Financing the Implementation of WSIS Outcomes in the ESCWA Region Yousef Nusseir Director Information and communication Division October 2009

Conference on Regional Follow-up to the Outcome of the Word Summit on the Information Society, Damascus, June 2009 Regional Plan of Action ICT Finance, Venture Capital and Entrepreneurship

Conference on Regional Follow-up to the Outcome of the Word Summit on the Information Society

Main Objective Present, discuss and review the progress made towards the implementation of the eleven WSIS action lines; Execution of the RPoA for building the Information Society and of similar regional strategies and plans of action.

Topics Track 1 (Strategies) Track 2 (Applications) Track 3 (Development) The conference encompassed 24 thematic sessions across three ICT-related tracks:

Track 1 - Strategies Regional ICT Strategies ICT Sector ICT Infrastructure Internet Governance/ADNS National ICT Strategies Measurements/Indicators Panel: Investment and ICT Financing

Track 2 - Applications Security and Trust ICT in Education Capacity Building ICT Applications Legal Framework Intellectual Property rights Panel: Building Research Capacity in ICT4D in MENA Region

Track 3 - Development ICT for Development Digital Arabic Content Community Telecentres Empowering Youth Women in the Information Society Networking for Development Panel: GAID Regional Arab Network

Outcome ESCWA producing an updated version of the RPoA, which contains a list of new projects targeting the needs and realities of the information society for the period extending from 2009 to 2015 and which will provide contribute to the implementation and follow-up of future WSIS-related activities; Approving the establishment of the GAID Regional Arab Network and its steering committee; Adopting the “Damascus Proclamation for the Promotion of the Arab Knowledge Society for Sustainable Economic and Social Development”.

Regional Plan of Action (RPoA)

The Regional Plan of Action (RPoA) defined: The components and programmes needed for the creation of a sustainable information society in the region; Projects aimed at fulfilling the objectives of the WSIS; Partnerships and funding mechanisms aimed at producing the desired impetus towards the realization of the information society in Western Asia.

RPoA Programmes 1.ICT for Economic Development 2.Developing e-Government services 3.Empowering NGOs in the information society 4.Developing communications infrastructure 5.Developing the ICT sector 6.Women's empowerment in the information society 7.Information Society measurements 8.Promoting Digital Arabic Content 9.ICT in education and scientific research 10.Increasing community access with emphasis on the marginalized and disabled The original RPoA comprised 38 projects distributed on 10 programmes namely:

Status of RPoA Projects In progress (7), 18% Completed (9), 23% Not implemented regionally (4), 11% Not initiated (4), 11% No information available (6), 16% Cancelled (8), 21%

Updating the RPoA Economic/Financial Sustainability: Obstacles: Lead organizations often had difficulty retaining the support and funding of partners. Recommendations: To encourage the creation of more private-public partnerships for ICT projects.

Data Gathering: Obstacles: The difficulty in reaching a regional consensus on issues/data, such as the core ICT indicators, and the lack of dedicated ICT surveys in EMCs have made it difficult to provide sound and accurate data on the progress of projects, although EMCs have benefited lately from best practices and capacity building efforts in the region. Recommendations : To work on Arabizing ICT indicators, definitions and statistical documents in order to promote adoption of indicators across EMCs, as most surveys in the region are carried out in Arabic. Updating the RPoA

New Project Proposals A.Arabic DNS and Digital Arabic Content (4 projects) B.Enabling Environment and I.S. Measurement (4 projects) C.Networking and Access for Disadvantaged Committees (3 projects) D.Capacity Building and Human Resources Development (3 projects)

ICT Finance, Venture Capital and Entrepreneurship

UN-ESCWA study on ICT Finance, Venture Capital and Entrepreneurship

Financial Mechanisms Foreign Direct Investment (FDI) Bilateral Agreements Official Development Assistance (ODA) Venture Capital Angel Capital Incubators

Existence of a limited number Venture Capital and to a lower extent, ICT funds in the region. ICT sector, traditionally faced competition from Real- Estate sectors and traditional industries. Difficulty In availing early stage finance and seed capital in the range of $200 thousand - $1 million Lack of entrepreneurial spirit and culture. Recent focus on incubational and business support schemes. Very limited number of ICT IPOs outside the Telecom sector, hence, limited incentive for VC. Highlights of ICT Finance and Entrepreneurship in the Arab region

Investment Programmes and Development Funds World Bank –International Bank for Reconstruction and Development (IBRD) –International Finance Cooperation (IFC) –Multilateral Investment Gurantee Agency (MIGA) Digital Solidarity Fund (DSF) Global ICTs Department (GICT) Islamic Development Bank Middle-East ICT Development fund (ICTDF) Investment Development Group (IDG) Ventures

Regional and National ICT Venture Capital Funds Gulf Venture Capital Association UAE ICT Fund Injazat Technology Fund Delta Shuaa Capital Swicorp Financal Advisory Global Investment House Abraj Capital Intel Capital Middle East MENA SME Fund EFG-Hermes Tech Dev Fund EFG-Hermes Tech Dev II

Repercussions of the Global Financial Crisis on ICT in the Arab region Threats of new ICT startups including unemployment There are opportunities for FDI’s ICT sector can plan a role in more efficient operations of other sectors Governments should get involved initially- encouraging PPP

Thank you