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5G services to form $15.4b GDP growth in MENA
Published in The Saudi Gazette on 08 - 10 - 2019

Innovative 5G services will generate $15.4bn of economic expansion – 1.1 percent of GDP growth – in the Middle East and North Africa (MENA) by 2034, according to a report by the GSMA. Saudi Arabia, the United Arab Emirates and other Gulf states are forecast to contribute the largest share. This huge opportunity for the region's digital economies depends on the availability of necessary radio frequencies, including those known as ‘millimeter wave' frequencies that will deliver ultra-high capacity and ultra-high-speed services. However, efforts by the European space sector to unreasonably constrain the use of these critical frequencies has 5G's future hanging in the balance.
"The Arab states must stand strong at WRC-19 to protect their interests," said Jawad Abbassi, Head of MENA, GSMA. "WRC-19 is the only opportunity for years to come for countries to identify mmWave spectrum for 5G use, enabling the delivery of innovative new services for their citizens and industries."
5G mmWave spectrum will be identified at an international treaty conference called the World Radiocommunication Conference 2019 (WRC-19), which will take place in Egypt on October 28 to November 22, 2019. 3000 delegates from over 190 nations will meet to agree on how spectrum may be used. European countries are determined to limit the use of this spectrum due to unfounded claims of potential interference with some space services. Technical studies supported by Africa, the Americas and Arab states, have demonstrated that 5G can co-exist safely and efficiently alongside weather-sensing services, commercial satellite services and others. These were conducted by the ITU, a UN agency.
"The stakes are high - a new generation of 5G services will depend on the spectrum decisions taken by governments at WRC-19," added Jawad Abbassi. "The MENA region stands to benefit from better healthcare and education, as well as new benchmarks in industrial productivity, entertainment services and smart transport, but only if we can secure the needed spectrum."
In addition to bringing high speed connectivity to homes and offices without the high deployment costs of fixed infrastructure, mmWave 5G opens up new possibilities for economic growth across the region. 5G, coupled with mmWave spectrum, creates the potential for low-lag, data-intensive applications that can transform a wide variety of industries and use cases.
By leveraging, high speed connectivity, virtual reality and remote object manipulation, a new breed of 5G applications will enable industries to make a much larger economic impact than ever before whilst becoming safer and more efficient. In the MENA region professional and financial services are expected to contribute the most to GDP growth from mmWave, making up 34 per cent of the total growth. Many of the Gulf nations are fossil fuel rich, making the manufacturing and utilities sector the second largest driver of economic growth through mmWave with 29 per cent.
The GSMA report raises serious concerns that without adequate support at WRC-19, the deployment of next-generation 5G services may be delayed for up to a decade.
The GSMA and its Board, on behalf of the global mobile industry, are calling on governments to support the identification of spectrum for mobile at WRC-19 in an open letter sent to ministers and heads of regulatory authorities in 170 countries globally, including Arab states. The open letter from the GSMA Board to ministers and heads of regulatory authorities is available here in English. — SG


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