Egyptian companies are leading the rush to meet demand as GCC companies and governments move to outsource much of their information technology efforts.
Egypt had its largest-yet delegation at the Gitex technology conference this week in Dubai as emerging regional economies look to grab a share of hundreds of thousands of potential new jobs. Its delegation of more than 30 companies is riding on a slick branding campaign by the country's Information Technology Industry Development Association (Itida), reminiscent more of Madison Avenue than Cairo.
"Forget about camels and pharaohs," said an exhibitor from a software firm. "This is the new Egypt."
A visitor to the Egyptian pavilion of previous trade shows and international events would typically be confronted by gaudy images of a golden king Tutankhamun, or camel-riding Bedouins circling Cairo's pyramids. But Itida's new brand, themed "Egypt: On" is minimalist and thoroughly modern, a point of pride for the many exhibitors and thousands of Egyptian visitors to the conference.
"Everybody thinks Egypt is a nice place for pyramids, camels, souks - they know it is not just a desert - but do they know about IT and outsourcing?" asked Hossam Megahed, a board member of Itida. "What we're saying is that there is a modern Egypt that exports IT."
The Arab world's most populous country is finding a lucrative niche in both research and development and outsourcing focused on the Middle East, where technology spending is surging with a wider economic boom. The government plans for 150,000 new jobs in IT and outsourcing to be created by 2010; more than 15,000 have been created since the launch of a national IT plan in 2006.
"We originally planned to target the US and Canada," said Ahmed Badr, of ITWorx, one of Egypt's largest outsourcing businesses. "But it turned out the GCC grew much faster for us than the US market." The company now earns 60 per cent of its revenues from the Gulf.
The lack of start-up financing in most Middle Eastern countries also drives many smaller businesses to seek out opportunities in the Gulf, where well-funded companies looking for niche services play a role similar to that of a western venture capitalist.
"There's still not that venture capital, people putting US$10 million (Dh36.7m) into a venture to see how it goes" said Taher el Shafei, the chief executive of SilverKey, an Egyptian software and internet development company. SilverKey employs 30 software developers in its Cairo offices and came to Gitex seeking to form strategic alliances with regional systems integrators wanting to outsource parts of projects.
Much of Egypt's potential for IT growth, its executives say, originates in a national reverence for technical education. The title "engineer" serves as a respected honorific in Egypt much like "doctor" would in the West, and almost 300,000 graduates from technical disciplines such as IT and engineering emerge from the country's university system each year.
"The culture is also important," Mr Badr said. "We are Arabs, we understand the language, we understand the needs of people and their companies."
Morocco's growing technology industry is also focusing increasingly on the Gulf, in addition to its traditional market of the Francophone world. The North African nation has already established two IT investment parks in the style of Dubai's Internet City, with one on the outskirts of Casablanca having capacity for 30,000 workers. But while the country has made a healthy income from outsourcing the call centres and back offices of France, its IT leaders say its truly competitive niche is in software development.
"We are more oriented towards developing solutions, rather than outsourcing," said Mohamed Horani, the president of Morocco's Federation of Information Technology, Telecommunications and Outsourcing. "If you ask me how many countries are similar to the US, my answer will be none. It is unique. But if you ask me how many countries are similar to Morocco, I would say more than 100. So if we are able to implement a solution in Morocco, we can export this solution to more than 100 countries."
He uses the example of exchange controls, where the Moroccan government requires firms sending currency abroad to obtain prior authorisation, a common policy in developing nations attempting to protect their currency and reserves.
"There are a lot of functionalities in our software that address this," he said. "And there are a lot of other countries with similar situations, so they have similar needs. There are many examples like this."
Aside from his role at the federation, Mr Horani is also the chairman of HDS, a software company that specialises in payment systems for financial institutions. Seven banks in the UAE and more than 30 in the Gulf use his company's software.
Another country with a record delegation to Gitex this year is Jordan, whose national IT promotion body, Int@j, says the country's IT industry is growing by 20 per cent a year. The Jordanian government projects technology to become a $3 billion industry by 2011, with the country already home to some of the most innovative businesses in the region, including the Maktoob Group, which pioneered the development of Arabic-language blogging and user-generated content services online.
"The Gulf is already a huge market for us," said Abdulmajid Shamlawi, the chief executive of Int@j. "It can only get better - who wouldn't want to be doing business here today?"
tgara@thenational.ae
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Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
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MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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.”
UAE currency: the story behind the money in your pockets
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Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
UAE currency: the story behind the money in your pockets
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
TOUCH RULES
Touch is derived from rugby league. Teams consist of up to 14 players with a maximum of six on the field at any time.
Teams can make as many substitutions as they want during the 40 minute matches.
Similar to rugby league, the attacking team has six attempts - or touches - before possession changes over.
A touch is any contact between the player with the ball and a defender, and must be with minimum force.
After a touch the player performs a “roll-ball” - similar to the play-the-ball in league - stepping over or rolling the ball between the feet.
At the roll-ball, the defenders have to retreat a minimum of five metres.
A touchdown is scored when an attacking player places the ball on or over the score-line.
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
RACE CARD
5pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (Turf) 2,200m
5.30pm: Khor Al Baghal – Conditions (PA) Dh80,000 (T) 1,600m
6pm: Khor Faridah – Handicap (PA) Dh80,000 (T) 1,600m
6.30pm: Abu Dhabi Fillies Classic – Prestige (PA) Dh110,000 (T) 1,400m
7pm: Abu Dhabi Colts Classic – Prestige (PA) Dh110,000 (T) 1,400m
7.30pm: Khor Laffam – Handicap (TB) Dh80,000 (T) 2,200m
Who is Ramon Tribulietx?
Born in Spain, Tribulietx took sole charge of Auckland in 2010 and has gone on to lead the club to 14 trophies, including seven successive Oceania Champions League crowns. Has been tipped for the vacant New Zealand national team job following Anthony Hudson's resignation last month. Had previously been considered for the role.
Rooney's club record
At Everton Appearances: 77; Goals: 17
At Manchester United Appearances: 559; Goals: 253
SPEC SHEET
Display: 6.8" edge quad-HD dynamic Amoled 2X, Infinity-O, 3088 x 1440, 500ppi, HDR10 , 120Hz
Processor: 4nm Snapdragon 8 Gen 1/Exynos 2200, 8-core
Memory: 8/12GB RAM
Storage: 128/256/512GB/1TB
Platform: Android 12
Main camera: quad 12MP ultra-wide f/2.2, 108MP wide f/1.8, 10MP telephoto f/4.9, 10MP telephoto 2.4; Space Zoom up to 100x, auto HDR, expert RAW
Video: 8K@24fps, 4K@60fps, full-HD@60fps, HD@30fps, super slo-mo@960fps
Front camera: 40MP f/2.2
Battery: 5000mAh, fast wireless charging 2.0 Wireless PowerShare
Connectivity: 5G, Wi-Fi, Bluetooth 5.2, NFC
I/O: USB-C
SIM: single nano, or nano and SIM, nano and nano, eSIM/nano and nano
Colours: burgundy, green, phantom black, phantom white, graphite, sky blue, red
Price: Dh4,699 for 128GB, Dh5,099 for 256GB, Dh5,499 for 512GB; 1TB unavailable in the UAE
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Other must-tries
Tomato and walnut salad
A lesson in simple, seasonal eating. Wedges of tomato, chunks of cucumber, thinly sliced red onion, coriander or parsley leaves, and perhaps some fresh dill are drizzled with a crushed walnut and garlic dressing. Do consider yourself warned: if you eat this salad in Georgia during the summer months, the tomatoes will be so ripe and flavourful that every tomato you eat from that day forth will taste lacklustre in comparison.
Badrijani nigvzit
A delicious vegetarian snack or starter. It consists of thinly sliced, fried then cooled aubergine smothered with a thick and creamy walnut sauce and folded or rolled. Take note, even though it seems like you should be able to pick these morsels up with your hands, they’re not as durable as they look. A knife and fork is the way to go.
Pkhali
This healthy little dish (a nice antidote to the khachapuri) is usually made with steamed then chopped cabbage, spinach, beetroot or green beans, combined with walnuts, garlic and herbs to make a vegetable pâté or paste. The mix is then often formed into rounds, chilled in the fridge and topped with pomegranate seeds before being served.
Duterte Harry: Fire and Fury in the Philippines
Jonathan Miller, Scribe Publications
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
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Australia (15-1): Israel Folau; Dane Haylett-Petty, Reece Hodge, Kurtley Beale, Marika Koroibete; Bernard Foley, Will Genia; David Pocock, Michael Hooper (capt), Lukhan Tui; Adam Coleman, Izack Rodda; Sekope Kepu, Tatafu Polota-Nau, Tom Robertson.
Replacements: Tolu Latu, Allan Alaalatoa, Taniela Tupou, Rob Simmons, Pete Samu, Nick Phipps, Matt Toomua, Jack Maddocks.
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
