Booming Mobile Market in the Middle East

Any discussion of telecoms in the Middle East must first touch on the huge disparity among the countries. The region includes the tiny countries of Bahrain, with population of only 700,000 and land area of 660 sq km, compared with Iran, with land area of 1.7 million sq km and a population of nearly 70 million. There is similar economic disparity, from Yemen, with GDP per capita of less than US$700, to extremely wealthy Qatar, with GDP per capita nearly one hundred times that amount.

Common to all countries are large household sizes compared with the developed world. In Saudi Arabia half the population is under the age of 20. Such factors must always be accounted for when considering penetration statistics.

Given this background the Middle East's mobile market continues to boom, with both high average penetration levels and growth levels. By end-2007 all countries in the region will have at least two mobile operators, with Qatar the last to issue a second licence.

Average mobile penetration across the region has reached over 70%, with annual growth averaging 37%. Mobile penetration levels in Israel and the smaller Gulf countries are amongst the highest in the world in with Oman and Saudi Arabia experiencing fast growth.

Mobile subscribers, penetration and growth in selected Middle East countries - 2006

Country	Mobile subscribers (million)	Penetration	Annual growth
Jordan	4.17	70%	33%
Kuwait	2.53	103%	6%
Lebanon	1.09	28%	9%
Oman	1.82	65%	34%
Qatar	0.92	115%	35%
Saudi Arabia	20.07	74%	49%
Syria	4.57	24%	54%
Turkey	61.66	73%	19%
UAE	5.5	134%	21%
Yemen	3.05	14%	47%

Mobile operators in the region have rapidly expanded outside their own market by buying both established operators and new licences in the Middle East, Africa and West Asia.

Broadband penetration levels are also high in Israel and the smaller Gulf region countries. Broadband services, chiefly DSL, are available in every country in the region. Other broadband access technologies are available in various Middle Eastern countries, including cable modems, wireless broadband (WiFi, WiMAX and satellite Internet) but are considerably less significant in terms of user uptake.

High oil prices have spurred both GDP growth and telecoms development but increased the disparity between countries in the region.

Liberalisation and competition are also invigorating telecoms markets but again with exceptions. Most fixed-line incumbents remain majority government-owned but greater liberalisation and competition are impacting the market in a positive manner. Identifying the critical role of telecommunications in economic development, governments are making significant investments. More technologically diverse services are becoming available to businesses and consumers alike and private companies are taking the lead in the provision of services such as Internet access and mobile telephony.

For more information, see BuddeComm's:
2007 Telecoms, Mobile and Broadband in The Middle East Gulf region report
2007 Telecoms, Mobile and Broadband in The Middle East - Mediterranean & Levant countries
2007 Middle Eastern - Convergence, Broadband and Internet Market
2007 Middle Eastern Mobile Communications and Mobile Data Market
2007 Middle Eastern - Telecoms Statistics and Market Overview report
2007 Middle East - Telecoms Statistics - tables only report

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