Ride the Wave
The global size of the subscription economy is predicted to grow to $1.5 trillion by 2025, more than double its $650 billion value in 2021, according to UBS1. “With an average annual growth rate of 18% by 2025, the subscription economy would be one the of fastest-growing industries globally for investors positioning for structural growth,” according to the source. The latest Subscription Economy Index (SEI) report shows that subscription-based companies experienced a growth rate that is 3.7 times faster than the S&P 500 over the past 11 years.“A subscription model offers a foundation of revenue predictability, lower cost of entry, and longer-term customer relationships,” Deloitte wrote. “To move to a subscription model is to acknowledge that the preference of what, when, and how customers engage is theirs. To thrive in a subscription environment is to be focused on deepening and nurturing customer relationships” according to Deloitte.But how can we address this market correctly on the consumers' terms? When consumers open a subscription, they know exactly what they are getting: a product or service delivered on a regular, predictable schedule. But it's not just consumers who benefit – businesses also enjoy steady income streams, improved cash flow, and enhanced financial stability. By interacting with clients on a predictable, repeated time scale, companies can develop personalized relationships, leading to higher retention rates and increased customer lifetime value.
Global Phenomenon, MENA Advantage
The global size of the subscription economy is predicted to grow to $1.5 trillion by 2025, more than double its 2021 value, according to UBS. With an astonishing 18% annual growth rate by 2025, the Subscription Economy is set to become one of the fastest-growing industries globally, offering unparalleled opportunities for investors.In the MENA region, improvements to e-commerce and digital payment infrastructure have paved the way for the subscription economy's remarkable growth. Leading the charge are the UAE, Egypt, and Saudi Arabia, with B2B software as a service dominating the market. The healthcare, entertainment, and e-commerce sectors are also expected to witness significant growth. Subscription-based boxes and direct mobile billing are on the rise too.
Explore the Possibilities
Our comprehensive report introduces you to the endless opportunities in the Middle East's thriving Subscription Economy. Discover how to leverage recurring revenues, deepen customer relationships, and navigate the dynamic landscape of subscriptions in the region.