UAE Telecom MNO Market Analysis by Mordor Intelligence
The UAE Telecom MNO Market size is estimated at USD 13.42 billion in 2025, and is expected to reach USD 16.42 billion by 2030, at a CAGR of 4.11% during the forecast period (2025-2030). In terms of subscriber volume, the market is expected to grow from 22.70 million subscribers in 2025 to 27.30 million subscribers by 2030, at a CAGR of 3.75% during the forecast period (2025-2030).
Sustained capital outlays in 5G stand-alone (SA) networks, wholesale fiber, and edge data centers keep the UAE telecom MNO market at the forefront of Middle East digitalization. Regulators encourage infrastructure quality instead of network overcrowding, so operators monetize premium tiers instead of pursuing price wars. Consumer demand for video streaming, mobile gaming, and ultra-reliable connectivity keeps data ARPU resilient even when voice revenues flatten. Enterprise digitization, led by oil-and-gas, logistics, and public-sector smart-city programs, steadily expands the addressable base for private 5G, IoT, and network-slice services that command higher margins.
Key Report Takeaways
- By service type, data and internet services held 46.51% of the UAE telecom MNO market share in 2024. IoT and M2M services are projected to pace the UAE telecom MNO market at a 4.19% CAGR between 2025-2030.
- By end user, the consumer segment accounted for 69.09% of the UAE telecom MNO market size in 2024. The enterprise segment and solutions are set to grow at a 4.44% CAGR through 2030.
UAE Telecom MNO Market Trends and Insights
Drivers Impact Analysis
| Driver | (~)%Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| 5G SA roll-out and premium-tier ARPU uplift | +1.2% | Dubai and Abu Dhabi first, then nationwide | Medium term (2-4 years) |
| Surging video-streaming and mobile-gaming demand | +0.8% | Urban centers across all seven emirates | Short term (≤2 years) |
| Enterprise appetite for private 5G / IoT connectivity | +0.7% | Industrial zones and smart-city corridors | Long term (≥4 years) |
| Fixed–mobile convergence bundles fueling upsell | +0.5% | Residential clusters countrywide | Medium term (2-4 years) |
| Government 6G R&D incentives | +0.4% | Research hubs in Abu Dhabi | Long term (≥4 years) |
| AI-driven network slicing for ultra-low latency | +0.3% | Enterprise and public-sector mission-critical networks | Long term (≥4 years) |
| Source: Mordor Intelligence | |||
5G SA Roll-out and Premium-tier ARPU Uplift
Standalone 5G unlocks network slicing and latency guarantees that cannot be replicated on non-stand-alone deployments. e& UAE hit 30.5 Gbps under trial conditions, proving the headroom for differentiated performance tiers [1]e&, “e& UAE Sets New Record With World’s Fastest 5G Speed,” eand.com. du followed with Voice-over-New-Radio for superior call clarity on 5G radios [2]RCR Wireless News, “du Claims First 5G VoNR Launch in the UAE,” rcrwireless.comas enterprises pay a premium for deterministic latency in smart-factory and remote-operation cases, operators package bronze, silver, and gold slices with escalating SLAs. Early adopters validate the price-elasticity thesis: higher speed and assured performance lift blended mobile ARPU even when subscriber growth slows.
Surging Video-streaming and Mobile-gaming Data Demand
Consumer behavior keeps shifting toward UHD streaming, social video, and cloud gaming. du disclosed that 5G users already generate more than 60% of aggregate mobile traffic, up from a minority base in 2024 [3]Developing Telecoms, “du to Drive Development and Support for 5G-A Innovation,” developingtelecoms.com . Tourist inflows further elevate peak-hour loads; Gulf inbound visitors report consistently high 5G roaming speeds at UAE airports and leisure venues. Data-hungry use cases justify tiered unlimited plans that preserve margins, while partnerships with OTT video platforms capture incremental content revenue.
Enterprise Appetite for Private 5G / IoT Connectivity
The push for Industry 4.0 prompts manufacturers, ports, and utilities to seek dedicated 5G bands that guarantee deterministic performance and on-prem data sovereignty. e& signed with ADNOC to build the world’s largest single-site private 5G network covering upstream, midstream, and downstream assets. The regional IoT market is forecast at USD 42.8 billion in 2028, giving operators a clear runway to bundle connectivity with managed devices and analytics. Long hardware refresh cycles and stringent HSE requirements lock in multiyear revenue corridors that are less exposed to consumer churn cycles.
Fixed-Mobile Convergence Bundles Fueling Upsell
Fiber ubiquity (99.3% FTTH penetration) lets incumbents bundle 1 Gbps home broadband, post-paid mobile, and OTT TV into single-invoice packs. e&’s Neo Home at AED 399 (USD 109) adds Amazon Prime to raise perceived value. du counters with wireless-home broadband at AED 159, leveraging its LTE-5G CPE portfolio to service low-rise zones quickly. Converged bundles reduce churn and tack on incremental margin through content commissions and cloud storage add-ons. As households consolidate telecom spend, the UAE telecom MNO market benefits from higher revenue per addressable unit.
Restraints Impact Analysis
| Restraint | (~)% Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Intensifying price competition post-MNP liberalization | -0.6% | Dense urban clusters | Short term (≤2 years) |
| High federal royalty fees on operator revenue | -0.4% | Nationwide | Medium term (2-4 years) |
| Cross-border OTT substitution of legacy voice/SMS | -0.3% | International-calling corridors | Medium term (2-4 years) |
| Data-sovereignty and cybersecurity compliance costs | -0.2% | Enterprise and public-sector workloads | Long term (≥4 years) |
| Source: Mordor Intelligence | |||
Intensifying Price Competition Post-MNP Liberalization
Porting a number now completes within two working days free of charge, eliminating historic inertia that kept subscribers loyal to incumbents [4]Gulf News, “How to Switch Mobile Network Providers in the UAE Without Changing Your Number,” gulfnews.com. Promotional cashback, bonus data, and handset-bundle campaigns erode consumer ARPU just when capex intensity peaks for 5G SA. Operators counter with experience-based differentiation, speed, coverage, and digital self-care apps, to defend yields, yet the downward push on entry-level tariffs persists.
Cross-border OTT Substitution of Legacy Voice/SMS
Even though VoIP blocks apply to certain apps inside UAE borders, residents and travelers often circumvent restrictions via roaming SIMs or Wi-Fi calling in adjacent states, reducing paid international minutes. Botim’s relaunch as a GCC “ultra-app” with 90 million users illustrates how OTT ecosystems scale rapidly once a local foothold is granted [5]Khaleej Times, “UAE: VoIP App Botim to Be Relaunched; Free Calls to Continue Working,” khaleejtimes.com . As 5G lowers latency, OTT providers deliver voice and video at near-PSTN quality, pressuring incumbents to shift value toward data, cloud security, and managed collaboration tools.
Segment Analysis
By Service Type: Data Services Drive Market Evolution
Data and internet services captured 46.51% of the UAE telecom MNO market share in 2024, confirming that bandwidth rather than voice forms the revenue core of the UAE telecom MNO market. The UAE telecom MNO market size attributed to data services will keep expanding as 4K video, cloud gaming, and metaverse pilots move from proof-of-concept to mainstream packages. IoT and M2M post the fastest 4.19% CAGR through 2030, fueled by onshore oil facilities, automated ports, and municipality-wide smart-meter rollouts. Operators layer device management, analytics, and cybersecurity over plain connectivity to lift service take rates and margins.
Network usage patterns underscore the shift. More than 60% of du’s traffic already rides on 5G cells, a ratio that is projected to exceed 80% by 2027 as mmWave densification progresses. Voice revenues stay relevant in enterprise PBX and premium international calling, but discretionary voice is increasingly consumed via OTT. Messaging continues to decay as over-the-top chat dominates. Meanwhile, OTT and Pay TV thrive inside converged bundles, allowing carriers to recapture entertainment spend that once leaked to standalone SVOD apps. Other services, roaming packs, financial wallets, and advertising- supplement the revenue mix and smooth seasonal volatility.
Note: Segment shares of all individual segments available upon report purchase
By End User: Enterprise Acceleration Reshapes Revenue Mix
Consumer subscriptions still account for 69.09% of the UAE telecom MNO market size in 2024, reflecting high smartphone ownership, dual-SIM habits, and robust tourism flows. Yet enterprise contracts, though smaller in count, bring higher ARPU and are set to climb 4.44% CAGR, the quickest across any segment, through 2030. The UAE telecom MNO market aligns with national AI and industrial automation agendas, so CIOs treat 5G slices and edge compute as mission-critical utilities rather than optional connectivity add-ons.
Operators reposition themselves as transformation partners. e& enterprise bundles Azure Stack, cybersecurity SOC, and private 5G under outcome-based SLAs, locking multi-year annuities that are less sensitive to consumer price promotions. du courts SMEs with “smart office in a box” that combines SD-WAN, UCaaS, and mobile lines. As the share of B2B revenue climbs, cash-flow visibility improves, enabling a virtuous cycle of reinvestment into next-gen networks. Consumer retention tactics pivot toward lifestyle add-ons, streaming, gaming passes, and device care, buffering ARPU against discounting pressures spawned by number portability.
Geography Analysis
Dubai and Abu Dhabi anchor the UAE telecom MNO market because both emirates host dense business districts, free-trade zones, tourist magnets, and pilot corridors for autonomous mobility. They benefit from early 5G SA launches and thorough indoor coverage in malls, airports, and stadiums, pushing blended mobile speeds to 275.9 Mbps on e& and 264.1 Mbps on du according to Opensignal. The two emirates generate the bulk of enterprise contracts in oil, aviation, and financial services, so private 5G nodes, edge data centers, and cloud regions often cluster here first.
Sharjah, Ajman, Fujairah, Ras Al Khaimah, and Umm Al Quwain present different network economics. Population is more dispersed, making fiber ROI challenging; operators therefore rely on FWA-over-5G to hit broadband targets. Pay-TV bundling differentiates offers in these cost-conscious markets, while tourism inflows sustain roaming revenue on coastal resorts. State-backed infrastructure funds co-invest in towers and ducts, shortening payback for extensions into industrial zones that host cement, quarrying, and logistics plants.
Nationally, submarine cable landings at Fujairah create an east-west switch-yard that elevates the UAE telecom MNO market into a regional transit hub. Hyperscale data-center expansions, du’s USD 544 million Azure-anchored campus and G42-e&’s Khazna joint platform, ensure content proximity that reduces latency on local mobile links. Abu Dhabi’s 2025-2027 digital strategy earmarks AED 13 billion for AI-ready infrastructure, providing a guaranteed offtake for 5G slices and government cloud.
Competitive Landscape
The UAE telecom MNO market remains a regulated duopoly in 2025, with e& UAE and du jointly controlling a significant share of the studied market. e& leverages scale to maintain national best-in-class scores in download speed and video experience, while du outperforms in network availability and gaming latency. Rather than price wars, both pursue technology-led differentiation. e& runs over 400 AI use cases and 160 machine-learning models for predictive maintenance, dynamic spectrum allocation, and real-time customer-experience scoring. du counters with an innovation center focused on 5G-Advanced, open RAN, and network APIs that expose quality-on-demand functions to developers.
Spectrum policy under the Telecommunications and Digital Government Regulatory Authority keeps two players balanced: each was granted mid-band and high-band blocks but pays staggered royalties tied to revenue rather than profit, encouraging efficient capex deployment instead of subscriber-count arms races. Satellite backhaul firms and neutral-host indoor providers add ancillary competition but do not challenge mass-market segments. Vertical-specific entrants, such as energy SCADA integrators, partner instead of compete, fortifying the incumbents’ channel reach.
Strategic moves highlight international diversification. In May 2025 e& took a minority stake in Caribbean operator Digicel to expand wholesale voice capacity across the Americas. Meanwhile, du deepened ties with Microsoft Azure to ensure cloud adjacency to its 5G edge nodes, securing anchor tenant economics for its data-center arm. Both place early bets on 6G testbeds, anticipating commercial readiness near 2029, thus reinforcing the UAE telecom MNO market as the GCC laboratory for next-gen connectivity.
UAE Telecom MNO Industry Leaders
-
e&UAE (Etisalat)
-
du (Emirates Integrated Telecommunications Co.)
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- May 2025: e& and Digicel Group announced a strategic partnership to enhance international voice services across the Americas, leveraging AI for fraud prevention and operational optimization.
- May 2025: e& UAE launched 5G network slicing for businesses in collaboration with Nokia and STC, demonstrating proof-of-concept implementation over GPON technology.
- April 2025: du and Microsoft signed a AED 2 billion (USD 544 million) agreement to develop a hyperscale data center in the UAE, supporting the country’s cloud-first mandate.
- February 2025: du launched 5G Voice over New Radio (VoNR) commercially, claiming first-in-UAE implementation for enhanced call quality.
- January 2025: e& UAE introduced Neo Home internet plans with 1 Gbps speeds bundled with Amazon Prime and TV services.
UAE Telecom MNO Market Report Scope
Telecom or telecommunication refers to all states of data, voice, and video transmission and describes the electronic exchange of information over great distances. It includes various information-transmitting technologies and communications infrastructures, including landlines, cell phones, mobile phones, satellites, fiber optics, television, microwave communications, radio, the Internet, and telegraphs.
The UAE telecom industry is segmented by telecom services (voice services [wired, wireless], data and messaging services, OTT and pay-TV services) and telecom connectivity (fixed network, mobile network). The report offers market forecasts and size in value (USD) for all the above segments.
| Voice Services |
| Data and Internet Services |
| Messaging Services |
| IoT and M2M Services |
| OTT and PayTV Services |
| Other Services (VAS, Roaming and International Services, Enterprise and Wholesale Services, etc.) |
| Enterprises |
| Consumer |
| Service Type | Voice Services |
| Data and Internet Services | |
| Messaging Services | |
| IoT and M2M Services | |
| OTT and PayTV Services | |
| Other Services (VAS, Roaming and International Services, Enterprise and Wholesale Services, etc.) | |
| End-user | Enterprises |
| Consumer |
Key Questions Answered in the Report
How big is the UAE telecom MNO market in 2025?
The UAE telecom MNO market size stands at USD 13.42 billion in 2025 and is projected to reach USD 16.42 billion by 2030.
What is the forecast CAGR for UAE telecom through 2030?
Industry revenue is expected to grow at a 4.11% CAGR over the 2025-2030 period.
Which service category holds the largest UAE telecom MNO market share?
Data and internet services lead with 46.51% market share in 2024 thanks to widespread 5G and fiber coverage.
Which segment is growing fastest inside UAE telecom?
IoT and M2M log the highest growth, expanding at a 4.19% CAGR through 2030 as enterprises deploy Industry 4.0 solutions.
Who are the main players in UAE telecom?
E& UAE and du dominate, together capturing 97.5% of sector revenue under a regulated duopoly.
Why is 5G SA important for UAE operators?
5G stand-alone enables network slicing and ultra-low latency that let operators sell premium connectivity tiers to enterprises and consumers.
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