Gulf region paves the way to become digital data hub

Ooredoo, a Qatar-based communications company, plans to spend $500 million (€430 million) on new terrestrial fibre optic cable systems in the coming years. The cables will stretch from the Arabian Peninsula to Europe.

According to a report by the Qatari news agency QNA, they will start in Oman, run from there to Iraq and Turkey and finally to France.

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

Ayad Al-Ani, a Professor for Change Management and Consulting in Berlin, told DW that it was noteworthy that both Qatar and Saudi Arabia were attempting to establish a land connection.

"This implies that both Iraq and Syria are safe transit countries that can be invested in," he said. "It will integrate the two countries more into the international data communication system, from which the local digital economy will benefit. This is likely to promote their economic development."

Alternative routes to bypass Red Sea challenges

According to QNA, Aziz Al Uthman Fakhroo, CEO of Ooredoo, suggested at a conference in Doha that the system would "strengthen the resilience of global networks, create alternative routes that bypass current challenges in the Red Sea and the Strait of Hormuz."

From the perspective of network operators, both regions are currently sensitive. The Strait of Hormuz separates the Arabian Peninsula from Iran, meaning Iran is separated from countries that until recently were considered its rivals, namely Saudi Arabia and the United Arab Emirates (UAE). In the recent past, there have been formidable clashes with Saudi Arabia in particular. Qatar, meanwhile, maintains good relations with Iran.

The situation in the Red Sea is more fragile. Every year, 22,000 ships pass through the Bab al-Mandab Strait that connects the Red Sea to the Gulf of Aden. It's also a main route in the digital network: There are currently 15 intercontinental undersea cables running through the area, and according to HGC Global Communications, 80% of data traffic between Asia, Africa and Europe runs through them.

The cables have repeatedly been the target of attacks — or might have been, because there is not always clear evidence of damage having been caused deliberately.

There were several outages in 2008 when, according to a study by the Henry Jackson School of International Studies at the University of Washington, five cables were damaged in different incidents. Three of the cables connected Asia and Europe, and as a result 70% of Egypt's internet connectivity was temporarily lost, while India experienced a 50% to 60% loss of bandwidth.

Houthi attacks on shipping routes and cable systems

During the recent war between Israel and Hamas in Gaza, Houthis attacked several ships in the Red Sea to disrupt international trade, and according to HGC, they also damaged four cable systems in the spring of 2024, including one called Asia-Africa-Europe 1, which connects the three continents. A good quarter of data traffic was reportedly affected.

In a statement, HGC described how it was maintaining international communication by rerouting data traffic to Europe via mainland China, the US or undamaged cables in the Red Sea.

The idea is that the new systems will prevent such incidents. According to the QNA report, Aziz Al Uthman Fakhroo of Ooredoo said that "cross-border cooperation has become both an operational and strategic necessity, especially given that the Middle East is a global logistical and digital hub, with 30% of the world's data and 90% of the data exchanged between Europe and Asia passing through it."

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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 specialises in fibre optic cables, while GBI focuses on underwater and terrestrial cables.

The Peninsula, an 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, further connecting Qatar to the world."

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

"The infrastructure alone is already considered a significant source of revenue today. But in conjunction with data and innovation centres, it provides the prerequisites for a successful digital economy," he told DW.

Solar panels in Qatar Solar panels in Qatar

According to GBI, Qatar is currently trying to attract innovative AI companies from Europe and Asia and to offer a "seamless gateway to interconnect within the Middle East region," the Gulf Times reported in October 2024.

"The combined company will focus on maximising opportunities within the international data traffic market," the Qatar-based English-language newspaper continued. "By leveraging its combined resources and expertise, the company aims to position itself as a key player…, driving innovation and expanding its presence globally to meet increasing demand for data connectivity across borders."

Ayad Al-Ani said that Qatar, like Saudi Arabia and the United Arab Emirates, was also looking to the post-fossil fuel era by creating these systems.

"The region also has almost unlimited solar energy, which is relatively inexpensive, for operating data centres," he said. "This is a significant advantage in this energy-intensive industry. No additional nuclear power plants are needed, as is the case in the US, for example."