Emerging technologies lead to sustained growth of telecom industry in Middle East

The global telecommunications industry is undergoing major transformations. Emerging technologies are changing the way telecoms operate and making the industry more resilient.
Although discussions about digital transformation seem to be dominated by large language models (LLMs) and artificial intelligence (AI) powered software and applications, all of this is underpinned by hard infrastructure – largely deployed by telecoms.
This is leading to sustained growth of the industry. The global telecommunications market is expected to grow to $2.65tn by 2030; the Middle East is no exception to this growth trend.
There are many opportunities in the Middle East to help drive sustainable transformation.
With the increasing adoption of IoT devices in various industries such as smart cities, healthcare, and transportation, telecom companies have tremendous prospects to explore and provide connectivity solutions and platforms to support the IoT ecosystem.
In an article, Bart Valkhof, Head, Information and Communication Technology Industry, World Economic Forum and Omar Adi, Partner Lead, Middle East & Africa, World Economic Forum noted the telecommunications industry in the Middle East is no exception to these trends.
For instance, the value of the telecom market in the Middle East is forecasted to increase by $20.57bn between 2021 and 2026.
Especially in the Gulf Co-operation Council (GCC) countries, telecoms leverage strong macroeconomic developments in domestic markets, and a relatively wealthy and tech savvy population to invest heavily in the deployment of 5G, offering a wide variety of services to consumers and businesses alike, and ultimately positioning themselves as important enablers of the digital transformation.
As a result, the average monthly mobile data usage per smartphone in the GCC will have been 30GB per smartphone at the end of 2023, ahead of North America and Western Europe, the World Economic Forum experts noted.
The deployment of 5G technology is pivotal to accelerating the shift from a customer-focused approach to a business-centric model and the Middle East has been at the forefront of 5G integration, with 61% of companies in the Middle East planning to invest in 5G-enabled campus networks.
The rise of 5G networks represents a seismic shift, allowing for seamless connectivity of a massive number of devices simultaneously, but also enabling unprecedented data speed, and low latency rate.
With 6G technology poised to revolutionise communications and connectivity, adoption plans are moving ahead with the UAE announcing launch for 2030.
Other technologies such as cloud computing, edge computing, and AI are also becoming integral components of telecom offerings, allowing businesses across industries to increase their productivity, predictive maintenance, and data-driven decision-making. Undoubtedly, the Middle East is witnessing a push towards digital transformation across industries. Many countries in the Middle East are investing in smart city projects.
Telecom companies play a crucial role in providing the necessary connectivity, cloud services, and cybersecurity solutions to support businesses in their digital journey.
Telcos that strategically position themselves in these areas can capitalise on the evolving market dynamics in the Middle East. However, it is also essential for them to stay abreast of regulatory developments, technological advancements, and changing consumer behaviours.