Middle East internet slowdowns could last months after Red Sea cable damage


Dana Alomar
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Repairing damaged underwater cables is a complex process that can take weeks or even months, as previous incidents have demonstrated, the International Cable Protection Committee says. Internet users across the UAE reported slower connections this weekend after cables were cut in the Red Sea.

Two major underwater cables, SMW4 (SEA-ME-WE 4) and IMEWE, were damaged near Jeddah, Saudi Arabia, global internet observatory NetBlocks says.

The cuts disrupted connectivity across India, Pakistan, the Gulf and parts of Africa, forcing operators to reroute traffic through alternative paths.

Customers of Etisalat by e& and du were among those affected in the UAE, with both operators receiving a surge of complaints on Saturday.

Users reported problems loading websites, streaming video and using messaging apps.

Du issued no official comment but responded to customers on its social media help desks, while Etisalat posted similar replies without stating the cause.

The Red Sea corridor carries about 17 per cent of global internet traffic between Asia, Europe and Africa, telecom research company TeleGeography says, making it one of the world’s most critical digital chokepoints.

Even localised faults in the area can ripple out across continents.

The cause of the latest disruption remains unclear, with authorities and cable operators yet to confirm whether the damage was accidental or deliberate.

Saudi Arabia and Egypt

Traffic was rerouted across alternate pathways, leading to widespread slowdowns, NetBlocks reported.

In Saudi Arabia, while authorities have not formally commented, the proximity of the damage to Jeddah suggests domestic users were also affected.

Egypt was not explicitly mentioned in this incident, but TeleGeography notes the country is historically central to regional cable disruptions. Past power cuts, including those affecting AAE-1, significantly disrupted connectivity through Egypt.

UAE

Downdetector data showed hundreds of disruption complaints in the UAE on Saturday evening, peaking at about 9pm, while Cloudflare Radar indicated shifts in routing that slowed international traffic.

Downdetector data showed hundreds of service complaints on Saturday evening, peaking at about 9pm.
Downdetector data showed hundreds of service complaints on Saturday evening, peaking at about 9pm.

Analysts say disruptions of this kind often affect businesses that rely on real-time connectivity, such as financial institutions and airlines.

On Saturday, Microsoft issued a service status update warning that some of its Azure users may experience higher-than-normal latency for traffic passing through the Middle East, particularly on routes linking Asia and Europe.

“Undersea fibre cuts can take time to repair; as such, we will continuously monitor, rebalance, and optimise routing to reduce customer impact in the meantime,” Microsoft said.

The company added that traffic not traversing the region remained unaffected and confirmed it had rerouted network traffic through alternative paths to maintain service continuity.

In Pakistan, telecom operator PTCL confirmed reduced capacity on the affected cables and said it had arranged alternative bandwidth channels to help mitigate service degradation.

Although rerouting kept services online, industry experts note that detouring traffic through longer and more congested paths inevitably slows performance.

Cloud applications, real-time messaging and streaming are especially sensitive to the added latency and congestion.

Why it matters

Past incidents have underscored the risks. Early last year, three cables were cut after a vessel attacked by Yemen's Houthi rebels drifted and dropped anchor in the Red Sea, disrupting services for weeks.

Analysts say the area’s shallow waters, busy shipping lanes and geopolitical tension make it especially prone to accidental and deliberate damage.

They also note the latest incident highlights the need for diversified cable routes and satellite backup to reduce reliance on the Red Sea corridor.

Repairs could take time

Repairing subsea cable damage is a highly complex and resource-intensive operation, the ICPC says.

It requires the posting of specialised repair vessels with trained crews and involves meticulous processes including detection, retrieval, splicing, testing and reposting, each step susceptible to weather, logistics and legal delays. The ICPC notes that such repairs often cost between $1 million and $3 million.

In the Red Sea, the task is further complicated by regional instability.

Last year, Reuters reported that three major cables could not be repaired quickly because Yemen’s government denied access to repair teams, while consortium investigations compounded delays.

The recent cuts take place as the Houthis exchange attacks with Israeli strikes over its war on Gaza.

Repair timelines in such scenarios have historically ranged from a few weeks to several months, industry data shows.

With repairs of such damages often stretching over weeks or months, customers and businesses across the UAE and wider region could be required to brace for continued disruptions as traffic is rerouted and cables are restored.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: September 08, 2025, 2:04 PM