Signage for 5G is displayed at the KT Corp. booth at the World IT Show 2018 in Seoul, South Korea, on Wednesday, May 23, 2018. The show runs through May 27. Photographer: SeongJoon Cho/Bloomberg
Al Khobar in Saudi Arabia has become the first city in the Mena region to pilot pioneering 5G connectivity - the ultra-high speed mobile broadband set to revolutionise the internet in the years ahead Show more

Al Khobar in Saudi Arabia becomes the first Mena city to pilot 5G wireless



Al Khobar, a city in Saudi Arabia's oil-rich Eastern Province, became the first city in the Middle East and North Africa to test 5G wireless connectivity after it launched a pilot project last week, the kingdom's Ministry of Culture and Information said. 
"Because the capabilities of this technology are very high, it will pave the way for the development of other technologies such as the Internet of Things (IoT), virtual reality and robots," the ministry cited a United Nation's telecoms body report on the pilot as saying.

The 5G ultra-high speed mobile broadband is set to revolutionise the internet in the years ahead. Developing next-generation broadband and other communications technologies is one of the pillars of Saudi Arabia’s Vision 2030 economic diversification plan to reduce the country's dependence on hydrocarbons. A sophisticated digital infrastructure is seen as crucial to supporting the development of the private sector and creating jobs for Saudi nationals.

The kingdom set up the National 5G Taskforce last year with the aim of overseeing the administrative, regulatory and other changes required to introduce next-generation mobile broadband. Led by a steering committee, it oversees the progress and engages with stakeholders including the government, telecoms operators, equipment vendors and potential end-users.

Al Khobar's pilot was subsequently launched after Saudi Arabia's national telecoms regulator, the Communications and Information Technology Commission (CITC), issued licences for testing a 5G mobile network using 100 megahertz (MHz) channels with a bandwidth of 3.6-3.8 gigahertz (GHz) – the speeds required for 5G.

The pilot “surpassed the limits of previous wireless technologies with a data-transmission speed of more than 1Gbps,” the CITC said in a statement to media on Friday.

The commission plans to convert the test-and-trial licences to full and exclusive 5G operating licences in 3.4-3.8 GHz by the middle of next year. Awards for an even broader spectrum could follow by the beginning of 2020, it added. It has already awarded additional bandwidth scope to mobile operators Mobily, Saudi Telecommunications Company  and Zain.

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All necessary 5G policies are intended to be in place by the end of 2019, the CITC said this week. Full roll-out of the technology is likely to require substantial investment from the private sector.

“The government is taking an active role to help create the best conditions for the private sector to invest in developing and deploying 5G in Saudi Arabia in a timely and efficient manner,” said Majed Almazyed, the commission’s deputy governor for technology and infrastructure and chairman of the 5G Taskforce.

“Saudi Arabia is determined to be a world leader in 5G to take early advantage of its benefits,” added Abdullah Alsawaha, the kingdom's minister for communications and information technology.

Other GCC countries have joined the race to implement 5G, including the UAE, with Dubai-based telecom operator Du saying earlier this month it intends to roll out a limited 5G service later this year, ahead of a wider launch in 2019.

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Based: Dubai
Sector: FinTech / PropTech
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Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)

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Industry: Electric vehicles
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How will Gen Alpha invest?

Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.

“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

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