The media and entertainment sector in the Middle East and North Africa is poised for remarkable expansion, with projections estimating the market to reach US$48.43 billion by 2026 and soar to nearly US$76.79 billion by 2031, according to a report by Mordor Intelligence. This growth trajectory reflects a compound annual growth rate (CAGR) of 9.66% over the forecast period, driven by rapid digital advancements, favourable demographics, and ongoing investments across the region.
The establishment of enhanced digital infrastructure, notably through extensive 5G and fibre network rollouts, is transforming media consumption habits and driving a preference for mobile-first, on-demand content. By 2025, online and digital platforms are expected to become the dominant revenue stream, capturing almost 60% of the overall market as audiences increasingly prefer direct-to-consumer access.
In terms of content categories, video-on-demand services are projected to lead in 2025, accounting for close to 30% of total revenues. Meanwhile, the advertising sector—especially programmatic and digital formats—is anticipated to be the fastest-growing segment through 2031. Although subscription services remain a key revenue driver, freemium models and in-app purchases are increasingly popular, notably in gaming and interactive entertainment.
In 2025, advertising is projected to generate around US$13.22 billion, accounting for 29.93% of the market. This segment is expected to expand at an 11.05% CAGR as programmatic capabilities continue to evolve. There is a strong demand for high-quality scripted content and live sports, which support subscriber retention, while improved audience measurement tools are enhancing advertiser confidence. With real-time bidding gaining traction, advertising-supported models are set to outperform traditional transactional video formats. The recent merger of Anghami and OSN+ illustrates the trend of industry consolidation, creating new opportunities for cross-selling, while gaming revenues are on the rise thanks to increased mobile usage and the growth of esports.
Digital platforms accounted for 59.62% of total revenue in 2025, further emphasising the move toward direct-to-consumer approaches. Hybrid models that combine traditional television with on-demand libraries are expected to grow at a 10.65% CAGR, with broadcasters like MBC bundling global streaming services such as Netflix to preserve advertising revenues. Subscriptions are projected to account for 45.92% of the market, while freemium and in-app purchases could exceed US$15.62 billion by 2031, driven by gaming-led revenue models. Ad-supported video services are also gaining popularity with rising cost-per-thousand (CPM) rates.
In demographic terms, millennials accounted for the largest revenue share in 2025, while Generation Z is the fastest-growing segment, shaping content strategies that emphasise mobile-first experiences, creator-led formats, and esports. Smartphones remain the primary device for media consumption, accounting for 44.88% of the market value, while the adoption of virtual reality (VR) and augmented reality (AR) technologies is accelerating through regional metaverse initiatives.
Saudi Arabia holds the largest market share at 39.22% as of 2025, bolstered by Vision 2030 investments and swift digital advancements. The UAE, on the other hand, is the fastest-growing market, benefiting from a favourable regulatory landscape and significant international investment. The industry landscape remains moderately consolidated, dominated by major players like MBC Group, beIN Media Group, and OSN, while global entities increasingly pursue partnerships and localised content strategies.
Despite the optimistic outlook, the sector faces challenges such as piracy, fragmented regulatory frameworks, and a shortage of skilled creative professionals. While these hurdles may temper growth, they do not undermine the region’s long-term expansion potential.
Overall, industry players identify substantial opportunities in online video, gaming, advertising, and immersive media. Strategic collaborations between regional broadcasters and global streaming services, paired with innovative monetisation models, are expected to drive growth and further reshape the Middle East’s media and entertainment landscape.
