The Middle East security market is experiencing significant growth driven by increased investment in both public and private sectors. Strong demand is seen especially in some verticals such as construction, airports and oil and gas.
The Middle East security market is experiencing significant growth driven by increased investment in both public and private sectors. Strong demand is seen especially in some verticals such as construction, airports and oil and gas. This article take a closer look at the
Middle East security market and verticals that are particularly booming.
For 2024, the Middle East security market generally had a good year. “All the indicators suggest that 2024 sales have been higher than 2023 – although our final analysis has not yet been completed, the figures are encouraging. While the international situation has become much less stable over the last two years, and global tensions are clearly higher as continuing conflicts risk escalating, demand for security solutions remains stable in the Middle East,” said Dennis Choi, GM for Middle East and Africa at IDIS.
The growth was largely driven by increased public and private investment. “For 2024, we anticipate a healthy growth trajectory driven by both public and private sectors. Key drivers include increased government investment in critical infrastructure, urban development, and smart city initiatives, particularly in Saudi Arabia, the UAE, and Qatar. Digital transformation efforts in these regions underscore the need for advanced security solutions, including physical access control, identity management, and integrated IoT systems,” said Nabeel Noorullah, GM of IDVision.
Among the more notable examples for the above,
Masdar City in Abu Dhabi, UAE, is undergoing a smart city initiative where solar panels are installed for carbon reduction and a Personal Rapid Transit (PRT) system is launched offering automated electric transport to reduce the need for private vehicles.
Saudi Arabia, meanwhile, has allocated more than $50 billion of investment into a range of digital health services to improve efficiency, accessibility and transparency in healthcare.
It is also worth noting that growth in the Middle East security market came in spite of regional conflicts, which are triggering demand for more security products and solutions.
“Conflicts in parts of the Middle East have presented a mixed impact on the security sector. On one hand, there have been supply chain interruptions. On the other, demand for security solutions has risen due to heightened concerns over safety,” Noorullah said.
“Regional conflicts have heightened security awareness, leading to increased demand for advanced security solutions. While there may be challenges like supply chain disruptions, the overall impact has been positive for the industry. End users and vendors are prioritizing security investments to protect assets and ensure operational continuity. Companies are adapting by enhancing their offerings to meet the evolving security needs,” said Uri Guterman, VP of Product Management and Marketing at Senstar.
Booming verticals
Indeed, increased security spending has triggered a growth in the Middle East market, where the positive sentiment can be felt across the board. However, the momentum is particular strong in certain verticals, which are summarized as follows.
Energy, oil & gas
The energy, oil and gas sector is important in the Middle East. Saudi Arabia, for example, remains the leading international oil producer, generating around 10.4 million barrels of oil daily (bpd), while Qatar and Iran are natural gas heavyweights in the region, according to GET Global Group. Securing assets in related facilities with
advanced solutions is of paramount importance. “Protecting critical energy infrastructures from threats is paramount. The sector demands robust perimeter intrusion detection systems and integrated surveillance solutions to safeguard assets,” Guterman said.
Airports
Airports remain a critical segment in the Middle East, where several cities have become major transportation hubs in the region. “With increasing passenger traffic, airports are investing in enhanced security measures. Integrated systems that offer real-time monitoring and quick response capabilities are highly sought after,” Guterman said.
Airports in the region are also utilizing security solutions to improve the overall user experience.
Dubai Airport, for example, is in the process of replacing physical passport control stations and smart gates with AI-based facial recognition cameras to provide a frictionless experience for travelers the moment they arrive at the airport all the way to boarding at the gate, and vise versa.
Construction
Continuing strong demand in the construction sector – and all the associated sectors that benefit from major developments that have government backing – is expected. According to IDIS's Choi, the construction industry in the Middle East was valued at US$298 billion in 2023 and is predicted to reach $401.17 billion by 2030, with a compound annual growth rate (CAGR) of 2.9 percent from 2024 to 2030.
“This growth is driven by strong investment in infrastructure projects, sustainable practices, and urban development. Countries like Saudi Arabia, Oman, and Kuwait are leading this expansion with numerous large-scale projects – for example, Saudi Arabia's infrastructure sector saw investments of $18 billion in 2023, with significant contributions from the energy and road transport sectors – but we also see developments across all the GCC nations. Many of these projects reflect the region's continuing ambitions to innovate and create more sustainable, modern, and higher-quality living spaces,” Choi said.
Leisure and hospitality
Closely related to the construction industry is the leisure and hospitality sector. “We’ve seen notable demand for casino video solutions in some adjacent territories – the eastern Mediterranean, south-eastern Europe, and Türkiye – and the UAE is expected to issue its first casino licenses in the near future, so we’re already well positioned to realize new demand in a whole new sector in the Middle East,” Choi said. “We expect tourism and leisure will remain key drivers more generally, and video surveillance has a vital role to play not just in security but increasingly in supporting more efficient operations and better customer and guest services and experiences in an exceptionally competitive market.”
It should be noted that
UAE’s gaming authority has awarded Wynn Resorts the first commercial casino license in the emirates in October. The gaming authority then announced it won’t award additional casino licenses in the near future, a move that cements Wynn’s competitive edge in the UAE casino market.