GCC Smart Cities Market

Market Overview:

The GCC smart cities market size reached USD 16.67 Billion in 2024. The market is projected to reach USD 68.05 Billion by 2033, exhibiting a growth rate (CAGR) of 15.1% during 2025-2033. The rapid urbanization across the region, the implementation of favorable government initiatives, and the integration of advanced technologies such as the Internet of Things (IoT), data analytics, artificial intelligence (AI), represent some of the key factors driving the market.

Smart cities are urban areas that leverage technology, data, and innovative solutions to enhance the quality of life for residents, improve the efficiency of urban operations, and promote sustainable development. These cities utilize digital advancements to address challenges and create a more connected, accessible, and responsive urban environment. The overarching goal of a smart city is to enhance the well-being of its citizens while optimizing resources, infrastructure, and services. They incorporate a wide range of technologies such as the Internet of Things (IoT), sensors, data analytics, artificial intelligence (AI), and automation. These technologies enable various systems and entities within the city to communicate, gather data, and respond to changing conditions in real-time. Smart cities rely on data collected from sensors, devices, and citizen engagement to make informed decisions. This data is analyzed to gain insights into urban patterns, resource consumption, traffic flow, and other critical aspects. These insights guide policymakers and urban planners to create more efficient and effective strategies. Moreover, smart cities prioritize environmentally friendly practices by adopting renewable energy sources, reducing carbon emissions, managing waste effectively, and implementing green building technologies.

GCC Smart Cities Market Trends:

Government Support and Strategic Initiatives

Governing authorities throughout the GCC region are acknowledging the significance of smart city technologies to elevate urban living conditions, boost sustainability, and stimulate economic development. Investments by the public sector in infrastructure, technology, and innovation are fundamental to this initiative. Through the implementation of policies and strategic frameworks focused on urban modernization, governing bodies are establishing the groundwork for the smart cities ecosystem. Long-term strategies like Vision 2030 initiatives in several GCC nations are promoting technological adoption. These efforts promote the adoption of digital infrastructure, eco-friendly practices, and increased citizen involvement, ultimately driving the need for smart solutions. The government's proactive role ensures continued development, attracting both local and international investors to support the region's urban transformation.

Digital Transformation and Connectivity

The growing dedication of the region to improve digital connectivity is accelerating the adoption of latest technologies that promote more interconnected and data-centric urban settings. Advancements in 5G networks, cloud computing, and fast internet are essential for establishing the digital framework needed for smart cities. These technologies facilitate the incorporation of intelligent infrastructure like self-driving cars, immediate monitoring, and communication networks that enhance city management. With the rise of digital connectivity, companies, citizens, and governmental services improve efficiency, allowing for enhanced resource distribution and streamlined operations. Zain's rollout of its 5G-Advanced network across Kuwait in July 2025 illustrates this change, delivering rapid connectivity for smart city solutions, Internet of Things (IoT), and future digital applications. This program aligns with Kuwait’s Vision 2035, strengthening the area’s objectives for the digital economy and establishing a basis for future technological progress in urban development.

Strategic Partnerships for Smart City Development

Partnerships between technology vendors and infrastructure specialists facilitate the smooth incorporation of sophisticated smart solutions into cityscapes. These collaborations enhance the creation of interconnected and eco-friendly cities by merging infrastructure knowledge with advanced technologies, such as smart home systems and energy-efficient options. Such partnerships elevate urban living standards by increasing energy efficiency, streamlining resource management, and minimizing environmental effects. For example, in November 2024, Tuya Smart announced a strategic partnership with InfraX to accelerate smart city development in the UAE. The collaboration combined InfraX's infrastructure expertise with Tuya's smart home technologies, aiming to create connected, sustainable urban environments. This partnership provided advanced smart home solutions and enhance energy efficiency for UAE residents. As these collaborations expand, they are crucial in turning urban regions into smarter, more resilient cities.

GCC Smart Cities Market Growth Drivers:

Technological Advancements and Innovation

Technological progress is a crucial factor propelling the GCC smart cities market growth, by facilitating the creation of more advanced urban solutions. Advancements in IoT, artificial intelligence (AI), cloud computing, and big data are greatly boosting the operational effectiveness of cities, facilitating real-time data gathering and analysis that improves decision-making. These developments are especially useful for tackling urban issues like resource management, energy efficiency, and sustainability. The GCC area, already a center for technological advancement, is utilizing these innovations to develop smart cities that are not only better connected but also more robust against challenges like climate change. For instance, in 2024, ST Engineering secured a S$60 million contract to design, build, and operate a smart city platform for Lusail City, Qatar. The platform, powered by AI, machine learning (ML), and data analytics, optimized city operations, enhanced sustainability, and improved residents' quality of life. The project is set to be completed by 2027 as part of Qatar's National Vision 2030.

Environmental Sustainability and Climate Goals

Environmental sustainability is playing a vital role in the evolution of smart cities as countries in the region are implementing innovative strategies to tackle urgent issues like water scarcity, energy use, and waste management. In accordance with national policies aimed at achieving international climate objectives, GCC countries are adopting smart technologies to enhance resource efficiency and lower carbon emissions. These innovations promote the use of renewable energy, improve waste recycling, and track air quality, supporting a more sustainable urban future. Sophisticated monitoring systems assist cities in adjusting to climate change by forecasting and alleviating environmental hazards. In 2024, Qatar's Minister of Municipality, HE Abdullah bin Hamad bin Abdullah Al Attiyah, launched the first phase of a smart cities solutions project. This phase included a smart waste management system, vehicle management, and a central operations command platform, aimed at optimizing services, reducing costs, and enhancing sustainability. The initiative supported Qatar’s 2024-2030 development strategy and aligns with the Qatar National Vision 2030.

Infrastructure Modernization and Smart Construction

With the growing need for improved and durable infrastructure, cities are embracing smart construction techniques that utilize innovative technologies, such as building information modeling (BIM), automation, and drones. These technologies are improving the planning, design, and construction processes by allowing for more effective and precise project management. Furthermore, the rising employment of intelligent infrastructure, including automated lighting for streets, smart roadways, and sophisticated water management systems, are enhancing the quality of life and efficiency of urban regions. This transition to updated infrastructure fosters the comprehensive development of smart cities, guaranteeing their flexibility in facing future challenges while preserving sustainability. By integrating IoT and data-driven systems into construction, GCC cities are ensuring that their infrastructure remains responsive to both current and future urban demands.

GCC Smart Cities Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the GCC smart cities market report, along with forecasts at the regional and country level for 2025-2033. Our report has categorized the market based on focus area, smart transportation, smart buildings, smart utilities, and smart citizen services.

Focus Area Insights:

• Smart Transportation
• Smart Buildings
• Smart Utilities
• Smart Citizen Services

The report has provided a detailed breakup and analysis of the market based on the focus area. This includes smart transportation, smart buildings, smart utilities, and smart citizen services.

Smart Transportation Insights:

• Smart Ticketing
• Traffic Management System
• Passenger Information Management System
• Freight Information System
• Connected Vehicles
• Others

The report has provided a detailed breakup and analysis of the market based on the smart transportation. This includes smart ticketing, traffic management system, passenger information management system, freight information system, connected vehicles, and others.

Smart Buildings Insights:

• Building Energy Optimization
• Emergency Management System
• Parking Management System
• Others

The report has provided a detailed breakup and analysis of the market based on the smart buildings. This includes building energy optimization, emergency management system, parking management system, and others.

Smart Utilities Insights:

• Advanced Metering Infrastructure
• Distribution Management System
• Substation Automation
• Others

The report has provided a detailed breakup and analysis of the market based on smart utilities. This includes advanced metering infrastructure, distribution management system, substation automation, and others.

Smart Citizen Services Insights:

• Smart Education
• Smart Healthcare
• Smart Public Safety
• Smart Street Lighting
• Others

The report has provided a detailed breakup and analysis of the market based on smart citizen services. This includes smart education, smart healthcare, smart public safety, smart street lighting, and others.

Country Insights:

• Saudi Arabia
• UAE
• Qatar
• Bahrain
• Kuwait
• Oman

The report has also provided a comprehensive analysis of all the major regional markets, which include Saudi Arabia, UAE, Qatar, Bahrain, Kuwait, and Oman.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

GCC Smart Cities Market News:

• In June 2025, Naver announced the completion of a large-scale digital twin platform for Mecca, Medina, and Jeddah as part of Saudi Arabia's smart city initiative. Spanning 6,800 square kilometers, the platform uses high-resolution 3D models and real-time data to optimize urban planning and management. The project, led by Saudi Arabia's Balady, aims to expand to other cities and includes new features for terrain, skyline, and disaster simulations.
• In May 2025, Oman revealed plans for two low-carbon smart cities in Jebel Akhdar and Muscat as part of its commitment to achieving net zero emissions by 2050. Powered entirely by renewable energy, these cities will accommodate up to 18,000 residents.
• In April 2025, Shaikh Khalid bin Abdullah Al Khalifa, Deputy Prime Minister of Bahrain, inaugurated the Bahrain Smart Cities Summit 2025. The two-day event focused on sustainable urban development and featured discussions on smart cities, with the government emphasizing sustainability, innovation, and community involvement.
• In January 2025, Adanté Realty launched Yenaier Residences in Sultan Haitham City, Oman’s first smart city, in a ceremony attended by key government officials. Located in Al Seeb, it features six towers with eco-friendly design, offering a variety of residential options and high-end amenities.
• In November 2024, Saudi company Tilal Real Estates launched the $1.6 billion "Heart of Khobar" smart city project in the Eastern port of Khobar. The 268,000-square-meter development featured housing, offices, hotels, malls, and entertainment facilities, with 250 hotel rooms and 3,900 parking spaces. The project, expected to be completed in four years, aimed to enhance Khobar's appeal as a living and investment destination.
• In September 2024, at the Global AI Summit (GAIN) in Riyadh, the Ministry of Municipalities and Housing (MOMAH) launched two new digital services: the "Smart Assistant" and the "My City" City Management Platform. The Smart Assistant, available through the Baladi app, used generative AI to provide real-time, interactive responses to customer inquiries. The "My City" platform utilized IoT technologies to enhance sanitation and waste management services, promoting smart city operations.

GCC Smart Cities Market Report Coverage:

Key Questions Answered in This Report:

• How has the GCC smart cities market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the GCC smart cities market?
• What is the breakup of the GCC smart cities market on the basis of focus area?
• What is the breakup of the GCC smart cities market on the basis of smart transportation?
• What is the breakup of the GCC smart cities market on the basis of smart buildings?
• What is the breakup of the GCC smart cities market on the basis of smart utilities?
• What is the breakup of the GCC smart cities market on the basis of smart citizen services?
• What are the various stages in the value chain of the GCC smart cities market?
• What are the key driving factors and challenges in the GCC smart cities market?
• What is the structure of the GCC smart cities market and who are the key players?
• What is the degree of competition in the GCC smart cities market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the GCC smart cities market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the GCC smart cities market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the GCC smart cities industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.