GCC events market shifts gears as projects are postponed, not cancelled
While headlines may point to delays and reduced activity, the underlying pipeline remains active—albeit with longer planning cycles and more deliberate decision-making, reveals Tyler Davis-Smith, founder and CEO of Energie Entertainment
28 April, 2026
TT
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The GCC’s events and entertainment industry is no stranger to volatility. From pandemic-era shutdowns to shifting geopolitical dynamics, the sector has repeatedly demonstrated its ability to adapt, recalibrate, and rebound.
Today, as uncertainty once again shapes market conditions, the narrative is not one of decline—but of cautious recalibration.
For Tyler Davis-Smith, founder and CEO of Energie Entertainment, the current moment reflects a market that is adjusting its pace rather than losing momentum.
“What we are seeing across the GCC at the moment is not a drop in intent, but more of a shift in timing,” he says. “Projects are still moving forward, just at a significantly slower pace.”
That distinction is critical. While headlines may point to delays and reduced activity, the underlying pipeline remains active—albeit with longer planning cycles and more deliberate decision-making.
“Planning cycles are stretching out and decisions are being made more carefully,” Davis-Smith explains. “Thankfully, as it stands, it’s less about cancellations and more about reshuffling timelines, with around 80 per cent of projects being postponed rather than scrapped altogether.”
A market defined by postponements, not cancellations
Across the GCC, the shift from cancellations to postponements is reshaping how agencies operate. Rather than losing business outright, companies are navigating extended timelines, increased uncertainty, and more complex coordination requirements. For Energie Entertainment, which launched during the Covid-19 pandemic, operating in uncertain conditions is not new.
“We actually launched Energie Entertainment during the Covid-19 pandemic, so working in uncertain conditions is something we are very experienced in, fortunately,” Davis-Smith says.
This early exposure to disruption has shaped the company’s operating model, embedding flexibility into its core processes. “That has helped us stay agile in how we deliver today, we have built flexibility into our processes from the start, which means we can keep things moving even when timelines shift due to last minute changes – It is part of our job really.”
The result is an organisation designed to absorb volatility—whether through modular production planning, adaptable supplier relationships, or dynamic project timelines.
At the same time, activity remains strong in key segments. “There is still strong activity in certain sectors, especially government and real estate, where events remain an important way to keep visibility and momentum going,” he notes.
As projects are pushed back rather than cancelled, the immediate impact is being felt in planning cycles and operational workflows.
“What we are seeing is that this shift towards postponements is naturally stretching out planning cycles,” Davis-Smith explains. “Things just take a little bit longer, there is more scenario planning involved and closer coordination across stakeholders to make sure everything is ready, whatever the timeline ends up being.”
This extended timeline introduces new complexities. Agencies must now plan for multiple potential scenarios, maintain supplier readiness over longer periods, and ensure that quality is preserved regardless of when an event ultimately takes place.
“From an operational point of view, it means building flexibility into every stage, from working with suppliers through to production schedules,” he adds.
On the financial side, the shift is less about cost-cutting and more about disciplined spending.
“On the budget side, it is not so much about cuts, but being more intentional with spend and ensuring that the clients will see a good ROI for their spends,” he says.
This emphasis on return on investment (ROI) is reshaping client expectations—and, in turn, how agencies design and deliver experiences.
A more selective, ROI-driven client
Client behaviour across the GCC events sector is evolving in response to uncertainty. Flexibility, scalability, and measurable impact are now central to every project brief.
“Client expectations have definitely shifted,” Davis-Smith says. “There is a bigger focus now on flexibility, for obvious reasons, but without losing impact.”
This has led to the rise of modular event design—where concepts can scale up or down depending on external conditions without compromising brand presence.
“There’s a clear demand for entertainment concepts that can scale up or down depending on how things evolve, while still showing up strongly from a brand point of view,” he explains. “It has pushed us towards a more modular approach of designing and delivering entertainment proposals.”
At the same time, clients are becoming more selective in how they allocate budgets.
“Clients really want to see value for money on their investment,” he notes. “Clients are being more selective, choosing moments that really deliver in terms of visibility, engagement and overall brand positioning, rather than trying to do everything.”
Another notable shift is the increasing dominance of local clients.
“We are also seeing local clients, especially across government and real estate, playing a bigger role than international ones right now,” Davis-Smith says. “Local events are still very much happening, albeit fewer.”
These clients are using events strategically—to maintain visibility and signal confidence, even in quieter periods.
The ripple effect across hospitality and tourism
The slowdown in event activity is not happening in isolation. Its impact is being felt across the broader ecosystem, particularly in hospitality and tourism.
“The link between events and the wider hospitality and tourism sectors remains strong, but right now we are experiencing a noticeable slowdown,” Davis-Smith explains. “There are significantly fewer events taking place, largely due to reduced tourist activity.”
This has led to a temporary shift in how hotels and venues operate.
“Many hotels have moved into refurbishment mode during this quieter period, which is naturally impacting occupancy and overall demand,” he notes.
The cyclical nature of the ecosystem is becoming increasingly apparent. “Events drive tourism, tourism drives events, and both underpin hospitality performance,” he says. “When one softens, the effects are felt across the board.”
Despite this, key flagship events continue to play a stabilising role.
“Flagship moments like the Dubai World Cup… is a good example of how key events continue to generate movement across sectors, even if overall volumes are down,” he adds.
Looking ahead, the industry is already preparing for a rebound. “The wider market is clearly gearing up for a resurgence from September onwards,” Davis-Smith says.
With major events now pushed into the latter half of the year, agencies are focusing on managing the interim period effectively.
“The immediate focus across the industry has been on cash flow management and reducing outgoings wherever possible,” Davis-Smith says. This has led to a wave of internal restructuring across the sector. “Inevitably, we have seen the impact… with a number of companies implementing pay reductions and redundancies to manage the quieter period,” he notes.
At Energie Entertainment, however, the strategy has been different. “Our priority is to retain our full-time team,” he says. “We see that continuity as critical, particularly, with an expected surge of activity in Q3 and Q4 2026.”
This approach reflects a long-term view—prioritising readiness for the rebound over short-term cost savings.
At the same time, financial discipline within projects has become more critical. “There has also been a stronger emphasis on financial discipline within projects, ensuring advance payments are secured and that balance payments are made on time,” he explains.
Freelancers, however, are feeling the effects more acutely, as agencies rely more heavily on internal teams during quieter periods.
In uncertain times, growth strategies shift from delivery to positioning. For Energie Entertainment, this means focusing on relationships, visibility, and long-term opportunity.
“In periods like this, a lot of the focus shifts towards visibility, relationships, and long-term positioning rather than just immediate delivery,” Davis-Smith says. The company’s growth model has been rooted in organic client relationships from the start.
“We started with one client, then another, then another – and that organic growth has been fundamental to where we are today,” he explains. Maintaining those relationships is now more important than ever. “So maintaining those relationships, staying present, and continuing to add value even in quieter periods is absolutely critical.”
At the same time, the slowdown is being used as an opportunity to invest internally. “This includes upgrading systems and processes to drive better efficiency and output, as well as investing in internal training to strengthen the team,” he says. The results of this approach are reflected in the company’s growth trajectory.
“From a performance perspective, we have seen strong and consistent growth since our launch, with overall growth of approximately 879 per cent from 2021 to 2025, and 62 per cent growth between 2024 and 2025, alone.”
A resilient outlook
Despite short-term disruption, the long-term outlook for the GCC events sector remains robust.
With projections pointing to a $120bn market by 2029, the fundamentals driving growth are firmly in place. “Ongoing investment in tourism, major developments and world-class infrastructure is continuing to drive demand for events across the region,” Davis-Smith says. These investments are part of broader national strategies to position the GCC as a global hub for business and leisure.
“Government support has also played a big role in creating a stable environment for businesses to operate in,” he notes. The interconnected nature of the events ecosystem further reinforces its importance.
“Because events are so closely tied to sectors like tourism, real estate and aviation, there is a real underlying need for the industry to keep growing,” he adds.
With a surge of postponed events expected to return in late 2026, preparation is now the industry’s top priority.
“Preparation is everything right now,” Davis-Smith says. “With a wave of postponed events likely to come back around the same time… it is going to be all about managing capacity, timelines and resources carefully.” This requires proactive planning and strong supplier relationships.
“Planning ahead, keeping strong relationships with suppliers, and having a clear well-structured approach of working so delivery stays seamless, even under pressure,” he explains.
Equally important is how companies use the current period.
“Businesses that use this period as a time to get ahead, rather than hit pause, will be in the strongest positioned when demand picks up again,” he says.
For Energie Entertainment, the focus is clear. “At Energie Entertainment, we are really looking forward to a busy Q3 and Q4 ahead.”
