By: Jawad Abbassi Founder, GM Arab Advisors Group

1. The intertwined story of the Arab telecom boom & Arab Advisors Group Jawad Abbassi Founder, General Manager Amman Tech Tuesdays: Anniversary Edition Amman May 3, 2011

3. Monopoly cellular markets disappeared Source: Arab Advisors Group, March 2011 2011 2005 Cellular regulatory framework Competitive Monopoly Duopoly

4. About half of the Arab countries still have a monopoly fixed market Source: Arab Advisors Group, March 2011 2011 2005 Fixed regulatory framework Competitive Monopoly Duopoly

5. Most of the Arab countries have competitive Internet markets Source: Arab Advisors Group, March 2011 2011 2005 Internet regulatory framework Competitive Monopoly Duopoly

6. The cellular boom has created millions of “citizen journalists” for social media and news stations. So PR is no more relations with the press only. Note: Figures by June 2010, Yemen cellular subscribers are by July 2010 Source: Arab Advisors Group Cellular penetration % Cellular lines (000s)

7. Arab broadband accounts by June 2010 Notes: - Algeria, Kuwait and Saudi Arabia’s figures are estimated Source: Arab Advisors Group Fixed ADSL / Broadband lines (000s) Broadband lines % out of total population

9. Out of the 19 Arab countries, 15 countries commercially launched WiMAX Algeria Bahrain Iraq Jordan Kuwait Lebanon Libya Mauritania Morocco Saudi Arabia Tunisia UAE Oman Qatar Yemen Syria Egypt Palestine Sudan Source: Arab Advisors Group, March 2011

10. Five more operators deployed 3G networks in the Arab World since December 2009 Oman Qatar Yemen Syria Egypt Palestine Source: Arab Advisors Group’s 3G/3.5G Cellular Services in the Arab World and operators December 2009 March 2011 Operators that offer 3G/3.5G services Operators that do not offer 3G/3.5G services

11. Continuous growth in Free-To-Air satellite TV channels 53 channels added * A rough estimate by Arab Advisors Group. Note: The satellite systems included in the analysis are Arabsat, Nilesat and Noorsat Source: Arab Advisors Group ’ s Satellite TV in the Arab World 2010, and Arab Advisors Group

12. Consolidation at last in the Pay TV market: OSN with most channels. Source: Pay TV providers Consolidation of Pay TV providers Number of Pay TV channels

13. Social media use has become a primary channel for online social interaction Note: Percentages are calculated from the total sample size of KSA, Jordan and Egypt. % of Internet users who use social media to interact with others online Source: Arab Advisors Group’s Saudi Arabia Internet users and e-commerce Survey 2011, Jordan Internet users and e-commerce Survey 2010, Egypt Internet users and e-commerce Survey 2010

14. 65.3% of Internet users in Saudi Arabia play games online Note: percentages are calculated from the total sample size of 1,154 respondents Source: Arab Advisors Group’s Saudi Arabia Internet and e-commerce Users Survey 2011 Whether respondents play games online

15. UAE’s e-commerce users’ penetration stood at 25.1% while Lebanon’s stood at 1.6% of total population % of e-commerce users out of total population Source: Arab Advisors Group ’ s Bahrain Cellular Users Survey 2008, Tunisia Internet users and e-commerce survey 2008, Oman Internet users and e-commerce survey 2009, Jordan Internet users and e-commerce survey 2008, Kuwait Cellular Users Survey, Lebanon Cellular Users Survey, Saudi Arabia Internet Users and e commerce survey, UAE Internet Users and e-commerce survey.

17. Saudi Arabia is the region’s largest B2C e-commerce market Total amount spent in 12 months (US$ Millions) Source: Arab Advisors Group ’ s Bahrain Cellular Users Survey 2008, Tunisia Internet users and e-commerce survey 2008, Oman Internet users and e-commerce survey 2009, Jordan Internet users and e-commerce survey 2008, Kuwait Cellular Users Survey, Lebanon Cellular Users Survey, Saudi Arabia Internet Users and e commerce survey, UAE Internet Users and e-commerce survey. * E-commerce expenditure during 2007 ** E-commerce expenditure during 2008