1. IT opportunities in the Middle East: “Status & Change Drivers”
Planet Lebanon
IT opportunities in the Middle East:
“Status & Change Drivers”
Presented by Sami Abi Esber
President – MDS UAE Holding

2. Where are we at the moment?
IT Market in the Middle East is about 6.5 billion US$ per year which means that the average spending per person on IT is 23$ in the Middle East comparing to 231$ per person in a country like Czech republic and 512 $ per person in Israel (Based on IDC report)
Labor force working in the IT sector is less than 1% in the ME comparing to 8 to 9% in USA , Israel & Finland
Internet penetration rate in the Middle East is one of the lowest in the world

3. Internet Penetration

4. Opportunities in IT in the ME
The Middle East IT market is still representing a small portion of the world IT Market (IT spending in the Middle East is less than the IT Spending in Austria!), Which means that there is a big room for Growth.
The yearly growth rate in The Middle East was 14% during 2003 & expected to be 15% during 2004 which represents one of the highest IT growth rates in the world.
Growth in internet penetration is the highest in the world.

5. Internet Users Growth

6. Are we ready ?
As of today, Lebanon & most of the Arab countries are not well prepared to take advantage from the coming opportunities.
Instead of discussing these opportunities, I would like to highlight the “Change Drivers", to transfer our society from an “offline society” to “an online ready society”

7. Change Drivers – the Four Cs
Culture
Competence
Capital
Control

8. Culture
Nationalism: Is the nation or region strongly nationalistic, thereby tending to resist "foreign" influences such as provided by information and communication originating elsewhere?
Trust: Can business relationships be easily developed outside of tribes, families and other strong social institutions?
Meritocracy: Can individuals within the culture succeed based on the merits of their ideas and work, or is success determined by other factors?

9. Competence
In defining the IT competence within a society, we include such factors as:
Education: Is education in computer-and communication-related technologies widely available within the society? Is access to such education available based on merit and competence?
Training: Can citizens obtain training in IT technologies, so that they can use the IT services needed within the society itself?

10. Capital
Is adequate capital available for the establishment of new IT-related business ventures within the region?
Such capital might include:
Internal: Sources within the country or region itself that provide needed capital for IT businesses.
External: Is the country or region viewed as a good investment by external parties, so that investment capital can flow into the area?
Physical: It is important that such infrastructure services as electric power and telecommunications are available, stable, and provided at reasonable cost.

11. Control
The form of control within a country or region is important in determining the spread of IT within the area. Factors include:
Agency of control: Who is Controlling The IT Policies ?
Different agencies have different agendas and priorities that in turn affect the area's interest in obtaining and utilizing various information/communication technologies.
Form of control: Is the control that is exercised restrictive and constraining, or promotional and guiding?

12. What Can we do?
Following are few ideas on how Lebanese Emigrants can Contribute to The Development of IT in Lebanon and the region as follows:
Culture: Use our experience (Specially the Lebanese Emigrants who are Executives in the IT field) as a bridge between different Cultures
Competence : Invest in Education and Training to create citizens who are better users of the technology
Capital: Invest in emerging & successful Lebanese and regional IT companies
Control: Lobbying with the local governments for more IT friendly policies & initiatives