The Middle East and North Africa (MENA) urban planning market is an evolving and high-potential domain as countries in this region push forward with large infrastructure modernization, smart city development, and sustainable urbanization strategies. Urban planners, technology providers, and public agencies are collaborating more than ever to design resilient, efficient, and inclusive cities. Over the coming years, the adoption of digital tools (e.g. GIS, BIM, generative AI) will increasingly underpin how urban corridors, land use, transportation networks, and public services are integrated in new and existing cities.
According to DataM Intelligence, the MENA urban planning market reached US$ 3.8 billion in 2023 and is expected to grow to US$ 4.9 billion by 2031, at a compound annual growth rate (CAGR) of around 3.2 %. This valuation underscores significant opportunities driven by state-led mega-projects, rising demand for housing and mobility, and sustainability mandates. The smart city / strategic urban planning segment is currently the leading product domain, while the Gulf Cooperation Council (GCC) particularly Saudi Arabia and the UAE remains the dominant geographic market owing to their financial resources, regulatory backing, and commitment to futuristic city schemes such as NEOM and Masdar.
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➤ GCC accounts for over one-third of the total market share, led by Saudi Arabia
➤ Strategic urban planning is the fastest growing type segment, holding more than one-third of the market
➤ Smart technologies (IoT, AI, BIM) and digital planning are key adoption drivers
➤ Public-private partnerships (PPPs) and foreign investment are accelerating infrastructure investments
The MENA urban planning market is segmented along multiple dimensions: type, technology, component, deployment mode, end-user, and region. By type, major subsegments include strategic urban planning, land-use planning, master planning, urban revitalization, economic development, environmental planning, and infrastructure planning. Among these, strategic urban planning is dominant, accounting for over one-third of the market share, as governments aim to craft long-term frameworks rather than only project-level fixes.
By technology, the market covers CAD software, generative AI, BIM, 3D modeling & visualization, and other emerging technologies. The adoption of BIM and AI-driven design is rising sharply, especially in flagship projects. By component, services and software drive value; many cities outsource planning, consultancy, and systems integration. For deployment mode, cloud-based and web-based platforms are preferred for flexibility, collaboration, and lower capital outlay. On the end-user axis, the dominant buyers are government and municipal agencies, though private developers and consultancies are increasing participation particularly through PPPs for large developments and smart city ecosystems.
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Within the MENA region, Saudi Arabia is the largest single market, capturing more than one-third of the regional share, driven by its aggressive push in urban expansion, NEOM, Red Sea projects, and the National housing program. The UAE (especially Dubai and Abu Dhabi) follows closely, pioneering smart city platforms, mobility solutions, and green infrastructure. In the North African subregion, Egypt is emerging as a critical growth frontier: its new administrative capital, expanded metro lines, and mass housing schemes are anchoring demand. Morocco, Tunisia, and Algeria are modernizing transportation networks, utility systems, and sustainable neighborhoods, contributing to regional diffusion of urban planning investments.
Rapid urbanization and population growth across MENA have made urban planning imperative, not optional. Many cities are exceeding infrastructure capacity, pressing the need for new roads, transit, housing, and utilities. Equally, governments are pivoting away from reliance on hydrocarbons toward diversified, knowledge-driven economies urban planning is central to that transformation. Technological innovation (GIS, IoT, AI, digital twins) is lowering barriers for smarter, responsive planning. Meanwhile, financing models like PPPs and foreign direct investment (FDI) are enabling more ambitious capital-intensive projects.
However, growth is not without hurdles. Political instability in certain markets introduces risk and delays. Budgetary limitations in lower-income MENA nations slow large-scale adoption. Regulatory fragmentation and inconsistent zoning laws complicate cross-border or cross-jurisdictional planning. Moreover, the high cost of deploying smart planning infrastructure and skilled human capital (data scientists, urban informatics specialists) may deter smaller municipalities.
Opportunities abound in scaling digital planning tools, especially AI-enabled simulations, real-time sensor integration, and predictive modeling. Retrofitting and urban revitalization (redevelopment of older districts) is under-penetrated. Green and resilient infrastructure (flood management, heat mitigation, water recycling) represents fertile ground, particularly as climate change pressures grow. Partnerships with global tech firms and modular urban planning solutions tailored to emerging cities are additional pathways for expansion.
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✔ Comprehensive, data-driven market size, value (USD 3.8 billion in 2023), and forecasts to 2031
✔ Detailed segmentation by type, technology, deployment mode, and end-user
✔ Geographical coverage with insights on Saudi Arabia, UAE, Egypt, and rest of MENA
✔ Competitive landscape and profiles of leading urban planning firms
✔ Identification of key trends, drivers, opportunities, and market challenges
◆ How big is the Middle East & North Africa Urban Planning Market by value? ◆ What is the projected growth rate (CAGR) of the MENA urban planning market? ◆ Which region or country leads the MENA urban planning industry? ◆ What are the primary drivers shaping the Middle East & North Africa urban planning market? ◆ Who are the key players operating in the MENA urban planning market?
Key players operating in the MENA urban planning market include: • AECOM • Atkins (SNC-Lavalin) • Dar Al-Handasah Consultants • Parsons Corporation • Bechtel Corporation • Jacobs Engineering Group • Khatib & Alami
Recent Developments:
In 2023, the region committed over US$ 500 billion to urban regeneration projects, with Saudi Arabia aiming to double Riyadh’s population by 2031.
The UAE launched an AI-driven city monitoring and governance platform in Dubai that integrates sustainability, transport, and urban services in real time.
The Middle East and North Africa urban planning market is on a steady growth trajectory, underpinned by real monetary scale US$ 3.8 billion in 2023 and expected to rise to approximately US$ 4.9 billion by 2031. While the GCC remains the powerhouse driver, North African markets are catching up. The intersection of rapid urbanization, strategic national visions, and digital transformation is redefining how cities in MENA are planned and built. Though challenges remain, the region offers a fertile ground for firms and investors willing to bring scalable, resilient, and tech-enabled planning solutions to the fore.