The Middle East: the new hub for global subsea connectivity

The Middle East has emerged as a critical player in the digital age, with artificial intelligence (AI) reshaping industries and economies.

The region is making significant investments in the infrastructure needed to support this transformation. At the forefront of this sit subsea cables, the underwater networks that enable seamless global connectivity essential for connecting regions, fuelling economies and fostering innovation.

Shelly Landsmann, co-founder and chairman of Israel-based data centre company NED, highlights this shift: “AI is rapidly redefining the infrastructure landscape across the Middle East.

“Saudi Arabia, the United Arab Emirates and Israel, for example, are investing heavily into digital infrastructure and AI capabilities, ensuring that they are at the forefront of the global AI race with a booming data-driven economy. “Given the strategic importance of the region, a significant part of this investment is in subsea cable projects.”

Subsea cables carry approximately 99% of the world’s internet traffic, making them essential to modern life.

Stretching across thousands of kilometres, these cables are the arteries of global data transfer, enabling everything from streaming video to AI-driven analytics.

The fact that these cables carry almost all global internet traffic makes them essential for AI, which thrives on fast and reliable data flows. As a result of its geographic location, situated at the crossroads of Europe, Asia and Africa, the Middle East is perfectly positioned to become a major hub for subsea cables.

“The Middle East is uniquely positioned at the crossroads of major cable routes linking Europe, Asia and Africa, offering a distinct geographical advantage when it comes to the delivery of low-latency, high-capacity data transmission, both between these regions and from further afield,” DE-CIX CEO Ivo Ivanov states.

“As rapid, low-latency global connections become increasingly necessary for AI-driven processes and cloud optimisation, the Middle East will become a vital piece in the connectivity puzzle.”

According to Landsmann, over the next decade, eight new subsea cable projects will connect the region to the world, creating faster, more secure and more reliable internet connections.

“These developments will enhance connectivity, thereby boosting local economies, and position the Middle East as one of the world’s most dynamic hubs for subsea cable intersections,” she explains. As countries like Saudi Arabia, the UAE and Israel invest heavily in AI and digital infrastructure, the region is becoming a magnet for innovation and investment.

With applications like autonomous vehicles, smart cities and advanced healthcare requiring vast amounts of data and subsea cables ensuring that it moves quickly and efficiently, by improving connectivity with Europe and other regions, the Middle East is also securing its role as a vital link in the global digital economy.

“Finding new and improved cable routes with redundancy that are the shortest through the Mediterranean Sea and to European networks is vital, as connectivity is a crucial part of the efficient use of AI technology in the Middle East area,” says Landsmann.

Meanwhile, according to Ivanov: “The region functions as a main conduit for submerged communications between the East and West. “Here, the need for redundancy and diversification is growing as demand for connectivity, particularly in the wake of AI, increases.”

In addition to subsea cables, investments in data centres and interconnection platforms are transforming the Middle East into a digital powerhouse.

Dubai, for example, is home to UAE-IX, the largest carrier-neutral internet exchange in the region.

The exchange facilitates seamless connectivity and direct peering, offering businesses and individuals faster, more reliable access to digital services. Ivanov emphasises the significance of these developments, explaining: “UAE-IX facilitates seamless, low-latency connectivity via direct peering, giving businesses and users access to faster data pathways and a diversity of network operators.

“Investments in digital infrastructure in Dubai and across the region are booming, reflecting the strategic importance of the location."

The development of subsea cables and related infrastructure is not just about connectivity; it’s also a driver of economic growth. By enabling faster and more reliable internet access, these projects attract foreign investment, foster innovation and create jobs.

The UAE, Saudi Arabia and Israel are leading the charge, investing billions into digital transformation initiatives. For example, Nokia, in partnership with du, recently deployed the first commercial 5G cloud RAN solution in the Middle East and Africa.

The move highlighted du’s technological leadership and its commitment to the UAE’s ambitious digital transformation goals.

In line with this, the deployment, based in Abu Dhabi, utilises Nokia’s flexible anyRAN approach, which enables operators to leverage both cloud-native and purpose-built infrastructures.

However, Nokia is not the only company driving digital transformation in the Middle East. It joins AWS and e&, which have partnered to deliver secure, scalable cloud solutions tailored to the needs of the region’s public sector and regulated industries, including healthcare, finance, and oil and gas.

The move is aimed at providing a robust infrastructure that addresses the region’s demand for secure, compliant digital solutions.

At the time, e& Group CEO Hatem Dowidar said: “This agreement with AWS demonstrates our shared long-term strategic goal to create an ecosystem that supports today’s digital needs and lays the foundation for future growth.

"We are enabling businesses across the region to lead in an AI-powered, data-driven economy. By investing in both critical infrastructure and talent development, we’re again supporting the region’s economy, digital resilience and, most importantly, its people, who will be instrumental in realising the UAE’s vision of becoming a world-leading digital powerhouse.”

These investments go beyond subsea cables to include the development of state-of-the-art data centres, AI research hubs and 5G networks. The result? An ecosystem designed to support the demands of data.

As global data consumption continues to rise, the Middle East’s role in the digital economy will only grow.

The integration of subsea cable networks with advanced AI capabilities will enable the region to meet the demands of emerging technologies, from machine learning to cloud optimisation,

Ivanov says.

“As rapid, low-latency global connections become increasingly necessary for AI-driven processes and cloud optimisation, the Middle East will become a vital piece in the connectivity puzzle,” he says.

The Middle East’s investment in subsea cables and digital infrastructure marks the beginning of a transformative era. With its geographical advantage, forward-looking policies and strategic planning, the region is poised to redefine its role in the global digital economy.

By embracing the intersection of AI and connectivity, the Middle East is not just keeping pace with the digital revolution, but is leading it.

Landsmann concludes: “The AI boom has triggered a tidal wave of global data consumption, making robust and diverse data sea lanes (and highways) vital."

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