PRCA MENA has launched its 2026 Growth Pulse Report at its first Leaders’ Breakfast of the year in Dubai yesterday.
At the members-only event, PRCA MENA unveiled the findings of its report which has been centred on the commercial health of marketing communications agencies across MENA alongside forward-looking insight into investment priorities and growth expectations for the year ahead.
“The Growth Pulse Report 2026 provides an important benchmark for agency and in-house leaders across MENA,” said Sarah Waddington CBE, CEO of PRCA.
PRCA MENA strategically built the report as a guide to organisations navigating economic uncertainty, technological change and rising expectations. The report also aims to deliver access to robust data and shared insight.
The research combines quantitative insight from YouGov’s proprietary panel with responses from PRCA MENA’s agency and in-house membership. It benchmarks performance across revenue growth, profitability, productivity, compensation ratios and new business effectiveness, while also examining current and planned investment in critical capability areas including creativity, strategic advisory, artificial intelligence, data and insight, training and culture.
Key highlights from the PRCA MENA Growth Pulse Report 2026 include:
- Rising agency confidence, with 68 per cent of agencies expecting revenue growth in 2026, up from 56 per cent reporting growth in 2025, and nearly one in five forecasting growth above 20 per cent.
- Strong profitability outlook, with one-third of agencies reporting profit margins of 31–40 per cent in 2025, 18 per cent achieving margins above 40 per cent, and around 70 per cent expecting further margin growth in 2026.
- Ongoing cost pressure, as nearly half of agencies reported an increase in compensation-to-revenue ratios in 2025, signalling staff costs continuing to outpace revenue growth for many
- Creativity and innovation confirmed as the leading growth driver, rated as critical by 81 per cent of respondents, followed closely by strategic advisory (80 per cent) and IP, POV and purpose (79 per cent).
- Accelerating AI investment, with agencies planning significantly higher spend in 2026 – particularly in the $250k–$500k range – marking a shift from experimentation to scaled adoption.
- Sustained intensity in new business, with most agencies completing 10–50 pitches in 2025 and three in five expecting pitch volumes to increase further in 2026.
- From the brand side, a clear move towards a hybrid operating model, with almost three in five in-house leaders expecting agency spend to remain stable or increase in 2026, while 51 per cent plan to expand the size and scope of internal teams.
- Creativity, AI adoption and influencer marketing cited as the biggest current challenges for in-house teams.
- Social media engagement (46 per cent), influencer marketing (42 per cent) and public relations (37 per cent) are the top three areas where in-house respondents intend to run a pitch for a new agency in 2026.
“The PRCA MENA Growth Pulse Report 2026 provides a clear, data-led picture of how agencies across the region are navigating growth in an increasingly competitive market,” said James Thomlinson, Founder & CEO of Sprint Partners.
The launch was followed by an insight-led panel and practical workshop exploring how agencies can translate the report’s findings into actionable strategies for 2026. Discussions focused on balancing growth with profitability, building differentiated capability, and strengthening long-term resilience in an increasingly competitive and fast-evolving market.
“What stood out at today’s Leaders’ Breakfast was the maturity and openness of the discussion – a shared willingness to be honest about performance pressures, reset priorities and focus on sustainable, long-term growth,” said Thomlinson. “We’re proud to have partnered with PRCA MENA on a report that gives agency leaders the clarity and confidence to make better, more informed decisions for the year ahead.”
“Bringing senior leaders together to engage with credible, evidence-based insight is vital as the industry continues to evolve,” said Nick Sandham, VP of Communications at Alshaya Group. “Hosting the first PRCA MENA Leaders’ Breakfast of the year reflects the value of creating space for thoughtful discussion around growth, capability and leadership and we were pleased to support an event that encourages meaningful dialogue across the region.”
