UAE and Qatar Defy Size Expectations, Leading Global Telecoms Sector Health

A robust telecommunications sector is fundamental to a flourishing digital economy and technological advancement. For a long time, the prevailing belief was that infrastructure-dependent industries like telecoms relied heavily on scale. The reasoning was straightforward: a larger population generates more revenue, distributing the significant costs of network deployment across a broader subscriber base. This, in turn, makes telecom operations more financially viable and supports continuous investment. However, new research from Kearney challenges this long-held assumption.

Our comprehensive evaluation, which benchmarked 34 major global markets on technology deployment, commercial health, and customer sentiment, has revealed a remarkable shift in global leadership. The United Arab Emirates (UAE) and Qatar have emerged as the world's two healthiest telecommunications markets, surpassing significantly larger and historically technologically advanced nations such as the United States and South Korea. Our findings indicate no correlation between market size and sector health, with both large and small markets distributed throughout the index. Even more surprisingly, there is no discernible link between GDP per capita and sector health. Malaysia, for instance, ranks 32nd in GDP per capita among the studied markets but secures sixth place in the index. This success is attributed to a well-structured market, coordinated technology rollout, and an active national policy framework that ensures strong returns to fund investment. Similarly, despite its high GDP per capita, the US experiences lower customer satisfaction and mixed financial returns, which negatively impact its ranking, even with extensive fiber and 5G coverage.

What have the UAE and Qatar got so right?

Technology deployment is a key factor, with both countries ranking among the top five in our index. In Ookla's July 2026 Speedtest Global Index, the UAE and Qatar recorded the highest median mobile download speeds globally, at 663.5 Mbps and 548.4 Mbps, respectively. For comparison, Germany, the highest-ranked country outside the Gulf, achieved median speeds of just 274.4 Mbps. The UAE and Qatar also hold a decisive lead in fixed broadband infrastructure, boasting nearly universal coverage and occupying the top two global positions for customer satisfaction.

How can we explain this outperformance?

Telecoms sector health is not merely a consequence of national wealth but rather the result of meticulous market design and coherent policy. Hadi Hammoud, a partner in Kearney's Communications, Media, and Technology practice, notes that careful planning is crucial.

Why market structure matters

Firstly, consider market design, specifically the degree of market concentration. Both the UAE and Qatar operate with two primary players in their markets. Our research indicates that markets with two or three mobile operators consistently outperform more fragmented markets across key financial and technology deployment metrics. The reason for this is that in markets with four or five operators, capital can be inefficiently allocated. Competitors might incur substantial expenses to build redundant infrastructure merely to ensure basic coverage, thereby reducing returns on invested capital and diverting funds that could otherwise enhance network quality. This is less likely to be the case in two-player markets. This does not imply that less competition is inherently superior. Instead, it suggests that two well-capitalized national operators can sustain meaningful competition while simultaneously funding continuous, nationwide technology upgrades. The UAE's two major telecoms operators exemplify how a concentrated market can coexist with extensive infrastructure investment and high levels of connectivity.

Regulation and policy coherence have also played significant roles in the success of these regional telecoms markets. Adel Belcaid, head of Kearney's Middle East and Africa Communications, Media, and Technology practice, highlights the importance of coordinated efforts.

In both the UAE and Qatar, close collaboration among operators, national regulators, and broader development objectives has fostered regulatory certainty, paving the way for early and substantial investment. Both nations recognized the strategic importance of telecommunications infrastructure early on. Spectrum allocation and coordinated national strategies enabled them to pioneer commercial 5G deployments. In the UAE, regulatory preparations for 5G commenced as early as 2015. This foresight allowed regional operators to lead early global rollouts, including Ooredoo Qatar's activation of its commercial 5G network in May 2018 and the UAE's early fixed-wireless 5G launches. Consequently, the infrastructure was in place well before compatible consumer handsets became widely available in 2019. The UAE's early investment in 5G serves as an illustration of how long-term regulatory planning can accelerate technological development.

Proactive policies have also streamlined operational processes. In Qatar, public authorities provided operators access to over 4,860 km of government-owned telecommunications ducts, eliminating the need for additional excavation and reducing deployment costs.

Infrastructure ownership models

Infrastructure ownership models may also be a contributing factor. Our research reveals a positive correlation between tower ownership and sector health, with mobile towers remaining entirely telecoms-owned in both markets. This finding is somewhat counterintuitive, given that the separation of tower assets from telecoms operators has been widely perceived as a method to unlock value over the past decade. It does not necessarily mean that separating tower estates inherently undermines sector health. Rather, it demonstrates that operators can retain infrastructure ownership while achieving strong commercial performance. Qatar and the UAE have adopted different approaches. Qatar established operator-owned tower subsidiaries, such as Ooredoo's Al Abraj and Vodafone's Infinity Signal Services, to enhance efficiency. The UAE, conversely, has kept network infrastructure firmly under operators' control, encouraging companies to share physical tower sites without divesting their assets.

Building tomorrow's digital economy

Collectively, these factors have created a virtuous cycle. When operators possess the capability and confidence to invest heavily in network quality, customer satisfaction naturally improves. High satisfaction levels encourage greater adoption of bundled mobile, fiber, and streaming services, generating the financial returns necessary to fund the next generation of technology. This cycle is becoming increasingly critical as telecommunications operators prepare for the capital-intensive demands of artificial intelligence, edge computing, and 6G. This transition will require not only technological ambition but also the financial strength and regulatory certainty to support sustained investment. As 6G technology continues to evolve, the model pioneered by the UAE and Qatar offers valuable insights for regulators and business leaders worldwide. Scale is not destiny. National digital leadership hinges on creating an investment environment where well-regulated competitors have the incentive, confidence, and capital to build for the long term. The lesson is clear: the most robust telecommunications markets are not necessarily the largest or wealthiest. They are the ones strategically designed to foster investment, innovation, and continuous development. The UAE and Qatar have demonstrated that success is determined by strategy, not size.

This article was published in partnership between Kearney and The National. Adel Belcaid leads Kearney’s Communications, Media, and Technology practice in the Middle East and Africa, while Hadi Hammoud is a partner in the same practice.