Report: Creative economy emerges as economic and social pillar in Arab world
In a significant shift toward a more diversified post-oil economy, Arab nations are prioritizing creative and cultural industries as vital engines for growth and global influence.
A recent report from Middle East-focused consultancy firm Management Partners highlights that the creative and cultural Industries (CCIs) today contribute over 3.1% to the global GDP and employ more than 30 million people around the world.
In addition, a wide range of creative industries – from architecture and fashion to culinary arts and even gaming – are increasingly recognized as more than just economic assets: they are real sources of soft power. These sectors should be considered as strategic assets capable of driving economic diversification, urban renewal, and social change across the Gulf Cooperation Council, Jordan, and Iraq.
The power of creativity
The global creative economy is estimated to currently generate over $2.3 trillion in annual revenue. Beyond direct financial returns, these industries offer a powerful multiplier effect, where every dollar spent is estimated to create $2.50 in total wealth through indirect activity.
For the Arab world, this represents a unique opportunity to leverage its rich heritage and youthful population to build a sustainable, knowledge-based future. For example, Saudi Arabia already takes great advantage of both traditional and secular festivities like Riyadh Season, Jeddah Season, and Saudi National Day, which have now become focal points for shopping and sales.
Despite this potential, several structural challenges remain. Many regional creative sectors currently face fragmented value chains and a heavy reliance on imported materials. To overcome these hurdles, experts emphasize the need for robust national strategies that synchronize governance, financing, and talent development.
Creating a stable environment for growth requires tailored intellectual property frameworks and better access to capital for creative entrepreneurs whose assets are often intangible.
“Creative ideas often falter not for lack of merit, but because they cannot secure capital,” said Hysham Abdelnour, senior principal at Management Partners.
“This is particularly true in the Arab region, where financing for creative entrepreneurs remains inconsistent, fragmented, or inaccessible. For example, in Dubai, over half of surveyed creatives identified grant access as a critical enabler.”
Prioritizing culture
Education and talent development are identified as the most critical foundations for success. The report suggests that schools and universities must integrate creative curricula with industry needs to ensure a steady pipeline of skilled professionals. Furthermore, a shift in public mindset is necessary to view creative professions with the same seriousness as traditional fields like science and engineering.
Beyond domestic growth, creativity serves as a vital tool for soft power and cultural diplomacy. By exporting music, fashion, film, and digital art, nations can shape their own narratives and build cross-cultural bridges. Countries such as Saudi Arabia and the UAE have already integrated these goals into their national visions, aiming to significantly increase the contribution of the arts to their national wealth by 2030.
To accelerate this transformation, the report recommends that governments focus on high-impact priorities, such as establishing inclusive governance councils and curating flagship cultural programs. Through coordinated action between the public and private sectors, the region is well-positioned to become a global leader in the creative century.
“For the Arab world, the creative economy represents both a strategic opportunity and an urgent imperative: A means to diversify beyond oil, connect with global audiences, and build future-facing, resilient societies,” said Abdelnour.
“This is not just about building a creative sector. It is about designing a new chapter for the region – one where culture and creativity are not peripheral, but central to how nations grow, engage, and lead.”
