Dubai: The Middle East's telecommunications and broadband internet sectors are expected to generate $70 billion in annual sales revenue by 2015, according to a latest report.
The Gulf's information and communication technology (ICT) market, one of the fastest growing in the world, it said.
"Over the next decade, the Gulf Cooperation Council (GCC) countries are planning to spend approximately 25 per cent of their infrastructure development funds on the expansion of ICT," said Trevor Punt, director for IIR Middle East, organisers of Middle East Communications 2008 (Mecom), the region's premier trade exhibition for the telecom industry.
In addition the biggest growth potential for ICT in the region is seen in Saudi Arabia, where the market is being liberalised, and in conflict-torn Iraq which is quietly building one of the best communications infrastructure networks in the region. Overall, information technology spending in the Middle East and Africa is expected to cross $40 billion in 2008 with the GCC accounting for nearly 23 per cent of the total, say industry research company IDC.
"The ICT sector, along with financial services, oil and gas and the public sector, accounts for the bulk of IT spending," Punt said.
The huge importance of the growing ICT sector will be underscored at Mecom 2008 which takes place at the Abu Dhabi National Exhibition Centre from May 26 to 28.
Some of the greatest expectations for ICT growth in the region are in Saudi Arabia. The kingdom's telecom regulator estimates the number of mobile users to have risen from just 2.5 million five years ago to 20 million today. In the coming five years mobile penetration rates in the kingdom are expected to catch up with the UAE and Qatar and rise to well over 100 per cent.
STC is currently the dominant mobile phone operator, claiming a 45 per cent market share. Mobily is second with a share of up to 38 per cent and Zain is likely to be third with a projected share of between 18 per cent and 20 per cent. The regulator has also licensed two data service providers, Bayanat Al Oula and Integrated Telecoms, readying the market for WiMax as well as other wireless technologies.
"The number of internet users in Saudi Arabia reached 4.7 million in 2007. But, in contrast to mobiles, broadband penetration remains low at below 2 per cent of the population," Punt added.
