Service providers in the UAE and Saudi Arabia are increasingly looking to artificial intelligence (AI)-driven network services as a source of new revenue, according to a recent survey conducted by Ciena in collaboration with Censuswide.
The research found that 96% of UAE service providers and 90% of Saudi Arabian service providers expect high-capacity AI-driven network services to become a major driver of net-new revenue growth over the next three to five years.
The findings highlight growing expectations across the Gulf that the expansion of AI infrastructure, data centres and enterprise AI applications will create new opportunities for connectivity and managed network services.
UAE Service Providers Highlight Urgency of Network Upgrades
The survey points to strong demand for optical network upgrades as service providers prepare their infrastructure for AI-driven workloads.
In the UAE, 97% of respondents said optical network upgrades are urgently needed to support premium enterprise AI service-level agreements (SLAs). Of these, 56% described the need as critically urgent.
In Saudi Arabia, 86% of respondents said optical network upgrades are urgently required. Around 51% said upgrades are needed immediately, while another 35% expect them to be required within 12 to 18 months.
The findings indicate that service providers across both markets are preparing for higher-capacity and more consistent network requirements as AI adoption accelerates.
Managed Optical Fibre Networks Seen as a Revenue Opportunity
Confidence in managed optical fibre network (MOFN) services is also high. Around 97% of UAE respondents and 96% of Saudi respondents expect MOFN services to generate revenue by supporting the interconnection of distributed AI computing clusters over the next three years.
As enterprises, hyperscalers and neocloud providers expand AI infrastructure, service providers are expected to play an increasingly important role in connecting geographically distributed computing resources.
AI Inference Could Boost Data Centre Interconnect Demand
The survey also highlighted differences between the UAE and Saudi Arabia in expectations surrounding AI inference data centres.
In Saudi Arabia, 58% of service providers believe the growth of AI inference data centres will increase demand for data centre interconnect services. This is higher than the 49% global average.
In the UAE, 37% of respondents expressed the same expectation.
The findings suggest that AI inference infrastructure could become an increasingly important driver of connectivity demand, particularly as AI applications require computing resources closer to end users and enterprise operations.
GPU-as-a-Service Creates New Opportunities
Service providers in both countries also see potential in GPU-as-a-Service as AI workloads increase demand for specialised computing resources.
Strategic partnerships with cloud and neocloud providers are considered essential to capturing this opportunity by 96% of UAE respondents and 91% of Saudi respondents.
Such partnerships could allow service providers to expand beyond traditional connectivity offerings and participate in the wider AI infrastructure ecosystem.
AI in Everyday Life and Physical AI
AI-driven entertainment is another area where service providers see potential for new revenue. 96% of UAE respondents and 95% of Saudi respondents expressed confidence that AI-driven entertainment could become a new revenue stream, broadly matching the global figure of 95%.
The research also examined the potential growth of physical AI, including industrial robotics and remote-control systems. More than 15% of total enterprise AI revenue within five years is expected from physical AI ecosystems by 52% of UAE respondents and 37% of Saudi respondents.
Network Reliability Becomes a Premium Service
For Saudi Arabian service providers, network consistency is emerging as a key opportunity for premium monetisation.
Around 42% of Saudi respondents identified guaranteed network performance stability and low jitter as the leading premium monetisation opportunity, compared with 35% globally.
The focus reflects the growing importance of predictable network performance for AI workloads, where latency, reliability and consistency can directly affect application performance.
Hyperscaler Expansion Drives Wholesale Opportunities
As power and infrastructure constraints make it difficult to expand data centre capacity on a single campus, hyperscalers are increasingly distributing computing resources across multiple locations.
This trend is viewed as a significant contributor to wholesale revenue growth by 99% of UAE respondents and 91% of Saudi respondents, compared with 95% globally.
The development could create additional opportunities for service providers to connect distributed AI infrastructure and support large-scale computing networks.
Multi-Cloud Connectivity Strategies Differ
Service providers in Saudi Arabia and the UAE have different expectations about how enterprise multi-cloud demand will generate revenue.
In Saudi Arabia, 64% of respondents identified multi-cloud connectivity management as a leading revenue driver, ahead of the global figure of 56%.
In the UAE, traditional fixed-capacity services remain the leading revenue model, cited by 57% of respondents, while 46% identified multi-cloud connectivity management as a revenue opportunity.
UAE Shows Stronger Momentum on Quantum-Safe Services
The research also found differences in the adoption of quantum-safe encryption and sovereign infrastructure services.
Around 54% of UAE service providers said they have already launched, or expect to launch, quantum-safe offerings within 12 months. In Saudi Arabia, the corresponding figure was 38%.
The findings indicate that UAE providers may currently be moving faster in commercialising quantum-safe services, although providers in both markets are assessing the implications of emerging security requirements.
Service Providers Balance AI Optimism With Urgency
Pete Hall, regional managing director for the Middle East and Africa at Ciena, said service providers globally are balancing optimism about AI-driven revenue opportunities with the need to act quickly.
According to Hall, the survey results from the UAE and Saudi Arabia reflect this broader trend, with network upgrades and automation emerging as immediate priorities in the UAE, while Saudi providers are also focusing on AI inference, service reliability and sovereign infrastructure requirements.
Survey Methodology
The research was conducted by Censuswide among 100 UAE and 100 Saudi Arabia telecommunications providers, wholesale fibre network operators and regional service providers. The UAE and Saudi Arabia findings formed part of a broader global study involving more than 1,200 respondents across 12 countries.
Data from the UAE was collected between July 13 and July 22, 2026, while Saudi Arabia data was collected between July 13 and July 23, 2026.
The findings point to a growing role for AI-driven networking in the Gulf, with service providers increasingly viewing high-capacity connectivity, distributed AI infrastructure, network reliability and cloud connectivity as potential sources of future revenue growth.
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