• For around three-quarters of sectors in the Middle East, the pressure to reinvent is at or near a 25-year high
  • Sectors facing an all-time high pressure include metals and mining, transportation and logistics, chemicals, business services and telecommunications
  • Sectors such as energy, insurance, banking and capital markets have some of the highest value at stake in 2025 – estimated by PwC economists to be at US$30.8bn, US$13.7bn and US$11.8bn respectively  

Riyadh, Kingdom of Saudi Arabia - The Middle East stands at a reinvention tipping point, with business pressures across key sectors reaching their highest levels in a quarter century, according to a new PwC Middle East report. Analysis by PwC economists shows that three-quarters of sectors across the region are at or near peak pressure, driven by accelerated shifts in technology, trade, energy transition and climate risk. The result is a regional economy being reshaped faster than at any point in the past two decades.

A decade defined by reinvention

In the next decade, as the energy transition, AI, climate risk, and trade reconfiguration blur traditional sector boundaries, businesses that act early and decisively will capture value. PwC economists estimate that the US$300bn in value at stake across Middle East industries in 2025 signals mounting reinvention pressures that will accelerate transformation across sectors over the next decade. Traditional sector boundaries are dissolving as new “domains of growth” emerge centered around fundamental human needs — how we make, build, move, fuel, feed and care for ourselves — in radically new ways. These are supported by core enabling domains – how we connect and compute, fund and insure, and govern and serve during this transition. For business leaders, this presents both an opportunity and a strategic dilemma: not whether to reinvent, but how and when.

Mona Abou Hana, PwC Middle East Chief Corporate and Network Officer, said: “When it comes to reinvention, timing is a decisive factor that determines success or failure. Nowhere is this more relevant than in the Middle East, where the coming decade promises transformation on an unprecedented scale. The shifts we’ve seen through 2025, representing around US$300bn in value across our markets, mark only the beginning of a decade defined by bold change.”

Pressure building across sectors

According to PwC’s analysis:

  • Sectors with the highest value at stake include energy (US$30.8bn), insurance (US$13.7bn), and banking and capital markets (US$11.8bn).
  • Sectors facing all-time high reinvention pressure include metals and mining, transportation and logistics, chemicals, business services, and telecommunications.
  • Sectors at risk include consumer goods, retail, engineering and construction, manufacturing, healthcare and pharmaceuticals and life sciences.
  • Sectors in transition include asset and wealth management, technology, hospitality and leisure, and power and utilities.

What is the right time to reinvent? 

To help leaders understand the urgency and opportunity within their industries, PwC has developed the Reinvention Pressure Index that assesses sector-level pressure relative to historical averages over the past 25 years. It tracks the intersection of digital transformation, market volatility, energy transition, and consumer behaviour to identify where reinvention is no longer optional but inevitable.

Four levers for the next wave of growth 

The report outlines four strategic levers for organisations and businesses to navigate this inflection point and translate ambition into measurable outcomes: Ignite innovation and strengthen in-country value, revisit tax and regulatory strategy, compete on trust, and build a skills-first ecosystem. 

Ahmad Abu Hantash, Partner, Head of Digital and Cyber PwC Middle East, said: “The value at stake has never been higher for business in the Middle East and across the world, as economies continue to reconfigure in profound ways over the next decade. Governments and business leaders have a key role to play – not only in driving momentum today but also to shape a future where our region accelerates its transformation from consumer to creator, builds resilience and solidifies its position a global innovator and leader.”

About PwC

At PwC, we help clients build trust and reinvent so they can turn complexity into competitive advantage. We’re a tech-forward, people-empowered network with more than 364,000 people in 136 countries and 137 territories. Across audit and assurance, tax and legal, deals and consulting, we help clients build, accelerate, and sustain momentum. Find out more at www.pwc.com.   

With over 12,000 people across 12 countries in 30 offices, PwC Middle East combines deep regional insight with global expertise to help clients solve complex problems, drive transformation, and achieve sustained outcomes. Learn more at www.pwc.com/me.

 
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Contact:
Dana Safawi | dana.safawi@pwc.com

More details: @PwC_Middle_East on LinkedIn and Twitter