ViM Ahmad Abu Hantash
The path to reinvention
Remember Iridium? In 1999, the Motorola-backed satellite phone company filed for bankruptcy after spending US$5 billion to build and launch a constellation of satellites designed to deliver global wireless service.1 This was a company that had once been a star on Wall Street – its stock price had tripled in less than a year, and with more than 1,000 patents – it appeared poised to secure a first-mover advantage in the global telecom industry.2 The failure, however, wasn’t about a lack of innovation. It was more about timing. The technology was revolutionary, but the market and supporting infrastructure simply weren’t ready.
Today, satellites and satellite internet have shifted from experiments to critical infrastructure, powering the future of global connectivity. Ventures like Elon Musk’s Starlink underline just how vast the opportunity has become today as regional carriers explore adding the service across their fleets.3
The story of Iridium is far from unique. Businesses today operate in a landscape defined by complexity and constant disruption - from technological advances to climate risks, trade volatility and shifting geopolitical dynamics. In this environment, reinvention is not just a choice; it’s a strategic imperative. However, the path to reinvention is rarely straightforward and a single misstep can lead to substantial value loss.
History offers a cautionary tale. Companies that moved too early, or too late, have seen their values eroded. In fact, 89% of the Fortune 500 companies listed in 1955 are no longer on the list today.4 Recent PwC research also indicates this challenge - only 58% of companies globally believe they adapted their business model at the right time, others said they moved either too early or too late.5
When it comes to reinvention, timing is a decisive factor that determines success – and failure. Nowhere is this more relevant than in the Middle East, where the coming decade promises transformation on an unprecedented scale, driven by a wave of innovation and industry reconfiguration. With future-forward government strategies, particularly in emerging technologies, economic diversification and regional diplomacy – the region is not only strengthening its economic foundations but also emerging as a global leader in climate action and tech innovation. And if it continues to accelerate AI adoption and lead the energy transition, its real GDP could reach up to US$4.68tn in the next decade.6
In the region, traditional sectors are already reconfiguring, leading to the formation of economic “domains of growth” that meet fundamental human needs – such as how we make, build, move fuel, feed and care for ourselves – in entirely new ways. These shifts promise massive pools of value for a range of organisations and businesses across sectors. For business leaders, this presents huge opportunities to think of new ways to create, deliver and capture value, but also a strategic dilemma: what would be the right time to reinvent?
Because move too soon (or too late) and you’ll likely destroy value.
Understanding the Reinvention Pressure Index
To understand the right time for reinvention, PwC researchers have developed the Reinvention Pressure Index – a set of indicators that assess the pressure on business within a sector compared to its historical average over the past 25 years.7 It is calculated using six core drivers, each of which contributes to the overall pressure in different ways. The index score reflects how far current conditions deviate from the historical average, showing where pressure is unusually high (or low) relative to the past two decades.
Performance:
Declining industry returns put pressure on businesses to adapt and sustain competitiveness and ensure survival.
Market attractiveness:
Rising attractiveness in an industry invites new entrants and motivates incumbents to reposition themselves to capture emerging value.
Innovation:
The emergence of new technologies or innovations enables businesses to access previously untapped sources of value.
Regulation:
Shifting regulatory environments compel companies to rethink their models and align with new compliance and value-creation standards.
Shock:
External shocks, such as pandemics, geopolitical events or economic crises — create sudden pressure to adapt to new conditions.
BMR intensity:
As more competitors within an industry adopt new business models, competitive pressure mounts on others to follow suit or risk falling behind.
According to PwC analysis, for around three quarters of sectors globally and in the Middle East, the pressure to reinvent - among other factors - is at or near a 25-year high. This is largely driven by performance and attractiveness, innovation and global shocks, such as the US tariffs, causing businesses to brace for higher costs, tighter margins and potential supply chain disruptions.8 PwC economists have identified US$7.1trn in revenue that’s up for grabs globally from reinvention in 2025 alone.
Adapt or lose
At the beginning of the year, 64% of GCC CEOs and 60% of Middle East CEOs we surveyed had indicated that their businesses must adapt within the next 10 years to remain viable – well above the global average of 41%. The sense of urgency is reflected in action: in the last five years, more than half of regional CEOs have launched new products and services, while 53% have expanded their customer base. Additionally, 43% have pursued partnerships, 39% explored new go-to-market channels and 34% introduced new pricing models.9
Yet in some sectors, progress remains uneven. Many businesses are still held back by legacy mindsets and outdated processes. The cost of inaction is rising fast.
PwC economists estimate that the US$300bn in value at stake across Middle East industries in 2025 signals mounting reinvention pressures that will accelerate transformation across sectors over the next decade.
For organisation and business leaders, the critical questions are clear: Are you well positioned to reinvent? Are you making the right moves today to prepare for tomorrow? How do you set yourself up appropriately in order to do that?
In this paper, we examine sectors under pressure to understand the value at risk, and the four strategic levers for governments and businesses to capture the trillions of dollars of value in motion. Leaders who embrace these imperatives will not only ignite growth today but also shape a future where the region moves from consumer to creator, builds resilience and solidifies its position as a global innovator and leader.
The winners of the next decade will be those who act now.
Transformation accelerates as Middle East businesses reinvent for the decade ahead
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