Report: Private Equity in the MENA Region (October 2008)

Global Investment HouseAccording to a report by Kuwait-based Global Investment House, titled “Private Equity in the MENA Region”, the spending power of the region’s growing middle class is influencing a shift in investment focus away from oil & gas to service-based and consumer-oriented businesses.

During the period from 2007 till H1-2008, investments made were highest in the Basic Materials sector with a total of US$1,422mn worth investments. It was followed by Healthcare sector (11% of all investments) followed by Financial Services (11%), Transport (8%), Oil and Gas (7%) and Services (5%) sectors.
Basic materials sector was again influenced by the US$1.4bn investment in Egyptian Fertilizers Company.

As the economies and population of the region will grow, social infrastructure needs in healthcare and education will increase and these will be the sectors that private equity players would look for.

The Telecoms and IT sector got only 1% of all investments in the period from 2007 till H1-2008, of which I’m sure only a tiny fraction made it to internet and technology startups.

Mobile Subscribers Sector In Saudi Arabia To Expand By 27%

Saudi ArabiaThe mobile subscribers sector in Saudi Arabia will expand by over 27 per cent in 2008, lifting the official mobile penetration rate to 144 per cent, according to Business Monitor International (BMI).

The launch of commercial services by new entrant Saudi Zain is expected to further stimulate the market.

The BMI report, made available to Khaleej Times, noted that according to the Saudi regulator, the number of mobile users in the kingdom had reached 28.4 million at the end of 2007. This was after having grown by over 44 per cent during the year. Mobile penetration at the end of 2007 stood at just over 116 per cent. By the end of March 2008, the number of Saudi mobile subscribers had estimatedly grown to 30.7 million.

“Growth in 2007 was actually stronger than in 2006, and this leads us to believe that much of the sector’s recent growth has been based on the addition of new prepaid users,” it explained.

Meanwhile, regulatory figures indicate that Saudi Arabia had 4 million operational fixed lines at the end of 2007. This is slightly less than the previous estimate of 4.129 million lines. According to the Communications and Information Technology Commission (CITC), the fixed line sector as a whole saw very little growth during 2007; combined with an expanding population, this meant that Saudi Arabia’s fixed-line penetration rate decreased from 16.8 per cent at the end of 2006 to 16.4 per cent by the end of 2007.

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Maktoob Unveils ‘Khan Wars’ A Free Online Strategy Game

Khan WarsMaktoob.com, the world’s largest Arabic online community with over 12 million unique users, has unveiled ‘Khan Wars‘, a free, strategy-based online game played directly through the Web browser. The Arabic-language game was launched at the first Dubai World Game Expo, which opened yesterday at the Dubai International Exhibition Centre.

Available exclusively on Maktoob.com, ‘Khan Wars’ is designed to recreate medieval times, bringing to life epic battles of an ancient era by leveraging war simulation technologies. ‘Khan Wars’ can be played from any computer with just a Web browser such as Internet Explorer or Firefox, and doesn’t necessitate downloads. Gamers can register for the free, browser-based game by logging on to http://khanwars.maktoob.com.

With the launch of ‘Khan Wars’, Maktoob.com becomes one of the pioneers to bring Arabic-language online gaming to a mass Arab audience through its extensive online consumer reach, which includes hundreds of thousands of tech-savvy young gamers in the 13-24 age group.

“We are confident that Maktoob.com’s substantial youth demographic, combined with the non-stop action experience that ‘Khan Wars’ offers gamers, will make Khan Wars a sure winner with the burgeoning gaming community in the Arab world,” said Sohaib Thiab, Product Manager, Maktoob.com Games.

‘Khan Wars’ is designed to offer gaming aficionados a fast-paced, non-stop action experience that far exceeds the excitement of casual gaming by appealing to the players’ imagination and challenging their tactical acumen. The game requires players to rely on tactics and positioning, think up new strategies and maneuver artfully.

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Yamli Releases iGoogle Arabic Transliteration Gadget

Yamli iGoogle gadgetYamli has gone on and released a new iGoogle gadget that allows easy access to its award-winning Arabic transliteration technology directly from users’ customized Google homepages.

Yamli’s Smart Arabic Keyboard allows users to type Arabic using Latin characters by converting their words in real time into Arabic text.

The gadget integrates the functionality to convert words from Latin characters to Arabic in order to launch Arabic searches on Google, or to write words and paragraphs that can then be copied and used elsewhere.

To add the Yamli gadget to your iGoogle homepage, you can use the following link: Add Yamli iGoogle Gadget.

Dubai-based Content Syndicate Wins YourBusiness SME Awards

Content SyndicateAt a recent industry event organised by YourBusiness magazine and Visa, Dubai-based Content Syndicate was awarded two prestigious awards, emerging triumphant in the ‘Best New SME’ as well as the overall ‘Best SME in the GCC’ categories.

The awards were sponsored by HP and Visa International as platinum sponsor of the overall winner category.

The 2008 YourBusiness SME Awards marks the anniversary of YourBusiness publication in the market and by extension seeks to reward entrepreneurs for growth. Sponsors for these awards include Visa International, Emirates NBD, Etisalat, HP, Hamriyah Free Zone, DHL and Forsa.

The awards were open to local and expatriate business owners of small to medium enterprises, or SMEs that employ less than 250 staff, earn up to AED 50 million and operate in the Gulf region. The awards ceremony took place at the Park Hyatt Hotel on 20 October 2008 and was attended by over 200 invitees.

Commenting on the win, Content Syndicate’s Founder & CEO, Maddy Reddy, said: “With SMEs constituting nearly 80% of the business ecosystem, both in the region and globally, we are honoured to be awarded this recognition. It’s also easy to overlook the fact that some of the biggest firms out there were all ‘garage start-ups’ or SMEs when they started out. This award is an important milestone for us in the long and exciting journey ahead.”

The judging panel comprised of senior management from Sheikh Mohammed Bin Rashid Al Maktoum Foundation, Visa, HP, Etisalat, HSBC, Emirates NBD, Citibank, YourBusiness advisory board and business consultants.

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Intel Capital Invests In Dubai-Based Startup Sphere Networks

Sphere NetworksIntel Capital, Intel’s investment arm, joined Dubai Silicon Oasis (DSO) by announcing its investment in Sphere Networks, an emerging Dubai-based startup specialising in next generation network management software. This move marks Intel’s first investment in a company based in the Gulf region.

The investment should help Sphere to expand both its technology base, get access to Intel technologies and develop sales and marketing to deliver its products to market. The amount of the investment was not disclosed.

The startup employs a team of 26 people, from different backgrounds, in Dubai; developing enterprise level network management solutions, which are already in use with a number of government customers in the region. 

The investment, announced today by Christian Morales, Intel VP Sales & Marketing and General Manager, Europe Middle East and Africa, is part of Intel’s drive to expand its economic, educational and technology-related support across the UAE. 

Under this program, Intel continues to increase its investment in four key areas: local entrepreneurship, education, digital accessibility and specialized technical competencies, to help promote technology skills, knowledge transfer and jobs creation in the UAE. 

Commenting on the announcement, Morales underlined the importance of fostering innovative, home-grown ideas and noted that today’s news illustrates Intel’s ongoing commitment to collaborate with local players that share the vision of taking entrepreneurial projects to the next level of global competitiveness. 

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FindWhere Expands Presence In MENA’s GPS Market

FindWhereFindWhere, a pioneer and global leader of real-time GPS location tracking, announced a few days ago that its website is now fully available in Arabic at www.findwhere-me.com.

The new website arrives on the heels of FindWhere’s recently announced joint venture with Dubai-based I2TC. The partnership creates the Middle East’s leading location-based service provider.

FindWhere’s expanding presence in the Middle East and North Africa (MENA) region also includes the appointment of regional IT retail expert Dikran Tchablakian to the company’s Advisory Board. FindWhere will ratify several major agreements in the region over the coming weeks.

FindWhere’s Arabic website launched at Gitex — an annual information technology exhibition in Dubai. The new website will provide FindWhere’s MENA customers with secure, user friendly access to current and historical locations of their GPS tracked devices and mobile phones, including address, time and even speed. Services also include “on-the-move” notifications, panic alerts and notification of entry or exit of pre-determined geo-fences.

FindWhere customers can receive Arabic email and text alerts to their mobile phones with information on the location of tracked devices. Real-time location notifications are readily available to customers on demand as a text message.

# FindWhere ME

ABAN Hosts Fourth Annual Entrepreneur – Investor Matchmaking Event

ABANThe Arab Business Angels Network (ABAN), a subsidiary of Dubai International Capital (DIC), in partnership with Young Arab Leaders (YAL), hosted its 4th annual entrepreneur-investor matchmaking event, taking forward the concept of angel or seed capital investing, a relatively new phenomenon in the Middle East.

The event, held on October 20th at the Dubai International Financial Centre (DIFC) spotlighted three aspiring start-ups:

  • White Smile, a project specializing in professional teeth whitening, oral detoxification, and cleansing therapies.
  • Chipmunk, a franchise of an eclectic range of baby products from Belgium. 
  • Khayal Interactive, an Egyptian game production company.

ABAN’s matchmaking events offer entrepreneurial ventures in the MENA region an opportunity to showcase their businesses and connect with high net worth investors seeking start-up investment opportunities. The affluent investors, termed angel investors, provide capital for business start-ups, typically in exchange for ownership equity.

In the past year, ABAN has signed up with several leading regional and international organisations to pool resources and promote entrepreneurialism, innovation and knowledge creation in the region.

Recently, ABAN joined forces with the Mohammed Bin Rashid Al Maktoum Foundation to foster entrepreneurship among women across the Arab region. ABAN has also collaborated with Dubai Internet City, one of the world’s largest managed ICT clusters and a member of TECOM Investments, to source new entrepreneurial ventures in the high-growth technology sector for further developing the region as a knowledge-based economy.

In addition, ABAN has partnered with Bader Group to support the establishment of a business angels networks in Lebanon. It has also signed an MoU with the Al Ahli Holding Group (AAHG) to promote developmental, cross-learning relationships between Emirati youth and the youth of other countries to help groom competent leaders for the future. 

ABAN offers a wide range of benefits to its members ranging from advice and consultancy to financial support and training for selected entrepreneurs. ABAN also supports proposal pitching to investors, and facilitates collaboration and syndication among investors to maximise investment opportunities. 

The Arab Business Angels Network is scheduled to host its next matchmaking event on December 15th for introducing yet another batch of entrepreneurs to regional investors.

SouqElArab Partners With LebanonPath To Provide More Products From Lebanon

SouqElArabThe Arab social Web shopping portal, SouqElArab.com, just announced a partnership with LebanonPath.com to better serve Arab communities across the globe with the finest Lebanese and Arab products.   

LebanonPath.com is an Online Lebanese shopping Web site that serves directly from the heart of Lebanon with products such as Lebanese sweets, food, coffee, books, flowers, arts, olive oil, clothing and much more. Through major suppliers of gourmet foods, such as Atayeb Alrif and sweets from Douwaihy, LebanonPath.com has been able to serve customers from all over the world whom have the interest and taste for the Lebanese product.  

The partnership between SouqElArab.com and LebanonPath.com will boost the service from Lebanon with expanding product offering for both Web sites, supporting regional supplier reach and logistics platforms. SouqElArab.com will be offering more products from Lebanon, while LebanonPath.com has the reach of suppliers from the 15 countries SouqElArab.com operates from.  

The CEO of SouqElArab Inc. points; “Our efforts are going in to synchronizing the operations in Lebanon, and concentrating on the core markets abroad by serving them with the best quality and wide product offering. Both operations will be coming together in Beirut, cutting costs, while enriching the service provided to our customers.” Fadi Dababneh continues; “this gives SouqElArab Inc. the focus to expand further in its operations in Egypt, Saudi Arabia, UAE and Iran.” 

Albert Abu Hamra the CEO of LebanonPath.Com claims “This effective partnership between both LebanonPath.Com and SouqElArab.com will flourish the online shopping services and products in the Arab world, in order to provide the Arabic audience all over the globe with the best quality of these products and fastest door to door delivery of the products”. CEO of LebanonPath.Com adds: “LebanonPath.Com with its operations from Beirut and in full cooperation with SouqElArab.Com will be covering all product lines where a customer will be shopping safely and choosing from between thousands of products”.

Google Launches Arabic Transliteration Tool, Takes On Yamli

Google Ta3reebGoogle recently launched a new Arabic transliteration tool, that allows users to use their Latin keyboards to type in Arabic text. This move puts them in direct competition with Yamli, a small startup that has proven very popular and generated great feedback; simulating a modern day tech reenactment of David vs. Goliath.

This isn’t the first time Google works on transliteration; they actually launched transliteration services from English to various Indian languages like Hindi, Kannada, Malayalam, Tamil, and Telugu on Blogger and through Google Talk bots over the past year. 

Now with Google’s push in the Arab world, they’ve gone on and launched ‘Google Ta3reeb’ (Google Arabization). The new tool was one of the services visible at the Google booth at Gitex Technology Week in Dubai.

From my initial usage of the tool, and comparing it to Yamli; Yamli stills seems to maintain the advantage, by being faster and offering more relevant transliterations and word suggestions. But I expect the Google tool will get better with time, as more people use it, and its inner workings optimised.

Google Ta3reeb screenshot

According to an anonymous tip that was picked up by TechCrunch, actually searching for ‘Yamli’ or ‘Yamli.com’ on Google’s Arabic versions like (Google.ae or Google.com.sa), users get a search results page that prominently displays ads for Google’s competing service alongside the search results, which suggests that Google is using Yamli’s name to target ads for their new service.

I’ve contacted both Yamli and Google for their comments on this story and should be following up with their responses pretty soon.

Update 1: Google has gone on and retracted the above mentioned ads.

Update 2: Responding to my enquiry about the story, Yamli co-founder Habib Haddad said “We are happy to see Google serving the Arabic web and we welcome healthy competition. Our primary focus as a young Arabic startup is and will remain on innovations for the Arabic user for whom we think we can continue to make significant contributions.”