40.4 million smartphone units will be sold in the Middle East this year, a report by Canalys Research showed.
This will amount to a six per cent growth in the number of smartphones sold, Canalys said.
Saudi Arabia, which is the largest market in the region, will experience a nine per cent expansion, thanks to an increase in foreign direct investments.
A shift from a conservative to an open economy has also helped, Canalys said.
The UAE’s smartphone market is anticipated to expand by six per cent as a result of the nation’s rapid growth in non-oil sectors like real estate, tourism, and trade.
Kuwait and Qatar are predicted to witness a slight growth, in line with the rising oil prices and the Fifa World Cup last year, which boosted travel and retail sales.
Demand for smartphones globally had dwindled in 2022, slowing by 12 per cent.
This translated to a 0.8 per cent quarter-on-quarter decline in the GCC.
In terms of value, the GCC smartphone market was worth $2.09 billion in Q4 2021, a decrease of 4.5 per cent QoQ, while the feature phone market totaled $11.16 million, down 25.9 per cent.
The decline was attributed to rising inflation, declining consumer demand and and growing inventory.
Sanyam Chaurasia, analyst at Canalys told Gulf Business: “Middle East markets witnessed a post-pandemic shift in consumer and commercial dynamics.”
“The year 2023 will bring a favourable business environment, supported by buoyant energy prices, recycling of the funds from oil towards reform programmes in each country and creating space for further intra-GCC business investment,” Mr Chaurasia said.
