Mobily Launches the First Saudi Undersea Cable in Collaboration with Telecom Egypt
Posted on Nov 08, 2024 at 08:11 PM
Mobily, a prominent Saudi Arabian (TMT) firm, and Telecom Egypt, Egypt's telecom operator and one of the region's largest subsea cable providers, have agreed to establish the first Saudi underwater cable between the two countries.
Notably, the new cable will link the Saudi city of Duba with the Red Sea resort of Sharm El Sheikh. There are 18 subsea cable landing sites in Egypt and 20 in Saudi Arabia.
By linking Saudi Arabia and Egypt across the Red Sea, the new cable—which is fully owned by Mobily—will pave the way for future growth and access to Europe via various connection options.
Mobily's Vision: Enhancing Global Connectivity
Mobily is expanding its subsea network and international infrastructure to handle increased telecom traffic, meet domestic and international internet service needs, and provide reliable connections.
Two landing sites in the Red Sea—Sharm El Sheikh, Egypt, and Duba, Saudi Arabia—will receive the new cable, enhancing internet traffic flexibility and communication speed between Europe and the Middle East.
In line with the objectives of Saudi Vision 2030, Mobily CEO Salman bin Abdulaziz al Badran noted in a press release that the move “represents a significant milestone in strengthening Saudi Arabia's position as a leading international hub for telecommunications services and data traffic” and would increase Mobily's international capacity. Mobily will be the sole owner of the new line.
Mohamed Nasr, Managing Director and Chief Executive Officer of Telecom Egypt, pointed out, that Telecom Egypt collaborates with Mobily to connect Egypt and Saudi Arabia, enhancing international telecommunications infrastructure and developing new crossing routes to the Mediterranean Sea.
Meanwhile, Telecom Egypt and Muscat-based Zain Omantel International are launching initiatives to connect Asia, Europe, and Africa. They plan to expand communication from India to Europe and build a “digital corridor” connecting the Mediterranean to the Arabian Sea and Arabian Gulf.
This comes after three Red Sea cables were severed in March during an attack by Yemen's Houthi rebels, exposing the perils of doing business in the Red Sea.
Regional Economic Dynamics: Concerns and Prospects
Saudi Arabia and Egypt aim for ambitious economic goals, with Saudi Arabia's Public Investment Fund focusing on domestic investments and reducing foreign assets from 30% to less than 20%. The impact of Israel's Gaza assault and the ensuing shocks to regional tourism and the Red Sea shipping sector have disrupted Egypt's economic recovery.
Additionally, S&P Global's purchasing managers' index shows Egypt's non-oil sector has slowed for the second consecutive month in November, after momentarily breaking into positive territory in September. Egypt is implementing economic reforms and austerity measures to reduce debt while maintaining control over inflation, which reached 26% in September.
Ultimately, Saudi Arabia's Vision 2030 envisions the Kingdom becoming a telecommunications centre, with Mobily extending its underwater cable network to boost digital access. Telecom Egypt intends to connect Sharm El-Sheikh station to the Mediterranean Sea, boosting regional connection and high-speed internet usage.
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