Today's Edition
Mudhi Alobthani (ABU DHABI)
The UAE’s telecommunications sector is entering a transformative phase, with the market expected to expand from $12.2 billion in 2024 to $21.5 billion by 2033, representing a compound annual growth rate (CAGR) of 6.2% between 2025 and 2033, according to the IMARC Group. This growth positions the UAE as a regional leader in advanced telecom services, reflecting global trends in AI and digital infrastructure adoption.
AI technologies are central to the sector’s evolution. Approximately 21% of UAE telecom operators have reported revenue increases of up to 10% due to AI-driven efficiencies, from predictive network maintenance to automated customer service solutions. National initiatives, including the UAE’s AI Strategy, have encouraged companies like e& to implement over 400 AI use cases and 160 machine learning models, improving operational performance and customer engagement.
Platforms such as Baynix.ai now combine AI with multi-channel communication tools like WhatsApp and SMS, providing hyper-personalised customer experiences. Locally developed models like TelecomGPT-Arabic enhance Arabic-language support, improving technical assistance and internal workflows. Globally, similar AI adoption has resulted in 84% of telecom companies experiencing revenue growth, highlighting AI as a critical driver of competitiveness.
Telecom operators are investing heavily in digital infrastructure to support AI and 5G technologies.
For instance, du partnered with Microsoft to develop a hyperscale data centre worth Dh2 billion ($544 million), enhancing cloud capabilities and supporting the UAE’s growing digital economy. High-speed networks and IoT integration are expected to expand the market by 30%, particularly through smart city projects, autonomous vehicles, and smart home applications.
Government investments of $500 million in telecom infrastructure further enable innovation, aligning UAE networks with international standards. This proactive approach has reduced operational costs by up to 20%, while mobile penetration has reached an impressive 98%.
The UAE’s expanding urban population and booming tourism industry significantly influence telecom demand. Over 19 million annual visitors, combined with Gulf region wealth of $2.8 trillion, have driven a 35% increase in demand for high-speed connectivity. Smart city projects in Dubai and Abu Dhabi, powered by 5G and IoT, have boosted adoption rates of these technologies by 25% among urban residents.
In August 2025, the UAE achieved the title of “Fastest Mobile Network in the World” for the fourth consecutive year, according to Ookla, demonstrating global leadership in speed and reliability.
The country has also commercially launched 5G network slicing, enabling sector-specific solutions in manufacturing, public safety, and other vital industries, in collaboration with Qualcomm. Dual-band radio equipment from Ericsson has further optimised network efficiency and environmental performance.
The growth of the telecom sector not only drives revenues but also supports digital transformation for businesses and creates high-skilled employment opportunities. Platforms offering AI-powered connectivity solutions have generated over $10 billion in revenue, while IoT-enabled plans attract 60% of companies pursuing digital transformation.
With sustained investment in AI, 5G and digital platforms, the UAE is poised to maintain its position as a regional telecom hub. The integration of smart city initiatives, IoT, and next-generation networks ensures that the sector will continue to grow, supporting both economic diversification and the UAE’s vision for a digitally advanced future.
