15 Tech, Media & Telecom Trends to Watch in the Middle East

AI, 5G, cloud, gaming and quantum are transforming the Middle East’s TMT landscape. From sovereign clouds to Arabic-first content, these trends are redefining growth, creativity, and competitiveness.

Countries in the Middle East are fast emerging as a digital-first economies, with AI, 5G, cloud, gaming and quantum technologies redefining the region’s telecom, media and tech landscape. AI is driving demand for computing power and semiconductors, shifting investment from model developers to the infrastructure behind them, while sovereign cloud and hyperscale data centres are becoming the backbone of digital transformation. Telecoms are capitalising on this momentum through deals in fibre and data centres, leveraging AI to optimise 5G networks and unlock new revenue streams across Industry 4.0, smart cities and immersive consumer experiences.  

At the same time, AI is reshaping media and entertainment, powering tech-enabled, data-driven advertising and cloud-native content platforms that rival the reach of legacy players. National bets on gaming in Saudi Arabia and quantum computing in the United Arab Emirates (UAE) highlight how the region is blending creativity with technological sovereignty, positioning itself not just as an adopter but as a shaper of the global digital future. 

Here are the trends to watch out for as we look ahead to 2026:

1. Cloud takes over 

5G, AI and cloud computing are converging to reshape the region’s telecom landscape, with 85% of digital infrastructure expected to be cloud-based by 2025, enabling faster, more secure and intelligent network capabilities across both public and private sectors.¹

The shift to cloud-dominated infrastructure is driving demand for scalable, secure and compliant platforms. Organisations adopting specialised hybrid cloud solutions can boost efficiency, mitigate risk, and strengthen their competitiveness in the digital economy. 

This change is unfolding as cloud security becomes a top cyber priority, with cloud ranked as one of the two threats organisations in the Middle East feel least prepared to address.²

Governments and enterprises will increasingly demand hybrid cloud ecosystems with strong workload governance to manage cybersecurity risk and improve performance scalability, while telcos and hyperscalers that deliver compliance-ready solutions will dominate the digital services market. 

2. The Middle East: Rising as a global AI compute powerhouse 

The Middle East is fast emerging as a global AI compute hub, with regional data centre capacity projected to reach 5-6 GW by 2030, driven by hyperscaler expansion, sovereign-cloud programs and national AI strategies. Saudi Arabia, the UAE and Qatar are spearheading this expansion through landmark initiatives: HUMAIN’s partnerships with xAI for a 500MW data centre facility, AWS for a 100MW build targeting 1GW capacity, and AMD-Cisco for 1GW project;³ Microsoft and G42 enabling a 200MW data centre expansion in the UAE⁴ and Qatar’s QIA launching a $3bn global digital-infrastructure platform with Blue Owl Capital to scale data centre capacity.⁵ If global patterns hold, this build-out could support thousands of skilled jobs, generate substantial downstream ecosystem activity, and significantly boost long-term GDP and investment flows in the region.  

The region’s blend of low-cost energy, strategic geography, sovereign capital, and a resilient regulatory environment is attracting hyperscalers, GPUaaS providers, and AI developers. Unlocking the next wave will require deeper technical talent, predictable grid access, reliable renewable energy, stronger subsea and regional interconnectivity, and a clearer AI/data-sovereignty framework - critical enablers for scaling competitive, sustainable AI infrastructure.  

By 2030, AI data centers will anchor the region’s digital edge and the national competitiveness - powering sovereign cloud alliances, reinforcing trust, and enabling high-density AI interconnectivity - positioning the Middle East not only as an adopter of AI, but as an emerging exporter of secure, resilient, and high-performance digital infrastructure. 

3. A strategic bet on quantum computing 

The Middle East is investing in quantum computing to build local capabilities and sector-specific applications. Key initiatives include Qatar’s US$1bn, 10-year partnership with Quantinuum,6 UAE’s Norma-Al Fardan Ventures MOU7 and Saudi Arabia’s Quantum Valley.⁸ 

Quantum computing is rapidly becoming a strategic necessity. Early adoption will secure critical digital infrastructure, mitigate emerging cyber threats, and provide first-mover advantage in AI-driven computing. Sectors such as finance, energy, defence, healthcare and aviation, will benefit from faster simulations, portfolio optimisation, and quantum-resistant security.⁹ Yet, according to PwC 2026 Global Digital Trust Insights: Middle East findings,¹⁰ despite quantum computing being among the top four threats organizations are least prepared for, almost half of them haven’t started quantum-resistant measures and just 8% of security leaders globally include quantum readiness in their top three budget, highlighting a major cybersecurity gap alongside the technology’s opportunities.¹¹ 

Over the next decade, sustained investment and cross-sector collaboration will be pivotal to overcome technical and talent gaps. Those who scale fastest will unlock transformative economic value and cement the Middle East’s position as a global leader in quantum technologies. 

4. Sovereign clouds next competitive battleground 

Sovereign clouds are becoming a strategic priority in the Middle East, with governments focusing on data sovereignty, AI scaling, and trusted national digital ecosystems. Landmark initiatives, such as the UAE government’s partnership with Microsoft and Core42 to build sovereign cloud and AI Hub in Abu Dhabi,¹² underscore how sovereign, AI-native cloud platforms are now central to these strategies.

Sovereign clouds are emerging as the regulatory and trust backbone of digital economies, with telcos uniquely positioned as both infrastructure operators and compliance enablers.

As sovereign cloud adoption surges, telcos will emerge as key enablers of data residency, privacy, and AI governance compliance, unlocking new revenue from cloud services, enterprise AI, and public-sector collaborations, while strengthening long-term leadership in the TMT ecosystem.

5. Arabic content is transforming digital competition 

Saudi Arabia’s rising demand for Arabic-language content is driving growth across local platforms. In Q4 2024, popular Arabic-language video streaming platform also surpassed Prime Video and Disney, signalling a major shift toward regional platforms.¹³

Localisation is, therefore, redefining the streaming battle and the region can expect intensified competition between local platforms and global players as governments incentivise local IP creation, while content regulation frameworks evolve

6. Accelerating focus on culture as a strategic lever 

Governments across the Middle East are strategically investing in culture as a core economic and social driver. Saudi Arabia is mobilizing public-private partnerships and innovative financing (a US$270m co-lending product)14 to expand cultural infrastructure, aiming to triple the sector’s GDP share to US$48bn by 2030.¹⁵

Simultaneously, UAE and Qatar are prioritizing heritage preservation,¹⁶ cultural tourism,¹⁷ and AI-powered digital experiences to enhance cultural accessibility and engagement.¹⁸

Culture is emerging as a measurable economic and social driver. Investments in infrastructure, talent, and digital innovation are attracting global capital and reinforcing national identity. Integrated policies and partnerships are creating scalable, sustainable cultural ecosystems.

The region is set to become a global cultural hub, delivering economic value, social cohesion, and digitally enhanced, world-class cultural experiences.

7. AI is reshaping the media value chain 

The Middle East’s media sector is embedding AI across the content lifecycle, transforming creation, distribution and monetisation through personalisation, immersive interactivity, and smarter workflows. We see StarzPlay using it for personalisation, in-app shopping,¹⁹ and anti-piracy^;20 Shahid automating scheduling and content management;²¹ MBC scaling Arabic voice tech globally.²²

Beyond efficiency, AI is unlocking growth for streaming players and broadcasters, boosting engagement, enabling new monetisation models and expanding Arabic content to global audiences while safeguarding IP.

AI is set to become the backbone of MENA’s media-tech ecosystem, enabling platforms to deliver immersive, data-driven, and multilingual experiences at scale. As adoption accelerates, we expect the region to emerge as a testbed for sovereign AI in media, balancing cultural authenticity with global distribution, ultimately positioning MENA as a leader in the future of AI-powered entertainment.²³

8. Saudi Arabia is turning gaming into growth 

According to PwC’s Global Entertainment and Media Outlook 2025-2029 (GEMO), Saudi Arabia is rapidly emerging as a global gaming and esports hub, driving MEA’s market growth from US$5.5bn in 2024 to US$7.1bn by 2029, supported by ongoing infrastructure development, youth engagement, and sovereign investments. Backed by its National Gaming and Esports Strategy and flagship initiatives such as the Esports World Cup, the Kingdom aims to add US$13.3bn to GDP and create 39,000 jobs by 2030.²⁴

This marks an accelerated shift towards diversifying the Saudi economy and building a global creative industry. By developing local studios, esports leagues, and content ecosystems, the Kingdom is shaping scalable, exportable gaming IP and attracting global investors.

By 2030, the region is set to emerge as a global esports and content hub, fuelled by government backing, mobile-first audiences, and rising local talent. Further, expanding events and new revenue streams from digital sponsorships and media rights will drive sustainable growth and global recognition.

9. Telcos power growth with data centres 

Data centres are now central to the Middle East’s digital ambitions, underpinning AI, cloud, and IoT deployment. Partnerships such as stc-Oracle,²⁵ e&-AWS,²⁶ du-Oracle, and Ooredoo-Nvidia,²⁷ reflect the scale of investment in sovereign and hyperscale builds. Rising data localisation mandates in Saudi Arabia and the UAE are also driving accelerated infrastructure expansion.

Telcos are moving beyond connectivity to become foundational players in national digital strategies. Their ability to monetise through GPU-as-a-Service, sovereign clouds and AI infrastructure will redefine revenue models.

Over the next few years, telcos that succeed in building scale, compliance, and low-latency capabilities will cement their role as digital infrastructure leaders, positioning the Middle East as a global hub for AI and data-driven innovation.

10. Telcos evolve into cross-sector digital orchestrators 

Middle East telcos are rapidly transcending from connectivity providers to digital ecosystem enablers, embedding AI, cloud, and IoT across sectors. Initiatives include stc driving US$319m smart tourism with Red Sea Global,²⁸ Ooredoo enhancing healthcare,²⁹ e& enterprise advancing Industry 4.0,³⁰ and Zain powering global M2M connectivity.³¹

This evolution positions telcos as strategic partners in national diversification agendas, expanding their role from network operators to catalysts for cross-sector innovation. By integrating technology with domain expertise, telcos are unlocking new revenue pools and enabling governments’ smart economy ambitions.

Going forward, as telcos deepen ecosystem partnerships, they are poised to lead the evolution of integrated, cross-industry digital ecosystems, unlocking new opportunities, driving innovation at scale, and redefining the telecom sector as a strategic engine of regional economic growth.

11. AI integration accelerates across telecom networks 

Middle East telcos - Zain,³² du,³³ Ooredoo,³⁴ and e&³⁵ - are shifting from AI pilots to scaled deployment, embedding AI in networks, services, and customer engagement, driving efficiency, new digital offerings, and positioning as national innovation enablers.

These initiatives mark a critical inflection point: by embedding AI across infrastructure and customer touchpoints, telcos are redefining competitive advantage, unlocking efficiency and enterprise growth, while advancing sovereign digital capabilities.

Over the next 24 months, AI will become standard in operations, spanning predictive maintenance, fraud prevention, cyber risk monitoring, and hyper-personalised engagement.

As AI adoption scales, security leaders are prioritising AI-enabled threat hunting and identifying AI as their number one cyber investment focus, with agentic-AI priorities centred on cloud security, data protection and cyber defence.³⁶

12. The Middle East accelerates the 6G frontier 

The Middle East is fast-tracking its shift from 5G leadership to 6G innovation. National programs in the UAE and Saudi Arabia, such as MCIT’s 6G readiness forum³⁷ and e& UAE’s spectrum tests,³⁸ signal strong policy and R&D momentum. Partnerships such as stc-Nokia,³⁹ du-Nokia,⁴⁰ and e&-Ericsson41 are advancing AI-native networks, and edge-cloud convergence, supported by academia-industry alliances such as e&–NYU Abu Dhabi.⁴²

6G will embed intelligence, sensing, and sustainability into networks, positioning the Gulf as a testbed for ultra-low-latency, energy-efficient infrastructure. Early ecosystem building is strengthening digital sovereignty and attracting hyperscalers and industrial innovators aligned with Industry 4.0 ambitions.⁴³

Going forward, telcos will evolve into architects of ambient intelligence, leveraging 6G, AI, and edge computing to enable autonomous cities and immersive industries, making the Middle East a global architect of the 6G economy.

13. IoT connectivity strengthens with global Telco partnerships 

Enterprises across the Gulf are accelerating IoT adoption to modernise logistics, manufacturing and urban infrastructure. In Saudi Arabia, Vodafone Business IoT-Mobily⁴⁴ and Telenor-stc⁴⁵ partnerships are expanding managed IoT services, while Kuwait’s AIoT Association and Saudi’s AI Governance Association are advancing AI-IoT integration through education, training, and ethical governance.⁴⁶

Telcos are evolving from connectivity providers to orchestrators of secure, low-latency IoT ecosystems, underpinned by advanced 5G, private 5G and edge computing. 

The next phase will centre on AI-optimised IoT, cloud integration and digital twins, demanding deeper collaboration between telcos, hyperscalers and specialised tech providers, where security-by-design becomes essential, as cloud and connected products stand as the top two cyber threats that organisations are least prepared to address.

14. Satellite broadband is unlocking regional inclusion

The Middle East is investing heavily in low-Earth orbit (LEO) satellites, with Yahsat ordering new satellites,⁴⁷ Arabsat integrating Telesat Lightspeed,⁴⁸ and partnerships such as Starlink-Alghanim,⁴⁹ driving high-speed connectivity in remote and underserved regions, and unlocking new opportunities in rural communities, strategic sectors, and mission-critical operations.

Satellite broadband is evolving from a niche rural solution into a strategic enabler for mission-critical industries, supporting operations where terrestrial networks are limited or unavailable.

LEO integration will accelerate digital inclusion strategies across MENA, with new commercial models emerging in agriculture, defence and maritime industries.

15. GCC’s semiconductor play is gaining momentum 

GCC nations are boosting local semiconductor production through R&D hubs and partnerships. For example, Saudi Arabia’s SAR1bn chip fund,⁵⁰ UAE’s US$100bn deals with TSMC and Samsung⁵¹ and Qatar’s Ardian platform⁵² aim to reduce supply chain dependence and strengthen digital autonomy by 2027-28.

Local capabilities will accelerate AI-driven solutions, providing the TMT sector access to advanced semiconductors, fuelling advances in cloud computing, 5G networks, IoT and AI applications. This paradigm shift will create new avenues for value creation across the TMT ecosystem, spanning infrastructure providers, platform developers and service operators, positioning the region as a catalyst for global technology leadership and sustainable growth.

A future defined by convergence  

The convergence of technology, media and telecommunications in the Middle East is no longer a question of if but of how far and how fast. The coming years will be critical in defining whether the region simply adopts global models or sets new ones of its own. 

Sovereign clouds, Arabic-first content, AI-native industries and next-generation connectivity are not just technological upgrades – they are strategic levers for economic diversification, cultural influence and geopolitical weight. 

If these shifts are scaled effectively, the Middle East could move from being a fast adopter to a leading force in shaping the global digital economy.