Issue 77 Telemedia Magazine

Unlocking MENA: a $360bn mVAS opportunity awaits

Mobile’s contribution to the wider MENA economy is set to reach $360 billion by 2030, up from $310 billion in 2023 and will employ some 700,000-plus people as technology continues to reshape the region. And telemedia is getting a big slice of the action.

As World Telemedia Dubai kicks off on 11 May, figures from the GSMA show just how buoyant the MENA market is – and how its growth prospects continue to be enormous in the market. There are already more than 427 million mobile users across MENA, 327 million of

them using mobile internet and therefore ripe for using telemedia mVAS services. Some 81% of them use a smartphone.

For MNOs this translates into revenues of some $66 billion in 2023, predicted to grow to more than $88 billion in 2030.

DRIVERS OF SUCCESS

Among the most important success factors in this rise and rise of MENA mVAS lies in networks. In 2023 60% of MENA consumers were connected to 4G. By 2030 it is predicted that 50% will be connected to 5G.

Rollout of 5G is, compared to some developed countries, extremely rapid. This is already seeing consumers getting a taste for high-quality streaming and gaming, as well as AR and VR services.

This has all been delivered to consumers at a relatively low cost. The cost of mobile data as a percentage of GDP has halved over recent years, making connectivity more accessible. Growth in locally relevant content such as media, entertainment social media platforms and e-government services has also boosted user engagement (see page 6).

The investment by network operators in the region is significant. While the market is buoyant, it has many political, social and economic challenges (see below), yet MNOs have continued to pour money into the region. This has prompted local governments to work harder on

regulation and compliance and creating favourable business conditions for operators, service providers and the rest of the telemedia value chain to help encourage and continue this investment.

On the content front (see page 6), the MENA mVAS market has also been helped along by Middle Eastern government support of sports. Bring the World Cup to Qatar along with creating a star-studded pro-soccer leagues such as the Saudi Pro League have inculcated and developed a deep appetite for sports content in the region. This along with gaming and localised streaming and social content is also driving the market forward.

CHALLENGES

However, there are challenges. Large swathes of the population, especially outside of the major urban areas, remain unconnected, with no assess to network and so are left in the usage gap. Closing this gap through network investment – with handset sales to then follow – would not only expand the market, but hugely improve the lives of people. It would give them access to healthcare, finance, education and entertainment.

The region also has its fair share of economic instability, seeing hyperinflation and conflicts in certain countries disrupt mobile ecosystems and limit consumer spending power.

On a deeper level there are also issues with regulation and compliance in many markets. In some countries intense regulatory environments are creating barriers for operators and service providers. Ensuring compliance with local laws while expanding services is challenging.

In other markets regulation is light and, while this sees businesses proliferate, fraud, scams and cybercrime also flourish, denting consumer confidence and limiting spend.

There are also growing privacy concerns and data security regulations further complicate the adoption of advanced services like AI-driven mVAS.

That said, the market in MENA is flourishing and, as World Telemedia Dubai shows, there is abundant opportunity in the MENA region and beyond into Africa, India and South Asia as a result.

To learn more about the MENA market, go to: www.dubai.wtevent.com

Regions to be cheerful

Certain countries within MENA stand out for their success in mVAS adoption and others, while successful are still hard to do business in. Some of the standout markets in the region include:

• GCC Countries – The Gulf Cooperation Council (GCC) comprises six Middle Eastern countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. High smartphone penetration (88% in 2023) and advanced network infrastructure, including widespread 5G deployment, make GCC states particularly strong markets. The UAE and Saudi Arabia lead in digital transformation initiatives and partnerships between operators and tech firms like Microsoft for cloud-based services.

• North Africa – Countries like Egypt benefit from growing affordability of mobile devices and data plans. Subscriber penetration reached 84% in North Africa by 2023. Increased availability of locally relevant content such as e-government services has also driven adoption.

• Iran – Economic instability, poor payments infrastructure and economic instability caused by sanctions against its government all hamper the Iranian market. However, despite these challenges, Iran has seen significant growth due to expanded mobile broadband networks and increasing demand for mobile entertainment services.

• Algeria and Libya – These countries have poor infrastructure, a huge connectivity gap between urban and rural areas and economic instability. However, while not there yet, these countries are likely to be part of the next wave of MENA growth as their economies come under control and network infrastructure investment arrives.