Business transformation across the Middle East has reached its most intense level in a quarter of a century, with up to US$300 billion in regional value being reshaped in 2025, according to a new PwC Middle East report.
The analysis by PwC economists found that around three-quarters of industries across the region are experiencing their highest reinvention pressure in 25 years, as economies adjust to rapid shifts in technology, trade, energy transition and climate risk.
The report describes the Middle East as standing at a “reinvention tipping point”, with change unfolding faster than at any point in the past two decades. Sectors such as metals and mining, transportation and logistics, chemicals, business services and telecommunications are facing all-time highs in transformation pressure.
PwC said the total US$300 billion in value at stake across industries this year reflects mounting pressure that will define the next decade. “When it comes to reinvention, timing is a decisive factor that determines success or failure,” said Mona Abou Hana, PwC Middle East Chief Corporate and Network Officer. “Nowhere is this more relevant than in the Middle East, where the coming decade promises transformation on an unprecedented scale.”
According to the analysis, the energy, insurance and banking sectors have the most value at risk in 2025, estimated at US$30.8 billion, US$13.7 billion and US$11.8 billion respectively. Other sectors under strain include consumer goods, retail, construction, manufacturing, healthcare and pharmaceuticals, while industries such as technology, hospitality, asset management and utilities are viewed as being in transition.
PwC’s new Reinvention Pressure Index tracks transformation intensity across sectors, using data from the past 25 years to assess digitalisation, market volatility, energy transition and consumer behaviour. The findings show that for most industries in the region, reinvention is no longer optional but necessary.
The report identifies four strategic levers for organisations to convert transformation into sustainable growth: driving innovation and local value creation, rethinking tax and regulatory strategy, competing on trust, and building a skills-first ecosystem.
Ahmad Abu Hantash, Partner and Head of Digital and Cyber at PwC Middle East, said: “The value at stake has never been higher for business in the Middle East and across the world. Governments and business leaders have a key role to play – not only in driving momentum today but also in shaping a future where our region accelerates its transformation from consumer to creator, builds resilience and solidifies its position as a global innovator and leader.”
