ambition and long-term ambition. At MRM, we refer to this as vision anchoring: a process of building a three-year North Star that maps your current state, future ambition, and the incremental but focused shifts required to get there.
Without this anchor, technology becomes reactive. It’s the classic treadmill effect: a lot of activity, no real progress. Fragmented systems, underused tools, overwhelmed teams and mounting costs are the byproducts of tech-first thinking. But transformation isn’t about having the latest tools; it’s about creating the right conditions for value to emerge.
When organisations adopt technology without a clear purpose or roadmap, they often end up with siloed systems, duplicated work and teams buried in complexity. A strong strategic vision ensures that digital investments support real business goals, not just tech upgrades for the sake of it.
Technology should follow business priorities, not dictate them. When chosen purposefully – to address real, grounded business needs – technology becomes a catalyst for better decision-making, operational clarity and client value. That’s where true transformation lives – not in the interface, but in the infrastructure.
Because digital transformation isn’t just about adding new tools; it’s about rethinking how value is created, delivered and sustained. Too often, businesses try to build transformation on top of outdated systems and structures, designed for a different time and different challenges.
A growing body of evidence suggests that applying modern tools to outdated frameworks often results in limited long-term gains. While improved interfaces and faster service can offer short-term benefits, they cannot compensate for business models that may no longer reflect customer needs, competitive pressures or market realities.
A region poised for reinvention
The GCC is uniquely positioned to lead in business transformation. It has the advantage of demographic momentum, high investment capacity and government-led digital agendas that sometimes exceed those of the private sector. Looking at the transformation closely linked to three national strategies – Saudi Arabia’s Vision 2030, the UAE’s drive to become a global digital economy, and Qatar National Vision 2030 – it is clear that the groundwork has been laid for digital-led growth and innovation across multiple sectors:
Saudi Arabia’s massive investment in digital infrastructure underpins mega-projects such as NEOM, Qiddiya and the Red Sea Project, each envisioned as a sustainable, digitally enabled smart city is redefining tourism and urban experience through integrated smart infrastructure.
In the UAE, the government went so far as to appoint a Minister of State for AI, Digital Economy, and Remote Work Applications, along with launching programmes such as the Dubai Future Accelerators and the Dubai Chamber of Digital Economy, targeting 20,000 digitally enabled SMEs.
Qatar has combined legacy event investment, most notably the FIFA World Cup infrastructure and the revitalisation of Msheireb Downtown, with long-term digital enablement – in energy through QatarEnergy’s global LNG expansion and in finance through the Qatar Financial Centre’s push into fintech and digital trade services. Meanwhile, telecoms provider Ooredoo, through the MENA Digital Hub, is investing in new AI data centres, partnering with NVIDIA.
Together, these regional efforts reflect a major shift from incremental modernisation to purpose-driven reinvention.
The private sector wake-up call
For many private sector companies, this presents both a challenge and a benchmark. Today’s consumers in the GCC are not just comparing your digital experience with industry peers; they’re comparing it with their interactions with government platforms, fintech apps and global digital services.
Yet, recent market studies show a growing gap between digital investment and foundational business change. While many organisations claim to have a transformation roadmap, far fewer have reassessed their operating models, delivery frameworks or product strategies.
To close this gap, a strategic reset is essential – one that includes:
- Focusing on customer value rather than internal efficiency.
- Eliminating silos and encouraging cross-functional collaboration.
- Upskilling internal teams with digital capabilities.
- Embracing a culture of experimentation and iterative innovation.
The way forward
Transformation in the GCC must go beyond digital layering. It requires organisations to question legacy assumptions, outdated processes, and inherited complexity. While that kind of change can feel daunting, the cost of maintaining the status quo is far greater.
The most successful players in the region, across fintech, e-commerce and urban innovation, are not those who digitised what they had. They are the ones who started over with a new question: What does value look like in this new world? And for their customers, the answer is simple: seamless, relevant and responsive experiences that evolve with their needs.
Digital transformation alone is no longer enough. Execution speed and structural clarity are what will define the next wave of leaders. In this moment, long-term competitiveness depends on more than just smarter tools. It requires a willingness to reset, rethink and rebuild.
Because the future won’t fully reward those who simply modernise what exists; it will belong to those who redesign what’s possible.
By Karim Slim, CEO, MRM MENAT
