MAYS IBRAHIM (ABU DHABI)
Ninety-six percent of UAE telecom providers expect high-capacity AI-driven network services to drive revenue growth over the next three to five years, according to a Ciena survey.
These services connect enterprises, hyperscalers and neocloud providers to the AI infrastructure they require.
The findings also point to strong revenue potential from managed optical fibre network services, with 97% of UAE respondents saying they expect these services to generate revenue from connecting distributed AI compute clusters over the next three years.
About 97% of UAE respondents also believe optical network upgrades are urgently needed to support premium enterprise AI service level agreements (SLAs), with 56% describing the need as critically urgent.
The UAE findings form part of a wider Ciena study conducted by Censuswide among 1,200 telecommunications providers, wholesale fibre network operators, and regional service providers across 12 countries. The country accounted for 100 respondents, with data collected between July 13 and July 23.
The survey highlighted several emerging opportunities for UAE service providers as AI infrastructure expands. Some 99% of respondents in the country said demand from hyperscalers to scale computing capacity across distributed locations would be a substantial contributor to wholesale revenue growth.
As power constraints limit the expansion of data centres on individual campuses, hyperscalers are increasingly distributing computing capacity across multiple locations, increasing the need for high-capacity connectivity between sites, the report said.
More Revenue Streams
UAE service providers also see potential in GPU-as-a-Service, with 96% saying strategic partnerships with cloud and neocloud providers are essential to capturing revenue from the market.
Meanwhile, 96% expressed confidence that AI-driven entertainment could become a new revenue stream.
The survey also pointed to opportunities emerging from physical AI, including industrial robotics and remote-control systems. Some 52% of UAE respondents expect physical AI ecosystems to account for more than 15% of total enterprise AI revenue within five years.
The UAE is also moving relatively quickly on quantum-safe services, with 54% of respondents saying they have already launched or expect to launch quantum-safe offerings within 12 months.
“Globally, service providers are balancing optimism with urgency about AI-driven revenue opportunities,” said Pete Hall, regional managing director for the Middle East and Africa at Ciena. “In the UAE, service providers are treating network upgrades and automation as something to act on now, not plan for later.”
Ciena found that 90% of service providers globally expect high-capacity AI network services to drive revenue growth over the next three to five years, while 88% reported a strong sense of urgency around optical network upgrades needed to support premium enterprise AI connectivity.