GCC Digital Identity Solutions Market Research Report: Forecast (2026-2032)

GCC Digital Identity Solutions Market Report Key Takeaways:

• The GCC Digital Identity Solutions Market size is valued at around USD 2.76 billion in 2025 and is projected to reach USD 6.18 billion by 2032. The estimated CAGR from 2026 to 2032 is around 12.20%, indicating strong growth.
• By Solution Type, the identity verification solutions segment represented 38% of the GCC Digital Identity Solutions Market size in 2025.
• By Deployment Mode, the on-premises represented 48% of the GCC Digital Identity Solutions Market size in 2025.
• By Organization size, the large enterprises hold 45% market share in 2025.
• By Country, Saudi Arabia leads the GCC Digital Identity Solutions Market with a 36% market share in 2025.
• The leading digital identity solutions companies in the GCC are IDEMIA Public Security, Intercede (via Gulf IT), Jumio Corporation, Onfido, Thales Group, NEC Corporation, GB Group plc (GBG), Acuant, Shufti Pro, Veriff, Trulioo, LexisNexis Risk Solutions, and others.

Market Insights & Analysis: GCC Digital Identity Solutions Market (2026- 2032):

The GCC Digital Identity Solutions Market size is valued at around USD 2.76 billion in 2025 and is projected to reach USD 6.18 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 12.20% during the forecast period, i.e., 2026-32.

The GCC Digital Identity Solutions Market is experiencing rapid growth, driven by primarily driven by rising cybersecurity and identity fraud risks and an accelerating shift toward biometric authentication, as governments and enterprises strengthen secure digital access, regulatory compliance, and fraud prevention across digital ecosystems.

Cyber risk exposure across GCC economies has reached critical levels. For instance, the UAE faces approximately 50,000 cyberattacks daily, including a multi-day DDoS attack on a major bank in July 2024 and repeated ransomware campaigns targeting government entities, underscoring vulnerabilities in digital access systems.

Meanwhile, Saudi Arabia recorded 88 ransomware incidents in 2024, with sustained attacks on energy infrastructure and public institutions. In parallel, Kuwait continues to face persistent phishing and banking fraud, while Qatar’s heightened cyber exposure following global events such as the FIFA World Cup remains a challenge for critical sectors.

Notably, Royal Oman Police reported a 50 % rise in cybercrime fraud cases in H1 2025, increasingly driven by AI-enabled impersonation and deepfake attacks, reinforcing the need for stronger digital identity verification mechanisms.

Government institutions and financial entities remain the most targeted, given their access to sensitive citizen data and mission-critical systems. The economic impact is substantial, with the average cost of a data breach in the Middle East reaching USD 8.0 million, while annual cybercrime losses exceed USD 12 billion, straining both public-sector budgets and private enterprises. Reflecting this risk concentration, large enterprises account for approximately 45% of total market adoption, driven by higher exposure to cyber threats, stricter regulatory and compliance mandates, extensive user bases, and the financial capacity to deploy complex, enterprise-scale digital identity and authentication platforms.

In response, GCC countries are accelerating biometric-based digital identity adoption. For example, in Saudi Arabia, the Nafath Unified National Access platform has executed over 3 billion biometric verification transactions, enabling secure access across 530+ government and private platforms. Major financial players such as Al Rajhi Bank and STC Pay now rely on facial and fingerprint authentication to secure digital banking and wallet services.

The GCC Digital Identity Solutions Market outlook remains strong, supported by accelerated government and private-sector initiatives. For instance, in 2025, the UAE scaled UAE PASS to over 11 million users, enabling secure access to 5,000+ services and driving adoption across banking, healthcare, and telecom, with firms like DB Investing leveraging it for digital KYC onboarding. Meanwhile, Bahrain strengthened its digital ID ecosystem through public–private collaboration, with companies such as HID showcasing password-less and secure identity solutions at GITEX Global 2025, reinforcing e-government and secure access initiatives.

As cyber threats grow more sophisticated and biometric infrastructure becomes foundational to digital governance, secure digital identity solutions will remain central to GCC digital transformation, positioning the market for sustained, long-term growth.

GCC Digital Identity Solutions Market Recent Developments:

• November 2025: Oman introduced its National Electronic Authentication service (Thiqa), providing secure digital identity credentials for accessing government e-services under its digital transformation agenda. The initiative supports trusted electronic authentication, reinforcing nationwide digital interaction security. Additionally, Oman expanded its electronic attestation service to include Saudi Arabia and Qatar, simplifying cross-border document verification.
• June 2025: UAE expands UAE PASS digital ID adoption, with over 11 million users accessing 5,000+ services via one secure login and biometric verification, streamlining e-government and private sector interactions. The platform also integrated new digital trade license documents for businesses, advancing paperless transactions and enhancing secure digital access nationwide.

GCC Digital Identity Solutions Market Scope:

GCC Digital Identity Solutions Market Drivers:

Rising Cybersecurity & Identity Fraud Risks

The accelerating scale and sophistication of cybersecurity threats across the GCC is a major driver for the adoption of advanced digital identity solutions. According to regional threat assessments, the GCC has emerged as a high-value cyber target due to rapid digitalization, smart city deployments, and digitally enabled government services.

The UAE alone accounts for approximately 40% of total cyber threat activity in the region, followed by Saudi Arabia at 26%, reflecting concentrated exposure to identity-based attacks across digitally mature economies. Distributed Denial of Service (DDoS) attacks dominate the threat landscape, representing 73.2% of incidents, while stolen credentials and leaked data have surged, with compromised data sharing increasing 59% year-on-year.

Looking beyond 2025, GCC governments are prioritizing investments in zero-trust security architectures, biometric authentication, AI-driven threat detection, and cross-border cyber intelligence sharing, all of which depend heavily on secure digital identity frameworks.

As cyber threats increasingly exploit weak authentication and stolen identities, the need for resilient, biometric-enabled digital identity solutions will intensify, positioning cybersecurity risk mitigation as a core growth catalyst for the GCC Digital Identity Solutions Market.

GCC Digital Identity Solutions Market Trends:

Shift Toward Biometric Authentication

A defining trend in the Digital Identity Solutions Market is the accelerating shift toward biometric authentication, driven by regulatory mandates, rising fraud risks, and the need for stronger identity assurance.

The Central Bank of the UAE has mandated the phase-out of SMS and email OTPs by March 31, 2026, requiring banks to adopt biometric authentication, such as facial recognition, to mitigate fraud risks and strengthen digital identity security under the UAE’s cybersecurity modernization agenda.

In Qatar, biometric adoption is being institutionalized through Qatar Digital Identity (QDI), a mobile application developed by the Ministry of Interior. The platform enables biometric login, digital signatures, and secure access to government services, including airport e-gates. QDI is a core pillar of the National Digital Authentication and Trust Services Strategy (2024–2026), which aims to establish a unified, biometric-based digital identity framework across public and private services.

Meanwhile, Kuwait has implemented mandatory biometric fingerprint registration for citizens and residents, linking biometric data to the national identity database. This system supports secure access to government and banking services and has been expanded to include pre-travel biometric enrollment, enhancing border control efficiency and identity verification.

As GCC governments replace passwords and OTPs with biometric authentication, demand for secure, scalable digital identity platforms will intensify, making biometrics a long-term growth catalyst for the Digital Identity Solutions Market.

GCC Digital Identity Solutions Market Challenges:

High Implementation and Compliance Costs Impeding Market Growth

High implementation and compliance costs present a significant challenge to the growth of the Digital Identity Solutions Market, particularly across government agencies, financial institutions, and small and medium-sized enterprises (SMEs).

Deploying secure digital identity systems requires high investment in biometrics, secure cloud infrastructure, data protection, and cybersecurity, while GCC regulatory and compliance mandates significantly increase capital and operational costs for organizations.

Regulatory mandates from authorities such as the Central Bank of the UAE and SAMA require strong authentication, biometrics, continuous monitoring, and regular audits, forcing banks and fintech firms to invest in system upgrades, third-party security assessments, and skilled cybersecurity personnel, increasing annual compliance costs.

Integration with legacy IT systems remains another cost-intensive barrier, as many public and private institutions require customized development to ensure interoperability with modern digital identity platforms. Ongoing expenses related to software maintenance, employee training, and regulatory reporting further increase the total cost of ownership.

Although digital identity solutions are essential for secure digital transformation, elevated implementation and compliance costs can delay adoption, especially among SMEs, thereby moderating short-term market growth despite strong long-term demand.

GCC Digital Identity Solutions Market (2026-32) Segmentation Analysis:

The GCC Digital Identity Solutions Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Solution Type

• Identity Verification Solutions
  • Document Verification
  • Biometric Verification
    • Fingerprint
    • Facial Recognition
    • Iris / Retina
    • Voice Recognition
    • Behavioral Biometrics
  • Database / Credential Validation
  • Knowledge-Based Authentication (KBA)
  • Two-Factor / Multi-Factor Authentication (2FA/MFA)
  • Other Identity Verification Methods
• Authentication Solutions
  • Passwordless Authentication
  • Token / Smart Card Authentication
  • One-Time Password (OTP) Authentication
  • Biometric Authentication
    • Fingerprint
    • Facial
    • Voice
    • Behavioral
  • Risk-Based Adaptive Authentication
  • Cryptographic Authentication
• Identity and Access Management (IAM)
  • Role-Based Access Control (RBAC)
  • Privileged Access Management (PAM)
  • Single Sign-On (SSO)
  • Access Governance
  • Directory Services
  • Identity Lifecycle Management
• Biometric Solutions
  • Fingerprint Biometrics
  • Facial Recognition
  • Iris Recognition
  • Voice Biometrics
  • Behavioral Biometrics
  • Multi-Modal Biometric Systems
• Identity as a Service (IDaaS)
  • Cloud-Hosted Identity Platforms
  • Federated Identity Services
  • Managed Identity Services
• Fraud & Risk Analytics Solutions
  • Risk Scoring Engines
  • Fraud Detection Platforms
  • Anomaly Detection Systems
  • Threat Intelligence Integration
• Blockchain & Decentralized Identity (DID) Solutions
  • Self-Sovereign Identity (SSI)
  • Decentralized Identifiers (DIDs)
  • Verifiable Credentials (VCs)
  • Blockchain Identity Platforms
• Identity Governance & Administration (IGA)
  • Policy Management
  • Role Certification
  • Access Reviews
  • Compliance Reporting
• Other Digital Identity Solutions

The identity verification solutions segment holds the largest share of the GCC Digital Identity Solutions Market, around 38%, reflecting its critical role in establishing trust at the first point of user interaction.

Organizations across banking, fintech, government, telecom, and healthcare increasingly prioritize identity verification to prevent fraud, comply with KYC/AML regulations, and enable secure digital onboarding. The dominance of this segment is driven by rising reliance on document verification, biometric verification (fingerprint, facial, iris, voice, and behavioral biometrics), and database/credential validation to authenticate users remotely and in real time.

As digital transactions and remote service access expand, enterprises require robust verification mechanisms to mitigate identity theft, synthetic fraud, and impersonation risks. Regulatory mandates across financial services and government e-platforms further reinforce adoption, as accurate identity proofing is essential before granting system access or delivering services.

Additionally, advancements in AI-driven biometrics and liveness detection have improved verification accuracy and user experience, accelerating enterprise deployment. The growing use of identity verification in digital banking, e-government portals, travel, and telecom onboarding continues to solidify this segment’s leadership position in the overall market.

Based on Deployment Mode

• On-Premises
• Cloud / Hosted
• Hybrid

The on-premises category leads the GCC Digital Identity Solutions Industry, accounting for 48% market share, primarily due to strong security, compliance, and data sovereignty requirements across government agencies, financial institutions, and large enterprises. Many organizations prefer on-premises solutions to maintain full control over sensitive identity data, authentication systems, and access policies, reducing exposure to external cyber risks and third-party dependencies.

Regulated sectors such as banking, defense, and public administration often mandate that identity and biometric data be stored and processed within national or organizational boundaries, making on-premises deployment the preferred option.

Additionally, legacy IT environments and mission-critical systems are more easily integrated with on-premises identity platforms, ensuring low latency, higher customization, and uninterrupted system availability. Concerns over cloud security, compliance audits, and data residency laws further reinforce this preference.

Despite growing cloud adoption, on-premises solutions remain dominant where security assurance, regulatory compliance, and operational control are top priorities, sustaining their leadership in the deployment mode segment.

GCC Digital Identity Solutions Market (2026-32): Regional Projection

The GCC Digital Identity Solutions Market is dominated by Saudi Arabia, which holds a commanding 36% market share, driven by large-scale government digitalization initiatives and strong regulatory backing.

Under Vision 2030, the Kingdom has aggressively expanded e-government services, digital payments, and smart city programs, all of which rely heavily on secure digital identity frameworks. Platforms such as Nafath (Unified National Access) and Absher have enabled centralized, secure access to hundreds of government and private services, accelerating nationwide adoption.

The financial sector further strengthens Saudi Arabia’s leadership, as banks and fintech firms are mandated by the Saudi Central Bank (SAMA) to implement strong customer authentication, biometric verification, and advanced e-KYC processes.

Additionally, rising cybersecurity threats and fraud risks have pushed enterprises to invest in robust identity verification and access management solutions. High digital literacy, a large population base, and sustained public-sector funding for cybersecurity and digital infrastructure collectively position Saudi Arabia as the dominant market within the GCC digital identity landscape.

Gain a Competitive Edge with Our GCC Digital Identity Solutions Market Report 

• GCC Digital Identity Solutions Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions. 
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition. 
• GCC Digital Identity Solutions Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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