According to a new IDC study, sales were highest in the Middle East, reflecting the region's more advanced level of economic development compared to most of Africa. "Handset sales will rise strongly, reaching close to 50 million this year and expanding consistently through 2008 as shipments to many markets surge," a spokesman of a leading brand said.

IDC, the premier global market intelligence and advisory firm in the information technology and telecommunications industries, estimates that there are 1.35 billion cell phones in use in the world today. By 2008, there should be two billion wireless subscribers in the world-30 per cent of the projected global population.

The mobile phone market in the Middle East is growing at a rapid pace, outnumbering fixed lines in most Gulf countries. The World IT Report predicts AGCC governments will spend approximately 25 per cent of their infrastructure  development  funds  on  the  expansion  of  the telecommunications sector. Market studies indicate that up to  $3 billion will be invested in mobile network infrastructure in the Middle East and North Africa in 2003 and 2004. We want to be at the forefront of these exciting developments.

"We believe that in this area, there is a larger young generation of people and we are targeting young people as they tend to accept new concepts and technologies much faster. In terms of the population percentage, there is a much higher percentage of young people in this region. That is why we believe we will grow much faster in these areas than Europe and America," said spokesman of a major mobile phone brand. The UAE and Kuwait lead the mobile phone penetration in the Arab world at 60 to 70 per cent.

With a penetration of nearly 90 per cent, Dubai is the undisputed leader in the mobile market, on par with countries like Finland and Italy. Dubai also commands 39 per cent share of the total United Arab Emirate mobile subscriber base, 40 per cent of the fixed landlines and 38 per cent of Internet users. 

After Dubai, Abu Dhabi takes the second position in the UAE, with a mobile phone penetration of 62.5 per cent. Together, the two emirates account for 73 per cent fixed lines, 74 per cent mobile phones and 72 per cent Internet connections in the UAE. Mobile phone penetration in the other emirates is as follows: East Coast 56.7 per cent (against 23.6 per cent land lines); West Coast 55.1 per cent (against 27.7 per cent landlines) and Ras Al Khaimah 46.4 per cent (against 25.7 per cent). 

According to the Riyadh-based Economics Studies House the penetration rate of mobile phones in Saudi Arabia could grow from the current 32 per cent to 60 per cent by 2014 taking the total amount of subscribers from 7 million to over 20 million subscribers.

Saudi Arabia, which is one of the largest telecommunications market in the Middle East region is growing at about 30 per cent per annum. The Kingdom's burgeoning youth segment (15 to 24 age group) with high usage of mobile phones, along with high levels of purchasing power and a tendency to consume are driving the market. At the same time, the mobile phone as a business tool is growing in the Kingdom, especially as more data services become available, driving new subscriber growth in the business markets points out the Saudi research firm.