An Emirates-based telecommunications company is launching its own mobile application marketplace as it expands beyond traditional voice services.
Etisalat will operate the new online app store, allowing customers to purchase and download apps charged directly to their accounts. The store will feature a range of applications, from popular games to social networking tools, tailored for smartphone users.
The move follows a steady decline in revenue from voice services over the past six years. According to Al Ramz Securities, mobile and landline services accounted for 80% of the company’s revenues in 2005; that share fell by 10 percentage points last year as data services became more important.
At the same time, demand for smartphone data services has surged. Subscriber numbers for such services doubled to 38,721 last year, prompting Etisalat to encourage customers to download apps from its new online store to meet growing user needs.
The app store creates opportunities for both local and international developers to build applications specifically suited to users in the United Arab Emirates. Etisalat aims to cultivate a regional developer ecosystem that produces apps relevant to the local market.
“It’s not just about selling applications,” said Maha Muraish, director of online channel and portal management at Etisalat. “It is more about getting this developer community to come on board and start to create applications that make sense to the community over here.”
Nevertheless, local developers have expressed concern that international firms could dominate the marketplace. They also worry the store may have limited global reach, making it difficult to compete with major global platforms such as Apple’s App Store.
Alexander Rauser, chief executive of Prototype Interactive, emphasized the need for a compelling commercial model. “It needs to be a good opportunity for developers to actually make money out of it,” he said. “That means the total number of downloads and the payout must be attractive for them to start developing applications for this specific store.”
By launching its own app store, Etisalat seeks to capitalize on the rapid growth of the mobile app market while supporting developers who can address the unique needs of UAE users. Success will depend on attracting a diverse range of quality apps, creating favorable revenue terms for developers, and ensuring consumers can easily discover and purchase applications through their existing accounts.
As smartphone adoption continues to rise, operator-led marketplaces like this may play an important role in shaping regional app ecosystems, offering localized content and payment options that global stores do not always provide. For developers and businesses, the store could become a new channel to reach a growing mobile audience in the Emirates—provided it offers competitive incentives and sufficient visibility to rival established app platforms.