Politics and a predominantly oil-based economy have long ensured that the Middle East has enjoyed an exceptionally high level of telecoms provision. For decades, this suited suppliers and operating partners from outside the region, as their gold-plated solutions won them awards, kudos and thanks.

The Gulf States in particular were known as ‘good payers’, although they were not known for much else. Meanwhile, Israel was shaping up as the region’s technology powerhouse with a highly export-oriented economic outlook and a string of major innovations.

Now, companies based in the likes of Saudi Arabia and Kuwait are investing in operators further afield. Not just in the region, but in countries such as Italy.

Oger’s acquisition of a controlling stake in Türk Telekom may look like a mere ‘greater Middle East’ ploy; MTC’s purchase of CelTel properties in Africa and Etisalat of the UAE’s purchase of a 50% stake in Atlantique Telecom, operator of siz West African cellular companies raised the bar; Orascom’s purchase of a controlling stake in Italy’s WIND took things to an entirely new level.

This continues a trend that was begun when Saudi investors began taking stakes in what turned out to be speculative (that’s a polite way of putting it) projects such as FLAG and Teledesic. Now, the region’s entrepreneurs are buying into serious companies with serious growth prospects.

In tectonic terms, the region’s impact could be seismic indeed.

Rights, wrongs and Richter scales
Techtonix scale/short term: 4/10. Turning from consumers of ICT services to investors in them.
Techtonix scale/mid term: 6/10. Political instability notwithstanding, more investment and technology development success.
Techtonix scale/long term: 7/10. Positioned as an intermediary between developed and developing countries.
Jim Chalmers