Maya Robertson
The Middle East’s mobile app ecosystem is entering a period of rapid expansion and transformation, according to the 2025 Middle East App Growth Report by Bidease and Sensor Tower. The report, based on insights from 425 regional marketers and app market data, reveals that the Gulf Cooperation Council (GCC) continues to outperform global benchmarks across key indicators such as downloads, revenue, and user engagement.
App downloads in the GCC grew 2.6% year-over-year in the second quarter of 2025—five times the global rate—while in-app purchase revenue rose 20% to exceed $700 million. Users in the region spent over 20 billion hours in apps during the first half of the year, with the UAE leading revenue growth at 26%. Finance and Food & Dining apps were the fastest-growing categories, each posting more than 30% annual growth, while AI-powered software apps drove a 77% increase in in-app revenue.
AI adoption is proving central to this surge. Nearly two-thirds of marketers in the region use AI for ad creative generation, with over half applying it to personalize user experiences. Teams are increasing creative refresh cycles—46% update weekly or faster—enabled by automation and generative AI tools. These practices are helping marketers navigate saturation in mature markets like Saudi Arabia and the UAE, where over half cite intense competition as their top challenge.
Programmatic advertising is another defining trend. Eight in ten marketers now rely on demand-side platforms (DSPs), viewing them as a critical path to scale beyond major social networks such as TikTok and YouTube. Budgets remain focused on user acquisition, but brand awareness and retention are becoming increasingly important to sustain growth and long-term value.
The report also highlights emerging consumer cycles, with app usage spiking during Ramadan and Black Friday. Finance app activity peaks around monthly salary periods in Saudi Arabia, while shopping apps see significant seasonal surges across the region.
A defining characteristic of the Middle East’s app economy is the rise of “super apps.” Telecom and fintech platforms such as stc pay, botim, and Virgin Mobile are expanding into multi-service ecosystems that blend payments, communication, and media. This diversification, alongside strong competition from global entrants like Temu and SHEIN, is reshaping the regional market landscape.
As teams prepare for 2026, the report suggests that marketers in the Middle East are balancing rapid experimentation with disciplined optimization. Success increasingly depends on creative velocity, AI-driven decision-making, and the ability to shift budgets based on measurable impact—positioning the region as one of the most dynamic hubs in the global app economy.
Comments
Loading…