GCC Accounting Software Market Research Report: Forecast (2024-2029)

Market Definition

Accounting software refers to software that manages the financial transactions of an organization, which includes fixed asset management, accounts payable, accounts receivable, expense management, revenue management, sub-ledger accounting, reporting and analytics. A comprehensive accounting system effectively monitors an organization's assets, liabilities, revenues, and expenses.

Market Insights & Analysis: GCC Accounting Software Market (2024-29):

The GCC Accounting Software Market size is valued at around USD 121 million in 2024 is estimated to grow at a CAGR of around 8.9% during the forecast period, i.e., 2024-29. The GCC region has witnessed substantial digitalization due to government initiatives such as national strategies, funding programs, and regulatory frameworks, across various sectors such as financial services, healthcare, education, e-commerce, etc. As establishments in these sectors adopted digital tools and systems, the need for accounting software to streamline financial processes, automate transaction recording, and generate real-time financial reports surged which supported the growth of the market.

In addition, the rise of Fintech companies in the GCC region has also played a major role in the digitalization of financial services. For instance, according to the US-Saudi Business Council, through 2022, Saudi Arabia witnessed a 79% YoY increase in the number of Fintech firms. Hence, as Fintech firms offered solutions, such as online payment platforms, mobile banking, and digital wallets, it pushed traditional financial institutions to adopt solutions such as accounting software to manage and automate financial processes effectively.

Moreover, the countries in the region such as the UAE, Saudi Arabia, Qatar, etc., are now planning to further enhance the digitalization of the financial sector. For instance,

• In 2023, The Central Bank of the UAE introduced a FIT program aimed at expediting digital transformation in the financial services sector. This comprehensive initiative encompasses various initiatives, including open finance and the introduction of a new digital currency.

The promotion of open finance initiatives and the adoption of digital currencies would drive the growth of digital transactions.

GCC Accounting Software Market Driver:

Proliferation of Small & Medium-Sized Enterprises (SMEs) in the GCC Region Catalysing the Growth of the Market – The number of SMEs in the region showcased tremendous proliferation due to the healthy entrepreneurial ecosystem and supportive government measures. The countries such as the UAE, Saudi Arabia, etc., provided assistance in the form of business counseling, financial support & advice, technical support & guidance, etc., which led to the development of new SMEs in the region. According to Monsha’at, General Authority for Small and Medium Enterprises, the number of SMEs in Saudi Arabia jumped by 9.3% in the third quarter of 2022, and reached approximately 1 million, up from 892,063 in the second quarter. These SMEs needed scalable and compliant solutions to manage their financial processes which enhanced the demand for accounting software solutions across the region in the past few years.  

Furthermore, countries like Qatar, the UAE, Saudi Arabia, etc., are seeking to diversify their economies beyond traditional oil and gas industries, for which they have planned to expand the SME ecosystem in their countries for boosting entrepreneurial activities. In addition to this, these countries are also extensively supporting the digitalization of small and medium businesses through collaboration with IT firms.

Hence, as these SMEs would increase and expand, and undergo digital transformation, the demand for efficient financial management and accounting solutions would surge in the coming years as well.

GCC Accounting Software Market Opportunity:

Governments Plan to Expand Logistics Sector to Create New Opportunity for the Market Players– Countries in the region, including Saudi Arabia, the UAE, Oman, etc., actively strive to establish themselves as global logistics hubs connecting three continents. In pursuit of this goal, they are rapidly introducing new initiatives and measures to bolster the logistics sector. For instance,

• In 2022, the Saudi Ministry of Transport & Logistics Services (MOTLS) has laid out an ambitious strategy to expand the logistics sector market size to USD15.31 billion by 2030.
• In 2021, the Oman government laid out a project titled Tamayyiz, which is a “national indicators initiative” to upgrade the efficiency of the logistics sector.

In line with this, the region is witnessing a surge in warehousing and distribution centres, these facilities have a growing need for accounting software to manage order processing and invoicing procedures efficiently for their clients and customers. Thus, the growth of the logistics sector would open up new opportunities for companies offering accounting software to cater to the industry's unique financial needs and ensure compliance with regulations.

GCC Accounting Software Market Challenge:

Increasing Cyber Security Breaches to Restrict the Market Potentiality – The GCC countries have been rapidly embracing digital transformation in various sectors, including government, finance, healthcare, and energy. This significant expansion of digital infrastructure has left these sectors vulnerable to cyberattacks. Cybercriminals have become increasingly sophisticated, employing advanced malware, ransomware, and phishing campaigns. Consequently, instances of cyberattacks have seen a sharp increase.

According to a report from cybersecurity firm Group IB, more than 42 companies in the GCC region fell victim to ransomware attacks during the years 2021 and 2022. These attacks were distributed across the region, with 33% targeting companies in the UAE, 29% in Saudi Arabia, 21% in Kuwait, 10% in Qatar, 5% in Oman, and 2% in Bahrain. As a result, enterprises in the region are becoming increasingly concerned about the security of their financial data and sensitive information. The high-profile ransomware incidents have made them cautious about adopting new software solutions, including accounting systems software, without first ensuring the presence of robust cybersecurity measures.

GCC Accounting Software Market Trend:

Robotic Process Automation (RPA) in Accounting Waving New Trends – The GCC accounting software market is experiencing a significant surge in the integration of Robotic Process Automation (RPA), a cutting-edge technology that employs software robots or "bots" to automate repetitive and rule-based tasks in accounting processes. This trend has been driven by the increasing demand for efficiency and accuracy in financial operations. Account management outsourcing companies, including HLB HAMT and others across the region, have been actively embracing RPA and incorporating it into their service portfolio.

Moreover, companies like EBS Business Solutions that offer Robotic Process Automation (RPA) have witnessed a notable increase in the use cases of RPA in various accounting functions such as inter-company accounting, account reconciliations, cost and inventory accounting, and general ledger functions in recent years.

GCC Accounting Software Market (2024-29): Segmentation Analysis

The GCC Accounting Software Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment. It includes predictions for the period 2024–2029 at the regional level. According to the analysis, the market has been further classified as:

Based on Type:

• Spreadsheet
• ERP
• Custom Accounting Software
• Tax Management Software

Of them all, the ERP segment has registered the highest demand due to its comprehensive features and appeal to medium to large-sized enterprises. ERP integrates various business functions, including accounting and finance into a unified system owing to which it has been significantly adopted by the retail sector.

Further, among countries in the region, Saudi Arabia, the UAE, Qatar, etc., are the largest consumer market in the GCC. Owing to this, many retail companies such as Panda Retail Co (Savola Group), Abdullah Al Othaim Markets, Lulu Group International (EMKE Group), and Carrefour (USDA) have flourished in these countries. The expansion of the retail sector created a surge in demand for ERP accounting software, for managing various aspects of their operations, including sales, inventory, purchasing, and financial transactions.

Based on End User:

• BFSI
• IT & Telecommunication
• Automotive
• Retail & Consumer Goods
• Oil & Gas
• Manufacturing
• Healthcare
• Government & Public Sector
• Construction & Real Estate

Among them, the government & public sector which includes various government agencies, public institutions, and government-owned entities held a noteworthy share of the market. The government and public sector encompassed a wide range of services and activities, including education, healthcare, infrastructure development, defense, public utilities, and more. Each sub-sector within the government and public sector had unique accounting requirements, such as budgeting, fund allocation, project accounting, etc., owing to which they significantly adopted accounting software, which enhanced the market growth.

Furthermore, the government of countries in the region, such as the UAE, Saudi Arabia, Qatar, etc., are actively promoting digital transformation of the government sector. For instance,

• In 2022, the UAE government launched, the “UAE Digital Government Strategy 2025”, which aimed to merge digital aspects into overall government strategies to modernize government agencies by improving the efficiency of government services and customer service.

Henceforth, the growing government initiatives to modernize the public sector through digitalization would further enhance the adoption of accounting software in the coming years.

GCC Accounting Software Market (2024-29): Country Projections

Geographically, the GCC Accounting Software Market expands across:

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

Saudi Arabia has registered substantial growth due to the country's economic diversification efforts aimed at reducing dependency on oil revenues and promoting non-oil sectors. These strategic initiatives have led to the growth of various industries such as pharmaceuticals, hospitality, manufacturing, etc. As the establishment in other sectors surged, it led to the growth in demand for advanced accounting software to manage financial operations efficiently across the country.

Furthermore, in line with its economic diversification plans, the government has launched several initiatives, under which the companies started investing for their expansion purposes. For instance,

• In 2022, Saudi Arabia initiated USD 51.2 billion in investments through local companies like Aramco, SABIC, and Ma'aden as part of the government-backed Shareek program. The program aims to diversify the economy away from oil by 2030.

Owing to this, industrial activities in sectors such as petrochemicals, manufacturing, pharmaceuticals, etc., would spur. With the rapid expansion of businesses in these sectors, a pressing need for advanced accounting software to efficiently manage their financial operations would enhance.

GCC Accounting Software Industry Recent Development:

• 2023: Infor Inc. revealed that NEFC Group, a prominent UAE-based holding company, has successfully implemented Infor M3, a robust enterprise resource planning (ERP) system designed specifically for equipment-focused businesses.
• In 2023, Zoho Books announced the launch of new corporate tax features in Zoho Books, with the aim to automate Corporate Tax compliance and gain better visibility into their tax filings. The new features launched in Zoho Books will provide business entities with automated tax calculations to ensure timely and accurate tax filing.

Gain a Competitive Edge with Our GCC Accounting Software Market Report

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