The Region in Numbers
The combination of an oil price slump and political uncertainty have hit MENA’s economy hard in recent years. However, there were some signs of improvement in 2018 and 2019, with economic growth coming in at 2-3% p.a. (World Bank/IMF). Star performers are Egypt (5.5%) and Morocco (3.2%).
Oil prices have also dampened MENA advertising expenditure – though this may improve next year. According to media agency Zenith a 4.9% decline in 2019 ad revenues will be followed by “0.4% growth in 2020 then 1% growth in 2021, which would be MENA’s first substantial growth since 2014”. The total MENA ad revenue market is worth around $5 billion a year.
Internet penetration in MENA is 67.2%, which is ahead of the global average. Probably the most connected market in the region is the UAE, with 93% fibre broadband penetration and 173% mobile penetration. The UAE’s connectivity has also made it an advanced e-commerce market – with mobile spending growing at around 25% a year (PayPal/Ipsos).
Around 80% of MENA home receive their TV via satellite. Fibre and 5G are being rolled out in Saudi Arabia, the UAE and Qatar – though their impact on the wider region is likely to remain limited. All told, there are around 200 HD channels in MENA.
PayTV revenues in Arab-speaking countries have been falling in recent years thanks to a Saudi Arabia-led ban on beIN decoders/subscriptions (fallout from Saudi’s dispute with Qatar). But Digital TV Research expects revenues to recover to US$1.43 billion by 2024 (current figure is $1.06 billion). For growth in the SVOD market refer to the main story.
