Gulf region paves way to become digital data hub – DW – 12/03/2025

Qatar-based communications company Ooredoo plans to spend US$500 million (430 million euros) on new terrestrial fiber optic cable systems in the coming years. The cables will stretch from the Arabian Peninsula to Europe. According to a report by Qatari news agency QNA, they will start from Oman, move from there to Iraq and Türkiye and finally to France.

Despite this, according to press reports, Syria and Saudi Arabia are also in talks to create a similar system of data cables that would run from the Arabian Peninsula – more precisely Saudi Arabia – to Europe.

Ayad al-Ani, a professor of change management and consulting in Berlin, told DW that it was noteworthy that both Qatar and Saudi Arabia were attempting to establish land ties.

“This means that both Iraq and Syria are safe transit countries in which to invest,” he said. “This will further integrate both countries into the international data communications system, benefiting the local digital economy. This is likely to boost their economic growth.”

Alternative route to avoid the challenges of the Red Sea

According to QNA, Ooredoo CEO Aziz Al Uthman Fakhru suggested at a conference in Doha that the system would “strengthen the resilience of the global network, creating alternative routes that bypass existing challenges in the Red Sea and the Strait of Hormuz.”

Both areas are currently sensitive from the network operators’ perspective. The Strait of Hormuz separates the Arabian Peninsula from Iran – meaning that Iran is separated from the countries that were until recently considered its rivals, namely Saudi Arabia and the United Arab Emirates (UAE). In recent times, there have been fierce clashes, especially with Saudi Arabia. Meanwhile, Qatar has maintained good relations with Iran.

The situation in the Red Sea is more delicate. Each year, 22,000 ships pass through the Bab el-Mandab strait that connects the Red Sea to the Gulf of Aden. It is also a key route in digital networks: there are currently 15 intercontinental undersea cables running through the region, and according to HGC Global Communications, 80% of data traffic between Asia, Africa and Europe runs through them.

Cables have been – or may be – repeatedly the target of attacks, as there is not always clear evidence of intentional harm.

Several disruptions occurred in 2008, when five cables were damaged in different incidents, according to a study by the Henry Jackson School of International Studies at the University of Washington. Three cables connecting Asia and Europe were disrupted, and as a result 70% of Egypt’s Internet connectivity was temporarily lost, while India experienced a loss of 50% to 60% of bandwidth.

Houthi attacks shipping routes and cable systems

In the recent war between Israel and militant Islamic groups Hamas in Gaza later received support from the Houthi rebel group in Yemen. Hamas is considered a terrorist organization by the EU, US and others.

The Houthis attacked several ships in the Red Sea to disrupt international trade, and according to the HGC, also damaged four cable systems in the spring of 2024, including a cable system called Asia-Africa-Europe 1, which links three continents. A substantial portion of data traffic was reportedly affected.

In a statement, HGC explained how it was maintaining international communications by re-routing data traffic to Europe through damaged cables in mainland China, the US or the Red Sea.

The idea is that the new systems will prevent such incidents. “Cross-border cooperation has become an operational and strategic necessity, especially given that the Middle East is a global logistics and digital hub, where 30% of the world’s data passes through, and 90% of the data exchanged between Europe and Asia,” Ooredoo’s Aziz Al Uthman Fakhru said, according to the QNA report.

A photo of fishing boats in the Bab el-Mandab Strait
The Bab el-Mandab Strait separates the Arabian Peninsula from East Africa Image: Karim Sahab/AFP/Getty Images

Qatar expands telecommunications sector

Qatar is systematically expanding its telecommunications industry. Last fall, Qatar National Broadband Network (QNBN) and Gulf Bridge International (GBI) announced their intention to merge their telecommunications divisions. This merger has now been completed. QNBN specializes in fiber optic cables, while GBI focuses on undersea and terrestrial cables.

PeninsulaAn English-language daily in Qatar reported that “the integration of QNBN and GBI brings together two highly complementary businesses to create a carrier-neutral digital and AI infrastructure leader, connecting Qatar to the world.”

Ayad Al-Ani explained that the projects were not only focused on infrastructure, but also on Qatari digital technology such as data centres.

“Infrastructure alone is already considered an important source of revenue today. But together with data and innovation centres, it provides the necessary conditions for a successful digital economy,” he told DW.

solar panels in qatar
Qatar is also hoping to power its digital revolution with solar energy Image: Clive Rose/Getty Images

According to the GBI, Qatar is currently trying to attract innovative AI companies from Europe and Asia and offer “a seamless gateway to interconnect within the Middle East region.” gulf times Reported in October 2024. “The combined company will focus on maximizing opportunities in the international data traffic market,” the Qatar-based English-language newspaper added. “By leveraging their combined resources and expertise, the company aims to establish itself as a major player…, fostering innovation and expanding its presence globally to meet the growing demand for data connectivity across borders.”

Ayad Al-Ani said Qatar, like Saudi Arabia and the United Arab Emirates, is looking toward a post-fossil fuel era by building these systems.

“The region has almost unlimited solar energy to power data centers, which is relatively cheap,” he said. “This is a significant advantage in this energy-intensive industry. For example, no additional nuclear power plants are needed, as is the case in the US.”

This article was translated from German.

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