With mobile penetration rates among the highest in the world and a young, content-hungry population, the Middle East is fast becoming a dynamic space for digital innovation. While access is no longer the primary challenge, the region is now focused on what content is accessed, how it is delivered, and how to ensure a secure and sustainable digital ecosystem.
To better understand what makes this region unique and how it’s evolving, we spoke with Pascal Dufour, Vice President for Middle East, North Africa & Turkey at Digital Virgo.
A Localized Perspective on the Middle East
Mobile Penetration & Market Characteristics
- Mobile penetration in the Middle East is well above 100% in most countries due to multiple MNOs/MVNOs and widespread dual SIM usage.
- The market is mature in terms of access; the focus has shifted from connecting people to delivering meaningful digital experiences.
Youth-Driven Demand
- Over 50% of the Arab population is under 30, often under 25 — a key demographic driving content consumption.
- There’s a high appetite for educational, entertainment, and language learning content.
Popular Content Categories
- Gaming is a standout trend — from casual to esports — with particularly high engagement in countries like Saudi Arabia and Kuwait.
- VOD and sports content also rank high in user interest.
Saudi Arabia as a Growth Catalyst
- Saudi Arabia is attracting major sports and entertainment brands (e.g., FIFA, F1, Olympics), reinforcing its role as a regional digital hub.
- This momentum encourages local content creation, startup activity, and investment in digital services.
- The region is moving beyond geopolitical narratives, presenting real opportunities in business and digital innovation.
Building a Sustainable & Safe Digital Ecosystem
Establishing Trust & Fair Play
- Major challenges include misleading advertising, fraud, and the need to educate both consumers and operators.
- Sustainable development relies on a clear, shared framework involving:
- Mobile operators
- Regulators
- Trusted partners (e.g., Google, Smadex)
Education & Alignment
- A secure digital ecosystem depends on:
- Educating stakeholders on complex service models
- Aligning regulations and practices across the board
- The goal is a level playing field that balances growth and customer protection.
No Trade-off Between Revenue and Satisfaction
- Telcos often feel they must choose between making money and keeping users happy — this is a false dilemma.
- Premium content and transparent monetization (especially through advertising) allow for both growth and customer satisfaction.
Future Trends & Strategic Shifts
New Distribution Models
- Moving beyond the traditional “digital services” approach toward bundling with data plans or other offers.
- A more modular and experimental distribution strategy is emerging in partnership with telcos.
Evolving Payment Channels
- Direct Carrier Billing (DCB) is no longer the only viable option.
- New channels under exploration:
- Wallets
- Mobile money
- Credit cards
- There’s a strong push to diversify payment methods to ensure reach and conversion.
The Rise of AI in Digital Services
- AI-generated content and services are starting to take shape, including examples for kids’ entertainment and education.
- AI is expected to impact not just the content itself but also how it is delivered and personalized.
