MENA 2025 Outlook

As we enter 2025, the Middle East and North Africa (MENA) region is poised to experience significant developments across various sectors. Key trends to watch include:

Economic Growth and Oil Production

The International Monetary Fund (IMF) projects a rebound in the MENA region's economy, with growth expected to accelerate to 4% in 2025, up from 2.1% in 2024.

This improvement is largely attributed to anticipated increases in oil production, particularly as OPEC+ is expected to relax output cuts. Saudi Arabia's economy, for instance, is forecasted to expand by 4.4% in 2025, driven by higher oil revenues and continued investments in non-oil sectors.

Media and Digital Advertising

The MENA media landscape is undergoing a transformative phase.

Global media spending is projected to reach $1 trillion in 2025, with the MENA region contributing $1.1 billion.

A significant portion of this growth is driven by influencer marketing, accounting for up to 40% of budgets.

Additionally, mergers and acquisitions are reshaping the industry, with major players like Omnicom and IPG merging, signaling shifts in advertising management.

he rise of platforms such as TikTok, which has surpassed Snapchat in key markets like Saudi Arabia, and the growing popularity of podcasting and audio platforms like Anghami and Podeo, further highlight the dynamic evolution of the sector.

Geopolitical Dynamics

The inauguration of Donald Trump as U.S. President in January 2025 is expected to have profound implications for U.S.-MENA relations. Potential policy shifts could influence various regional issues, including conflicts and diplomatic engagements.

Additionally, the possibility of escalating hostilities between Iran and Israel remains a concern, with experts suggesting that the prospect of direct conflict has never been closer.

Climate Change and Renewable Energy

Climate change continues to pose significant challenges to the MENA region, with increasing temperatures, water scarcity, and extreme weather events. In response, several countries are investing in renewable energy projects to mitigate these impacts.

For example, Morocco's Ouarzazate Solar Power Station, the largest concentrated solar power plant globally, aims to provide clean energy to over a million residents and reduce carbon emissions significantly.

Digital Commerce and Technology

The e-commerce sector in MENA is set for substantial growth in 2025. Brands are increasingly adopting digital commerce intelligence tools to navigate the dynamic online marketplace.

Key trends include the rise of mobile-first strategies, advancements in artificial intelligence, and the expansion of connected TV, all contributing to a more sophisticated and competitive digital commerce environment.

These trends underscore a year of transformation and adaptation for the MENA region, with economic, technological, and geopolitical developments shaping its trajectory in 2025.

What’s Next for MENA in 2025?

Economic Growth

• Saudi Arabia: The kingdom's economy is projected to accelerate to a 4.4% growth rate in 2025, driven by increased oil production as OPEC+ eases output cuts.
• Egypt: Economic growth is expected to reach 4.0% by June 2025, following the implementation of IMF-recommended reforms.

Geopolitical Dynamics

• U.S. Policy Shifts: The inauguration of President Donald Trump in January 2025 is anticipated to influence U.S.-MENA relations, potentially affecting regional conflicts and diplomatic engagements.
• Iran-Israel Relations: Tensions between Iran and Israel may escalate, with the possibility of direct confrontations influencing regional stability.

Energy Sector

• Oil Production: The anticipated relaxation of OPEC+ production cuts is expected to boost oil output in the region, positively impacting economies dependent on oil revenues.

Technological Advancements

• Digital Commerce: The MENA region is likely to witness continued growth in e-commerce and digital platforms, with increased adoption of mobile-first strategies and artificial intelligence enhancing consumer experiences.

Climate Initiatives

• Renewable Energy Projects: Countries like Morocco are expected to advance their renewable energy initiatives, contributing to the region's efforts in addressing climate change challenges.

These predictions highlight a dynamic start to 2025 for the MENA region, with economic, geopolitical, and technological developments set to shape its trajectory in the coming months.