Agency confidence is growing in the MENA region, with creativity and innovation the key drivers of growth. That's according to to PRCA MENA's Growth Pulse Report 2026.
Developed in partnership with Sprint Partners and YouGov, the report surveyed 241 responses from agency and in-house leaders across 19 MENA countries, providing a snapshot of revenue trends, profitability, investment priorities, new business activity, and the strategic capabilities shaping growth in 2026.
Key Highlights:
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Agency confidence is rising, with 68 per cent expecting revenue growth in 2026, up from 56 per cent who reported growth in 2025, and nearly one in five projecting gains of more than 20 per cent.
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Cost pressure remains high, with nearly half of agencies reporting higher compensation-to-revenue ratios in 2025, which shows that staff costs are still rising faster than revenue for many firms.
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Creativity and innovation is the leading growth driver,rated as critical by 81 per cent of respondents, followed closely by strategicadvisory (80 per cent) and IP, POV and purpose (79 per cent).
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AI investment is accelerating, with agencies planning a higher spend in 2026, especially within the $250k-$500k range. This signals a move from experimentation to scaled adoption, according to the report.
- Social media engagement (46 per cent), influencer marketing (42 per cent) and public relations (37 per cent) are the top three areas where in-house teams plan to run new agency pitches in 2026.
What this means for PR agencies in MENA
Build a distinctive value proposition, amplified by thought leadership
As downstream services become commoditised, agencies need to articulate a bold, clearly differentiated value proposition to stand out, backed by visible thought leadership.
Fuse advisory with standout creativity
AI-driven execution alone won’t differentiate agencies; the edge will come from combining original strategic advisory with distinctive creativity. This creates an opening for independent firms that can attract senior talent and move faster than large networks. The report also believed that the strongest agencies will blend sharp thinking with memorable ideas, rather than relying on strategy or creativity alone.
Lead AI through platforms, products and advisory services
AI needs to evolve from standalone tools into platforms, products and advisory frameworks. Early adopters in areas such as Generative Engine Optimisation (GEO) will have a first-mover advantage.
Make insight, data and measurement a strategic growth lever
The study said that agencies must elevate insight, data and measurement beyond reporting. Outcome-based evaluation and clear ROI measurement are becoming essential for building trust and sustaining long-term client partnerships.
Rethink integration through partnerships, not scale
The report also mentioned that especially for independent agencies, smart alliances and affiliate models provide a cost-efficient way to handle complex briefs without weakening culture.
Read more on the latest PR / Comms research across Asia Pacific and the Middle East
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