Gulf Telecom Sector Breaks Records with $94.5 Billion in 2025 Revenue, Driving the Digital Economy

$94.5 Billion in Sector Revenue in 2025

Gulf telecom companies are breaking records and leading the digital economy, transforming into “digital capitals” for artificial intelligence

In an exceptional year, the Gulf telecommunications sector proved to be a key engine of the region’s digital economy. Listed telecommunications companies across Gulf financial markets surpassed $94.5 billion in combined revenue in 2025, representing growth of nearly 10%.

These companies are no longer merely voice-call operators. They have evolved into technology giants driving artificial intelligence, cloud computing, and digital solutions, creating a new investment landscape led by e& in terms of revenue growth, while Saudi Telecom Company (STC) maintained its position as the market-share leader.

Strong financial and operational performance

Telecommunications companies continued to deliver strong financial and operational performance in 2025. Their combined revenues increased by 9.9%, reaching $94.5 billion, compared with $86.04 billion in 2024, an increase of approximately $8.5 billion.

The growth reflects rising demand for data services, digital transformation, and cloud solutions.

All listed companies reported revenue growth except Ooredoo Oman, whose revenue declined by 3.8%, equivalent to a decrease of approximately $25 million. The remaining 13 listed companies recorded growth ranging from 2.5% to 23.1%.

Key financial indicators of Gulf-listed telecom companies

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e& leads revenue growth

e& led the sector in revenue growth, with an increase of 23.1%, reaching $19.85 billion, compared with $16.13 billion in 2024.

The performance was driven by the company’s successful strategy of transforming itself into a global technology group, alongside international expansion and investments in artificial intelligence and financial technology (FinTech).

The group also holds strategic stakes in telecommunications companies across the region and internationally, including 28% of Mobily in Saudi Arabia, 66.4% of e& Egypt, 53% of Maroc Telecom, 50% in Central and Eastern Europe, and 23% in Pakistan’s telecommunications sector.

Revenue of Gulf-listed telecom companies

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STC remains the market-share leader

In terms of market share, Saudi telecom giant STC accounted for approximately 22% of the combined revenues of listed Gulf telecom companies, generating $20.75 billion.

It was followed by e& with a 21% share and revenue of $19.85 billion. Vodafone Qatar ranked third with a 13.3% share and revenue of $12.58 billion, followed by Omantel, with approximately 10% and revenue of $8.98 billion.

Net profits reach $16.7 billion

All telecom companies recorded net profits in 2025. Combined net profit reached $16.7 billion, compared with $16.1 billion in 2024, representing growth of 3.6%, or approximately $581 million.

This growth came despite the inclusion in 2024 of exceptional gains at STC totaling $3.73 billion, resulting from the sale of controlling stakes in Tower Company (TAWAL) and Digital Infrastructure for Investment.

Ten listed telecom companies achieved net-profit growth ranging from 1.3% to 87.6%.

Omantel recorded the strongest growth, with net profit soaring 87.6% to $976 million, compared with $520 million.

Zain Kuwait ranked second, with profit growth of 76.6%, reaching $915 million, compared with $518 million.

e& came third, with net profit rising 52.7% to $4.4 billion, compared with $2.9 billion.

Ooredoo Kuwait ranked fourth, with growth of 48.4%, taking net profit to $318 million, compared with $208 million.

By contrast, four telecom companies recorded declines in profitability. Ooredoo Oman suffered the sharpest decline, with net profit falling 92.3% to just $2 million, compared with $31 million.

STC’s net profit declined 39.3% to $4.04 billion, compared with $6.64 billion, primarily because of the exceptional gains recorded in 2024.

2025: The year of technological expansion

Overall, 2025 can be described as the year of “technological expansion” for the Gulf telecom sector.

Companies that invested early in 5G, data centers, financial services, and digital infrastructure were the ones that captured genuine growth, while companies relying primarily on traditional voice and data services continued to face pressure on profit margins.

Net profit of Gulf-listed telecom companies

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Telecommunications: A pillar of the Gulf digital economy

Telecommunications has become one of the fundamental pillars of modern Gulf economies. It represents the critical infrastructure underpinning the transition toward a digital economy and improving the efficiency of productive and service sectors.

Over the past decade, GCC countries have made substantial investments in telecommunications networks and digital infrastructure. These investments have transformed telecom operators from traditional service providers into major players in the digital economy, offering advanced services including cloud computing, data centers, Internet of Things solutions, and digital services for enterprises.

Gulf telecom markets are characterized by high mobile-phone and internet penetration compared with many emerging markets, as well as a regulatory environment supportive of technological investment and development.

The region has consequently become one of the world's fastest adopters of modern telecommunications technologies, particularly 5G networks, which have emerged as a major driver of future sector growth.

Industry reports indicate that GCC countries are expected to achieve among the world's highest 5G penetration rates in the coming years, potentially reaching approximately 89% by 2029, driven by heavy investment in digital infrastructure and increasing demand for high-speed data services.

The Gulf financial markets include some of the largest telecom companies in the Middle East, most notably Saudi STC, UAE's e&, du, Qatar's Ooredoo, and Kuwait's Zain, in addition to other companies operating across domestic and regional markets.

These companies benefit from relatively stable cash flows and strong profitability, supported by rising demand for data and digital connectivity services, as well as their expansion into international markets.

As technology and telecommunications continue to evolve rapidly worldwide, Gulf telecom companies are increasingly adopting the “Telco to Techco” model, seeking to transform telecom operators into integrated technology companies offering advanced digital solutions that go beyond traditional connectivity services.

This transformation marks a new phase of competition and investment, with increasing emphasis on innovation, geographic expansion, and revenue diversification.

Telecommunications has therefore emerged as a strategic sector within the economic-diversification programs pursued by Gulf countries through long-term development strategies, including Saudi Vision 2030 and digital-transformation strategies in the UAE, Qatar, and Kuwait.

The Gulf wireless telecommunications services market is expected to continue expanding, driven by 5G deployment, rising smartphone penetration, and accelerated adoption of digital applications across economic sectors.

Gulf telecom sector by country in 2025

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Saudi Telecom Companies

STC

STC is Saudi Arabia's largest telecommunications operator and the largest telecom company in the Middle East and North Africa by market capitalization, with a market value of approximately SAR 216.7 billion ($57.7 billion).

STC is a publicly listed Saudi company established in Riyadh in 1998 as the Kingdom's national telecommunications operator. The Public Investment Fund (PIF) holds a controlling stake of approximately 62%, while free-float shares account for roughly 38%.

STC operates a broad network of subsidiaries across the Gulf, including stc Kuwait and stc Bahrain, as well as specialized technology companies in Saudi Arabia such as solutions by stc.

For the fiscal year ended December 31, 2025, revenue increased to SAR 77.8 billion, up more than 2.5%, while net profit fell more than 39% to SAR 15.1 billion, mainly because 2024 included non-recurring gains from the sale of stakes in subsidiaries.

Adjusted net profit increased when excluding non-recurring items, while EBITDA reached approximately SAR 24.5 billion, reflecting improved operating efficiency and stronger recurring operating earnings.

Mobily

Mobily is one of Saudi Arabia's leading telecom operators and a Tadawul-listed company. Established in 2004, it provides integrated telecom services to consumers and businesses.

The company competes through mobile and fixed-line services, data solutions, digital infrastructure, and continued development of its 5G network.

UAE-based e& is its largest external shareholder, holding approximately 27.99%.

Mobily had around 13 million mobile subscribers and approximately 290,000 fiber-optic subscribers by the end of Q1 2025.

The company also strengthened its digital infrastructure strategy by signing an agreement with Telecom Egypt to develop a submarine cable connecting Saudi Arabia and Egypt, alongside announced investments exceeding SAR 3.4 billion ($906.7 million) in data centers and submarine cables.

Financially, Mobily delivered strong performance in 2025. Revenue increased 7.9% to approximately SAR 19.6 billion, compared with SAR 18.2 billion in 2024, while net profit rose 11.6% to approximately SAR 3.47 billion.

EBITDA reached around SAR 7.6 billion, with an EBITDA margin of approximately 38.8%.

Zain Saudi Arabia

Zain Saudi Arabia is the Kingdom's third-largest telecom operator and a Tadawul-listed company established in 2008.

The company provides mobile communications, internet, and digital solutions to consumers and businesses. Kuwait-based Zain Group is the principal shareholder.

In 2025, Zain Saudi Arabia recorded revenue of approximately SAR 11.0 billion, up nearly 6% year-on-year. Net profit reached around SAR 604 million, compared with SAR 596 million in 2024.

EBITDA reached approximately SAR 3.5 billion, supported by data-service growth, 5G expansion, and higher enterprise and digital-services revenue.

UAE Telecom Companies

e&

e& is the UAE's largest telecommunications operator and one of the leading digital-service providers in emerging markets. The company, formerly known as Etisalat, is listed on the Abu Dhabi Securities Exchange and was established in 1976.

The UAE government holds a controlling stake of approximately 60%, directly and indirectly.

e& continues to transform itself from a traditional telecom operator into a digital TechCo, expanding into cloud computing, data centers, fintech, and other digital services across more than 20 international markets.

In 2025, revenue exceeded AED 73 billion, while net profit reached approximately AED 16.16 billion, representing growth of more than 50%.

du

du is the UAE's second-largest telecom operator and is listed on the Dubai Financial Market. Established in 2006, it provides integrated telecommunications services to consumers and businesses.

The company has a quasi-governmental ownership structure, with Emirates Investment Authority holding approximately 39.5%.

In 2025, du generated approximately AED 15 billion in revenue and around AED 2.9 billion in net profit.

Its performance was supported by growth in data services and enterprise solutions, fiber-optic expansion, rising demand for digital communications, and continued investment in 5G infrastructure.

Kuwait Telecom Companies

Zain Kuwait

Zain is one of the largest telecommunications companies in the Middle East and Africa. Established in 1983 and headquartered in Kuwait, it is listed on the Kuwait Stock Exchange.

Omantel is its largest shareholder, holding approximately 21.9%, followed by the Kuwait Investment Authority with roughly 16%.

The group operates across eight major Middle Eastern markets, including Kuwait, Saudi Arabia, and Iraq, with Iraq representing one of its largest sources of revenue.

In 2025, Zain generated total revenue of approximately KWD 2.28 billion, while net profit reached about KWD 283 million.

The performance was supported by data growth and increased demand for digital telecommunications services, alongside strong EBITDA and stable cash generation.

stc Kuwait

stc Kuwait, formerly known as VIVA, was established in 2008 and is listed on the Kuwait Stock Exchange.

STC Group holds approximately 51.8% of the company.

The company has established itself as a major competitor in Kuwait through its focus on data services, 5G networks, enterprise services, and digital solutions.

Its 2025 performance reflected continued revenue and profit growth, supported by an expanding customer base and improved average revenue per user (ARPU).

Qatar Telecom Companies

Ooredoo Qatar

Ooredoo is one of the largest telecommunications groups in the Middle East and North Africa. Founded in Doha in 1987, the company provides mobile, fixed-line, internet, and digital services.

The group operates across multiple markets, including Qatar, Kuwait, Algeria, Iraq, Oman, Tunisia, and the Maldives, with a customer base exceeding 147 million when partner operations are included.

Ooredoo is increasingly focusing on cloud solutions, data centers, digital payments, 5G networks, and digital infrastructure.

In 2025, group revenue reached approximately QAR 24.6 billion, up around 4% year-on-year, or 6% excluding the impact of its exit from Myanmar.

EBITDA reached approximately QAR 10.5 billion, with a margin of 42.6%.

Net profit increased approximately 12% to around QAR 3.9 billion, while the board recommended a cash dividend of QAR 0.75 per share, an increase of 15% from the previous year.

Capital expenditure reached QAR 4.6 billion, demonstrating continued investment in networks and digital infrastructure.

Oman Telecom Companies

Omantel

Omantel recorded one of the strongest performances in the Gulf telecom sector in 2025.

Revenue increased to $8.98 billion, compared with $8.06 billion in 2024, while net profit jumped 87.6% to $976 million, compared with $520 million.

The company benefited from improved cost control and stronger contributions from subsidiaries.

Ooredoo Oman

Ooredoo Oman was the only company in the overall group to record a decline in revenue, falling 3.8% to $637 million, compared with $662 million.

Net profit plunged 92.3%, from $31 million to only $2 million.

Bahrain Telecom Companies

Beyon

Beyon generated $1.307 billion in revenue in 2025, up 8% from $1.21 billion.

Net profit declined slightly by 2.4% to $218 million, compared with $223 million in 2024.

Zain Bahrain

Zain Bahrain generated $217 million in revenue, up 6.7%, while net profit remained broadly unchanged at approximately $15 million.

The broader investment picture

The 2025 results demonstrate that the Gulf telecom sector is undergoing a fundamental transformation.

The industry's future is increasingly being shaped not by traditional voice services, but by 5G, cloud computing, data centers, artificial intelligence, fintech, cybersecurity, digital infrastructure, and enterprise solutions.

The most successful operators are therefore moving from the traditional “Telco” model toward the “TechCo” model—turning telecommunications companies into diversified digital platforms capable of generating multiple revenue streams and competing across the broader technology ecosystem.

The message from the 2025 results is clear: Gulf telecom companies are no longer simply connecting people; they are increasingly building the digital infrastructure on which the region's next phase of economic growth will depend.