The region is emerging as the fastest-growing global marketing hub, driven by economic transformation and digital innovation. Saudi Arabia’s burgeoning advertising industry and the United Arab Emirates’ established growth are propelling the Middle East into the spotlight as the world’s fastest-growing marketing region.
According to advertising research firm WARC, ad spending in the Middle East is projected to rise by 8.1% to $6.6 billion in 2024, a significant leap from last year’s 3.5% growth. While this remains modest compared to other markets like the Netherlands, which is set to generate $6 billion with a 2.3% growth rate, the Middle East’s rapid expansion outpaces all other regions.
The New Frontier
Reda Raad, CEO of TBWA\Raad Group in Dubai, likens the region’s growth to a modern-day gold rush. “This type of growth is unprecedented and may not happen again in our lifetime,” he said. His agency has added eight new clients and grown its workforce by 17% over the past year to meet the demand.
For decades, international brands like PepsiCo have regarded the Middle East as a strategic market. Karim Elfiqi, SVP and CMO at PepsiCo Africa, Middle East, and South Asia, highlighted the brand’s deep-rooted connection to the region, citing partnerships with cultural icons like Egyptian footballer Mohamed Salah.
More recently, brands like LEGO have ramped up their focus on the Middle East. The Danish toy giant opened its Middle East and Africa headquarters in Dubai in 2019, creating tailored campaigns such as a Ramadan-themed initiative in the UAE and Saudi Arabia.
Driving Factors Behind Growth
Historically, the Middle East’s ad market lagged behind due to cultural norms, regulatory constraints, limited media options, and economic instability. Today, a shift toward economic diversification, digital transformation, and increased connectivity is spurring growth.
Saudi Arabia, in particular, is leading the charge, with ad spending expected to reach $2.1 billion in 2024—nearly double its 2019 levels. The UAE follows closely, with a projected ad spend of $1.7 billion. Smaller markets like Qatar and Kuwait also contribute to the region’s rise.
David Balfour, co-founder of Dubai-based creative agency Lightblue, shared that Saudi Arabia now accounts for 40% of his business, compared to a negligible share four years ago. The agency recently opened an office in Riyadh to capitalize on the surge in demand.
Challenges and Opportunities
While the region has seen massive growth, challenges remain. Saudi Arabia experienced a rare economic contraction in 2023 despite its ambitious Vision 2030 plan, which aims to diversify the economy beyond oil. The plan includes investments in tourism, gaming, and new brands that are driving demand for marketing expertise.
The region is also grappling with a talent shortage in creative, design, and product roles. Rebecca Bezzina, CEO for EMEA at R/GA, noted that Middle Eastern brands often seek world-class agencies to launch ventures or revamp brands. Her agency has seen a 69% increase in requests from the region over the past five years.
A Changing Cultural Landscape
Vision 2030 emphasizes women’s empowerment, and industry leaders like Nada Hakeem, CEO of Saudi creative agency Wetheloft, are redefining the narrative. “As a Saudi woman, I’ve always felt supported by the creative community,” Hakeem said, highlighting the region’s progress in inclusivity and support for women in business.
Agencies like R/GA and global players such as WPP and Stagwell are investing in the region. WPP formed a joint venture in Saudi Arabia, while Stagwell opened offices in Riyadh and Cairo to tap into the booming market.
The Business Culture
Relationships matter in the Middle East. Bertrand Morin of R/GA noted the importance of personal connections, often involving invitations to clients’ homes—a rarity in Western markets.
Yet, the business landscape also mirrors global trends. Balfour described the vibrant ad-agency scene at Riyadh’s Beefbar, noting that aside from the absence of alcohol, it felt indistinguishable from major cities around the world.
The Middle East is no longer a nascent market but a dynamic hub of marketing innovation and growth. With its wealth, ambition, and openness to international partnerships, the region is set to become a major player on the global marketing stage.
Read Also: SCAI and SMC Join Forces to Launch Cutting-Edge Digital and AI Venture in Media & Advertising
Disclaimer: Information mentioned here has not been verified or endorsed by Agency Reporter and is in accordance with the press release shared by the company or their appointed representatives.