The Mobile

Economy
Middle East
& North Africa
2023
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Contents
Executive summary 2

1. The mobile industry in numbers 10

2. Mobile industry trends 25

2.1 5G: the next wave 26

2.2 Operators look to monetise tower assets 29

2.3 Consolidation: GCC telcos turn to European counterparts 31

2.4 The shift to circularity gathers momentum 33

Regulatory enablement and fintech hubs fuel the

2.5 35
progress of fintech

3. Mobile industry impact 37

3.1 Operators accelerating adoption of smart city solutions 38

3.2 Mobile's impact on the SDGs 39

4. Mobile industry enablers 42

Executive
summary

The Middle East and North Africa (MENA) is home to contribution to the funding of the public sector, with
some of the global leaders in terms of 5G adoption, $20 billion raised through taxation in 2022. This
reflecting the ambitious rollout plans of operators, economic contribution underlines the importance
backed by enabling regulations and strong demand of stakeholders taking the right steps to sustain the
from consumers for new services. 5G networks now impact of mobile services on the digital economy,
cover 75% or more of the population in the GCC with spectrum availability a key driver of affordable
states, with operators in those markets increasingly 5G for all.
shifting focus to improving 5G coverage in less
Meanwhile, mobile connectivity continues to serve as
densely populated areas while also ramping up
a lifeline for society, helping people and businesses
investment to support the growing momentum
to stay connected during challenging periods. This
behind use cases enabled by 5G standalone (SA) and
was particularly evident across the MENA region
5G-Advanced.
in 2023 as several countries in the region grappled
5G connectivity is already proving to be a powerful with various humanitarian crises due to conflicts and
driver of GDP growth, with 5G’s contribution to GDP natural disasters. Mobile operators have also been at
in MENA expected to reach just under $60 billion in the forefront of response efforts, offering free calls to
2030 (13% of the overall annual economic impact of help people stay in touch, enabling innovative rescue
mobile in the region). Beyond its contribution to GDP, solutions and providing relief materials for the most
the mobile ecosystem also supports over 800,000 vulnerable.
jobs (directly and indirectly) and makes a substantial

Executive summary 2 / 45
Key trends shaping the
mobile ecosystem
5G SA and 5G-Advanced will be at the The shift to circularity gathers
heart of 5G’s next phase momentum
By September 2023, six operators in MENA had In response to escalating concerns regarding
already rolled out 5G SA networks, contributing to the generation of e-waste and the unsustainable
15% of the global total. Operators in MENA have depletion of natural resources, the concept of
also begun planning for 5G-Advanced. The use circularity has surged to the forefront of the agendas
case for 5G-Advanced is straightforward: to enable for policymakers and industry stakeholders. This
5G to support new market demands while waiting amplified focus on sustainability is particularly
for the arrival of 6G. 5G SA and 5G-Advanced will evident in view of the region's role as the host for
help operators to serve consumer and enterprise the 2023 United Nations Climate Change Conference
customers more flexibly. The adoption of private (COP28) in Dubai. Governments and industry
5G networks, meanwhile, has been slower in MENA participants in the region are taking proactive
compared with other regions, but there is growing measures to establish new channels and suppliers
evidence that this is starting to change. dedicated to collecting, refurbishing and reselling
devices and network equipment.

Operators look to monetise tower

assets Regulatory enablers and innovation
The majority of tower assets have traditionally hubs fuel fintech growth
remained in the hands of mobile operators in MENA has experienced a significant surge in
MENA. However, following STC’s creation of Tawal fintech services, driven by increased investments
in 2019, the first tower company in Saudi Arabia, and regulatory enablement. Regulatory sandboxes
an increasing number of operators in MENA have and dedicated fintech hubs have been important
embarked upon infrastructure reshuffling, including contributors to this, with digital payment solutions
the monetisation of underutilised tower assets. gaining prominence in recent years, including
Independent tower companies have been among contactless payments, open banking and buy now,
the main acquirers of operator sites, utilising multi- pay later (BNPL) services. Mobile operators are
tenancy to drive profitability. In other instances, actively involved in the fintech space, expanding
operators have spun off infrastructure in partnership access and inclusion for consumers and businesses
with private equity groups or issued IPOs for their through a variety of financial-services products and
tower assets. Tower sales and spin-offs enable partnerships with established fintech providers.
operators to reallocate capital towards areas with
higher growth prospects.

GCC telcos target stakes in European

counterparts International expansion
International expansion has been a core growth and has been a core growth
diversification strategy for GCC telcos looking for and diversification
opportunities to scale up and drive new revenue
and subscriber growth. Historically, GCC operators
strategy for GCC telcos
had bet big on emerging markets across South Asia, looking for opportunities
Southeast Asia, Sub-Saharan Africa and other parts to scale up and drive
of MENA. However, recent developments suggest
a growing interest in long-established European
new revenue and
operators. e& and STC are leading the charge, having subscriber growth
made several high-profile deals and announcements
since early 2022. The strategic rationale lies in the
potential to become global players in the TMT space,
both in terms of scale and innovation.

Executive summary 3 / 45
Key mobile industry
milestones to 2030
51% mobile internet 4G adoption goes 76% subscriber
20% 3G adoption
penetration below 50% penetration

4G adoption falls 4G adoption

24% 3G adoption 17% 3G adoption
to 58% falls to 38%

Over 420 million Subscriber penetration 506 million unique 58% mobile internet
4G connections crosses 70% subscribers penetration

2023 2024 2025 2026 2027 2028 2029 2030

Above 300 million 550 million unique

8% 5G adoption 20% 5G adoption
5G connections subscribers

83% smartphone 55% mobile internet 88% smartphone 50% 5G

adoption penetration adoption adoption

Above 400 million

Above 450 million 86% smartphone 90% smartphone
Mobile internet
unique subscribers adoption adoption
subscribers

Policies for growth and innovation

Spectrum harmonisation continues to play a key role By 2030, an average of 5 GHz of high-band spectrum
in the success of mobile networks. As spectrum is a (mmWave) per market will also be needed to
scarce resource, ensuring the timely availability of satisfy demand for different 5G use cases, including
prime bands should be a priority. 2 GHz of mid-band enhanced mobile broadband (eMBB), fixed wireless
spectrum (1–7 GHz) will be required per market, on access (FWA) and enterprise networks. More low-
average, by 2030 to ensure the 5G requirements band spectrum (below 1 GHz), which supports
of speed and quality of mobile. Mid-bands deliver coverage of wide and rural areas, can help 5G deliver
citywide capacity, and sufficient capacity is important digital equality. Adding 600 MHz to the low-band
for minimising network densification, keeping down portfolio can bring further economic growth to
both costs and carbon emissions. The 3.5 GHz band remote locations and drive higher speeds in rural
represents the birthplace of 5G, while 6 GHz will areas, lowering the divide between urban and rural
provide the expansion needed during this decade. areas.

Executive summary 4 / 45
The Mobile Economy
Middle East and North Africa
Unique mobile
subscribers

2022
415m 65% 77%

550m
2022 2030

2030 Penetration rate

Percentage of population
CAGR
2022-2030 3.6%

Mobile internet
users

2022
330m 51% 59%

425m
2022 2030

4.0%
2030 Penetration rate CAGR
Percentage of population 2022-2030

SIM connections 4G Percentage of connections

(excluding licensed cellular IoT) (excluding licensed cellular IoT)

2022
681m 2022
53%
2030
893m 2030
33%
Penetration rate
Percentage of population
106% 125%
2022 2030
5G Percentage of connections
(excluding licensed cellular IoT)

CAGR
2022
3%
50%
2022-2030

3.5% 2030
 Smartphones Licensed cellular
Percentage of connections
(excluding licensed cellular IoT)
IoT connections

2022
79%
51m
90%
2022 Total
connections

80m
2030

2030

Operator revenues
and investment

$66bn
Operator capex

$92bn
2022 Total
revenues

2030
$82bn 2023 2030

Mobile's contribution Public funding

to GDP

2022
$370bn 5.6% of GDP
2022 $20bn
$440bn
Mobile ecosystem contribution to
public funding (before regulatory
2030 and spectrum fees)

Employment

380,000 jobs 450,000

jobs
Directly supported by the mobile ecosystem in 2022 supported
indirectly
Subscriber and technology trends for key markets

GCC Arab states

3+13+6816Q 5+95+Q
Technology mix* Subscriber penetration
3% 5% 2022 81%
16% 13%

2030 89%

2022 2030 Smartphone adoption

2022 87%
68% 95%
2030 91%
2G 3G 4G 5G

North Africa

17+38+45Q 2+15+4241Q
Technology mix* Subscriber penetration
2%
17% 41% 2022 67%
45% 15%
2030 84%

2022 2030 Smartphone adoption

2022 82%
38% 42%
2030 91%
2G 3G 4G 5G

Other Arab states

47+37+16Q 28+36+2412Q
Technology mix* Subscriber penetration

16% 47% 12% 28% 2022 42%

2030 50%

24%
2022 2030 Smartphone adoption
2022 55%
37% 36%
2030 84%
2G 3G 4G 5G

Levant

30+51+19Q 2+30+5612Q
Technology mix* Subscriber penetration
2%
19% 30% 12% 2022 66%
30%
2030 77%

56%
2022 2030 Smartphone adoption
2022 85%

51% 2030 93%

2G 3G 4G 5G

* Percentage of total connections (excluding licensed cellular IoT)

Executive summary 8 / 45
Iran

14+13+703Q 1+3+2967Q
Technology mix*
3% 1% 3%
14% 2022 56%
67% 29% 2030 75%
13%
2022 2030 Smartphone adoption
2022 72%
70%
2030 87%
2G 3G 4G 5G

Israel

1+4+7421Q 9+91+Q
Technology mix* Subscriber penetration
1% 4% 9%
21% 2022 78%
91% 2030 88%

2022 2030 Smartphone adoption

74%
2022 89%

2030 94%
2G 3G 4G 5G

Turkey

6+4+90Q 32+68+Q
Technology mix* Subscriber penetration
6% 2022 83%
4% 32%
68%
2030 82%

2022 2030 Smartphone adoption

2022 87%
90%
2030 94%
2G 3G 4G 5G

Executive summary 9 / 45
01
The mobile industry
in numbers

The mobile industry in numbers 10 / 45

Unique mobile Mobile subscribers in MENA will reach 550 million by
2030, with North Africa accounting for nearly 45%

subscribers in
of new subscribers in the region between 2022 and
2030. In absolute terms, four countries – Algeria,

MENA will grow by

Egypt, Iran and Turkey – will have the highest number
of unique mobile subscribers. Together, they will

135 million by 2030

account for more than half of the regional total of
unique mobile subscribers by 2030.

Mobile penetration in MENA will reach 77% by

2030, higher than the global average of 73%. The
penetration levels vary widely, with the GCC states
having an average penetration rate of 89%, while
other markets, such as the Comoros, Djibouti and
Somalia, having penetration rates below 40%.

Figure 1
MENA: mobile subscribers and penetration
Million, percentage of population

77%
600

500
65%

400

300

200

100

0
2022 2023 2024 2025 2026 2027 2028 2029 2030

Source: GSMA Intelligence

The mobile industry in numbers 11 / 45

More than half of the Mobile internet penetration in MENA reached 51%
in 2022, narrowing the usage gap to 44%. The

population in MENA
availability of affordable data plans and the cheapest
internet-enabled handsets across low- and middle-

now subscribe to
income countries is driving the uptake of mobile
internet in the region.

mobile internet The MENA region has a young population that is

increasingly engaging with various online content,

services from gaming and video streaming to e-commerce

and social networking. Online content will be an
important driver of mobile internet adoption in the
region in the coming years.

Figure 2
Mobile internet penetration by region, 2022
Percentage of population

5% 5% 6% 4% 4% 15%

28%
38% 32%
47% 44%

59%

67% 62%
57%
49% 51%

25%

Global CIS Latin Asia MENA Sub-Saharan

America Pacific* Africa

Connected Usage gap Coverage gap

* Excludes China
Source: GSMA Intelligence

The mobile industry in numbers 12 / 45

5G will account for 5G is gaining momentum in MENA, with the launch
of new networks and the rapid expansion of existing

half of total mobile

networks. Jordan is the latest country in the region
to introduce 5G technology, following the launch of

connections in
commercial services by Umniah and Orange Jordan
in May 2023 and July 2023, respectively.

MENA by 2030 Despite the growing 5G adoption, 4G will remain

the dominant technology in the region in the
medium term, accounting for more than 50% of total
connections until 2026. Meanwhile, legacy networks
(2G and 3G) are on their way to being phased out.
Several countries have outlined plans to sunset
legacy networks and repurpose spectrum for 4G and
5G networks.

Figure 3
MENA: mobile adoption by technology
Percentage of total connections

70%

60%

50% 5G 50%

40%

4G 33%
30%

20%

3G 13%
10%

2G 4%
0%
2022 2023 2024 2025 2026 2027 2028 2029 2030

Source: GSMA Intelligence

The mobile industry in numbers 13 / 45

The GCC states are 5G rollout and adoption is growing rapidly in the
GCC states, which have now emerged as global

among the global

5G leaders. By 2030, average 5G adoption in the
GCC states will reach 95%, compared to the global

leaders in terms of
average of 54%. In these countries, 5G is set to play
a foundational role in the implementation of various

5G adoption
smart city initiatives.

5G adoption in the rest of MENA will lag behind the

global average by 10 percentage points by 2030. This
is partly due to the delay in the commercial launch
of the technology in several key markets, including
Turkey and countries in North Africa.

Figure 4
5G adoption in 2030
Percentage of total connections

Global average: 5G connections

54% (2030)

GCC states 95% 99m

Leading markets

Developed Asia Pacific* 93% 281m

North America 91% 447m

Greater China 88% 1.6bn

Europe 87% 638m

Latin America 55% 435m

Developing markets

Rest of MENA 44% 349m

CIS 41% 164m

Rest of Asia Pacific 36% 1.05bn

Sub Saharan Africa 17% 226m

* Australia, Japan, New Zealand, Singapore and South Korea

Source: GSMA Intelligence

The mobile industry in numbers 14 / 45

By 2030, there will By 2030, smartphone adoption will reach 90% in
MENA, just under the global average of 91%. The

be over 800 million

increase in smartphone connections is consistent
across the region, with the biggest increase in

smartphone
adoption levels coming from Arab states outside of
the GCC, such as Djibouti and Somalia.

connections in The availability of affordable devices and digital

awareness have been key in driving smartphone

MENA adoption in the region. The demand will increase with

the continual development of 5G and the expanding
use of digital technologies in daily life.

Figure 5
MENA: smartphone adoption
Percentage of total connections (excluding licensed cellular IoT)

Global
average
91% 91% 93% (2030): 91%
90%
87% 85%
82% 84%
79%

55%

MENA North Africa GCC states Other Arab Levant

States

2022 2030

Top three smartphone markets in MENA

(smartphone connections, 2030)

Iran Egypt Turkey

158 million 130 million 84 million

The mobile industry in numbers 15 / 45

Mobile data traffic in Mobile data traffic across the region will rise by 27%
because of increasing migration to 4G and uptake of

MENA will triple in

5G.

Everyday digital services, gaming apps, extended

the next five years reality and video are the major contributors to
greater data consumption. Over the past decade,
the Middle East, particularly the GCC states, has
witnessed a remarkable surge in the growth of
e-sports and gaming, transforming the region into a
thriving hub.

Global average

2022 16
Figure 6
Increase 2.9×
Mobile data traffic per smartphone
2028 47
GB per month

North America Western Europe GCC states Northeast Asia

2022 20 2022 20 2022 26 2022 18

Increase 2.9× Increase 2.8× Increase 2.3× Increase 3×
2028 58 2028 56 2028 59 2028 54

Sub Saharan Middle East and Southeast Asia

Latin America
Africa North Africa* and Oceania

2022 11 2022 4.7 2022 12 2022 15

Increase 3.7× Increase 4.0× Increase 3.1× Increase 3.6×
2028 41 2028 19 2028 37 2028 54
* Includes GCC countries
Source: GSMA Intelligence, based on Ericsson Mobility Report June 2023

The mobile industry in numbers 16 / 45

Licensed cellular IoT MENA will have 80 million licensed cellular IoT
connections by 2030. Turkey and Iran together will

connections will
account for more than half of these connections.
IoT connections will be boosted by growing 4G, and

grow by 29 million
eventually 5G, connections in the region, as advanced
connectivity will enable new use cases.

in MENA between 80% of operators in MENA deem IoT to be a 'very' or

'extremely' important success factor for their general

2022 and 2030 enterprise portfolio, second only in importance to

5G connectivity services.1 It therefore continues to
be a strategic area for operators to grow and invest
in. In May 2023, Ooredoo announced a strategic
agreement with Axon, a global leader in connected
public safety technologies, to bolster IoT connectivity
in MENA, specifically covering countries such as
Algeria, Tunisia, Jordan, Kuwait, Qatar, Oman, Iraq
and Bahrain.

Figure 7
MENA: licensed cellular IoT connections
Million

90

80

70
31%
60

50
22%
40

30

20 48%

10

0
2022 2023 2024 2025 2026 2027 2028 2029 2030

Rest of MENA Iran Turkey

Note: Totals may not add up due to rounding

Source: GSMA Intelligence

1. GSMA Intelligence Enterprise in Focus: Enterprise Opportunity Survey 2022

The mobile industry in numbers 17 / 45

Moderate revenue Revenue is expected to grow steadily in the region
as operators continue diversifying services. Services

growth in MENA
beyond core are becoming an increasingly important
part of the growth story for operators in MENA.

over the coming

Zain reported a 52% year-on-year uplift in digital
services revenue and 28% annual growth in B2B

years
revenues. Meanwhile, STC announced it will spend an
additional $300 million (on top of its original $500
million investment) on STV, a technology venture
capital fund aimed at accelerating innovation in Saudi
Arabia.

Amid growing 5G connections and investments in

network deployments, services beyond connectivity
(e.g. cloud and security) and service diversification
have become a strategic imperative for operators.

Figure 8
MENA: mobile operator revenue and year-on-year growth
Billion

$90 8.6% 9%

$80 8%

$70 7%

$60 6%

$50 5%
4.3%

$40 4%

$30 3%

$20 1.5% 2%

$10 1%

$0 0%
2022 2023 2024 2025 2026 2027 2028 2029 2030

Revenue Annual growth (%)

Source: GSMA Intelligence

The mobile industry in numbers 18 / 45

Operators will In MENA, capex levels will trend downwards as
operators focus on generating a return on investment

spend more than

after extensive 4G and 5G network buildouts.

Operators’ attention will soon shift towards

$90 billion on their extending 5G coverage while making investments to

support the growing momentum behind 5G FWA and

networks during use cases enabled by 5G SA.

2023–2030

Figure 9
MENA: mobile operator capex
Billion

$14 20%

17% 18%
$12
15% 16%

$10 13% 14%

12%
$8
10%

$6
8%

$4 6%

4%
$2
2%

$0 0%
2023 2024 2025 2026 2027 2028 2029 2030

Capex Capex as a percentage of revenue

Source: GSMA Intelligence

The mobile industry in numbers 19 / 45

In 2022, the mobile In 2022, mobile technologies and services generated
5.6% of GDP across MENA, a contribution that

sector added
amounted to around $370 billion of economic value
added. The greatest benefits came from productivity

$370 billion of
effects, which reached $300 billion, followed by
mobile operators, which generated $40 billion.

economic value to
the MENA economy

Figure 10
MENA: total economic contribution of mobile, 2022
Billion, percentage of GDP

$300 $370

Mobile
ecosystem
4.7%
5.6%

$10 $10
$40
0.2%
0.7% 0.1%

Mobile operators Rest of mobile Indirect Productivity Total

ecosystem

The mobile industry in numbers 20 / 45

At the end of the By 2030, mobile’s contribution will reach
approximately $440 billion, driven mostly by the

decade, mobile’s
continued expansion of the mobile ecosystem and
verticals increasingly benefiting from the

economic contribution
improvements in productivity and efficiency
brought about by the take-up of mobile services.

in MENA will reach

almost $440 billion
Figure 11
MENA: economic impact of mobile
Billion
$440

$370

2022 2030
Source: GSMA Intelligence

The MENA mobile Mobile operators and the wider mobile ecosystem
provided direct employment to around 380,000

ecosystem supported
people across MENA. In addition, the economic
activity in the ecosystem generated around

more than 800,000

450,000 jobs in other sectors, meaning that
around 830,000 jobs were directly or indirectly

jobs in 2022
supported.

Figure 12
MENA: employment impact of the mobile industry, 2022
Jobs (thousands)

450

830

380

Direct Indirect Total

Source: GSMA Intelligence

The mobile industry in numbers 21 / 45

In 2022, the fiscal In 2022, the mobile sector made a substantial
contribution to the funding of the public sector,

contribution of the
with around $20 billion raised through taxes on the
sector. This was mainly driven by services VAT, sales

mobile ecosystem
taxes and excise duties, which generated $10 billion,
followed by handset VAT, sales taxes, excises and

reached $20 billion

customs duties at $5 billion.

Figure 13
MENA: fiscal contribution of the mobile industry, 2022
Billion

$3 $3

$5
$20

$10

Services VAT, sales Handset VAT, sales Corporate taxes Employment taxes Total
taxes and excise taxes, excise and on profits and social security
duties customs duties

Note: Totals may not add up due to rounding

Source: GSMA Intelligence

The mobile industry in numbers 22 / 45

5G will add 5G is expected to benefit the MENA economy by
just under $60 billion in 2030, or more than 13% of

approximately
the overall economic impact of mobile. Much of the
5G benefit will materialise over the period to 2030,

$60 billion to the

as some countries are in still in the early stages of
deployment and 5G economic benefits will increase

MENA economy
as the technology starts to achieve scale and
widespread adoption.

in 2030

Figure 14
MENA: annual 5G contribution by industry
Billion

$60

$50

$40

$30

$20

$10

$0
2022 2023 2024 2025 2026 2027 2028 2029 2030

Services (public administration, finance, healthcare, education) Manufacturing ICT

Utilities management, construction, oil and gas, agriculture Retail Other

Source: GSMA Intelligence

The mobile industry in numbers 23 / 45

The benefits of 5G in 5G is expected to benefit most sectors across
the MENA economy, depending on their ability to

2030 will focus on

incorporate 5G use cases in business. In 2030, 48% of
benefits are expected to originate from the services

the services and

sector and 35% from manufacturing, driven by
applications such as smart factories, smart cities and

manufacturing
smart grids.

sectors

Figure 15
MENA: 5G contribution by industry, 2030
Percentage of total benefit

Utilities management,
construction, oil and 10%
gas, agriculture

ICT 7%

Services (public
administration,
48%
$59bn finance, healthcare,
education)

Manufacturing 35%

Source: GSMA Intelligence

The mobile industry in numbers 24 / 45

02
Mobile industry
trends

Mobile industry trends 25 / 45

2.1
5G: the next wave
At the end of November 2023, 23 mobile operators in helped by the minimum speed guarantees it offers
nine markets across MENA had launched commercial on 5G FWA plans. By 2030, three out of the 10 most
5G services. With 5G adoption surpassing 20% in penetrated 5G FWA markets globally will be in the
six of these countries (Bahrain, Israel, Kuwait, Qatar, Middle East, namely Saudi Arabia, Bahrain and the
Saudi Arabia and UAE), the focus is shifting towards UAE. 3
5G monetisation as operators seek returns on
Beyond FWA, 5G is helping operators in MENA
significant capital outlays.
create new revenue streams by bundling a wider
FWA remains the dominant 5G use case in MENA. range of content and services with their mobile
Several operators in the region have put 5G FWA subscription plans. Partnerships are the most likely
at the centre of their 5G expansion strategies. 2 For route for this expansion (e.g. Zain’s agreement with
example, Zain Saudi Arabia’s 5G FWA service is Nvidia to resell its GeForce Now cloud gaming
offered over the same network grid as its 5G mobile service). In the enterprise segment, smart cities are a
service, allowing the operator to target households key opportunity for operators in the region. 5G is the
in urban, suburban and rural areas. The operator has connectivity framework for the future of smart cities,
made good progress in gaining subscribers in areas helping operators to offer services in adjacent areas
where customers are reliant on DSL connections, such as data platforms.4

North Africa awaits its first 5G commercial launch

North African operators have been trialling • November 2022: Algerian mobile operator
5G networks and announcing new network Djezzy announced that it has tested 5G
vendor partnerships in preparation for launching services in partnership with Huawei and Nokia.
commercial 5G services, such as the below: Connection speeds exceeding 1.5 Gbps were
demonstrated in Algiers, Oran and Annaba.7
• May 2023: Tunisia’s Minister of Communication
Technologies announced Tunisia is planning Despite growing momentum behind 5G in North
the commercial launch of 5G services for Africa, commercial 5G services remain absent
2024. 5 This follows demonstrations of 5G from the region. This reflects the challenging
services carried out by Tunisie Telecom at the spectrum situation facing operators. To date, 5G
Francophonie Summit. spectrum has not been assigned in any North
African country, limiting the scope for operators
• March 2023: Nokia was chosen by Ooredoo
to deploy commercial 5G services. Improving
Group to upgrade its current RAN infrastructure
the availability of spectrum for 5G deployments
and deploy new sites in Algeria and Tunisia.
should be a priority for policymakers in North
The partnership aims to improve network
Africa to unlock the full potential of mobile
performance and help Ooredoo to prepare for a
technology in the region.
launch of 5G services in the future.6

2. 5G FWA in action: Case Studies from MENA, GSMA Intelligence, 2022

3. 5G FWA on the rise: state of the market, new developments and outlook through to 2030, GSMA Intelligence,2023
4. “Orange plots next gen smart city with Saudi deal”, Mobile World Live, September 2023
5. “Tunisia aiming for 5G launch in 2024”, CommsUpdate, May 2023
6. “Nokia selected by Ooredoo Group to deploy 5G-ready network in Algeria and Tunisia”, Nokia, March 2023
7. “Djezzy tests 5G with Huawei, Nokia; plans further work with ZTE”, CommsUpdate, November 2022

Mobile industry trends 26 / 45

5G SA and 5G-Advanced will be at the heart of the next phase of 5G
As of June 2023, six operators in the MENA region 5G-Advanced started to gain mindshare from
had already rolled out 5G SA networks, contributing the second half of 2021, in tandem with the 3GPP
to 15% of the global total of 5G SA networks. 5G SA finalising the RAN feature set for 5G-Advanced in
deployments have been concentrated in the GCC Release 18. This trend has been particularly evident
states, specifically Bahrain, Kuwait, Saudi Arabia and in the MENA region, where several operators have
the UAE. The next stage of 5G SA expansion will begun planning for 5G-Advanced (see Figure 16).
include Oman and Qatar, but the technology is also
GSMA Intelligence research shows MENA operators
making inroads beyond the GCC states, with pilot
have strong interest in 5G-Advanced use cases and
projects underway in Israel. 5G SA brings a host of
applications such as multicast services, lower-cost IoT
new capabilities that will be crucial to monetising 5G
support and satellite integration. 8 The research also
investments, including improved support for network
shows that operators view the technology as critical
slicing.
for network slicing and edge compute, indicating
Operators in pioneer markets have also begun that it’s simultaneously seen as an evolution that will
to formulate their 5G-Advanced plans. Although support today’s 5G use cases.
standards development began long before,

Figure 16
Operators in MENA step up 5G-Advanced plans

Bahrain In September 2023, STC announced the successful completion of trials to

support future 5G-Advanced rollouts in Bahrain. The live demonstration was
showcased during the 31st Arab Spectrum Management Group meeting,
utilising the upper 6 GHz frequency range made available through the Telecom
Regulatory Authority’s innovation licence.

Saudi Arabia Zain Saudi Arabia unveiled new developments on its 5G network, in
collaboration with Huawei, at the 5.5G City Summit held in Riyadh in
September 2023. The two companies are working on a multitude of use cases,
including defining the characteristics of the 5G-Advanced FWA experience.

UAE In September 2023, e&, in partnership with the Telecommunications and

Digital Government Regulatory Authority, completed a trial to support future
5G-Advanced rollouts, utilising 400 MHz in the 6 GHz band. During the trial, e&
achieved 10 Gbps throughput, highlighting the potential of the 6 GHz band to
support future mobile technologies.

In October 2023, Du partnered with Huawei to demonstrate 5G-Advanced

solutions for smart home living. The immersive experience integrates advanced
technologies, such as glasses-free 3D and extended reality, creating a more
enhanced and interactive smart home environment.

Source: GSMA Intelligence

8. Operators in Focus: Network Transformation Survey Dashboard 2022, GSMA Intelligence, September 2022

Mobile industry trends 27 / 45

Private 5G gains traction
5G SA and 5G-Advanced will help operators to to construct a private 5G network to manage
flexibly serve consumer and enterprise customers. shipping cargo at the Aqaba container terminal
However, specific vertical requirements may be in Jordan. Furthermore, e& and Du have both
best met by custom 5G network builds. While launched private 5G network solutions in the UAE
the adoption of private 5G networks has been to target opportunities in sectors such as ports,
slower in MENA compared with other regions, manufacturing, and oil and gas. e& has partnered
there is evidence that this is starting to change. with Huawei to deliver custom networks, while
Orange announced its first private 5G network Du’s private 5G offering integrates solutions from
in the region in September 2023, with a deal Dell Technologies, Radisys and Foxconn.

Mobile industry trends 28 / 45

2.2
Operators look to monetise tower assets
Around 15 years ago, the first non-US independent a deal valued at $180 million. This followed TASC’s
tower companies emerged, leading to a growing previous acquisitions in Jordan, Lebanon and
trend of operators selling their tower assets to third Pakistan.
parties. In the MENA region, the majority of tower
Operators have also spun off infrastructure in
assets had traditionally remained in the hands of
partnership with private equity groups, driven by the
mobile operators. In recent years, however, there
growing venture capital industry in the Middle East.
has been a notable shift, as an increasing number
For example, Zain Saudi Arabia has sold its tower
of MENA operators have begun to restructure
assets to the Golden Lattice Investment Company
their infrastructure, including the monetisation of
(GLIC), a consortium led by the Public Investment
underutilised tower assets.
Fund. As part of the deal, Zain Saudi Arabia received
STC’s creation of Tawal in 2019, the first tower SAR2.4 billion ($640 million) from the asset sale and
company in Saudi Arabia, was an important proof will own a 20% stake in GLIC. Turkcell is also seeking
point for the tower company model in MENA. Since to sell a stake in its tower assets, having announced
then, independent tower companies have been plans to begin the process of an IPO for its tower
among the main acquirers of operator sites, utilising subsidiary. By broadening the ownership of mobile
multi-tenancy to drive profitability. During 2023, towers, operators typically have better opportunities
TASC Towers acquired Zain Iraq’s site portfolio in to provide wholesale capacity to other operators.

5G has implications for tower strategies

Mobile data traffic is expected to grow threefold Even in areas where network densification is not
in MENA in the next five years, in part due to the required, existing sites must be upgraded to cope
growing adoption of 5G. Operators will have to with rising data traffic levels. For example, massive
increase their number of sites, particularly in urban MIMO antennas will be needed to optimise 5G
areas, to cope with rising data demand. Moreover, capacity and throughput. Mobile towers will have to
the growing popularity of 5G FWA in countries such be strengthened to cope with the added weight of
as Oman and Saudi Arabia adds further impetus to these antennas. This is likely to increase site rental
densifying mobile networks. costs.

Mobile industry trends 29 / 45

 Figure 17
Recent tower developments in MENA

Ooredoo In July 2023, Ooredoo Group, Zain Group and TASC Towers Holding begun
exclusive negotiations to combine their approximately 30,000 telecoms tower
assets in Qatar, Kuwait, Algeria, Tunisia, Iraq and Jordan into a jointly owned
independent tower company in a cash-and-share deal.

STC In August 2023, Tawal, the tower infrastructure unit of STC, completed its
acquisition of tower infrastructure worth $1.3 billion from United Group in its first
foray into Europe’s telecoms market. The acquisition supports Tawal’s strategy to
expand its international footprint in markets with significant growth potential.

Turkcell In January 2023, Turkcell announced it had begun the process of an IPO for an
unstated amount of shares in its tower infrastructure subsidiary Global Tower.

Zain In January 2023, Zain Saudi Arabia completed a deal to sell a stake in its tower
infrastructure. The operator will sell at least 3,000 towers (out of a total of 8,069
towers) to GLIC. In the same month, Zain Iraq finalised a sale-and-leaseback deal
worth $180 million with Dubai-based TASC Towers Iraq. The 15-year agreement
covers 4,968 tower sites as well as the installation of 198 new sites.

Source: GSMA Intelligence

Operators target high-growth areas

Tower sales and spin-offs enable operators to • Digital entertainment: Mobile operators are
reallocate capital towards areas with higher growth positioning themselves as strategic partners for
prospects. In MENA, operators are seeking to digital services companies. It is most common for
capture new opportunities in both the consumer and operators to sign distribution agreements with
enterprise segments, with a growing emphasis on digital services providers, bundling digital services
digital platforms and cloud services. This has led to with mobile subscriptions. However, in some cases,
the formation of new partnership agreements and a operators have also acquired financial stakes in
rise in M&A activity, such as in the following areas: digital services companies. For example, e& has
acquired majority stakes in Uber subsidiary Careem
• Cloud: Mobile operators are stepping up efforts to
and SVOD provider Starzplay Arabia.
support enterprises in their digital transformation
projects, as highlighted by a string of new • Fintech: Mobile operators are collaborating with
partnerships with cloud providers. For instance, a range of players to capitalise on the growing
Zain and Microsoft recently outlined plans to work demand for fintech services in MENA. For example,
together on the launch of the new National Cloud Ooredoo Group has signed a deal with Huawei to
Initiative in Kuwait, while Mobily and Tencent Cloud provide services on the Huawei Mobile Fintech
signed a memorandum of understanding for a platform, while e& and Mastercard have embarked
strategic collaboration to launch cloud solutions in upon a strategic collaboration covering consumers
Saudi Arabia. in 16 markets across MENA.

Mobile industry trends 30 / 45

2.3
Consolidation: GCC telcos turn to European
counterparts
Telecoms operators in the GCC states have always as their global peers. As a result, international
been at the cutting edge of digital technologies expansion has been a core growth and diversification
and connectivity solutions. However, the relatively strategy for the major GCC operators looking for
small size of their domestic markets has made it opportunities to scale up and drive new revenue and
challenging for them to compete at the same scale subscriber growth.

Initial focus on developing countries

Historically, GCC operators had bet big on emerging These acquisitions enabled the companies to claim
markets, particularly through new telecoms licences a vast geographical footprint and tens of millions
and the acquisitions of telecoms assets in several of subscribers, due to large youthful populations.
countries across South Asia, Southeast Asia, Sub- However, the impact on revenues and profitability
Saharan Africa and other parts of MENA. For has been less convincing because of the high-
example, in the 2000s, e& (then Etisalat) entered competition and low-ARPU nature of these markets.
India, Nigeria and Pakistan; Ooredoo (then Qtel) This is in addition to a myriad of macroeconomic
entered Indonesia (and subsequently Myanmar in challenges, such as forex losses and high inflation, as
2013); and Zain entered several African countries well as the political and regulatory challenges that
through the acquisition of Celtel. Additionally, in often characterise emerging markets. As a result,
2008, STC paid $2.6 billion for a 35% stake in Oger domestic operations continue to account for the
Telecom, which owned 55% of Turk Telekom. largest share of revenues despite having the smallest
share of subscribers, in most cases.

Mobile industry trends 31 / 45

A change of strategy?
While more recent developments suggest that established operators in European markets. e& and
there is still appetite for international expansion STC are leading the charge, with several high-profile
among GCC operators, there seems to have been a deals and announcements since early 2022, as
shift in focus away from emerging markets to long- highlighted in Figure 18.

Figure 18
Examples of recent deals by GCC operators in Europe

August 2022

May 2022 e& puts forward an offer to increase its stake in Vodafone Group
to 20%

e& acquires a 9.8% stake in e& acquires 50% plus one share in PPF Telecom Group’s assets
Vodafone Group for $4.4 billion in Bulgaria, Hungary, Serbia and Slovakia for €2.15 billion.

e& progressively increases its stake STC reportedly spends €2.1 billion to
in Vodafone Group to 14.6% increase its stake in Telefónica to 9.9%

December 2022 – April 2023 September 2023

Source: GSMA Intelligence

There are several investment and strategic drivers to capabilities to capture new opportunities in the B2C
these deals. First, they have the potential to enable market and adjacent industries in a rapidly evolving
GCC operators to realise their ambitions of becoming digital ecosystem. They can also play a key role in
global players in the TMT space, both in terms of the implementation of smart city initiatives in their
scale and innovation. Through its partnership with domestic markets. Additionally, there is the prospect
Vodafone, e& has highlighted the opportunity to of healthy dividends, with Vodafone and Telefónica
create mutually beneficial strategic and commercial recording double-digit dividend yields in recent
partnerships across R&D, technological applications years.
and procurement. For STC, its investment in
Consolidation activities in the region are expected
Telefónica will enable it to become a member of
to continue, in response to the increasing pressures
the Telefónica Partners Program, allowing it to
on ARPU levels, escalating investment requirements
participate in knowledge sharing and the exploration
and market saturation in most markets. International
of potential business opportunities.
expansion will be a key part of this process, and
Second, the scale and established expertise of recent developments suggest that established
European counterparts across traditional telecoms European operators will likely be a target for
services (fixed and mobile) and new digital GCC operators seeking scale and access to new
services (e.g. in IoT, fintech and content) is a major capabilities in their quest to become global digital
differentiator. GCC operators can leverage these companies.

Mobile industry trends 32 / 45

2.4
The shift to circularity gathers momentum
The adoption of 5G is outpacing that of previous 30 million 5G connections as of November 2023.
wireless technologies, leading to a surge in demand This presents significant opportunities for new
for telecoms equipment and devices. In the MENA devices to penetrate emerging consumer segments,
region, there are currently 23 active 5G networks in making the concept of circularity a top priority for
nine markets, collectively providing close to policymakers and industry stakeholders in the region.

Figure 19
The concept of the circular economy

Recycle

Refurbish

Reuse

Extraction and Product Product Customer Disposal Landfill and

raw material manufacturing distribution usage greenhouse gas
emissions

Source: GSMA

Mobile industry trends 33 / 45

With over 270 million active feature phone and ecosystem to localise some of the supply chains
smartphone connections across the MENA region, in Saudi Arabia and also to export them to other
there are nearly 60 million more active devices countries in the region, including North Africa.
today than there were a decade ago. Addressing the
• Ooredoo introduces a recycling programme: As
concern of growing device and e-waste generation,
part of its circularity initiative, Ooredoo allows
regional operators are increasingly embracing
customers to hand in any unused mobile devices
circularity for both devices and network equipment.
at selected Ooredoo Shops. These devices,
This approach encompasses considerations such as
where appropriate, will be sent to be recycled by
the choice of materials in mobile phones, original
the operator. As an incentive, customers could
equipment manufacturers developing long-lasting
receive points in exchange for suitable items. The
devices and equipment, and incorporating recyclable
initiative supports the group’s social responsibility
and recycled materials to mitigate e-waste. Examples
to raise the level of awareness among individuals
of operator-led circular initiatives include the below:
towards recycling their phones and environmental
• Du implements enhanced recycling in the UAE: sustainability.
Du recently partnered with Ericsson to launch
While the technical lifespan of a mobile device
the Ericsson Connected Recycling platform as a
has extended to between four and seven years,9
software-as-a-service in the UAE. The agreement
the average period of usage remains around three
aims to shape a sustainable future and eliminate
years.10 This indicates the need for initiatives that
the environmental impact of non-electronic or
encourage consumers to adopt behaviours that
non-electrical network equipment waste. Ericsson
reduce e-waste. Encouraging and incentivising
Connected Recycling works as an end-to-end
consumers will be pivotal in achieving success,
platform that provides comprehensive traceability
although it may be complicated by factors such as
and transparency, optimisation, and the possibility
affordability, information accessibility, social norms
to monetise waste streams. It also provides
and individual preferences. By adhering to the
powerful sustainability reporting to gain recycling
guiding principles of reuse, recycle and refurbish,
insights that can help optimise operations and
the lifecycle of a product can be prolonged, thereby
empower circularity.
reducing or eliminating waste in the production and
• STC boosts circularity in Saudi Arabia: STC usage cycle.
signed several new strategic agreements with local
Governments and ecosystem players can collaborate
companies for its circular economy goals. Aimed
to raise awareness and incentivise consumers to
at supporting sustainability efforts, the operator
prolong the lives of devices. For example, there is an
partnered with Ebttikar, which provides recycling
opportunity to establish new channels for suppliers
services and the preservation of raw materials. STC
to collect, refurbish and resell devices and network
also recently introduced a ‘partner hub’ platform
equipment. Moreover, educational campaigns
that will open up wider investment opportunities
on sustainability can be implemented to inform
for suppliers while supporting the establishment
consumers.
of new industries and the localisation of existing
ones. Within this programme, it has created an

9. Miliute-Plepiene, J. and Youhanan, L. (2019), E-waste and raw materials: from environmental issues to business models. IVL Swedish Environmental Research Institute.
10. Statista

Mobile industry trends 34 / 45

2.5
Regulatory enablement and fintech hubs
fuel the progress of fintech
There has been substantial growth in the fintech sandbox and the Saudi Arabian Monetary Agency’s
sector within the MENA region, driven by increased regulatory sandbox. Furthermore, in 2023, the Saudi
investments and enabling regulations. Funding has Central Bank introduced new regulations to enhance
increased significantly, particularly in the UAE, Saudi payment infrastructure and efficiency.
Arabia, Egypt and Bahrain, with beneficiaries across
The region's promising macroeconomic outlook and
a range of market segments. Among them, payment
the consistently strong performance of its financial
startups were the primary beneficiaries, followed by
services sector has led to the emergence of various
crypto and then mortgages and lending.
digital payment solutions, including contactless
Meanwhile, several countries have established payments, BNPL options and cross-border services.
initiatives, such as free zones, dedicated fintech hubs Although financial infrastructure is a challenge
and regulatory sandboxes, to foster innovation and across remote and rural areas, widespread access
encourage experimentation and testing of fintech to mobile networks has plugged the gap, providing
solutions. These include Dubai International Financial an opportunity for digital commerce and payment
Centre’s Innovation Testing License, Egypt's fintech solutions to thrive.

Accelerating fintech development through collaboration

Mobile operators in the region play an important • Ooredoo partners with Huawei for fintech
role in expanding access and inclusion for both solution: Ooredoo has partnered with Huawei to
consumers and businesses. Operators have ventured evolve its fintech services across its MENA footprint
into the fintech space in various ways, including and provide mobile-first financial services for both
through mobile money and other fintech solutions consumers and merchants.
in partnerships with financial services institutions. In
• Vodacom launches financial-services products
the UAE, for example, e& has partnered with Ericsson
in Egypt through VodaPay: In November 2022,
to bolster its mobile money app by deploying the
Vodacom launched financial-services products in
vendor’s wallet platform, designed to improve
Egypt, using its super-app. Vodacom and Alibaba’s
security and provide personalised offerings to
super-app, VodaPay, enables subscribers to access
customers. Other examples of operators’ activities in
a broad range of services, including taking out
the fintech space include the following:
loans, shopping online and making standard mobile
• Du launches BNPL for device financing: In October payments.
2022, Cashew, a fintech company providing BNPL
• STC Pay launches in Bahrain: In March 2023, STC
services in the UAE and Saudi Arabia, and Du
Pay Bahrain was officially licensed by the Central
partnered together to offer BNPL solutions on
Bank of Bahrain to deliver payment solutions. The
device financing for the operator’s customers.
all-in-one platform allows users to pay for goods
and services online and in-store and to send money
overseas.

Mobile industry trends 35 / 45

Spotlight on e&’s fintech play
When Etisalat rebranded as e& in early 2022, the • MoneyGram: e& has expanded its partnership
operator put fintech at the heart of its strategy with MoneyGram to allow customers to send
to achieve its goal of becoming a leading player and receive money through mobile wallets
in the consumer market. This included plans to across its footprint almost instantly. e& money
compete with banking institutions by creating has been partnering with MoneyGram for
innovative fintech solutions with compelling value international remittances. Using e&’s mobile
propositions for customers. To achieve this, e& wallet app, customers in e& international
has formed partnerships with various players markets can send and receive money globally
across the fintech space to expand the range of quickly through MoneyGram.
services offered to customers:
• Careem: Following the deal to acquire a
• Mastercard: In March 2023, e& money – the majority stake in Careem’s super-app spin-out,
fintech arm and financial super-app of e& life e& plans to leverage the Careem super-app
– partnered with Mastercard to transform and to boost the growth of its consumer digital
evolve the way customers make payments via services, including the expansion of e& money,
an exclusive prepaid card, enabling payments which will play an important role in the super-
anywhere in the world and offering the app by providing e& money’s financial service
flexibility and convenience of using virtual offerings.
and physical cards. The e& money card
significantly enhances the current proposition,
where customers have a digital wallet with
services including peer-to-peer transfers and
international money transfers and payments.

Mobile industry trends 36 / 45

03
Mobile industry
impact

Mobile industry impact 37 / 45

3.1
Operators accelerating adoption of smart
city solutions
As several nations in MENA are on their journey of In the GCC states, the smart city agenda is closely
building new smart cities and upgrading existing tied to national economic development. Several
ones with smart systems, more operators are offering nations have already begun developing smart cities,
smart city platform services and emerging digital including Neom in Saudi Arabia, the Pearl Island in
technologies such as AI for cities. This coincides with Qatar and Dubai’s smart city. Supporting these smart
the growing importance of 5G in the region, which city efforts, operators are providing connectivity
has a key role to play in enabling new applications solutions and offering smart city platform services
and becoming the backbone for the future of smart and emerging digital technologies such as AI for
cities. The region is utilising ICT and other emerging cities, including the following:
technologies, including IoT, to improve quality of
• Dubai.AI platform: In October 2023, Digital
life, efficiency of urban operation and services and
Dubai Authority launched the Dubai.AI platform
competitiveness while also ensuring smart cities
to enable users to easily access services and
meet the environmental and social needs of current
information about Dubai across various sectors.
and future generations. Below are examples of how
The platform is open to all users, including citizens,
operators are driving better quality of life and urban
residents, visitors and business owners, allowing
governance:
them to enquire about matters related to health,
• Batelco's digital postbox service: In 2022, Beyon education, tourism, restaurants, transportation,
Connect, a subsidiary of Batelco, launched OneBox sports, weather, the environment, aviation, business
to provide digital postbox services in Bahrain. The and real estate. The platform is open to all users,
new digital postbox enables direct communication including citizens, visitors and business owners, and
for residents with private sector businesses as is available on the official website of the city and on
well as public sector entities in the MENA region. the DubaiNow app.
The solution is sender-and-receiver validated,
• Du's smart city solutions: Du has partnered with
guaranteeing spam-free secure distribution. As
several organisations to deploy smart city solutions
more users become integrated with OneBox,
and build innovation labs, which also highlights
customers will be able to receive important
the importance of 5G in enabling new applications
documents such as salary slips, health results,
and its role as the backbone for the future of smart
contracts, bank statements and utility bills, all in
cities. Below are examples of such partnerships:
one secure, convenient and trusted digital space.
− Road safety and connected vehicles: In
• Türk Telekom's smart city project: In January
December 2022, Du partnered with the Dubai
2023, Türk Telekom added Osmaniye as the
Integrated Economic Zones Authority (DIEZ)
14th city to its New Generation Cities (Yeni Nesil
and Derq, a provider of AI analytics solutions for
Sehirler) smart city project. Under the project,
road safety and connected vehicles, to power
it implemented smart city products using AI
DIEZ’s free zones with 5G smart city solutions.
for energy savings and smart living, traffic, and
public safety. Türk Telekom develops turnkey − Smart grids: Du has collaborated with the
and end-to-end solutions specific to the needs digital arm of the Dubai Electricity and Water
of local governments. It contributes to the digital Authority to develop smart grids.
transformation of local governments by offering
− Innovation lab: Du has partnered with Masdar
them engagement solutions such as social media
City to build a 5G Centre of Excellence in Abu
management, a citizen communication platform,
Dhabi.
mobile survey and white table software and
city-specific mobile application solutions that
strengthen the communication of municipalities
with their citizens. Türk Telekom has provided smart
city solutions to 30 local governments, helping to
increase their efficiency and subsequently reduce
their expenses.

Mobile industry impact 38 / 45

3.2
Mobile's impact on the SDGs
Operators in MENA made significant progress SDG 9: Industry, Innovation and Infrastructure cored
in 2022 towards meeting the UN Sustainable highest because of improved mobile broadband
Development Goals (SDGs). SDG 4: Quality coverage and greater usage driven by an increased
Education, SDG 5: Gender Equality and use of devices.

Figure 20
Mobile’s impact on the SDGs in MENA

Most improved SDGs

Source: GSMA Intelligence

Mobile industry impact 39 / 45

Expanding education opportunities for all
Educational content, as well as educational SDG 5 focuses on achieving gender equality and
administration and management, is increasingly empowering all women and girls. The mobile
being made available over mobile networks to ecosystem and its partners have been working
smartphones, feature phones and tablets. Improving together to improve access to digital education by
access of educational content across all the sections increasing women’s access to and use of mobile
of society remains a focus for operators globally. technology, which helps to accelerate both social
and economic development. The mobile industry is
SDG 4 seeks to ensure inclusive and equitable
also focused on increasing women’s participation and
quality education and to promote lifelong learning
leadership in the technology sector, such as Zain’s
opportunities for all. Mobile technology contributes
tech initiative for women:
to SDG 4 by allowing students, teachers and
employees to learn/teach from any location and • Zain’s Women in tech programme: Zain Group
on the move. In MENA, Huawei and Unesco have launched the Women in Tech initiative in 2022
collaborated with the education ministry of Egypt following its successful pilot programme in 2021.
to create resilient and accessible school systems, The programme connects those studying STEM
enabling comprehensive education in both normal degrees with experienced mentors working at Zain.
situations and times of crisis. Other such initiatives by Through successful mentor-mentee pairings, the
mobile ecosystem include the following: programme aims to cultivate a new generation of
innovators, allowing them to enter the telecoms
• e& looks to AI to boost UAE education: In
industry with confidence. In 2022, Zain KSA and
October 2023, e& struck an agreement with the
Zain Jordan successfully reached 100 mentees
UAE Ministry of Education to enhance technology
each, while Zain Iraq and Zain Sudan have
programmes in the UAE by collaborating to
mentored 115 and 69 women, respectively.
integrate digital tools such as AI into the education
sector. They have outlined plans to work together
to develop computer science education, and
providing access to the latest technological
advancements.

• Huawei’s digital education in Egypt: Huawei and

Unesco have collaborated with the education
ministries of Egypt and other African countries,
along with other stakeholders, to implement
a three-year project (2020–2023) focused on
developing technology-enabled open school
systems. The aim of the initiative is to develop
more than 140 digital courses that benefit over
40 schools and more than 14,000 students and
teachers by 2024.

Mobile industry impact 40 / 45

Boosting the transformation of industries
SDG 9 aims to build resilient infrastructure, promote Operators in the region are also increasingly
inclusive and sustainable industrialisation and deliver participating in the development of the metaverse.
affordable internet access for all. The mobile industry Their involvement includes upgrading networks and
supports progress on SDG 9 by building resilient delivering content and services. Operators in MENA
infrastructure and improving industrial processes. are using metaverse-type applications to redefine
Technologies such as 5G, IoT, cloud computing and retail experiences. For instance, the Etisalat by e&
AI can play a significant role in enterprise digital business centre, developed in collaboration with
transformation across a range of sectors, such as Huawei, allows visitors to explore a 3D representation
manufacturing and logistics. This can lead to a range of the operator’s store. Visitors can communicate in
of improved business outcomes, such as productivity real time using hand movements, headsets, feedback
gains, cost savings and new revenue streams. controllers and voice. Other examples of metaverse-
Operators across MENA have been working with related activities include the following:
other ecosystem players to explore new use cases for
• Virgin’s metaverse in Kuwait: In June 2022, Virgin
5G and other transformative technologies including
Mobile announced its metaverse programme
IoT and AI, such as the following:
to collaborate with Kuwaiti content creators on
• e& for enterprise digitisation in Abu Dhabi: e& platforms including The Sandbox, a virtual world
enterprise, together with Abu Dhabi’s Department launched by game developer Pixowl that allows
of Economic Development will accelerate players to build, purchase and trade digital assets.
the adoption of Industry 4.0 technologies by In addition to The Sandbox, Virgin Mobile is
local businesses, targeting improvements in collaborating with leading global digital content
sustainable manufacturing. The primary goal provider Nonvoice to bring the latest innovations to
is to promote digital transformation in Abu Kuwait and the wider Middle East region.
Dhabi’s manufacturing sector while encouraging
• Ooredoo’s immersive space: In 2022, Ooredoo
sustainable practices and leveraging e& enterprise's
created an immersive online viewing space for
expertise in cutting-edge technologies such as
people to build avatars, talk in virtual chatrooms
cloud computing, cybersecurity, IoT and AI to
and experience games as an interactive audience.
empower manufacturing enterprises in Abu Dhabi.
It also launched a series of exclusive NFTs from its
For e&, the partnership underscores its dedication
e-sports brand Ooredoo Nation to coincide with
to empowering businesses to flourish in the digital
Qatar hosting the EA Sports FIFA 22 Champions
era while fostering environmentally responsible
Cup.
methods.

• Ooredoo prepares for smart IoT devices: In May

2023, Ooredoo signed a strategic agreement with
Axon to provide IoT managed connectivity to its
customers across its global footprint in MENA,
covering Algeria, Tunisia, Jordan, Kuwait, Qatar,
Oman, Iraq and Bahrain. Further, in August 2023,
the operator stepped up the future-proofing of
IoT devices that rely on mobile 3G connectivity.
It conducted a limited-connectivity trial on some
IoT devices, such as point of sales terminals, smart
meters and in-vehicle monitoring systems.

Mobile industry impact 41 / 45

04
Mobile industry enablers

Mobile industry enablers 42 / 45

The importance of harmonised mobile spectrum
Spectrum harmonisation continues to play a key role of wide and rural areas, can help 5G deliver digital
in the success of mobile networks. As spectrum is a equality. Adding 600 MHz to the low-band portfolio
scarce resource, ensuring the timely availability of can bring further economic growth to remote
prime bands should be a priority. 2 GHz of mid-band locations and drive higher speeds in rural areas,
spectrum (1–7 GHz) will be required per market, on lowering the divide between urban and rural areas.
average, by 2030 to ensure the 5G requirements
Reusing 4G bands and extending the 3.5 GHz range
of speed and quality of mobile.11 Mid-bands deliver
are important steps, but adding new bands (such
citywide capacity and sufficient capacity is important
as the 6 GHz band) is also important. Discussions
for minimising network densification, keeping down
regarding the future of 6 GHz should focus on
both costs and carbon emissions. The 3.5 GHz band
maximising its value and balancing different uses.
represents the birthplace of 5G, while 6 GHz will
The outlook for the 6 GHz IMT ecosystem is robust
provide the expansion needed during this decade.
and there are also no technical barriers to developing
By 2030, an average of 5 GHz of high-band spectrum and commercialising IMT solutions.12 Trials by mobile
(mmWave) per market will also be needed to satisfy operators around the world are underscoring this.
demand for different 5G use cases, including eMBB, mmWave solutions are also being developed across
FWA and enterprise networks. More low-band a variety of different scenarios and serving a wide
spectrum (below 1 GHz), which supports coverage range of applications.

Spectrum licensing priorities

Spectrum licensing is important for mobile For licences approaching the end of their current
broadband development. The longer the duration terms, timely renewal decisions (ideally three to
of a licence, the greater the certainty provided to five years in advance of licence expiry) would help
operators and investors to commit to large long- facilitate ongoing network investments and enable
term network projects. Putting a presumption of planning that ensures service continuity for end
licence renewal in place, or using indefinite licence users. Any subsequent fees associated with licensing
terms, also helps avoid investments being delayed renewals should not prevent reasonable returns being
due to uncertainty about the future. A decision not earned on risky investments, as this discourages
to automatically renew a licence should only be technological innovation.
made where there is a reasonable prospect that the
benefits from reassigning spectrum would exceed
the costs.

11. Vision 2030: Insights for Mid-band Spectrum Needs, GSMA, 2021
12. The 6 GHz IMT Ecosystem, GSMA, 2022

Mobile industry enablers 43 / 45

Fair spectrum prices
Recent studies have demonstrated that higher To accelerate 5G network investment, short-term
spectrum prices can slow the rollout of next- monetary gains from spectrum awards should no
generation mobile networks and reduce the network longer be a measure of success. Policymakers may
quality experienced by consumers. They can also want to consider shifts in award designs to reflect
be associated with higher retail prices in developing wider economic goals, such as assigning spectrum
countries. with no upfront fees in return for coverage (as has
been the case in Qatar and UAE).
Best practice in this area shows that regulators
should aim to:

• assign spectrum to users who will be able to extract

the most value from this scarce and finite resource
for the benefit of society as a whole

• set reserve prices conservatively to allow the

market to determine a fair price and to reduce the
risk of leaving spectrum unassigned

• limit ongoing charges to recovering the cost of

spectrum management, following auctions.

Technology- and service-neutral spectrum licences

A technology-neutral spectrum licensing technologies simultaneously, including 4G and 5G.
approach enables the efficient use of spectrum This facilitates the introduction of newer technologies
by mobile operators, as then it is not tied to in line with increasing mobile broadband demand
existing technologies and services. An important while also supporting legacy users. For regulators,
development has been the ability to ‘gracefully this means fewer concerns that refarming will leave
refarm’ bands so that they are used for several legacy users unserved.

Mobile industry enablers 44 / 45

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