Telecom operators in the UAE and Saudi Arabia are starting to look at AI differently. For years, the conversation centered on building networks capable of handling more data. AI was another workload those networks needed to support. Now, operators increasingly see artificial intelligence as something they can sell.
A new Ciena survey shows just how strong that expectation has become. In the UAE, 96% of surveyed service providers expect AI-driven network services to generate new revenue. The figure reaches 90% in Saudi Arabia. Both groups expect that opportunity to grow over the next three to five years. The Gulf’s AI infrastructure race, in other words, is moving beyond data centers and GPUs. The networks connecting all that computing power are becoming part of the business opportunity.
UAE Telcos See AI Networks as a Major Revenue Opportunity
Confidence is particularly high among UAE telecom providers. Ciena found that 96% expect high-capacity AI network services to become a major source of new revenue. Saudi providers aren’t far behind at 90%. That changes the role telecom companies could play in the AI economy. They aren’t simply carrying traffic between businesses and cloud platforms anymore. Operators can package connectivity, computing and AI infrastructure into services of their own. That creates new ways to make money from the regional AI boom.
The UAE Feels More Urgency to Upgrade Its Networks
The UAE appears to be moving faster on the underlying network infrastructure. Around 97% of UAE respondents said optical network upgrades are urgently needed for enterprise AI service-level agreements. The figure was 86% among Saudi respondents. More than half of UAE respondents also described those upgrades as critical. Saudi operators showed urgency too, although many expect upgrades within the next 12 to 18 months. The difference suggests both markets see the same opportunity but may be moving toward it at different speeds.
Optical Fiber Could Become a Bigger Part of the AI Economy
AI infrastructure isn’t only about buying more GPUs. Those processors need fast connections between data centers and distributed computing clusters. That puts optical fiber in a more important position. Ciena’s survey found strong confidence in managed optical fiber network services. About 97% of UAE respondents expect these services to generate revenue from connecting distributed AI compute clusters. Saudi Arabia came in almost identically at 96%. Both groups expect that opportunity to develop over the next three years.
Saudi Arabia Is More Bullish on AI Inference Data Centers
Saudi respondents stood out when the survey turned to AI inference. Around 58% expect growing inference data centers to increase demand for data center interconnect services. That is higher than the 49% global average. Only 37% of UAE respondents gave the same answer. The gap is interesting because inference represents what happens after AI models have been trained. It is the computing needed when businesses and consumers actually use those models. Saudi operators appear to expect that workload to become a major network demand driver.
GPU-as-a-Service Will Need Cloud Partnerships
Telecom operators are unlikely to build this AI business alone. Partnerships with cloud and neocloud providers are expected to play a major role. In the UAE, 96% of respondents see those partnerships as essential for capturing GPU-as-a-service revenue. Saudi Arabia followed at 91%. The model gives telecom companies a chance to combine computing capacity with their existing connectivity infrastructure. Businesses could then access GPUs without building expensive AI infrastructure themselves.
Saudi Telcos See More Opportunity in Multi-Cloud Connectivity
Saudi and UAE providers don’t agree on everything. Multi-cloud connectivity is one noticeable difference. Around 64% of Saudi respondents see multi-cloud connectivity management as a leading source of revenue. That is above the global survey average of 56%. UAE respondents showed a different preference. About 57% still favored traditional fixed-capacity services over multi-cloud models. It is a rare reversal in a survey where the UAE often showed greater urgency around AI network transformation.
UAE Operators Are Moving Faster on Quantum-Safe Security
AI networks will carry increasingly sensitive business and government workloads. That makes security another commercial opportunity. UAE providers appear further ahead in quantum-safe encryption services. Around 54% said they had already launched these services or expected to do so within 12 months. The figure was 38% in Saudi Arabia. Quantum-safe encryption is designed to protect information against future threats from powerful quantum computers. For sovereign AI infrastructure, that protection could eventually become an important selling point.
Physical AI Could Become Another Telecom Revenue Stream
The next wave may not stay inside data centers. Physical AI covers technologies such as industrial robots and remotely controlled systems. These applications need reliable, low-latency connectivity to work effectively. In the UAE, 52% of surveyed providers expect physical AI to generate more than 15% of enterprise AI revenue within five years. Saudi Arabia came in at 37%. That could pull telecom companies deeper into manufacturing, logistics and industrial automation.
e& Is Already Bringing AI Into Connectivity Plans
Some of this shift is already visible in the UAE. e& UAE recently embedded agentic AI into its business mobile and fixed connectivity services. The operator is combining AI tools with internet access and sovereign computing. Its Sovereign AI Compute service also gives organizations access to UAE-based GPU capacity. Customers can use that infrastructure to develop, test and deploy AI applications. The approach turns connectivity into a broader AI package rather than selling network access by itself.
Saudi Arabia Is Building the Infrastructure Behind Sovereign AI
Saudi Arabia is moving aggressively on the compute side as well. stc subsidiary center3 and HUMAIN have been working toward a joint venture for AI data centers. The planned infrastructure could eventually support up to 1 GW of AI workload capacity. Initial capacity is expected to reach up to 250 MW. In June, stc confirmed that the memorandum of understanding had been extended for another six months. The companies said negotiations were continuing around commercial, regulatory and operational details.
Telecom Networks Are Becoming Part of the AI Product
The bigger change isn’t simply faster fiber. Telecom operators are trying to move higher up the AI value chain. Connectivity is the foundation, but operators can now add GPU access, cloud services and AI applications. Sovereign computing creates another layer. Security and autonomous network management add even more.
The UAE appears focused on upgrading networks quickly and pushing automation into existing services. Saudi Arabia shows particularly strong expectations around inference and sovereign infrastructure. Ciena’s findings suggest both markets see serious commercial potential ahead.
That could change how Gulf telecom companies describe themselves. They won’t just provide the pipes connecting the AI economy. Increasingly, they want to sell part of the AI economy themselves.
Sources
- Middle East AI News — UAE, Saudi telcos bet big on AI networks
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