More than half of the Arab States population now connected via mobile

Mobile industry to convene in Dubai in October to discuss region’s vibrant mobile ecosystem

Next month, the GSMA’s ‘Mobile 360 – Middle East’ event will take place in Dubai, the third year running that the mobile industry will convene in the city to discuss the future of mobility in the Arab States.

The latest edition in our flagship series of regional ‘Mobile Economy’ reports will be published at the event, providing a comprehensive overview of the mobile industry across this diverse region and its impact on individuals, enterprise and governments.

This study classifies 18 countries within the Arab States region, ranging from large, fast-developing North African markets such as Algeria, Egypt and Morocco, to the oil-rich states that make up the Gulf Cooperation Council (GCC) such as Saudi Arabia and the UAE. Unsurprisingly, the levels of mobile market maturity vary considerably across this region in line with economic development; GDP in the GCC states is almost nine times the size of the North Africa countries. But from the richest country to the most underdeveloped, mobile technology is having a positive transformative impact.

The report will reveal that the number of unique mobile subscribers in the Arab States as a whole reached 200 million at the end of 2014. That equates to an overall unique subscriber penetration rate of 55 per cent of the region’s population, about five percentage points higher than the global average. But once again there are wide discrepancies between different markets; the Arab States are home to three countries – Bahrain, Kuwait and the UAE – that have penetration rates above 75 per cent, but also four (Palestine, Sudan, Syria and Yemen) where fewer than half the population has a mobile subscription.

However, unique subscriber growth in the region overall is set to slow over the coming years, which the study attributes to several factors. In the aforementioned markets that are already highly-penetrated, subscriber growth is approaching its natural ceiling: new connections will come from existing subscribers acquiring new connected devices rather than new consumers coming online for the first time. In these markets, the focus is shifting to rolling out advanced networks that can deliver services in areas such as smart cities, mobile commerce and digital identity.

The situation is different in the region’s emerging markets. There is plenty of headroom for subscriber growth here – but it requires being able to extend affordable and sustainable connectivity to low-income populations, often in remote geographies. In some cases, political and social instability can also be a barrier, as is currently the case in Syria and Iraq. However, mobile is playing a role in connecting the unconnected populations in these markets by providing access to the internet where there are no other alternatives, and enabling mobile-powered solutions in essential areas such as banking, healthcare and education.

The Arab States are also becoming a significant hub for digital innovation as the number of regional start-ups created – and the amount of investment raised by them – has increased over the last five years. This spirit of innovation, underpinned and delivered by mobile networks, is helping both operators and other ecosystem players unlock new revenue opportunities. And our event next month will offer a unique insight into how the mobile industry is setting the roadmap for a truly connected future.

Mobile 360 – Middle East will be held 20 – 21 October 2015 at the Dubai World Trade Centre, UAE, co-located with GITEX 2015.

For more information, including how to attend, exhibit or speak at the event, visit www.mobile360series.com/middle-east/. Follow the latest developments and updates on Mobile 360 – Middle East on Twitter – @GSMA and #M360ME – and on Facebook at www.facebook.com/gsma.

Michael O’Hara