State Control Could Hinder Consolidation

In May 2012 former Zain CEO, Saad al-Barrak, argued that telecoms operators in the Middle East need to further privatise and consolidate to survive in an increasingly tough environment. BMI has long held this view based on increasing market saturation and downward pressure on operator margins. Barrak is one of the highest-ranking current or former executives in the region's telecoms market to promote this view publicly. This could be a sign that key stakeholders in the region's telecoms industry may be warming up to the idea of consolidation to improve cost efficiencies. However, this process could be hampered by government interests in incumbent operators, for which they do not appear to be in a hurry to divest.

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