
5 minute read
MENA: hard wired for growth as WT heads to Dubai
The Middle East has become one of the key growth areas for telemedia, with the overall media and entertainment market valued at in excess of US$41.13bn and expected to hit nearly US$60bn by 2029. Ahead of World Telemedia Dubai on 11-13 May 2025, we drill down into what makes the market tick and where the opportunities lie.
The Middle East, a region known for its rich cultural heritage and rapid technological advancements, has emerged as a significant market for value-added services (VAS) content. With a young and tech-savvy population, increasing smartphone penetration and robust internet infrastructure, the region offers immense potential for digital content providers.
The overall market is one that is very much in growth mode, with CAGR projected to top 10% in the next five years, as consumer embrace everything from video streaming to digital goods ecommerce on their mobile phones. As laid out below, the opportunity in each segment is huge, but there are some standouts in the Middle East that differentiate it from other markets.
Among them is the huge hunger for live streaming. This encompasses everything from live streams of events – particularly sport, and especially soccer – but it also encroaches on the user generated live streaming, where ordinary consumers stream their own content. While this has typically been the preserve of the mainstream global streaming and social platforms such as TikTok, Facebook and Instagram, such is the growth in the market that a number of local players have popped up to also capitalise on this trend.
MARKET DYNAMICS
And this localisation is another key facet of the Middle East market. Of all the VAS markets globally, the Middle East is perhaps the most culturally sensitive. While all markets demand content in their own language and based on themes that chime with their culture, the Middle East is more specific.
Stricter religious rules that forbid gambling, nudity and certain styles of dress all shape the kinds of content that sell well across the region. This means that standard content in music and video that plays well in other markets, may not be allowed in these countries.
However, the gap that this creates is readily filled by all the localised and culturally specific content that users across the region want to consume.
As said, live streaming content is very popular, with sport leading the way. Localised soap operas and reality TV is also a significant generator of eyeballs. Examples include shows on Shahid like “Z Raseedak” and “Stiletto”, which relatable content that reflects local culture and lifestyle and offer interactivity for viewers.
There’s also a surge in demand for special programming during Ramadan. Platforms create and curate content specifically for this period and it is particularly popular as families traditionally gather together at this time and watch TV. Spin-off content around this is also popular.
The one advantage the region does offer is that it is largely united behind a common language and so content can be transferred from market to market.
This focus on localisation doesn’t mean that there is no room for international content. While local content is crucial, there’s also high demand for popular international shows and movies.
Netflix, in particular, is popular for its diverse international offerings, giving consumers in the Middle East exposure to global entertainment and access to high-budget productions and popular franchises, such as Marval, Disney and so on.
Delivering this are a range of companies from the big international brands that you would expect through to some interesting emergent local players. Companies like Google, Apple, Amazon and Netflix have significant market presence, however, local companies such as Anghami, Shahid and Noon are wellpositioned to cater to the specific needs and preferences of Middle Eastern consumers. Telecom operators like Etisalat and STC also play an increasingly crucial role in providing VAS content to their subscribers.
HOW THEY PAY
A variety of payment tools are used to purchase VAS content in the Middle East, including all the ones you’d expect. Credit and debit cards are widely accepted, especially in urban areas, in stores, but online this is growing only slowly. More common are mobile payment services such as Apple Pay and Google Pay, which are rapidly gaining popularity.
Digital wallets like PayPal and regional options such as CashU, PayTabs, Telr and Noon Payments are used for online transactions.
Carrier billing is the one that gets the most attention, however. Users can charge purchases to their mobile phone bills, making it a convenient option for those without credit cards or digital wallets and it has taken the market by storm since it allows all users, even the unbanked and those with no cards or wallets to also join the digital revolution. While DCB has led to some fraud issues, these have largely be ironed out across the market and DCB continues to drive the enormous growth being seen in the region.
As a result, the Middle East’s VAS content market is experiencing rapid growth, driven by factors such as increasing internet penetration, rising disposable incomes, and a burgeoning youth population.
However, challenges such as piracy, regulatory hurdles, and cultural sensitivities need to be addressed to ensure sustained growth.