"If we look at the overall situation in the Middle East, we're doing well," said Mr Alayyan. "It's not that gloomy. We have challenges but we're much better that other regions in the world."

He said there is also great potential to grow circulation revenues, since newspaper penetration in the region is very low. But other panelists said digital media offered more promise, given the overall young age of the Middle East population.

"The old world will remain, so you will sell newspapers, but the new world is coming and coming in big numbers, and that is the opportunity you need to pursue," said Najam Khawaja, Executive Chairman of the DDB agency.

Bandar Asiri, Managing Director of Al Khaleejiah in Saudi Arabia, said advertising spend per capita in the region was low, offering room for improvement. But he was not optimistic regarding print advertising. "Seventy percent of the population is below the age of 30, and that means they’ll be connected to networks."

Panelists, who also included Ahmad Al Hammady, CEO for Commercial & Marketing Affairs at Dubai Media Incorporated, and Tanvir Kanji, head of the Inca Tanvir consortium in Dubai, also discussed the lack of independently audited data as a drawback in the region, as well as a general lack of advertising creativity. The relationship between agencies and newspapers was also cited as needing improvement.