Free Report into Mid East and North African Mobile Markets

The mobile phone industry in the Middle East and North Africa (MENA) region is creating hundreds of thousands of new jobs inside and outside the industry, boosting economic growth and fostering social harmony and security, according to a new report commissioned by Kuwait's MTC. The report highlights both economic and social effects of mobile communications usage on the MENA region. Its results show that mobile revenues alone accounted for 5% of the increase in GDP in Bahrain between 2002 and 2004.

In Jordan, the number of employees in the mobile sector increased by 42% over the four-year period of liberalization. Elsewhere, the data produced in this extensive report revealed that some mobile operators represent more than 30% of a total stock market - such as Egypt's Cairo and Alexandria Stock Exchange (CASE) - and can result in a return of around US$33,500 for each US$1,000 invested, as was the case on the Kuwait Stock Exchange.

According to Dr. Saad Al Barrak, Chief Executive Officer of MTC Group, "The report shows the potential of mobile communications to enhance not only the economic position of countries and people but also to change the social fabric of our communities. At MTC, we have always believed that mobile communications are part of the framework of societies and the daily lives of people and this report attests to that fact."

Al Barrak added, "We are very interested by the finding that in Egypt for every job created in the mobile sector, eight other jobs are created in different sectors of the economy, as well as the conclusion that if ICT (Information and Communication Technologies) investment in Egypt were doubled it would create 1.3 million new jobs and the rate of GDP growth would rocket from 4 percent to 8 percent and more. This makes us ever keener on winning the third mobile license in Egypt and contributing to that growth potential, as we did in Iraq and other countries of the region."

The report was conducted by independent research firm Zawya and includes a survey carried out in six different countries by Nicosia-based ACNielsen.

On the social side, MTC's report reveals how the mobile phone has become the Arab world's most commonly used leading-edge technology. From research by a sociologist in Beirut, to a fact-finding report by a journalist in Jordan's Wadi Rum, passing by the Palestinian Territories, this side of the report shows how the mobile has become an integral part of life in the MENA region. Even television has not been spared by the ever growing influence of the technology, according to another part of the research.

In the Iraqi section, a survey conducted in three major cities (Baghdad, Basra and Najaf) by Money Line showed how 95% of Iraqis use their phone to ensure the safety of their loved ones and 43% consider it as their best friend. What is most surprising is that although the widespread use of mobile phones has only recently been introduced in Iraq, 83% see it as a necessity in life and 77% said it made life easier. "This indicates the positive role that mobile communications has provided to Iraqi society both on an economic and social level," said Al Barrak.

On the micro-business level, the survey found that the mobile phone has become a vital tool for businesses with a reported 32% increase in profitability for those interviewed in Bahrain and Jordan and a 25% gain in Tunisia. Additionally, 62% of respondents in Tunisia believed the mobile has helped lower costs by reducing travel needs.

AL Barrak concluded, "with over 14 million customers, we at MTC consider the commissioning and findings of this report as a further step to understanding the needs of our customers and the potential of mobile communications. We hope that all who read it will benefit and will find it interesting."

You can download the report for free from the MTC website."

Posted to the site on 17th February 2006