ArabNet The Quarterly Issue 10 | Fall 2016

The Present and Future of

Issue no 10. Fall 2016

THE OLYMPICS OF TECHNOLOGICAL INNOVATIONS

The Role of the Olympics in Driving Technology

ONLINE VIDEO ADVERTISING

CORPORATES DIVE INTO INNOVATION INVESTMENTS The Surge of Corporate Funding and Its Impact

KUWAIT DIGITAL LANDSCAPE

The Most Important Stats You Need to Know

YOUR STARTUP WILL SOON HAVE NEW HEIGHTS TO REACH STAY TUNED @ARABNETME

LETTER FROM THE EDITOR

QUARTERLY X This is the 10th edition of The Quarterly, which of course would not have been possible without the great efforts of my predecessor, Lara Chaaya, who has left pretty large shoes for me to fill. Working on my second issue, I am grateful to every team member who has played a role, no matter how small, in helping the magazine thrive. I am remarkably fortunate to be working with a team that never ceases to amaze me.

Rita Makhoul Managing Editor

@rampurple

In this issue, we spoke to industry experts about the ever-changing world of video advertising on keeping up with fragmentation, monetizing efforts, and solutions to the challenges that are being faced. Moreover, Choueri Group’s DMS present key insights from a study they conducted on how video is consumed differently during the Holy month of Ramadan. Netizency’s Managing Partner has also shared his views on the ongoing battle of social video.

I’m thrilled to announce that ArabNet just hit yet another milestone by hosting its first conference in Kuwait. This country, that I call home, has been investing in a startup fueled digital economy to diversify its economy away from oil. To introduce this new market, we mapped out the Kuwait startup ecosystem and we have created an infograph on the digital landscape in Kuwait, which are available in this issue.

As always, I hope you enjoy this issue, and do let me know if there are any topics you would like to see covered in the future. It's my wish that The Quarterly will become an essential part of your professional life, a resource that you depend on to keep up with the rapidly evolving world of digital technology.

Until next time!

CONTENT ISSUE 10 APPS FOR TRANSPORTATION USEFUL A Round-Up of Taxi-Booking Apps for Residents in MENA INDUSTRY STORIES

4

BUSINESS

Industry News

22

The Olympics of Technological Innovations

26

MENA Corporates Dive Into Innovation Investments

TECHNOLOGY

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12

18

2

Smart Cities: UAE Consumer Behavior

Roundtable: Fostering An Innovation Ecosystem Around Open Data

THE QUARTERLY Fall 2016

The Power of People in NBK’s Digital Banking Transformation

ENTREPRENEURSHIP

DIGITAL MEDIA

28

32

38

40

The Present and Future of Online Video Advertising

46

52 Ramadan and Video Consumption: The Story

56 The Battle For Social Video Dominance

The State of Digital Investments in MENA 2013-2015 [Updated]

10 MENA Startups to Put On Your Radar

The Rise of Kuwait’s Startup Ecosystem

Kuwait Digital Landscape

KUWAIT DIGITAL LANDSCAPE

Fall 2016 THE QUARTERLY

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INDUSTRY STORIES

USEFUL APPS FOR TRANSPORTATION

INDUSTRY NEWS

A Round-Up of Taxi-Booking Apps for Residents in MENA

Alabbar to Set Up $1bln Tech Investment Fund – MENA’s Largest to Date Al-Abbar Entreprises, along with a number of private investors from the region, is set to launch the MENA’S largest technology fund. Led by Emarati businessman Mohamed Al-Abbar, the fund aims to collect investments worth $1 billion to drive Arab tech-entrepreneurship and create a “sharing economy” business model that will be considered the first in the region.

The fund will search for opportunities to acquire technological projects operating in high-growth sectors, such as retail, fashion, transportation, media, and others.

According to ArabNet, current estimates value the funding of tech startups in the MENA region at over $750 million in 450 projects between 2013 and 2015.

Wamda Capital to Start Second Tech and E-Commerce Fund Reaching $500 Million Wamda Chairman Fadi Ghandour, who recently sold his holding in Aramex, plans to start fundraising for Wamda II next year. The new fund is expected to target an average investment of $250,000 to $5 million in the early and growth stages of e-commerce and technology companies and reach $300 million to $500 million in size.

Ghandour who sold his stakes to two companies backed by Mohamed Al-Abbar is planning to spend more time on new ventures and support tech startups around. He seems to be taking an interest in Turkey, Pakistan, and Iran’s startup industries. “E-commerce is growing massively in the region. There’s about 200 million people that are online. They are transacting. They are effectively building the next economy. I’m betting on those,” Ghandour said.

Lebanon Can Become MENA Tech Gateway: UKLTH Report A new report by UK Lebanon Tech Hub, maps out Lebanon’s huge growth potential in FinTech, well-being (healthcare, fitness, and food lifestyle products), and digital visualization sectors. The report states, that there are three core technological capabilities to enable the various sectors: Software as a service (SAAS), Internet of Things (IoT), and digital technologies. It also outlines a plan to create 25,000 ICT jobs by 2025. The report states that nearly $12m in new revenues and investment has been secured and more than 130 new jobs created since June 2015. The new findings followed the examination of 339 ICT companies in Lebanon and are based on a mapping of strengths and weaknesses of the local knowledge economy, an assessment of global trends, and a comparison of ecosystem development experiences with countries of a similar profile (including Estonia, Latvia, Northern Ireland, and Israel).

The report estimates that growth in the knowledge economy in Lebanon would increase the number of employees directly related to the sector by 15% and a further 5% increase in the wider economy with spillover effects that would contribute an additional $ 7 billion to Lebanon’s GDP by 2025. The opportunity is promising for R&D transfer from academia to industry as Lebanon is ranked 15 out of 62 countries in the Global Entrepreneurship Monitor 2015 report. The same report also identifies Lebanon’s highly educated, skilled, and successful diaspora as a key pillar of its resilience as well as a huge source of opportunity going forward as it provides strong access to several key international markets. Lebanon’s remittances have grown steadily from $ 2.54 Billion in 2002 to $ 7.7 billion in 2014 - as a percentage of the GDP, remittances amounted to 16.2%, the 13th highest ratio in the world.

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Gaza’s First Hackathon

Gaza Sky Geeks launched their first hackathon in May in Gaza where 65 hackers participated for 36 hours straight. The grand prize went to Homee, an online ordering platform and integrated delivery service app for people who want to buy homemade goods. Homee is set to join the AngelHack ‘Hackcelerator’ program in August, to receive intensive mentorship on product development, user acquisition, and, if they meet their milestones, residency with AngelHack in Silicon Valley.

Gaza Sky Geeks received a grant from Techstars Foundation, which is an organization that aims to improve the landscape of diversity in tech entrepreneurship. The women’s inclusion is going strong for Gaza Sky Geeks with the mentorship and women’s inclusivity program. Techstars, along with financial support, will leverage its global network of mentors, alumni, and investors to help Gaza Sky Geeks start a women’s coding club. The first course, from Harvard University, is the CS.50 Introduction to Computer Science. This is their first pilot program during which online and in-person lessons are held.

MITEF Competition to Find Pioneering Solutions for Refugees As the world faces the worst refugee crisis in recent history, the MIT Enterprise Forum Pan Arab is seeking disruptive and scalable longterm solutions by harnessing the power of technology.

In partnership with Zain Group, a leading mobile telecom innovator across the Middle East and Africa, and MBC Hope, the Corporate Social Responsibility arm of MBC, and supported by the United Nations High Commissioner For Refugees (UNHCR) and Jusoor, MITEF Pan Arab launched the ‘Innovate for Refugees’ global competition on World Refugee Day last June. The aim of the competition is to find the most innovative solutions that effectively tackle challenges faced by refugees. It is awarding four prizes, $20,000 each on October 4th. In addition, the MITEF Pan Arab has partnered with several institutions that are assisting refugees and raising awareness among them. These partners include the Karam Foundation, an NGO focused on building a better future for Syria, and Techfugees, a social enterprise that organizes tech shows, conferences, workshops, hachakathons, and meetups as well as develop tech projects for refugees around the 5 themes of infrastructure education, identity, health, and inclusion.

TURN8 Forms a New Venture Capital Fund Dubai-based TURN8 has launched a $60 million Venture Capital Fund for technology innovation. It is one of the largest seed capital in the region and is catering to the global startup ecosystem. The TURN8 accelerator launched and invested in over 60 companies including Loadme, an online marketplace for freight exchange, serving the road transportation industry from the Middle East, Kashmi is a peer-to-peer payment service, Pixelbug a technology company that enables brands to go beyond conventional media, and Paack, a company that connects omniretailer stores in major cities.

DP World and Innovation360 setup the Turn8 accelerator in 2013. Since then it has provided pre-seed funding to startups in sectors such as digital healthcare, crowdsourcing, EduTech, FinTech, and enterprise cloud solutions and raised over $6 million in co-investment for its portfolio companies from various worldwide investors. DP world was the first anchor investor, with over 20 per cent ownership of the fund.

INDUSTRY STORIES

USEFUL APPS FOR TRANSPORTATION Seedstars Sheds Spotlight on Jordan and Bahrain Startups

A Round-Up of Taxi-Booking Apps for Residents in MENA

In its worldwide search for startups that solve regional issues and/or develop profitable products for the global market, Seedstars World made its return to Amman on August 7th at Oasis500, and Manama on September 24th to host a startup competition at CH9 Hub. 12 startups from Jordan and 15 from Bahrain competed to represent their respective countries and regions at the Global Summit in Switzerland.

Seedstars World has expanded its competition to more than 60 countries in 2016, up from the 36 countries in the 2014 edition. The winners are invited to Switzerland to pitch at the final event in April 2017 for a prized $500,000 equity investment.

In Jordan, Mind Rockets was selected as the best startup for its new approach to translation, technology, and social impact. It develops assistive technologies for the Deaf & Hard of Hearing worldwide and that is through the translation of speech/text to sign language through animated avatars. The Audiogram, an app that enables mobile phone users to listen to audio content related to their interests instead of listening to the phone ringing, came in second place. The 3rd place runner-up, Arabot, is a conversational Artificial Intelligence platform for Arabic language, delivering the first smart Arabic chatbot for businesses.

PAYFORT Helps Arab Startups Create Online Stores with Shopify Payfort announced that it is now a shopify payment partner. Payfort will help startups and SMBs in the Arab region create online stores using Payfort’s online payment solutions. Payfort’s merchants will be able to use Shopify’s software to design, set-up and manage their online stores as well as adding ecommerce features to their websites to sell products. It introduced its START solution last year to allow startups and SMBs to fast-track their online payment set-up and benefit from new, easy-to-use online payment applications. Businesses can set-up a START account in less than 5 minutes, without being required to provide a deposit, avoiding complicated and time-consuming bank procedures traditionally associated with establishing ecommerce operations in the Arab world. This is yet another facilitator the region is witnessing as part of the shift towards the online world. Shopgo is Shopify’s competitor that is active in Jordan setting up online payment systems, website design, and technical support and signing 140 domestic and regional companies, including musical instrument retailer Feesheh and Virgin Megastore.

Hyundai Launches Startup Competition for the Second Year Running After last year’s success, Hyundai decided to take their Startup Competition in 2016 and dedicate it as a TV program on LBCI with 25 finalists who will be competing for total cash prizes amounting to $50,000.

To be eligible, applicants had to fall under the following categories: enterprise and big data field, educational and learning sector, social media innovations, hardware, or the finance technology industry. Based on their value proposition, innovation, competitive advantage, market potential, and business model, Hyundai have selected 25 startups to undergo a series of trainings and workshops by the Speed@BDD accelerator program for a month.

The trainings in the mentorship program will touch on different topics such as gaining revenue, marketing, product distribution, and TV pitching and will help prepare the startups for pitching their innovative ideas to the panel of judges. The TV program, which will consist of five 45-minute episodes and airs in October, will feature 5 startups per episode, each of which will be given 3 minutes to pitch their ideas, followed by 5 minutes of Q&A with the panel of judges. One winner will then be chosen at the end of each episode and given $10,000 from Century Motor Company (CMC), Hyundai’s distributor in Lebanon.

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Egypt’s First Fintech 1864 Accelerator Program Flat6Labs opened the door for participation in its 1864 Accelerator Program, which will mark the first homegrown fintech accelerator program in Egypt, and which can open up new opportunities in financial technology, in cooperation with Barclays Bank Egypt. The platform is set to qualify a new generation of entrepreneurs through the adoption of creative ideas and their transformation into commercially viable solutions.

“This is a new concept for the future of financial services here,” stated Soha El Turky, Business Development Director at Barclays Bank Egypt. Applications are submitted through the official website, which lists all the required information and procedures. The qualified teams will join the program that lasts for 14 weeks, through which they will receive financial and technical support to turn their ideas into successful and sustainable projects.

This Year’s GITEX Highlights Smart Cities and the Reimagines Patient Care

MENA ICT Forum Returns This Year to Jordan

Int@j will organize the MENA ICT Forum 2016 in Amman on November 9-10 to showcase industry trends, opportunities, and future outlook of how technologies disrupt industries and sectors, which is essential in the MENA regions. This event, the biggest of its kind in Jordan, is organized once every two years with the support of all the major IT players and the participation of 1,200 experts. It is set to transform conceptual ideas into practical applications. Moreover, MENA ICT sheds the light over important industries such as education, healthcare, clean energy, transportation, logistics, commerce, financial services, media, and humanitarian causes. It shows how these sectors are impacted by Social Media, Mobility, Big Data, the Internet of Everything, Cloud Computing, 3D Printing, Wearable Technologies, and Virtual Reality.

PinPay to Receive $ 2.5 Million Investment from Fransabank Government leaders and technology companies will have an opportunity at GITEX Intelligent Cities to experience the next wave of innovative and integrated technologies that are already helping cities around the world become more connected. Furthermore, the Smart Dubai Office is offering a first-of-its-kind, true city experience at GITEX this year, by bringing together partners from public and private sectors.

In addition, the GITEX Technology Week 2016 will feature detailed cutting-edge healthcare technology offerings that save time on administration, reduces the scope for human error, and means staff can focus on patient care. Startups are beginning to play a significant role in reimagining healthcare. According to market intelligence firm Tractica, the world is set to see a new wave in healthcare wearables, with shipments growing from 2.5 million units in 2016 to 97.6 million by 2021, and $ 18 billion in revenue.

The rapidly expanding GCC health market will include connected hospitals and healthcare providers with wearables, machine monitoring, and patient record digitization.

The system includes patient wristbands with vital information for nursing staff, and the ability for doctors to view digital patient records from anywhere at any time – including their homes.

Fransabank announced the investment of $ 2.5 million in fintech startup PinPay the mobile payment and bill aggregation platform founded in 2011. Fransabank will adopt PinPay’s services for their customers and stop operating the Simba mobile payment app which it launched in 2013. PinPay has attracted investments before from Middle East Venture Partners (MEVP), Bank Audi, and Bankmed. The banks’ account holders also use the platform to make mobile payments. With this announcement, PinPay will increase its capital to $ 8.6 million, with a total of 55,000 users since August.

TECHNOLOGY

USEFUL APPS FOR TRANSPORTATION

THE OLYMPICS

A Round-Up of Taxi-Booking Apps for Residents in MENA

OF TECHNOLOGICAL INNOVATIONS Rita Makhoul | @rampurple

T

he Olympics are not just about sports. As athletes have constantly pushed the boundaries of human ability at the Games, technology has constantly moved forward too. The Olympics have a historical impact in leading technological advancements and

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THE QUARTERLY Fall 2016

innovations long after the Games end.

In the four years since the London Olympic Games, technology has continued to transform everyday life at an astounding pace. At Rio 2016, we witnessed the Olympics harness some of these innovations in

addition to many new innovations that made their debut. As the majority of the world had their eyes on the competitions, we kept our eyes out for all the technological advancements and innovations that were introduced this year.

Precise Time Keeping and Judging Innovations

It seems unimaginable that at one time, Olympic judges supplied their own stopwatches to keep time during races and time-centric events. This practice often led to varying degrees of legitimacy in results. It’s not until the 1932 Olympics in Los Angeles that Omega introduced its Olympics chronograph, made with a fly-back hand, which allowed judges to use an identical, precision-rated piece for timekeeping, thus increasing the accuracy and reliability of results. At the 1964 Tokyo Olympics, Seiko coordinated a quartz crystal timer with the shot from the starter’s pistol and employed a photofinish mechanism to get results down to 1/100th of a second accuracy. Creating this technology for the Olympics helped Seiko later invent the quartz wristwatch in 1969 — a technological milestone for society at large.

This year marked Omega’s 28th time as the Official Timekeeper of the Olympic Games. Throughout the decades, the brand has pulled out all the stops to become ever more precise and accurate, and have come a long way from the days of the chronographs. The Rio Olympics used 480 timekeepers, utilizing state-of-the-art equipment, sensors, electronic starting pistols, detection devices, and touchpads in pools resulting from heavy investments into research and development.

The Omega Scan’O’Vision Myria camera is one of the innovations that were introduced this year. The camera captures 10,000 images per second in the photo finish. The brand also developed a fourcell Photocell Technology system that

tracks body stance and movements for use in determining track winners, and a new Archery Targeting System that calculates the arrow’s distance from the center point with an accuracy of 0.2mm – more than the human eye can detect.

The ancient martial art, Taekwondo, has even embraced technology. The point system technology was dependent on assessment from referees, often resulting in complaints from athletes and officials. In the 2012 London Games, they wore vests fitted with sensors. At Rio this year, the fighters also wore magnetized socks and headgear equipped with impact sensors that recorded every kick to the head.

Innovations in Broadcasting

The Olympics made broadcasting history in 1936 when it became the first ever televised sports event. Approximately 150,000 people in viewing rooms located in Berlin and Potsdam watched 72 hours of black and white, medium definition live broadcasts of the Berlin games. The 1960 Olympics were the first Olympics to be broadcast live across Europe, the 1964 Games was the first to reach a worldwide audience – and in color, the 2008 Olympics witnessed the first-ever High Definition Broadcast of the Games to 4.7 billion people, and at the 2012 Olympics BBC launched 24 HD television channels to broadcast every single event.

Instead of 24HD television channels, this year BBC provided the same experience via online live streaming.

However, they were not the only ones providing live streaming: Google sent 15 YouTube stars to the games to capture the mood in Brazil albeit not as

comprehensive as BBC’s online coverage.

NBC broadcasted hundreds of hours of coverage in ultra high definition, known as 4k, which features four times the pixels of regular high definition. However, there was a 24-hour time delay considering the processing time required to produce the footage, and viewers needed a 4K-equipped TV to watch. The BBC tested 4K behind closed doors, not making it available to the public, while Japan’s NHK recorded in Super High-Vision, that’s 8k – 16 times as many pixels as regular HD. Since regular televisions are not able to display 8K video yet, they aired the footage at public broadcasting centers around Tokyo. Their aim is to build the technology’s profile ahead of the 2020 Games in Tokyo.

Since the 2012 London Olympics, there has been an explosion in drone technology in TV. This year BBC partnered with Olympics Broadcasting Services to provide international broadcasters with coverage of rowing and some other sports with drone cameras to avoid distorted images and provide more ‘side-on’ cameras. Getty Images and Associated Press utilized myriad robot cameras to capture the Games at every angle imaginable. Some of the most stunning pictures captured allowed viewers a fresh angle of swimming contests where the cameras were beneath the surface of the water. Samsung also partnered with Olympics Broadcasting Services to generate around 85 hours of programming for Samsung Gear VR users from the Games in virtual reality, including the opening and closing ceremonies.

Wearables and Gadgets for Athletes

There is no doubt that the stellar performances by the athletes were a result of years spent preparing for the games.

Wearable trackers have been around since before the 2012 London Olympics, but

Fall 2016 THE QUARTERLY

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TECHNOLOGY

USEFUL APPS FOR TRANSPORTATION there have been vast improvements in tracking and analytic software making wearables and trackers an integral part of training for many Olympic athletes. The wearables are significantly more advanced than the ones available to consumers as they run advanced algorithms and spit out indescribable quantities of data.

For example, the US cycling team wore Solos augmented reality glasses, which started off as a Kickstarter campaign.

The glasses feature a heads-up display showing the cyclists key data during training, including heart rate, speed, time, elevation, and other information in realtime. The US Women’s volleyball team trained wearing a VERT jump monitor around their waists to calculate their jump heights and counts to help prevent injury.

In the boxing ring, Canadian and US fighters trained with Hykso, a sensor that calculates the amount of punches being thrown, as well as the types and speeds of those punches. It is worn inside the fighter’s wraps and uses two independent accelerometers and 3D motion tracker.

Some divers trained with tiny waterproof sensors to let them know how high they jumped and how long it took them to get into their first spin. Real-time data such as this assists athletes in all disciplines by allowing them to make critical adjustments in their performance.

Even the most advanced distance swimmers tend to lose track of their lap count. At Rio, digital lap counters were provided by Omega that sat at the bottom of each lane, near the swimmer’s turning point, automatically updating the lap count when a swimmer hit the touchpad on the wall. Swimmers of the 800m and 1500m freestyle competitions, managed to focus more on their own performance.

the Visa sponsored swimmers were able

for self-driving taxis, facial recognition

waving their ring near the NFC card reader. Basically, visitors and athletes at the Olympics venue were able to pay by swiping, tapping, dipping, or clicking.

High-Vision, a scoring system that uses 3D lasers to monitor a gymnast’s technique in real-time, and more.

Far more advanced tracking devices and gadgets are being prepared for athletes, and of course, there will be new technology advancements that have not been invented. I don’t know about the rest of you, but I can’t wait for 2020.n

to go from pool to payment by simply stadium entry, broadcasting in Super A Round-Up of Taxi-Booking Apps for Residents in MENA

Payment Technologies

Using Near Field Communications (NFC) technology, Visa launched a bracelet and ring that visitors to Rio 2016 were able to use as contactless payment to pay for services and goods at all 4,000 point-of-sale terminals at the Olympic venues. The rings were only provided to the 45 athletes the company sponsored at the Games and do not require the use of battery or recharging. They also are water resistant to a depth of 50 meters, so that even

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What to Expect at Tokyo 2020 The 2020 Games are already bracing for new major technological implementations. Tokyo is preparing

TECHNOLOGY

USEFUL APPS FOR TRANSPORTATION A Round-Up of Taxi-Booking Apps for Residents in MENA

SMART CITIES UAE CONSUMER BEHAVIOR

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INTRODUCTION

BACKGROUND INFO: SMART CITY STATS IN MENA SMART CITIES IN THE MIDDLE EAST According to Euromonitor estimates, the smart cities market is expected to reach USD 3.3 trillion by 2025 worldwide, with up to half of the industry surfacing from emerging markets. The Middle East is leading the race to be smart, and the region is likely to see major gains due to significant initiatives launched

by governments and private sector developers.

The six countries of the Gulf Cooperation Council (GCC) – Bahrain, Saudi Arabia, Qatar, Kuwait, Oman and the United Arab Emirates – have been witnessing rapid population growth and urban development brought on by historically

strong oil revenue and construction and modernization booms. A number of smart developments have been launched across the region, including Lusail City in Qatar, KAEC in Saudi Arabia, and Silicon Park in Dubai – as part of the broader platform of Smart Dubai.

DOHA LUSAIL CITY High-technology city environment comprising both wired and wireless communication networks and operation control center that will manage the information technology network covering the whole city.

DUBAI DUBAI DESIGN DISTRICT A district dedicated to design and the creative industries, incorporating smart infrastructure.

SILICON PARK, DUBAI SILICON OASIS A complete smart city project incorporating smart energy, mobility and lifestyle solutions.

JEDDAH KING ABDULLAH ECONOMIC CITY New city one hour north of Jeddah incorporating the King Abdullah Port, designed on social, economic and environmental sustainability principles.

ABU DHABI

RIYADH INFORMATION TECHNOLOGY COMMUNICATIONS COMPLEX, WITHIN THE KING ABDULLAH FINANCIAL CENTER Master-planned city development in Abu Dhabi relying only on solar and other renewable energy sources to power the city

In the past, the demand from buildings was far more straightforward than today, with safety, security and comfort being the main criteria. Conversely, today’s drive for greater productivity, connectivity, health and satisfaction is raising the bar for buildings to become smarter and to put the needs of its occupants first.

According to Honeywell Smart Building Score Report, Doha and Dubai lead the

region in terms of their smart building capabilities across all three categories of Green, Safe and Productive. This is largely attributed to the presence of stronger building regulations in both cities, both past and present.

Smart cities are becoming a focal point of national strategy and more and more e-services are being introduced or in development by governments across the

MASDAR Master-planned city development in Abu Dhabi relying only on solar and other renewable energy sources to power the city

region. The most ambitious program is taking place in Dubai, led by the Smart Dubai Office, and which aims to turn Dubai into the world’s smartest and happiest city through the implementation of 1,000 smart initiatives and 100 smart services by 2017.

Sources: Nielsen, Deloitte, Euromonitor

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TECHNOLOGY

USEFUL APPS FOR TRANSPORTATION THE STUDY: OBJECTIVES AND METHODOLOGY

A Round-Up of Taxi-Booking Apps for Residents in MENA

ArabNet - in collaboration with the Smart Dubai Office, Xische & Co., and with the support of OnDevice Research - has launched this study to examine how UAE residents engage with city and government services, especially over digital channels. The study investigates the residents channel preferences for a variety of services, the factors influencing digital channel adoption, the frequency of public service center visits and the residents’ level of engagement with UAE’s government mobile applications.

The findings are based on a study conducted in the United Arab Emirates during the month of May 2016.

The survey methodology used was mobile research where a total of 1,300 questionnaires were completed.

The target population was scattered around the United Arab Emirates, and the sample distribution is 45% Dubai, 30% Abu Dhabi, 15% Sharjah and the remaining 10% in other dispersed locations. Being a mobile-based research study, the respondents are all mobile phone users with Internet connectivity.

Random sampling during fieldwork revealed a gender split of 58% males and 42% females - the majority of which are millennials aged between 16 and

24 years. No quotas were applied to demographic variables, including age, gender, nationality, income, occupation and location.

It is important to point out that the data was analyzed based on all demographic variables, however only analyses that generated interesting insights have been included in the study, as some findings have yielded no remarkable differences.

Also, questionnaire phrasing in mobile research is required to be brief and short; this can place limitations on elaborating and explaining certain survey questions and answers.

PUBLIC SERVICE OVERVIEW

CONSUMER CHANNEL PREFERENCE METHODS USED FOR CITY SERVICES Looking at consumer behavior in the UAE, the largest portion of respondents go in person to finalize governmental (76% and 71% renew their residence permits and trade licenses in person respectively) and financial services (53% pay their credit card bills, loans

and insurance in person). Meanwhile, it is interesting to note that about 1/3 of survey respondents pay their government bills and fines through an app / website, which is much higher than other governmental transactions.

This also indicates residents’ willingness/

Renew your residence permit

76%

Fill your medical prescription

75%

Buy tickets for entertainment events (movies / concert / etc)

41%

Book a taxi / transportation service

41%

28%

Book your holiday / travel

24%

By Phone

9% 16%

33%

15%

35%

18%

41% 46%

13%

55%

34%

Make a restaurant reservation

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15%

38%

Book a doctor’s consultation

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13%

50%

Pay your government bills / fines

13%

16%

53%

Pay your credit card bills / loan payments / insurance payments

In Person

12%

71%

Renew your trade license

Order food delivery

appetite to use digital channels to execute government services. Finally, it is also interesting to note that there is a significant minority of individuals that do everything in person – each service had at least ~25% of respondents saying they complete it in person.

7%

53% 21%

13% 51%

57%

Through App/Website

19%

MOST USED CHANNELS BY SERVICE (METHODS USED FOR EACH PUBLIC SERVICE – SPECIFICS) Diving further into the results and ranking them by the most used channel for each service, further insights emerge. As in the previous graph, governmental and financial services are usually executed in person, while

like Talabat and Uber / Careem – which provide online food delivery and car service respectively – are flourishing in the region, the most used channel for booking a car or ordering food is still over the phone.

booking lifestyle services (restaurants, transportation) tend to be done over the phone, and online is used by the majority of respondents for making entertainment bookings (concerts / events). It is interesting to note that while companies

76%

Renew your residence permit

75%

Fill your medical prescription 71%

Renew your trade license 53%

Pay your credit card bills & other payments

50%

Pay your government bills / fines

57%

Order food delivery

55%

Book a doctor’s consultation

53%

Make a restaurant reservation 46%

Book a taxi / transportation service

51%

Book your holiday / travel

Buy tickets for events

41%

Fall 2016 THE QUARTERLY

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TECHNOLOGY

USEFUL APPS FOR TRANSPORTATION DIGITAL CHANNEL ADOPTION OVERVIEW PERCEIVED A Round-Up BENEFITS of Taxi-Booking OF DIGITAL CHANNEL Apps ADOPTION for Residents

in MENA

The perceived benefits of digital channels reflect the ever-growing demand for fast, reliable, and hassle-free services.

The top two drivers for digital channel adoption – saving time (24% of respondents) and ability to book 24/7 (20% of respondents) – show that UAE residents are constantly looking for speed, flexibility and accuracy in services.

To save time, avoid queues / waiting on

62%

Ability to book 24/7 at my convenience

52%

To avoid congestion / traffic

38%

Having more information when I make my purchase decision

31%

Better online customer service

31%

To avoid errors with my request / order in writing

30%

Low quality of customer service on phone / in person

19%

MAIN BARRIERS FOR DIGITAL CHANNELS ADOPTION BY NATIONALITY In hopes of better understanding the discrepancies between barriers for digital channels adoption among UAE’s different nationalities, the top reasons were highlighted for each category. For Emiratis, the most common reason for not using digital channels is the presence of support staff that handles services on their behalf; on the other hand, Arab expats believe that customer service is more flexible on the phone / in person, and Asians consider the online process to be difficult and time consuming. This indicates that the user experience is a primary factor hindering digital channel adoption.

I have support staff (office manager, driver, etc) that does such things on my behalf I only go in person when the service cannot be done online and requires my presence Better / more flexible customer service on phone / in person I don’t trust using my credit card or personal information on these platforms I can’t use my credit card for online transactions The online submission / sign-up process online is long / time consuming The websites are slow and I don’t always have connectivity

I don’t trust what’s being done with my information I didn’t know I could do these online

Emirati

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50%

17%

27%

51%

19%

24%

29%

14%

21%

21%

31%

Arab expat

Asian

Westerner

6%

48%

9%

51%

8%

46%

18%

5%

9%

53%

16%

22%

6%

7%

54%

19%

20%

The online process is difficult to understand / use

48%

22%

24%

7%

8%

53%

19%

20%

41%

19%

34%

5%

GOVERNMENT APPS OVERVIEW

GOVERNMENT APPS LEVEL OF ENGAGEMENT

23%

RTA Dubai

applications that facilitate a large chunk of government services. Therefore, the consolidation of government apps will yield higher levels of engagement as smart services become increasingly incorporated in UAE’s lifestyle.n

that offer a wide range of features - such as DEWA and RTA Dubai - have witnessed a higher level of engagement (18% and 20% of UAE residents respectively use it regularly) compared to other more specialized apps. Residents are clearly skewed toward multi-functional

The increasing number of government applications available in app stores has made it difficult for UAE residents to be aware of them all, leading to a significant portion of respondents - ranging from 40% to 50% - who are not familiar with several useful apps. Utility mobile apps

20%

18% 22%

15%

17%

RTA Smart Parking

16%

Dubai Calendar

16%

11%

33%

16%

11%

13%

Visit Dubai

16%

11%

32%

17%

10%

14%

14%

19%

19%

26%

8%

19%

8%

18%

11%

Wojhati

9%

9%

iDubai

10%

6%

Sehhaty

8%

5%

50%

Sallety

9%

4%

51%

Makani

8%

11%

40%

16%

44%

13%

44%

15% 13% 13%

44%

I use it sometimes

10%

25%

Dubai Now

4%

9%

12%

DEWA

Dubai Police

18%

13%

15%

I’m aware of it, but never tried it

I use it regularly

I’ve tried it, but rarely use it

I’m not aware of it

I don't use it

16%

19% 7%

18%

8%

17%

7%

18%

5%

19%

6% 10%

16%

17% 20%

TECHNOLOGY

USEFUL APPS FOR TRANSPORTATION A Round-Up of Taxi-Booking Apps for Residents in MENA

Roundtable:

FOSTERING AN INNOVATION ECOSYSTEM AROUND OPEN DATA

Background and Context

As part of Dubai’s vision to become the happiest and smartest city in the world, the Dubai Government – through the work of Smart Dubai Office and Dubai Data Establishment - has formulated the “Dubai Data Law, which allows sharing of data among government entities and other stakeholders to serve as the foundation for turning Dubai into a Smart City.” Open Data has the potential to directly increase GDP by 1-4% according to studies by ODI, Mckinsey & the EU Commision depending on extent and application. However, opening

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THE QUARTERLY Fall 2016

data to the public is not sufficient to foster an innovative ecosystem; strategies need to be put in place to stimulate and attract innovators to build upon it. In collaboration with the Smart Dubai Office and neXgen, ArabNet hosted a roundtable of leaders from the government, private sector and innovation ecosystem to share insights and generate collaborative strategies for fostering an innovation ecosystem around open data in Dubai. The findings of this roundable are highlighted here.

Dubai Open Data Initiatives The Dubai Data Law mandates that

government entities share their data with one another; there is a regime dictating how data should be shared thereby addressing security and other issues related to open data. Open data success factors include: 1. Data quality and consistency 2. Data collection process and ease of accessibility 3. Trusted machinery: a proper platform/ model to provide and manage organized data The Law addresses both the public and private sectors, and ensures the exchange of information between all data

array of sectors - a large share coming from healthcare and consumer services (transportation, education…) - where companies are primarily sitting on information assets, not treating them as assets, nor managing the assets. In UK, 40% of companies that are using government data are over 10 years old, and almost half of them (46%) are not in the IT sector. Other major sectors include Food & Beverage, aggregating restaurant and supermarket data. Open data growth is also promising in Europe; an open data incubator called Odine has made 5 million Euros available to startups. Odine has already funded its first round of 7 startups in different sectors, one of them receiving about 650,000 Euros.

Another example is Spain, which has built a thriving Infomediary sector, where companies gather and organize large amounts of data and act as an intermediary between those who want and those who supply the information. Companies in this sector have access to government-provided open data and are already leveraging information to provide advanced services.

Research conducted last year suggests that Spain has over 600 companies in the infomediary sector - typically startups but not all - employing over 15,000 people with accrued investments of 1.5 to 2.0 billion Euros. These companies fall into many categories including culture, directory services, market research and financial data among others. While 80% of these companies work in several sectors, a vast 50% work in market research, making it the largest segment.

providers including the government. The Smart Dubai Office is currently in the process of developing the Smart Dubai Platform for orchestrating data and making it available openly through IoT (Internet of Things) layers, sensors and the infrastructure itself.

International Benchmarks

Dubai’s ambitious open data plans should be benchmarked against other efforts globally, especially in the USA and Europe. Studies also show that in the US alone, open data will unlock between 3 and 5 trillion dollars in a wide

Which Data Should Be Open? Which Data Should Remain Closed?

There are two types of data: the PII (Personal Identification Information) that includes names, email addresses, location, etc; and the non-PII. In the media and advertising world, the market is moving towards programmatic advertising, with agencies using non-PII data to better target and deliver ads. However, agencies do not have access to personal information, especially in Europe. Restrictions are becoming tighter and access to geo-targeting or geo-fencing data is challenging; targeting people in specific

locations on their mobile phones has become increasingly limited to protect consumer privacy.

In some other regions, the government plays a big role in giving access to data management platforms (DMPs) to consumers. Household information, alongside other data, is given to DMPs to utilize the segmented data, allowing advertisers to benefit from user information to do better targeting. The main challenge is to distinguish the PII from the non-PII data, thereby allowing for the distribution of useful information and ensuring the safety of private information.

On the other hand, users themselves have been increasingly sharing sensitive information through GPS, google maps and other applications. What really makes such applications work is the data that the user is actually generating himself through fingerprints, sign-ins and so on. The challenge is how to get access to the user generated data aggregated on the user’s mobile phone, and the capacity of the networks to hold and process the bulk of data, while making sure sensitive information is not shared publicly.

How to Manage Data as an Asset?

Open data architecture is complex, and going beyond data aggregation for market research to meaningful end-user experience is a key component for open data success.

Taking bill payment as an example, in order for innovators or entrepreneurs to disrupt the traditional payment options, they don’t just simply need data, they actually need to process a set of abstract organized data to extract new value and unlock new opportunities. Other stakeholders, including private businesses, also need to find a way to exchange data, such as providing data to the government in exchange for commercial value.

According to a survey referenced by roundtable participants, the challenge in open data is that only 10% of the data sets are available. Further breaking it down: • Only 2% of the countries in the survey are able to publish public spending data • 1% of countries are able to publish only company data • 11% of countries are able to publish

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TECHNOLOGY

USEFUL APPS FOR TRANSPORTATION open data in forms of education

services A Round-Up of Taxi-Booking Apps for Residents in MENA

•

15% of countries are able to publish demographic data • 13% of countries are able to publish environmental data • 5% of countries are able to publish open land data • 5% of countries are able to publish open map data A clear process needs to be tailored to ensure open data effectiveness. Prior to making data available - whether public or private - several questions need to be addressed: 1. How is initial data being captured? (applications, submissions, paper forms…)

2. What technology is being used to gather structured data?

3. Where does that data reside?

4. Are there multiple versions of data?

Success Factors for Open Data in Dubai and the Middle East

When thinking about the potential impact of open data in the Middle East, one of the most critical factors is the government’s view on commercialization: how important is it to generate revenue from the open data, as opposed to keeping data free, and incentivizing higher engagement and the potential for greater public benefit? Government entities that focus on the immediate revenues they can generate out of selling their data (in whatever form), may be risking the longterm potential of open data, which is more valuable but also requires more time and patience. However, while governments have a responsibility to share data to fuel the digital economy, they ultimately need to generate revenue as well, at least for the sustainability of such initiatives. Beyond the concerns regarding commercialization, in the MENA region, some governments have privatized or outsourced some core services – like their transportation systems, etc – and therefore some of their data resides with privatized entities.

What is the government’s role in establishing the city / country as a hub for information innovation? Legislation and encouragement from government entities are needed for startups to embark on open data projects. The private sector’s contribution in R&D is also crucial for

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THE QUARTERLY Fall 2016

open data success. One risk to look out for is overlap between government and private sector in the provision of services – and the government should be careful not to cross the line from serving as a platform to becoming a competitor for the private sector. To foster an ecosystem, the government and the private sector should align their efforts to foster growth and thus encourage entrepreneurs and startups to be brave and support in establishing the city as a regional hub.

According to some Dubai government officials, in some cases data sharing should be mandated such as in the healthcare sector. Based on UK’s 16 years of experience in open data (shared by one roundtable participant), one of the main success factors for open data in the Middle East is the effectiveness of feedback and collaboration- between

data users, their community and the government - and the government’s ability to respond to that feedback.

The government needs to understand what kind of data the public want, in addition to learning about the data being generated by the private sector. Moreover, the government should give way to the private sector to address and provide solutions to issues such as transportation.

Beyond alignment with the private sector, effective communication between Dubai’s government and the public is critical to further understand consumer needs when it comes to open data access and smart city services. In Spain and UK, the genuine organic relationship between the government and public entities has allowed for the recent boom in open data companies.n

BUSINESS

USEFUL APPS FOR TRANSPORTATION A Round-Up of Taxi-Booking Apps for Residents in MENA

MENA CORPORATES DIVE INTO INNOVATION INVESTMENTS Lynn El Bizri | @lnlne

C

orporate investment has been steadily gaining traction in the MENA region, with more than a dozen companies investing strategically in new ventures in the past few years. While corporate investors are the latest to enter the MENA investment scene, their number has grown steadily since 2012, and today companies across sectors – from telecom to retail to pharmaceuticals – are launching investment initiatives and activities.

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More than half (56%) of the region’s corporate investors are GCC-based companies, according to ‘The State of Digital Investments in MENA’ report, and UAE continues to top the list, with 31% of corporate investors, followed by Saudi Arabia with 25%.

In a region where a growing number of entrepreneurs are starting to disrupt traditional markets with their innovative ideas, access to funding from corporate VCs and accelerators is playing a critical

determinant in the shaping of the ecosystem, fostering innovation and startups’ growth.

Building vs. Investing in Innovation

Corporate Venture Funds worldwide today amount to approximately 1,300, a number that has doubled in the past five years, according to a new EY report: The Innovation Paradox. In the MENA, in particular, CVC’s are proving to be a

Pharmaceuticals), investing in innovation was the main reason behind setting up their CVC: ‘investing in digital health is becoming more of a necessity than a nice to have, it’s a way for us to differentiate ourselves as a global player, it’s a way for us to be at the forefront of emerging technologies in the space and…in the pharmaceutical industry’.

Identifying the right startup business to partner with, accelerate or build can be a tricky choice to make for many corporates. For CVC’s, it’s about finding the most compelling and profitable opportunities based on several different criteria. ‘We’re looking to invest in companies or startups whereby we can expedite their growth, so we’re looking to be the pioneers in bringing in emerging technologies in the West to our part of the world, and to taking technologies and companies that are in this part of the world globally’, said Ghanem, who also credits internal resources and expertise for the ease of evaluating opportunities.

route that increases the visibility of the region as an innovation hub while at the same time providing new technologies with a place to grow and prosper.

By funding disruptive innovations accomplished by startups, corporations can leverage the innovation by investing in the startups or even acquiring them. For Lana Ghanem, Managing Director of Hikma Ventures (the corporate venture capital arm of Hikma

As for CVCs for internal start-ups, conceiving and developing businesses and knowing where to drive innovation is an entirely different ballgame. ‘It’s very difficult to have an idea, go through that gestation period which can be up to 2-3 years, and turn it into an operating business,’ admitted Samer Choucair, Vice President of Crescent Enterprise Ventures, an incubator for internal startups. Nevertheless, having a theme or vision to follow simplifies the process.

For example, in the case of CE Ventures, businesses developed must be socially conscious, environmentally friendly, and financially sustainable. Once those criteria have been met, the rest of the process is fairly standard, albeit still challenging. ‘The ideas are conceived internally by different members of the Crescent team, and we are left alone to do the research, develop the business plans and build these businesses.’

Notably the biggest challenge faced by these corporate incubators is the task of hiring the right people to run the businesses. ‘We’re looking for people who have the skill set, the knowledge,

Lana Ghanem, Managing Director of Hikma Ventures

and the industry know-how while at the same time having the entrepreneurial mindset that will allow them to deal with the challenging environment of a startup,’ revealed Choucair. The hired individuals, more commonly known as intrapreneurs, are individuals that behave like entrepreneurs in major companies; companies that are embracing intrapreneurship in order to stay ahead of the competition, recruit risk-taking individuals, and achieve success.

Accelerating Innovation

According to research and analysis done by Deloitte LLP, in the past three years, corporations have launched more than 105 accelerators globally, with 47 of those in 2015. Corporate accelerators are similar to traditional accelerators in that they invest in early-stage startups, give them access to funds, office space, and expertise and help them grow. Yet while traditional accelerators generally have the goal of seeing a return on their equity investments, corporate accelerators tend to be more focused on gaining access to new concepts and technologies for competitive advantage.

Corporations launching accelerator programs usually either run in-house programs or outsource administration to partners like in the case of Nest. In the partnership model, the partner markets the program, reviews and selects startups, provides mentors and manages the

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BUSINESS

USEFUL APPS FOR TRANSPORTATION A Round-Up of Taxi-Booking Apps for Residents in MENA

Samer Choucair, Vice President of Crescent Enterprise Ventures

Gary Stewart, Director of UK Wayra

Aaron Fu, Managing Partner of Innovation Nest

program. Of all corporate accelerators launched over the past three years, half used accelerators partners, Deloitte analysis found.

on how to make use of them are also at a greater advantage. ‘What we look for very much is the startup telling us a story around why we are a strategic fit for them, and whether that’s leveraging our networks across the world’.

gaining access to equity-free funding, industry-focused mentors, corporate resources and future loyal customers. In addition, start-ups benefit from access to a corporate’s ecosystem of partners, customers, and distribution channels, which can help them scale globally, and usually will continue to receive continuous support and sometimes investments from the accelerator once their time is through.

The benefits of sponsoring an accelerator are many and include insight into emerging technologies and trends; rapid, cost-efficient research and development; economic returns (if a startup is acquired or goes public); as well as access to high-caliber talent.

By providing mentorship and support to promising startups, accelerators make it possible for large, slow-moving corporations to stay relevant and competitive. As Gary Stewart, Director of UK Wayra, stated ‘The whole point really is about building or bringing innovation back into the company’.

Corporate accelerators tend to work with companies that focus on an area of need for that company, therefore when it comes to choosing startups for their program; it’s largely about finding the right fit. ‘The unique part of what we look for is our ability to help accelerate you [the startup] in a way that no one else can. It’s a lesser story of whether you [the startup] are a good fit for us, but whether we are a good fit for you [the startup] as well’, said Aaron Fu, Managing Partner of Innovation Nest. Startups that are familiar with a corporates’ accessible markets and strategic partnerships and have a vision

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THE QUARTERLY Fall 2016

While this slightly narrow focus may seem like a disadvantage, several advantages come with partnering with a corporate accelerator such as

Nurturing Innovation

“What we look for very much is the startup telling us a story around why we are a strategic fit for them, and whether that’s leveraging our networks across the world.”

‘I think that talent here [in the MENA] is wonderful, but probably needs a little bit of help, in terms of giving entrepreneurs the right platform so that they can really create globally scalable businesses,’ said Stewart.

Through the creation of accelerators, VC arms and incubators; corporate investment programs in the MENA today, while still in their infancy, are growing steadily, creating an ecosystem that is enabling innovation, nurturing profitable new entities, and infusing entrepreneurism into the corporates’ operations. The following statement made by Professor Bruno Lanvin, co-author of The Global Innovation Index is an apt description of innovation in the region: ‘Innovation is about infrastructure that enables innovation to happen. The West often says that the market should determine what should be built, that is not so, creativity and innovation need help.’n

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BUSINESS

USEFUL APPS FOR TRANSPORTATION THE A Round-Up POWER of Taxi-Booking OF PEOPLE Apps for Residents IN in MENA

NBK’S DIGITAL BANKING

TRANSFORMATION Rita Makhoul | @rampurple

I

n the banking industry today, the question no longer is whether the industry will be transformed and disrupted, but how it will be transformed. Until recently, most people would have not imagined that people would be transferring money through their mobile phones, depositing cheques at smart ATMs, and completing shopping transactions without carrying plastic cards or cash.

The international digital security company, Gemalto, estimates that mobile banking users in the Middle East and Africa will exceed 80 million by 2017, and according to “The Digital Banking Adoption in MENA” report, conducted by OMD and ArabNet, in collaboration with OMD Device Research, discloses that 62% of overall bank account holders in the region are adopters of digital banking.

With customers expecting consistent service across all channels, banks across the region have felt the need to step up to the plate and streamline their processes when it comes to customer interaction.

We sat down with Tariq Al-Osaimi, Assistant General Manager Head of Innovation & Digitalization at the National Bank of Kuwait’s (NBK) Operations & IT Group to gain valuable insights on the digital banking sector, in particular to Kuwait.

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THE QUARTERLY Fall 2016

How are advancements in technology affecting the banking industry, and in particular to Kuwait?

If I may quote Mr Pierre Nanterme, CEO of Accenture ‘Digital is the main reason just over half of the companies on the Fortune 500 have disappeared since the year 2000.” This is a major indicator of the impact digitalization and technology has played in all aspects of businesses. This transformation that was initiated in the 1990s with the birth of the Internet until today, had us all adapting.

No industry can escape digital disruption—and banking is in the thick of it especially in Kuwait considering that mobile penetration is extremely high, and 70% of our population is made up of tech savvy youth. Customers want omnichannel banking options. Digitally savvy new entrants are shaking up the service proposition. Digital disintermediation has become the norm.

And it is accelerating at a rapid pace. We at NBK have been reinventing ourselves to the new era of technology.

Our mobile channel is exceeding our online banking channels, which is not surprising in Kuwait. This has become our number one channel that our customers use. NBK Management recognizes this and have set up the mobility strategy to better serve our customers.

What is being done to engage with millennials?

Millennials are digital natives. They have a special need for banking that older generations cannot even comprehend, or even relate to.

Yes, they value time more than anyone else, any other generation. Time is really precious and essential for them. They don’t have time going to branches. They have a tougher life than the previous generations.

However, this generation grew up knowing that if they are hungry they can simply order any cuisine they desire from an app, and have it delivered to them in 30 minutes, 24 hours a day. They expect the same from their bank.

They want a one-stop-shop bank providing them with all the services they have come to expect and they want it available 24 hours a day. Conventional banking hours are unacceptable for them… and good luck if you don’t reply to their message within 10 minutes!

This is the biggest purpose for our innovations. This is why we started the Innovation and Digitization department.

What do you think is the most challenging innovative ideas to implement?

Personally, I feel that the challenge is that banking, in particular retail banking, still has a lot of catching up to do with many ongoing digital customer shifts. If you compare consumer technologies with banking technologies, banking seems rather obsolete, or more as a legacy, to be more accurate. Other industries provide customers with a high level of digital choice, freedom, and empowerment that the banking sector has not achieved yet. How can you achieve complete customer centricity and still deal with the entire bequest systems? This is the biggest challenge that is going to keep me up at night. It’s not an easy code to crack, and it still has not been fulfilled by anyone.

What are the top trends in banking that will shape the industry for consumers in the next 5 years?

We are seeing a lot of influence from Fintech companies, these small startup companies that are slicing & dicing the banking industry. Rather than trying to fight them and having a standoff with them, here at NBK we are trying to adopt the Fintech phenomenon by trying to incorporate them and incubate them. We are embracing them taking them as partners instead of a threat for us. We’re currently in the process of evaluating Fintech companies in Kuwait and see how can we serve them better and collaborate.

Also, if we look at the history of banking, you’ll see that our banks have been branch centric. We started in 1950 as a branch, in the 1970s we introduced ATMs which are branch related, and in the 1980s we introduced call centers which also is related to branches, and later on online banking & mobile banking were introduced. We recently had to click pause and consider if we continue being branch centric or shift towards customer centricity? We have decided to shift and reinvent ourselves as a customer centric bank.

How has digital banking changed the roles in the branch?

Branch banking is shifting from transactions to interactions.

Customers have migrated to digital channels for routine transactions such as depositing, withdrawing, or transferring funds.

Although customers want omnichannel services and we are

Tariq Al-Usaimi Assistant General Manager Head of Innovation & Digitalization at the National Bank of Kuwait’s (NBK) Operations & IT Group. He is responsible for leading the Bank’s digital strategy and managing Innovation operations.

His initiatives include improving service delivery through embracing effective and efficient use of technology; creating business models for delivering new services such as digitalization of business processes; private cloud; virtual desktops; virtual servers; promoting online development opportunities to increase self-service capabilities; mobility; and leading strategic initiatives to transform the technology department to be flexible, adaptable and responsive to customer needs. in the process of shifting towards becoming a customer centric bank, it however does not mean that branches will die. The focus of the retail bank is shifting and at NBK the role of the branch is headed towards more of an advisory role. The practices and focus are being reinvented again.

By the end of the year, we will have implemented omnichannel experiences to some extent and we would have two prototypes up and running. One prototype is our more customer centric branch that will look and feel completely different than our current branches and will be the first of our advisory branches. The second prototype is the introduction of the digital advisor with the support of data and analytics.

How are data and analytics being leveraged?

We are headed towards the virtual branch. It’s completely different; you can bank anywhere, anytime. We are always connected to you.

This is where analytics comes into play. When do you need to be approached? Are you at a stage of a life when you need someone to guide you? For instance when you get your first job, when you get married, etc. This is where analytics and data are taking the forefront. The digital advisor will guide you through your life by advising you on how to manage your finances. An example would be when your purchase a car, 5 years later the digital advisor, by default, will help you decide whether to purchase a new car or not by analyzing the pros and cons of both options.

The way we envision ourselves is that we are your bank, we are NBK, and this is the most trusted bank. We are trying to be there for you every step of your life. Trust us that we will be taking care of you like the history of this bank has proven.

How realistic do you think it is to have a single digital channel for all your needs?

It’s possible. It’s very realistic. There currently aren’t the same technological limitations we used to have in the past. The technology is there, and our customers want it, therefore, we shall build it for them. Omnichannel isn’t just a trendy buzzword, it is a serious solution that will deliver bottom line benefits. Banks need to raise their game to meet customer expectations, and be able to deliver seamless experience.n

Fall 2016 THE QUARTERLY

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DIGITAL MEDIA

USEFUL APPS FOR TRANSPORTATION A Round-Up of Taxi-Booking Apps for Residents in MENA

THE PRESENT AND FUTURE OF ONLINE

VIDEO ADVERTISING Lynn El Bizri | @lnlne

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THE QUARTERLY Fall 2016

D

aily time spent watching videos will increase by 19.8% in 2016, while mobile video consumption is growing at roughly five times the rate of non-mobile devices, comprising more than half of online video consumption, according to a recent ZenithOptimedia report. As more and more people increasingly live out their lives online, digital video is serving as a key means for people to satisfy their information and entertainment needs and it is no wonder that advertising has followed suit. Since the 1940’s and the first TV commercial, video has shown its efficiency in the field of advertising and has been claiming its dominance in the ongoing digital era.

Today, advertisers are pumping more money into social video, which seems to stem from the rise in video on various platforms: YouTube & Facebook to name the obvious, as well as Snapchat, Periscope, and Instagram on mobile.

Cisco claims that, by 2017, video will account for 69% of all consumer internet traffic. Online video has been changing the way audiences engage with content, ads, and brands, so it comes as no surprise that small businesses and enterprises alike are starting to take advantage. As more devices are placing cameras in the hands of consumers, videos are becoming a new way for people to communicate, as well as a way for businesses and brands to communicate to their audiences.

While videos provide the perfect complement to online marketing, video advertising does not come without its challenges which range from measuring campaign performance and achieving sufficient reach to targeting, creativity, cost and monetization.

Keeping up with Fragmentation

Video advertising was once confined to a single box. Today, it is fragmented across multiple screens. Since the introduction of the Internet, there has been a dramatic shift in consumer viewing behavior resulting in a steady decline of time spent watching TV, and an increase in digital viewership.

According to Accenture’s Digital Consumer Survey, globally the TV has lost 13% of its audience for long-form video content in the past year. Moreover, 87% of consumers are now using TV and a second screen (smartphone, tablet, eBook, or laptop) together. While digital video is helping to build reach that is complementary to traditional TV viewing, this shift in digital viewing has caused several forms of fragmentation that include content, screen, technology and data fragmentation.

Content fragmentation has fractured audiences’ attention across tens of thousands of websites and devices, creating a more complex media planning process with many more channels to consider. ‘It’s a whole lot complex now, because you’ve got one too many choices from a platform perspective. Video is no longer just being consumed on

desktops so video is obviously being consumed a lot more on mobile phones, tablets, and so on so forth” said Waseem Afzal, Executive Director of Integrated Solutions at OMD. While content fragmentation provides numerous ways for brands to connect with consumers, this can be exciting but also daunting for both advertisers and publishers who must adopt and implement multi-screen video advertising strategies and adapt to the requirements and formats of different channels and devices.

Brands should plan cross-screen, but think of mobile first. Amongst all devices, consumption of video is shifting towards mobile devices as users upgrade to higher quality devices, screens grow and networks support larger data loads.

According to the Interactive Advertising Bureau or IAB (an association for the advertising industry that develops industry standards, conducts research, and provides legal support for the online advertising industry), 48% of consumers use mobile and mobile apps to view video. ‘People are watching and enjoying a lot more video on many different platforms but particularly in mobile and we know that as much as 25% of mobile time will be video within the next couple of years’ said Ian Manning, Head of Agencies at Facebook MENA. While mobile accounted for more than half of digital ad spending in 2015,

there are still significant challenges in the promising universe of mobile video, ranging from monetization, standards and measurement to obstacles due to multiple formats and platforms. In terms of content and length, video ads must be tailored to the device they will be viewed on. According to IAB, marketers need to develop video ads with smaller screens in mind, with shorter ads for smaller screens and longer ads for larger screens (although no longer than 30 seconds). Manning

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USEFUL APPS FOR TRANSPORTATION

agrees, adding that ‘A creative agency’s business models are really built around longer format…and they haven’t really shifted quickly enough to understand that they need to make more snackable content, shorter version content that consumers can engage in a short space of time’.

advertising solutions) while adding

content rather than forced to the user.

common problem with video advertising is pre-rolls that can be quite intrusive and are one of the major reasons people install ad blockers. However, ‘if you use that media in a way that promotes exclusive new branded content like you use a teaser inside your pre-roll these can actually trigger and drive traffic to your actual branded content’, said Victor Ho, Global Marketing Manager of Daily Motion. Advertisers can also make use of native video ads which are seamlessly integrated in the feed of the

The solution, according to Manning, is as simple as creating content that is relevant to viewers while giving them the choice of watching the ad or not.

‘It’s quite easy to skip advertising…but if you make the advertising targeted to that individual, you use the data that you have available to ensure that you’re targeting the right people…and coming up with the right type of creative messaging to target that information’.

Giving the user the choice with how they want to engage in the ad (whether

Waseem Afzal, Executive Director of Integrated Solutions at OMD

Ian Manning, Head of Agencies at Facebook MENA

value to the consumer One in MENA A Round-Up of Taxi-Booking Apps for experience.

Residents

In addition to tailoring content to devices, marketers must also tailor content to their audiences through targeting. With more and more brands creating and distributing video ads, audiences have grown impatient and less receptive towards video ads, especially those that are irrelevant to them. While this applies to all mediums, the time frame for success is much shorter on mobile devices. Targeted advertising that fits consumers’ interests and browsing habits increases the chance that they will pay attention and watch a video ad in full. In addition, location-based marketing, which is gaining traction, provides marketers with the technology to deliver content to consumers based on where they are at any given moment.

The Pursuit of Monetization

Targeting and consumer engagement also play a big role in the monetization of video advertising. In order to generate money, video advertisements need to be relevant to both the audience viewing them as well as the content of the page on which they are located. This is even more applicable to in-stream video, where ads need to work with the length, style and subject of the video with which they are served. To ensure maximum relevance and viewability, publishers need to provide demand sources with as much demographic and contextual data about their audiences as possible, as well as details of the content around which the video ads will be served. In addition, video ad placement and functionalities such as auto-sound (which can be potentially irritating) need to be taken into consideration to avoid alienating audiences.

Perhaps one of the biggest challenges faced by publishers is finding the balance between creating monetization opportunities (and more elaborate

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choosing to watch one of two videos, being able to scroll through a product line, or click out of it and go directly to a website) is yet another solution.

Rob Derderian, Director of Sales for Video Vertical DMS added ‘Keeping an open mind and listening to what the user is looking to experience in addition to providing them with a lot of new things is a way for us as publishers and advertisers to provide more value to the consumer while also driving more value in terms of data and more engagement overall’.

Finding Solutions

Today, video-content owners have more opportunities to reach viewers more than ever, thanks to the popularity of online video viewing, which now accounts for more than one-half of all mobile traffic, according to Digiday.

However, with today’s multiscreen and multi-device world, audiences have become fragmented across devices and even within those devices across social media platforms. While this brings greater options to consumers, who now spend 70 hours each week on digital media, it does generate some challenges

for advertisers and publishers who must optimize their spending across different screens and plan video across all devices to achieve the best results possible.

Mobile screens, in specific, offer a fullyimmersive experience and the ability to target users with a device that is unique to them as well as the opportunity for deeper brand engagement than television or online. While mobile is intended to provide publishers with increased access to audiences, fragmentation limits discovery, the quantity and quality of data available to better understand consumer preferences and video ad supply. In order to reap the benefits and take advantage of mobile ads’ faster loading times and more interactive ad units, publishers must optimize their mobile channels for greater discovery and monetization.

The good news is that advances in video-playback and ad-insertion technology today are making it possible to optimally format, deliver and monetize ads and content across multiple platforms and screens, providing several opportunities for brands that run cross-screen digital campaigns. To maximize content monetization, publishers should optimize their video delivery for all screen sizes/operating systems/device types, insert ads in short or long-from content that target users by location and interests, build and own great content, and analyze ad performance in real time on every platform.

Victor Ho, Global Marketing Manager of Daily Motion

Rob Derderian, Director of Sales for Video Vertical DMS

There is no doubt that video advertising has a gleaming future: audiences are growing, technology is improving, and increasing numbers of advertisers are investing in the medium. As video becomes a strategic priority for companies of every size, scale and focus, and as consumer preferences evolve and new technologies make online video increasingly effective for brands, there is no better time for publishers and advertisers to get ahead of the curve and embrace online video content than now. n

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DIGITAL MEDIA

USEFUL APPS FOR TRANSPORTATION A Round-Up of Taxi-Booking Apps for Residents in MENA

Fall 2016 THE QUARTERLY

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USEFUL APPS FOR TRANSPORTATION A Round-Up of Taxi-Booking Apps for Residents in MENA

Fall 2016 THE QUARTERLY

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DIGITAL MEDIA

USEFUL APPS FOR TRANSPORTATION A Round-Up of Taxi-Booking Apps for Residents in MENA

DIGITAL MEDIA

USEFUL APPS FOR TRANSPORTATION

THE BATTLE FOR SOCIAL VIDEO DOMINANCE

A Round-Up of Taxi-Booking Apps for Residents in MENA

By Michael Maksoudian | @maksoudian

T

here it was sitting at the helm of the video kingdom without a challenger in sight. Basking in its glory, YouTube was the go-to digital video platform for the masses. But like all empires, an uprising is always brewing to dethrone the emperor. This particular uprising has merit as it is being led by a giant from another kingdom.

In mid 2015 Facebook fired its first arrow and started encouraging users to upload videos directly on its platform vs linking out to YouTube. It made the user experience of watching a YouTube video on Facebook cumbersome and allowed brands to achieve more cost effective engagements by uploading their video

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directly on the platform. It also started offering users functionalities similar to those of YouTube such as disallowing embedding and introducing categories.

Was this a sign of war looming in the social video kingdom?

It was. The fire was fueled with the arrival of Snapchat, which was slowly creeping its way into the video kingdom.

Facebook asked Snapchat to swear allegiance in 2013 as it was kidnapping the youth but Snapchat refused. In May 2014 Snapchat released Stories and Facebook was ready to go to war with its Slingshot, which ended up being sacrificed in December 2015 after proving to be unsuccessful.

Snapchat was still growing its army

and in January 2016 it claimed that around 10 billion videos were sent every day by its users. Facebook needed to manage this uprising so in August 2016 it reinforced its Instagram battalion with a new weapon: Instagram Stories which has the same offering as Snapchat.

Although it’s still early in the battle, it looks like Instagram Stories has what it takes to curtail Snapchat’s advances. To make life more difficult, Facebook formed a new battalion called Lifestage to flank Snapchat. Lifestage is a newly launched standalone service from Facebook that allows people in school to build a profile made up entirely of video fields. The stage is set for a bloody battle.

Let’s not forget Twitter who has been

Michael has over 17 years of experience in brand management and communication for leading multinational blue chip organizations across MENA. He is currently the Managing Partner at Netizency.

struggling with keeping its generals from leaving its army ranks. They too wanted a piece of the kingdom so in June 2016 they introduced longer video formats and tweaked their video app, Vine. They signed a deal with NFL for live streaming and they promoted their live video app Periscope more aggressively. Currently, video represents the best revenue stream for Twitter. Although Google and Twitter are collaborating and there were very strong rumors of Twitter’s army joining the ranks of Google; it’s still far from a threat to the giants.

Going back to the war of the decade, let’s look at some stats from the giants. In April 2015, Facebook generated 4 billion views a day and then managed to double

the figure in 6 months to 8 billion views a day. However back in 2012, armed with the foresight that views per day will not paint a pretty picture in the long run and with the knowledge that Facebook measures a view after 3 seconds while YouTube measures it after 30 seconds; YouTube changed its measurement metric to “hours of videos watched a day”.

According to YouTube, the reason for the change is that views don’t necessarily mean better engagement but hours watched does. Yeah, sure.

Facebook decided to rise to the challenge and as of January 2016 started measuring hours watched as well. So where do they stack now? Facebook is at 100 million hours of video watched a day

while YouTube hasn’t officially released any numbers recently but it is estimated that they are at 650 million hours of video watched a day.

It looks like Facebook has some catching up to do but then again, we’re talking about Facebook, a giant with the agility of a startup. At the Q2 Earnings Call in July 2016, Mark Zuckerberg officially threw the gauntlet by saying: “We see a world that is video first, with video at the heart of all of our apps and services.”

A month later, YouTube picked up the gauntlet and accepted the challenge by developing a new feature called Backstage which allows its users to share text, photos and polls with their subscribers. While Facebook is bringing video to its social platform, YouTube has decided to bring social to its video platform. It’s an all out war for video dominance.

War, what is it good for? Absolutely nothing. Say it, war, good God now, what is it good for?

Absolutely nothing, say it.

Well, not true. It is worth billions of dollars in video advertising, USD200 billion to be exact.n

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KUWAIT DIGITAL LANDSCAPE

Kuwait at a Glance 16%

15-24

EXPATS 45% 33%

25-34

63%

35-44

27%

45+

37%

LOCALS 25%

24% ARABS 30%

GENDER

AGE

NATIONALITY

Internet Usage in Kuwait 79%

89%

91% In 2015, the internet population reached 2.9 million users in Kuwait

2013

2014

2015

Source: IPSOS ICT Kuwait Landscape - Summary Report 2015

What Are Kuwaitis Streaming Online?

58% 43%

42%

38% 29%

MUSIC VIDEOS

PERSONAL VIDEOS

PROMOTIONAL EDUCATIONAL /ADVERTISEMENTS

MOVIES

Who is Using Social Media in Kuwait?

Penetration 2015 96% of the internet users in Kuwait are using social networks in 2015

96%

97%

92%

15-24

98%

25-34

96%

35-44

97%

45+

BY GENDER 2015 Source: IPSOS ICT Kuwait Landscape - Summary Report 2015

BY AGE 2015

91%

Who Uses Which Platform Most?

Total Population

Locals & Arabs

81%

Expats 96%

68% 54% 51% 33% 31% 11% 9%

All Males

13%11%

11% 10% 4% 3%

All Females

84%

75%

29% 28%

42% 37% 16%

9% 5%

14%

Social Media -Overall 15-24 17% LOCALS 26%

65%

ARABS 29% EXPATS 45%

34%

25-34 35-44

35%

28%

45+

21%

Facebook 15-24 13% LOCALS 14%

65%

ARABS 33% EXPATS 54%

Source: IPSOS ICT Kuwait Landscape - Summary Report 2015

34%

25-34 35-44

35%

45+

28% 21%

Twitter 28%

15-24 LOCALS 58%

59%

ARABS 37% EXPATS 5%

32%

25-34 35-44

41%

45+

23% 17%

Instagram 29%

15-24 LOCALS 60%

56%

ARABS 25% EXPATS 15%

44%

32%

25-34 35-44

23%

45+

17%

Snapchat 15-24 LOCALS 13%

34%

ARABS 34% EXPATS 53%

17% 30%

25-34 35-44

66%

25%

45+

29%

Linkedin 15-24 LOCALS 30%

55%

ARABS 30% EXPATS 41%

Source: IPSOS ICT Kuwait Landscape - Summary Report 2015

19% 36%

25-34 35-44

45%

45+

31% 15%

Smartphone Penetration 89%

69%

2013

93%

2014

2015

SMARTPHONE OWNERS

MOBILE OWNERS (100%)

Battle of the Ops

OTHERS

2013 Source: IPSOS ICT Kuwait Landscape - Summary Report 2015

2014

2015

Top Products Bought Online 45%

40%

36%

13%

CLOTHES

ACCESSORIES

AIRLINE TICKETS

12%

SOFTWARE

HOTEL RESERVATIONS

12%

10%

9%

9%

COMPUTER GADGETS

GAMES

PERFUMES

COMPUTER HARDWARE

Preferred Methods of Payment 64%

24% 10% DEBIT CARD

CREDIT CARD

CASH ON DELIVERY

How Many Kuwaitis Are Smartphone Shopping?

9%

2013 Source: IPSOS ICT Kuwait Landscape - Summary Report 2015

22%

23%

2014

2015

3%

GROCERIES

ENTREPRENEURSHIP

USEFUL APPS FOR TRANSPORTATION A Round-Up of Taxi-Booking Apps for Residents in MENA

THE STATE OF

DIGITAL INVESTMENTS IN MENA 2013-2015 [UPDATED]

I

n October 2015, we shared ArabNet’s “State of Digital Investments in MENA” report, the most comprehensive research on investments in technology startups in MENA to date. The report took 2 years in the making during which the ArabNet team painstakingly collected data from more than 50 funding institutions and 400 deals.

Our ambition was to update the report

annually to highlight market growth and opportunities. Today, we’re thrilled to share with you some new insights we have gathered during the past year, as well as updates, which have now been gathered from 95 funding institutions and 450 deals.

The complete report, which is available to download from http://intelligence. arabnet.me, analyzes a total of 480

investments in regional startups by regional and global investors, and those made by corporate venture funds. The report findings are based on data collected from 48 investors and accelerators in the MENA region, specifically in the United Arab Emirates, Egypt, Lebanon, Jordan, Saudi Arabia, Morocco, Kuwait, Palestine, Algeria, Tunisia, and Bahrain.

In the past 5 years, the MENA region has witnessed a proliferation of new funding institutions, with the number of investors increasing ten-fold since 2010. The pace of growth picked up significantly in 2010, which could be considered a turning point for funding in MENA, and has speeded up slightly since then.

Figure 1. Number of Investors by Year [UPDATED]

97 74 59 38 26 1 2004

1 2005

2

1 2006

2 2007

2 2008

13

6

4

2 2009

7

13

12

2010

2011

2012

21

15

23

2013

2014

2015

Total Investors Total by Year

Fall 2016 THE QUARTERLY

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When it comes to the number of deals by country, the UAE captures the lion’s share, with 137 deals in the past 3 years. This is almost double the number of deals in the next biggest markets - Jordan, Lebanon, Egypt, and Saudi Arabia - which hover around 60-70 deals each. Beyond these markets, some countries to watch out for are Tunisia, Palestine, and Morocco, which have witnessed good deal flow and have the potential to grow rapidly. It is interesting to note that a number of MENA funds are investing actively outside of the region, with almost 50 deals across the USA, Turkey, and the UK, and deals in Africa (Ghana) and East Asia (China).

A Round-Up of Taxi-Booking Apps for Residents in MENA

Figure 2. Number of Investments by Geography [UPDATED] 137

UAE

74

Jordan

65

Lebanon

63

Egypt

59

KSA

26

Tunisia

24

Palestine

13

Morocco

6

Algeria

5

Kuwait

4

Bahrain Syria

2

Oman

1

Qatar

1

While more than 480 startups have raised funding in MENA in 2013-2015, one the most recurring questions is how many of these startups are still operational? The funded startups have been marked as operating or closed after checking their digital presence in terms of their app/website updated date, social media activities, funding year, and any announcements from their investor or accelerator on whether the startup is still operating or not.

Although it is generally accepted that startups have a very high failure rate, the analysis indicates that only 19% of the startups that received funding in 2013-15 have since closed. This insight is indicative, as some of these startups have just raised their first round, while others have been operating for many years.

The low failure rate does raise the question: are startups being encouraged to stay open even if they have not demonstrated significant traction and ability to scale?

NON-REGIONAL COUNTRIES MENA INVESTORS INVESTED IN 01. United States (38) 02. United Kingdom (5) 03. Turkey (4) 04. China (3) 05. Jamaica (3) 06. Russia (3) 07. Pakistan (2) 08. India (2) 09. Japan (2)

10.

11.

12.

13.

14.

15.

16.

17.

Spain (2) Kazakhstan (1) Ghana (1) Indonesia (1) Finland (1) Singapore (1) Barbuda (1) Srilanka (1)

Figure 3. Number of Operating VS. Closed Funded Startups in MENA [NEW INSIGHTS]

19%

Operating Closed

81%

Comparing the failure rate (number of closed startups / number of funded startups) across markets shows a very wide range – from almost 1/10 in Jordan to 1/3 in Bahrain, Tunisia, and Egypt. The UAE sits right at the average of all markets – around 20%. One notable finding is that Lebanon stands as an outlier with 0% closed startups out of the 53 funded companies covered in this analysis. This may be due to the Circular 311-driven surge in capital in Lebanon, which means that companies are better funded and have a longer runway.

Figure 4. Number of Closed Startups in MENA by Category [NEW INSIGHTS] 33%

33%

32% 27%

26%

25%

23% 20% 17% 12%

Bahrain Tunisia

Egypt

Palestine KSA

Kuwait Morocco

UAE

Algeria Jordan

To better understand the investment journey of startups in MENA, we focused in this chart on startups that were founded in 2013, and followed them through the rest of the investment cycle. Of the 86 companies that raised a round in 2013, about 1/5 raised another round within the 3-year period, and about 1/10 of those raised a third round. In the meanwhile, 31% of the companies closed down after their first round of investment, and about 6% (only 1 company) closed after having raised two rounds of investment within the 3-year period.

Figure 5. Startups Founded in 2013 Analysis [NEW INSIGHTS]

1st round

86

2nd round

18

(21%)

3rd round

2

(11%)

2% Closed

27

(31%)

1

(6%)

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ENTREPRENEURSHIP

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Corporate investors are the latest to enter the MENA investment scene, and this trend started picking up in 2012. Since then, companies across sectors – from telecom to retail to pharmaceuticals – have launched investment initiatives / activities, whether standalone funds or opportunistic investments. The number of corporate investors is increasing in line with the growth of the investor community, and today corporates represent 16% of the surveyed investors. It’s important to note that Corporates are active LPs for regional investment institutes, like iMENA Holding (Etisalat), Turn8 Accelerator (Dubai Ports), Middle East Venture Partners (Zain Telecom).

A Round-Up of Taxi-Booking Apps for Residents in MENA

Figure 6. Number of Corporate Inventors by Year [NEW INSIGHTS] 97

74 59 Total Investors Total by Year

38

Corporate

26 13 1

1

2

2

4

2004

2005

2006

2007

2008

More than half (56%) of the region’s corporate investors are GCC-based companies, with UAE being on top of the list (31%) followed by Saudi Arabia (25%). Some of the first corporate VCs launched in the region were based out of Saudi Arabia (Aramco Wa’ed in 2011, STC Ventures /Iris Capital in 2012) – but Dubai quickly outpaced Saudi Arabia in terms of new active corporate investors coming onboard.

While, corporate investors in Saudi Arabia have bigger portfolios, those in Dubai are more opportunistic. In some markets where the investor landscape is not as mature, corporate investment plays a more critical role in the ecosystem: for example, Ooreedo tStart and Benamor group in Algeria represent 50% of the active investors in that market.

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THE QUARTERLY Fall 2016

6 1 2009

2010

4 1

2011

11

6 3

2012

5

5

2014

2015

2 2013

16

Figure 7. Number of Corporate Investors by Geography [NEW INSIGHTS]

6% 13%

30% UAE KSA

13%

Algeria Jordan Lebanon Egypt

13% 25%

ENTREPRENEURSHIP

USEFUL APPS FOR TRANSPORTATION A Round-Up of Taxi-Booking Apps for Residents in MENA

By Lynn El Bizri (@lnlne)

I

n every issue, we bring you a list of startups from the MENA region to keep an eye on. This summer, we have selected a diverse range of startups that include everything from FinTech to Travel to Pets.

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THE QUARTERLY Fall 2016

In August 2015, Karim Beltaji, CEO of Feloosy, and his team created a Facebook page with the message ‘Coming Soon: The new way to effectively manage your money online.’ Beltaji, a serial

entrepreneur, left his job as an investment banker in 2013, and moved to Berlin to learn about the German startup scene.

After working with several startups and incubators, he returned to Egypt to work on FinTech concepts for the Egyptian market.

The concept of Feloosy (MyMoney)

is similar to existing models in other markets, such as the acorns and wealthfront app, yet is specifically tailored to Egypt. The goal of Feloosy is to make saving and investing easier for young employed Egyptians, aged 25-30 years old, by providing them with a platform to deposit small amounts of money, which are then invested by the company’s financial partners in low and medium risk instruments like Money Market Funds and Exchange-Traded Funds. While Feloosy does take a percentage of profits, it does not charge transaction fees and as the website explains ‘Any money we make is directly linked to the growth of your wealth and you achieving your goal.’

intervals to challenge children with educational questions.

Play My Way currently offers 3 subjects, 9 grade levels and over 25,000 questions (all of which can be controlled by parents) in addition to a detailed report that they can view. The first chapter of each subject is free, serving as a trial version for users.

Parents can then buy each subject for 0.99$ to access all the chapters.

Once a luxury enjoyed exclusively by adults, today’s smartphones and tablets serve as multi-functional tools for education, communication and playtime for younger generations. While screentime can be beneficial to a certain extent, most parents struggle with limiting the amount of time their children spend on smartphones, especially on addictive games and social media platforms.

Beirut-based developers at Scope, many of whom are parents with the same struggle, realized that the only solution to the problem was to find a compromise or a ‘win-win’ situation. Rather than create another educational app like so many other MENA entrepreneurs (knowing that games are not among investors’ priorities), they developed Play My Way, a mobile app that works on top of other apps, interrupting gameplay and any other running operations at parent-specified

Country of origin: Lebanon Date of Launch: April 2016 Category: Religious

Country of origin: Lebanon Date of Launch: February 2016 Category: Ed-Tech

Feloosy finalized a seed-funding round in May 2016, and is currently in its pilot stage. While the website is operational, deposits cannot yet be made.

Country of origin: Egypt Date of Launch: January 2016 Category: FinTech

character transliteration option or even listen to a streamed recording of a section.

Today, the app has a 4+ rating in both the iOS and Android app stores, and has amassed up to 50,000 installs since launching.

In Islam, Sawab is an Arabic term meaning ‘reward’ and accumulates from the performance of good deeds and piety, one of which is the act of fully reading the holy book of the Quran also known as ‘Khatma’ or conclusion. A common Islamic tradition for Muslims is to meet and complete the readings of the Quran in groups, an activity often indulged in during the holy month of Ramadan.

Sawab, which is inspired from this tradition, is a simple and user-friendly application that facilitates the reading of the Quran through the formation of online groups. Circles of 30 users, identified only by a flag of their location, are added with the purpose of collectively and swiftly reading through all the 30 chapters or ‘Juz’ of the holy book. Once a user has completed his or her chapter, they move on to another until reaching Khatma. The app also features memory tests after the completion of every chapter, in addition to a performance/ history log where users can check their memory strength, reading speed, weekly activity and the number of Juz or Khatma they have completed.

Sawab is also a bilingual app and users can choose to read their allocated part of the Quran text in Arabic, add a Latin

Kavit Handa, CEO of UAE startup ReturnHound and a travel-savvy businessman, was motivated to found his startup when his six-year-old daughter was distraught over losing her cherished Minnie Mouse soft toy while holidaying in the Maldives. In a world where more than 250,000 belongings go missing every day in hotels, airports and on airplanes, ReturnHound has been redefining the meaning of ‘lost and found’.

The ReturnHound process is pretty simple and starts with staff first logging the lost items they discover. When customers realize they have lost an item, they contact the venue and are given a web link to an online form, where they enter information about the lost item and circumstances of its loss. Once a match is found, the hotel staff is alerted, customers are notified by email and the shipping process begins.

While a few ‘lost items locator’ apps do exist today, most work through social media platforms where users describe what they have lost and where, in hopes that someone might find the item and contact them. ReturnHound, on the other hand, is the only global, end-to-end and multilingual digital platform for retrieving lost items and makes use of a cloud-based system, meaning there are no software or hardware associations. The service works for everywhere people might lose things, however it has already proven highly valuable to the hotel industry. Hyatt

Fall 2016 THE QUARTERLY

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USEFUL APPS FOR TRANSPORTATION hotels and resorts have already been usertesting the system in the UAE since early 2016 and formally rolled it out in June.

Moreover, the startup has also established a contract with international delivery provider, Aramex, from whom they have received investments.

marketplace where users can sell and

connectivity, Repzo’s features made it

luxury products. Although not unique in its concept, with competitors such as The Luxury Closet in Dubai and others abroad (worthy.com, jamesedition.com, luxify.com and more), the platform does offer a distinctive concierge service, where a dedicated team caters to clients’ unique requirements by identifying products that match their lifestyle and personality.

Mobile World Congress in Shanghai earlier this month. As it grows, Repzo aims to cater to a large spectrum of industries that include FMCG, Healthcare, Sales Teams, Merchandisers and Service Companies.

buy a range of rare andResidents unique high-end in MENA a perfect fit to represent Jordan at the A Round-Up of Taxi-Booking Apps for

Although ReturnHound is currently focused on Dubai and the UAE, Handa has plans to expand the platform globally over the next 12 months.

Country of origin: UAE Date of Launch: April 2016 Category: Travel

Founded by Dubai-based European entrepreneur Andreas Skorski, The List (gothelist.com) is a global platform dedicated to rare and exclusive luxury products and offers a refined virtual shopping experience with round-theclock access to the world’s most soughtafter products.

In March 2016, The List launched its one-week ‘Referral Campaign’ where the full-fledged platform was revealed. The campaign included a strong social media presence and email campaigns, yet the highlight of the campaign was sharing the platform with friends and family using messaging applications such as Whatsapp with an immediate call to action and referral rewards that included a luxury yacht cruise on Riva Yacht’s latest model, the Floria 88. Needless to say, it was no surprise when the platform reached an impressive number of 20,000 subscribers on its landing page in just seven days.

Today, The List has a fully functioning website whose concept is based on being the world’s most exclusive online

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THE QUARTERLY Fall 2016

Country of origin: UAE Date of Launch: March 2016 Category: Online Marketplace

Established earlier this year in Jordan, Repzo is the region’s first Arabic driven mobile sales CRM (customer relationship management) application. The Repzo app combines several business productivity utilities into a single management center that allows busy professionals to track and manage their customer/client interactions, present and finalize forms and purchase orders with clients while in the field and access a database of customer locations with full GPS navigation.

Although founded in Jordan, Repzo is an international app and can be used by all companies with field employees to manage and track their teams. While most large corporations use expensive handhelds to manage their reps, Repzo is a subscription based application and only demands a small fee in comparison, starting at 20$/month/rep. To date, no other Arabic mobile CRM app exists in the market, and in addition to being bilingual (Arabic and English), Repzo also offers push notifications on all activities made by reps, a feature missing from other international mobile CRM applications.

With its seamless possibilities for

Country of origin: Jordan Date of Launch: January 2016 Category: Customer Relationship Management

My Fatoorah My Fatoorah is an innovative online payment solution that gives vendors and business owners the key to simple SMS invoicing, online payment collection, and connecting with customers. While very similar to Kuwaiti-based competitor Tap, My Fatoorah offers vendors the additional service of selling their products online by enabling them to build an online store via the app and integrate the payment gateway straight away.

Through My Fatoorah, vendors can create and send product links, allowing their customers to buy directly online using several different modes of payment.

Vendors can also use the platform to create and send invoices to their clients via text or email, saving the time and resources that would normally be spent in that department. In terms of security, My Fatoorah’s extra layers of encryption make it easy for vendors to crack down on fraudulent transactions as well as collect and store their payment data securely. For vendors who do not want to set up an online shop, the sophisticated payment platform can also be easily integrated into any new or existing website, eliminating the need for any software. The streamlined payment processes, ease of use, and tools provided by My Fatoorah make it the ideal platform and obvious choice for any

growing Kuwaiti business.

Today, My Fatoorah has more than 700 clients in Kuwait and abroad and hopes to reach more countries in the Gulf in 2016, with subsequent markets of interest being Bahrain, Jordan, and Saudi Arabia.

Country of origin: Kuwait Date of Launch: August 2015 Category: Online Payment Solution

Owned and managed by Xpertogo Solutions DMCC, TowMyDrive is a free app that allows UAE drivers to directly request roadside assistance via GPS-enabled technology. While similar in nature to other apps such Morni KSA, TowMyDrive is the first and only road assistance app in the country. Due to the app’s proximity based dispatch that matches the closest roadside assistance unit with the driver, the app provides assistance faster than any traditional method, with stranded motorists being serviced within 15 minutes on average by the TowMyDrive support network.

All stranded drivers have to do is open the TowMyDrive app, tap the ‘GET HELP NOW’ button and enter their service request whether it be towing, replacing a flat tire, jumpstarting the car, a car wash or need for fuel. The GPSenabled app then tracks their location and transmits the details to the nearest provider. Within seconds, the user will receive a confirmation and can track the progress of the driver as he approaches the location and even pay for the service with a credit car or cash once it has been completed.

TowMyDrive’s growing vehicle service network currently has more than 2,000 service partners across Dubai, assuring

even faster service 24 hours a day, seven days a week and at affordable flat rates which users can even view online on the TowMyDrive website.

Country of origin: UAE Date of Launch: March 2016 Category: Roadside Assistance Mobile App

In a region still unaccustomed to online payment, the PayME app marks the future of online payment methods, reducing the hassle of long bank procedures and hardware installation costs. PayME is a credit card acceptance tool that allows businesses to accept credit card payments, remotely or upon delivery without any hardware installation. The seller is simply provided with a QR code, which allows buyers to pay via scanning the QR code with their phones, fulfilling their transaction within seconds.

For customers, using the app makes paying for a good or service secure, easy, and free. All a customer has to do is link their card(s) to the app, scan the merchant’s QR code, enter the payment amount, confirm the payment and then wait for the success notification. For merchants, using the PayME app has several benefits: it drives more sales by adding diverse payment options for customers, it provides competitive pricing compared to other online payment platforms, all money is settled in the merchants bank account hassle free with no technical training required for employees.

Petriotics is a monthly delivery service that brings pet food and supplies to animal owners in Lebanon, while helping local animal organizations at no extra cost. Nader Zaatari, the co-founder and director of the startup, having already established a social network for the animal community in 2013, wanted to connect animal rights organizations with more supporters.

With a seed funding of $25,000 from AltCity, Nader was able to explore the real needs of animal owners and conduct research to focus on developing a concept. Today, Petriotics website is up and running and offers pet parents the option of choosing between a variety of pet food brands or a premium pet box that includes treats, toys and accessories.

Pet parents can schedule deliveries depending on how frequently their pet consumes his food and box, choose their favorite non-profit animal organization that they would like to support, and pay cash on delivery or online. While similar startups do exist in the region, such as DubaiPetFood.com, Petriotics go beyond being just a delivery service and offer 10% of their profits to animal welfare organizations in Lebanon.

In terms of future plans, Petriotics have already begun pushing to grow their customer base and are aiming to soon expand to the MENA region, especially to GCC countries with a special focus on the UAE. Country of origin: Lebanon Date of Launch: Early 2016 Category: Pets

Country of origin: Egypt Date of Launch: January 2016 Category: Banking & Accounting

Fall 2016 THE QUARTERLY

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ENTREPRENEURSHIP

USEFUL APPS FOR TRANSPORTATION

ATHE Round-Up RISE of Taxi-Booking OF KUWAIT’S Apps for Residents STARTUP in MENA ECOSYSTEM

K

uwait’s oil reserves, which amount to more than 100B barrels, account for more than 60% of GDP and 95% of exports and have shaped the country’s economic strength. The oil reserves have ensured robust public finances and funded the development of a substantial welfare system.

Pumping Fuel in Startups The State is investing in a startupfueled digital economy to diversify its economy away from oil, and to create more private sector jobs for Kuwaitis, the majority of which are currently employed in the government sector. In efforts to expand the private sector, a $7B Kuwait National Fund for SMEs was introduced in 2013 focusing on smart capital, education, legal framework, and mindset.

Entrepreneurs require the proper startup ecosystem to nurture and thrive. As apparent in the ecosystem map, the recent growth of the Kuwait startup ecosystem is incredibly exciting and has been extremely evident in the collaborations amongst entrepreneurs, support organizations, and investors.

This was further inspired by the $170 million acquisition of Kuwait’s Talabat.com, a deal that was lauded as a landmark in the region since it was one of the largest regional exits.

Berlin-based Rocket Internet acquired the food delivery service platform with 1,300 restaurants and services in the Gulf, in early 2015.

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THE QUARTERLY Fall 2016

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