Economy Middle East - October 2022

KSA: A Gateway to the Future

Top 25 Technology Companies 2022

Big tech leaders making an impact on businesses and end-users in this region

Exclusive Interview with Eng. Olayan AlWetaid stc Group CEO

14 A GATEWAY TO THE FUTURE Exclusive Interview with Eng. Olayan AlWetaid stc Group CEO

list

keeps global

in stranglehold

Confidence in Central Banks at risk

Restructure your business early and often, not when it's too late

Mo Farzadi, Partner, PwC Middle East

banking & finance

AMF expects 7.6 percent inflation in Arab countries in 2022

economy lifestyle

tech leaders making an impact on businesses and end-users in this region

Dr. Abdulrahman bin Abdullah Al-Hamidi, Chairman of the Board of Directors of the Arab Monetary Fund

&

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Fahad Al-Jutaily, CEO of sirar by stc

this the beginning of the end for

Stablecoins are being put in the dock

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WETEX, Dubai Solar anchor UAE’s image as green tech leader

man's

for future

Media City

H.E. Dr. Khalid Omar Al Midfa, Chairman of SHAMS

track for leadership position in global EV market

Dr Manfred Bräunl, CEO Porsche Middle East & Africa FZE

in the brave new world of retail

Aref Yehia, Head of Retail & E-Commerce Business Partnerships, TikTok MENA

Irfan Tasnel CEO Al Masaood Automobiles Tourism in Saudi Arabia

masthead

Publisher . Joseph Chidiac Editorial

Managing Editor . Hadi Khatib

Head of Economics . Hala Saghbini

Editor-at-large, Automotive & Lifestyle . Alp Sarper

Tech Editor . Mayank Sharma

Digital Editor . Elias Al Helou

Creative Director . Rita Zahar

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The GCC tech bloom amid the global meltdown

It wasn’t long after New Year celebrations that hopes and expectations of an economic recovery post-Covid19 were dashed by the February 24 eruption of Russia’s war on Ukraine. Since then, 2022 has been witnessing harrowing events and developments that paint an increasingly bleaker picture of the economy.

As it turned out, the pandemic had yet to pass, but, that’s the least of our concerns. Global inflation has spiraled out of control with prices of basic goods spiking due to rising oil prices, derailing global economies and bringing them to the brink of an inevitable recession.

Central banks around the world have been quick to inject their own historically proven serum: interest rate hikes. These measures would supposedly treat inflation and curb its growth, despite their inherent negative impact on GDP growth and employment among others,.

However anti-inflationary policies aren’t overly successful and come with a price. Some of their negative repercussions include reduced liquidity and a sharp decline in consumers’ purchasing power, leading to a drop in demand.

Meanwhile, not to be underestimated is the issue of climate change, which exacerbates inflation, causing widespread and consistent price increases that affect all areas of the economy. A related study by the University of Oxford suggests that climate change could cost the global economy up to 23$ trillion by 2050. While it is true that Gulf countries have not been immune to the effects of this global inflation, two key developments helped GCC citizens and countries withstand rising prices. The first was higher crude oil revenues resulting from both the war in Ukraine and an increase

in global demand post the Coronavirus pandemic, while the second was favorable government policies that supported businesses and consumers alike. While the region was able, against all odds, to turn crises into opportunities and create thriving business environments, what anchored the region in the minds of investors is its unwavering path toward digital transformation and the technological resources and infrastructure supporting it.

Telecom, cloud solutions, device manufacturers, microprocessor suppliers, cashless payment services and others are touching every aspect of our lives. But above all, technology companies are the unsung heroes driving our economies forward despite the economic and global financial challenges that have been particularly hard on tech enterprises.

The Nasdaq 100 Index of US technology stocks are facing a historic wipeout in the wake of another steep interest rate hike by the U.S. Federal Reserve recently, with more of the same to come. At close on September 23, the index was down 31.45 percent year to date. Yet, as the decentralization of the internet takes place with Web 3.0, as NFT marketplaces boom and prosper with the crypto generation, and as the metaverse economy takes shape, technology is the one constant in everchanging times, which is why more than half of Economy Middle East’s magazine is dedicated to tech and technology companies.

Read our cover story on stc, the region’s premier digital enabler of telecom services with an immeasurable impact on connecting people, ideas and businesses. The company recently received shareholder approval of a capital increase of more than 13$ billion to fund local and regional growth.

Not to be missed is our inaugural listicle showcasing the top 25 tech companies operating in the region, with a look at their latest products, services, solutions and projects impacting business, finance and the economy.

Finally, as we near New Year, we’re keeping a close eye on exciting technology developments and the companies behind them in 2023, in areas like artificial intelligence, driverless cars, drones, blockchain, food tech, meta travel and more. A bold new world awaits us.

Chief Executive Officer – Publisher

Joe Chidiac

1King Salman appoints Crown Prince as Prime Minister

The Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, issued on September 2022 ,27, a royal order appointing his son Saudi Crown Prince Mohammed bin Salman as Prime Minister as part of the restructuring of the Cabinet that kept the foreign and oil ministers in their positions.

The Saudi Press Agency (SPA) reported: “His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, shall be the Prime Minister; an exception to the provision of Article (fifty-sixth) of the Basic Law of Governance, and from the relevant provisions contained in the Cabinet Law.”

According to the orders, Prince Khalid, the second son of the Custodian of the Two Holy Mosques, was appointed Minister of Defense, replacing the Crown Prince.

The Cabinet reshuffle kept the King’s son Prince Abdulaziz bin Salman as Minister of Energy.

Prince Faisal bin Farhan retained the position of Minister of Foreign Affairs, Mohammed Al-Jadaan as Minister of Finance, and Khalid Al-Falih as Minister of Investment.

Reuters quoted a Saudi official as saying the Crown Prince already oversees the main executive bodies of the state on a daily basis.

After the royal orders were announced, Saudi state television showed footage of King Salman presiding over a weekly Cabinet meeting.

2Sheikh Ahmed bin Saeed Al Maktoum inaugurates 24th WETEX, Dubai Solar Show

Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy, inaugurated the 24th Water, Energy, Technology, and Environment Exhibition (WETEX) and Dubai Solar Show (DSS).

WETEX & DSS was organized by the Dubai Electricity and Water Authority (DEWA) under the directives of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and under the patronage of Sheikh Ahmed bin Saeed Al Maktoum.

The exhibition, whose theme was “At the Forefront of Sustainability,” ran until September 29 at the Dubai World Trade Centre. The exhibition brought together major international companies specializing in the water, energy, environment and sustainability sectors to display their latest products and innovative technologies, in addition to taking advantage of the investment opportunities offered by Dubai.

“The success of WETEX and DSS consolidates Dubai’s position as a global business hub, which is one of the safest and most stable investment destinations in the world,” said Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy.

“The exhibition also showcases to the world the achievements of the UAE and Dubai in the renewable and clean energy sector to promote sustainability, in line with the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100 percent of Dubai’s total power capacity from clean energy sources by 2050,” said Saeed Mohammed Al Tayer, Managing Director & CEO of DEWA, and Founder and Chairman of WETEX & DSS.

3

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Chairman of The Executive Council of Dubai, and Chairman of the Board of Trustees of the Dubai Future Foundation, said the metaverse would shape a new digital future for humanity. He was speaking on the first day of the inaugural Dubai Metaverse Assembly, organized by the Dubai Future Foundation (DFF).

Sheikh Hamdan said: “Dubai is emerging as a major contributor to shaping a new global vision for advanced technology and a pioneer in adopting next-generation digital innovation.”

“We are constantly working to foster the development of technological tools and applications to raise the community’s quality of life. In the coming years, the metaverse will shape a new digital future for humanity and Dubai will consolidate its status as a testbed for innovation in this emerging technology,” Sheikh Hamdan added.

“Through the Dubai Metaverse Assembly, we aim to provide a global platform for the metaverse community to discuss new opportunities emerging from this new technology and promote knowledge-sharing and partnerships between entrepreneurs and innovators. We also look forward to discussing how the metaverse can generate solutions for some of the world’s most critical challenges,” Sheikh Hamdan said.

In addition, Sheikh Hamdan said Dubai seeks to be a hub for the global metaverse community, a goal that it will achieve by working closely with its partners and the world’s best experts in the field.

Abdulla bin Touq Al Marri, UAE Minister of Economy, launched the Ministry’s headquarters in the metaverse at the Dubai Metaverse Assembly, organized by Dubai Future Foundation (DFF).

Addressing more than 500 delegates and 40 global companies including Accenture, Emirates, PwC, Microsoft, Meta and Binance, Al Marri said the Ministry of Economy’s third office would offer an immersive experience for

governments, global corporations, and the public to connect and collaborate. It will also be equipped with advanced technology for the Ministry to sign bilateral agreements with other nations in the metaverse, bolstering the UAE’s ability to become a global hub for next-generation technologies. During a panel discussion at the Dubai Metaverse Assembly, Al Marri described the metaverse as an economic equalizer, transforming key industries from logistics to real estate.

Al-Marri said, “The UAE has continued to support and empower emerging economic industries built around knowledge, innovation and artificial intelligence. Digital technology is vital to our new economic model for the next 50 years and the metaverse represents one of the most exciting applications in this field. In line with the UAE’s forward-looking vision, we understand how the metaverse can transform and redefine our diversified economy and have continued to launch strategies to unlock its potential.”

He added, “The global metaverse market is expected to reach 1.6$ trillion by 2030, with total annual growth of 43.3 percent. With advanced physical and digital infrastructure, highly skilled talent and pro-business laws, the UAE has the competitive advantages to become one of the world’s top 10 metaverse economies – and a global hub for investments in this field.”

UAE Ministry of Economy launches headquarters in the metaverse

Sheikh Hamdan: The metaverse will shape a new digital future for humanity

5UAE to supply Germany with LNG and diesel cargoes in 2022, 2023

The Abu Dhabi National Oil Co. said it would supply German companies with LNG and diesel cargoes in 2022 and 2023 as Europe’s biggest oil consumer seeks to diversify energy sources amid the reduced supply of Russian gas and upcoming European Union sanctions on crude and oil product imports from Russia. As part of a new Energy Security and Industry Accelerator agreement signed between the UAE and Germany, ADNOC will supply RWE with an LNG cargo in late 2022 to be used in the country’s floating LNG import terminal in Brunsbuttel, state-run WAM news agency reported Sept. 25.

ADNOC has also earmarked several other LNG cargoes for German customers for delivery in 2023, the agency said, without disclosing further details. The agreements were signed during German Chancellor Olaf Scholz’s state visit to the UAE, the second stop on his three-country trip that started in Saudi Arabia and will next take him to Qatar, where other energy deals are expected to be signed.

ADNOC plans to work with several German companies on hydrogen projects and signed deals with companies including Uniper, Aurubis and RWE as it looks to expand into Europe after having established export markets in Asia.

The President of the UAE, Sheikh Mohammed bin Zayed al-Nahyan, recently signed an agreement with Scholz that covers accelerating energy security and industrial growth.

Separately, the Emirati renewable energy company Masdar will explore wind energy development off the German coast.

6Saudi Arabia to invest $38 billion in gaming

Saudi Arabia is set to invest 142 billion riyals (37.8 $ billion) in gaming companies through state-owned company Savvy Games Group, as part of plans by the Kingdom to develop its gaming and esports industry.

The money will be split across four programs, the state press agency SPA reported. Savvy Games will use 50 billion riyals to buy and develop a leading game publisher – although SPA did not identify the company that it plans to acquire.

Savvy Games, which is owned by Saudi Arabia’s Public Investment Fund (PIF), will use 70 billion riyals to make investments in companies that will help its growth. A total of 2 billion riyals will be invested in early stage gaming and esports companies, and the remaining 20 billion riyals in bigger businesses.

“We are harnessing the untapped potential across the esports and games sector to diversify our economy, drive innovation in the sector, and further scale the entertainment and esports competition offerings across the Kingdom,” Crown Prince Mohammed bin Salman said.

The Crown Prince is also chairman of the board of Savvy Games. He announced earlier this month plans to develop the country’s gaming and esports industry, aiming to create 39,000 jobs and boost GDP by 50 billion riyals by 2030

The National Gaming and Esports Strategy will involve business incubators, new educational academies, and regulations intended to stimulate the growth of the industry, the SPA cited the Crown Prince as saying at the time. A target has been set for the studios to produce more than 30 games in the Kingdom by 2030

Dubai ranks fifth globally, first regionally in the U.N. E-Government Survey 2022

Dubai achieved outstanding results in the Local Online Service Index (LOSI) 2022 issued by the United Nations as part of its bi-annual E-Government Survey, with the city being included in the list of the world’s best-performing digital governments that received a Very High rating. Dubai was ranked fifth globally and first in the Arab World in the Index.

Dubai received perfect scores in Institutional Framework, Content Provision, and Service Provision, earning it top ranking in these vital indicators and consolidating its reputation as one of the world’s best digital governments. The city also ranked fourth in the Technology index. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai said: “This achievement is yet another unique milestone in the journey begun by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, over two

decades ago, to transform the emirate into the digital capital of the world.”

Abdulla Mohammed Al Basti, Secretary-General of The Executive Council of Dubai, said: “As part of our recently adopted ‘360 Services Policy,’ we aim to achieve 100 percent automation in government services through innovative projects designed to benefit various segments of society and facilitate a high quality of life.”

For his part, Hamad Obaid Al Mansoori, Director General of Digital Dubai, said: “We will further intensify our efforts to enhance government services to raise efficiencies, enhance lifestyles and help people live more sustainably.”

UAE cyber professionals overwhelmed by escalation of threats

Despite increased spending on cybersecurity and greater-than-ever support from senior management, security teams at organizations in the UAE are feeling overwhelmed by the rapid escalation in cyber threats, according to new research released by cybersecurity company Trellix.

Findings reveal that 70 percent of respondents said the amount their organizations are investing in cybersecurity has increased over the last 12 months and 67 percent say that regular discussions on cybersecurity and compliance are held with management/senior leadership.

However, 56 percent of respondents said security threats were evolving so rapidly that they were struggling to keep up.

In addition, 69 percent of respondents said their organizations were dealing with up to 50 cybersecurity incidents on a daily basis.

Furthermore, 42 percent said being “inundated by a never-ending stream of cyberattacks” was one of their biggest work frustrations.

The report also revealed that a siloed approach to security lay at the heart of the issue – 60 percent of UAE security operations teams admitted being hampered by patchworks of security solutions that had few if any, integration options.

As a consequence, 53 percent of respondents from the UAE said it felt like they were fighting a losing battle against cybercriminals. Moreover, 80 percent said their companies had lost up to 10 percent of revenues over the past 12 months due to security breaches.

stc into fintech, IoT, AI, data, connectivity, 5G, e-gaming and more of what matters

Group CEO: Eng. Olayan Alwetaid

The company that dares to digitally enable LIFE

Opening borders and breaking barriers is simply what a company like stc does. It’s not merely a telecom company, but a giant – a gentle one – which engages in all facets of our lives, digital or otherwise. There’s so much to talk about that nothing short of a focused interview with a star leader, the man behind the stc’s strategies and future plans, can truly explain what this company means to so many. Economy Middle East interviewed stc Group CEO Eng. Olayan Alwetaid, and this is what he had to say:

1stc provides many different services beyond telecom. Can you tell us more about these services and how they support your overall goal of being a leader in digital transformation?

stc Group redefined itself in 2017 through its “dare” strategy. The company doesn’t see itself as a telecom operator but as a digital enabler providing digital services in various verticals. It’s been great to see how our customers have received our ventures into other areas, such as fintech, IoT, cybersecurity, AI, data centers, connectivity, 5G, cloud computing, e-gaming and many more.

For instance, stcpay is a digital wallet, which not only is of great convenience to our customers but is also in line with the Vision 2030 goal of reducing cash transactions. In addition, stcplay is our dedicated e-sports and gaming platform. Gaming and e-sport is one sector that continues to grow, and we’re thrilled to be a part of it, and in fact we’re playing a huge role in transforming the Middle East’s gaming industry by connecting gaming service providers with gamers to ensure they have the best possible gaming experience.

Furthermore, stc Group made large investments in technology and talent within its data privacy and cybersecurity businesses. The key focus is to clearly understand the threats and risks faced by all our stakeholders and customer demographics, from confidentiality, integrity, availability, privacy, security and resilience perspectives. Every customer and stakeholder group faces a specific set of unique cybersecurity threats and risks. Our cybersecurity teams work diligently to identify these threats, risks and vulnerabilities. They use cutting edge 24/7 cyber defense monitoring, vulnerability and penetration testing, as well as threat hunting, in addition to governance, risk and compliance practices involving the support of specialist teams.

While we focus on technology development, we have also invested in Internet of Things IoT, as we tend to establish the country as a regional IoT hub in the Middle East and North Africa region in collaboration with PIF. Hence we founded a new company to expand and become a “one-stop-shop” for IoT solutions by using the experience and technology of existing IoT partners. According to local market research, the IoT market in Saudi Arabia might expand to $2.88 billion (SAR10.8 billion) by 2025, with an annual growth rate of 12.8 percent. The Internet of things has been identified in stc’s “DARE 2.0” strategy among the five strategic areas of investment. It is at our core and aligns with Saudi Arabia’s digital transformation initiatives, supported by PIF. Moreover, we apt to endow technology in KSA through

artificial intelligence, hence the group, with Saudi Data and Artificial Intelligence Authority (SDAIA), have signed a memorandum of understanding (MoU) to implement many national initiatives to enhance artificial intelligence and digital solutions in Saudi Arabia, as we intend to localize digital solutions and exchange experiences and knowledge in the field of data management and governance. We also seek to support data quality globally within the best practices, along with assisting startups in adhering to data governance and implementing a personal data protection system.

stc Group further looks toward enhancing digitization by developing cloud computing, therefore we established a new company in Riyadh with “Alibaba cloud,” eWTP Arabia for Technical Innovation Ltd, the Saudi Company for Artificial Intelligence (SCAI) and the Saudi Information Technology Company (SITE). The new company in Riyadh came in response to the significant increase in demand for cloud computing services and solutions in the region to provide advanced cloud computing services to companies operating in the KSA, ensuring that they employ the highest standards of security and protection.

What is the stc Group strategy that helped achieve various successes in recent years and are there plans to maintain them?

KSA maintains a strong digital infrastructure, accelerating the digital transformation. This structure has enabled the Kingdom to face public and private sector disruptive challenges, ensuring business continuity, educational operations, citizen requirements and daily resident lives. The Kingdom has been ranked among the top 10 developed countries globally for its robust digital framework on one hand.

On the other hand, stc Group has had a successful year in 2021. The group witnessed increased progress versus 2020 and in comparison to the last five years. We have expanded our business as well, and started looking into telecom, IT, cybersecurity, IoT, cloud, entertainment, gaming, media and many more digital solutions. stc Group is going beyond being just a telecom provider, we are now the

we apt to endow technology in KSA through artificial intelligence

digital enabler. All our assets have been created carefully to address the demand in the market. We are in a continuous process of creating more options for the company to do more and collaborate even further. Previously, we were talking about telecoms, and now we are talking about the digital leaders. For instance, solutions by stc is the largest IT company in the region with reported revenues of around SAR8 billion in 2021, while stc pay is at the forefront of fintech. We are constantly developing and implementing our vision as the market requires. We have become the enabler of the digital movement through our partners in the government including policymakers in relevant ministries and different regulating bodies like the Central Bank, telecom and cyber security regulators.

3Where is Saudi Arabia now and where will it be in the next five to ten years when it comes to digitalization and stc’s role within that?

We are maintaining the same strategy to uphold the way forward. Digitalization is at the heart of what we do with four main priorities. We are pushing to digitize ourselves and the

country. We are accelerating the performance of our assets and continuing to be the leader and digital enabler with every other sector that we are involved in, be it fintech, IoT, cyber security and so on. We are also focused on customer experience, which is an essential part of what we do. stc Group strongly believes that it puts everything into a totally new level of standards, because if we [aim] to provide the best experience in the country, then we need to have the best networks, platforms, people and everything that is required to move to the next level. We are also expanding in scale and scope and going more digitally. We want to expand the regions that have been addressed in terms of geography, whether in KSA or so on. We strongly believe that the future is here

We strongly believe that the future is here in this country, and it needs to be taken to the next level

in this country, and it needs to be taken to the next level. There is a great deal of progress happening all around. We are going through the digital agenda and trying to figure out what the next step is and how we can accelerate it. Regarding the fintech strategy, stc Group was ahead of the game and started two years ago. We are aligned with the strategy, objectives, and the aspirations of the government. Being the national champion for the country, we have a mission of pushing the boundaries, even if the strategy is to be developed at a later stage. The government is actively looking at what we do, and we are partnering with them on many fronts. Our movements are also helping to accelerate the strategy development as well as its execution.

4What is your investment mindset?

Our investment mindset is what has been adopted in the country after the Vision’s programs were set. It is a formula that has been working from our perspective as an operator and investor. We will always be at the forefront when it comes to technology deployments, active as an operator, and enabling digitalization. This entire ecosystem built over time is here to stay and we are here to continue to be the leader of digital enablement in the country and region.

5What is the focus of development and implementation?

We chose a few priorities that feel right for stc Group. We are looking at many priorities that have already been addressed such as the Center3 and fintech. This also includes the Cloud hub and creating this partnership for everybody to be able to host content. We believe that IoT is the next big thing in terms of technology and we’re active on that. Data analytics and data use cases is another focus area as well as AI. stc Group can tackle more than one priority at a time. There is a great deal of work happening on the fintech side as well. Doing business in the digital world is all about partnerships and having the right partners to start working together to address the market demand.

Doing business in the digital world is all about partnerships

To understand how stc Group widens its provision to local & regional markets, Economy Middle East looked at the diversified ecosystem of digital solutions that the company enjoys.

Helping accelerate the pace of digital transformation in Saudi Arabia are stc Group subsidies, helping gain trust across local and regional markets.

The first subsidiary, “solutions by stc”, is the Arabian Internet and Communications Services Company that represents the driving force of digital transformation in the Kingdom of Saudi Arabia and the number one provider of information technology solutions. It succeeded in implementing more than 400 projects in various sectors, including health, oil and gas, real estate, governmental, telecom, education and banking to name a few. Furthermore, “solutions by stc” was awarded as the IT service provider in the kingdom for 6 years in a row, and

one of the Top 100 listed companies in 2022 by Forbes, as well as the company was awarded more than 25 awards and certificates. Moreover, “solutions by stc” is the only Saudi company listed in IAOP 100 list for BPO in 2022

On another hand, “channels by stc”, the sales and distribution arm of stc Group and one of the leading companies in the field of sales and distribution of the telecommunications sector in the Middle East and operates in GCC countries (Saudi Arabia, Bahrain, Oman and Kuwait), and the first partner for the major telecom companies in the region by introducing a package of diversified sales and distribution services and solutions, was recognized as reseller for Samsung & Huawei during 2015

Besides, “channels by stc” was authorized to be the reseller for apple products and after-sales partner in 2017 and launched dal service the last-mile delivery solution, and by 2022 the company achieved more than 7.2 million successful delivery orders with more than 11,000 Saudi agents, and obtained more

than 10 awards in customer experience management and highest revenue partner for several vendors.

Based in Riyadh and Dubai, Intigral, another subsidiary of stc Group, which is the advertising and media arm of stc, and the MENA’s leading provider of digital entertainment and sports and media services via its market-leading solutions, stc tv & Dawri Plus, managed to increase focus on stc tv Unique Selling Proposition (USP) ‘Super Aggregator’, launch win-back offer, leveraging promo codes and vouchering system, bring onboard more ADDON packages, and develop enhanced ROI methodology for new content investments and renewals.

Likewise, stc pay the Saudi Arabia’s leading payments solutions provider, established in 2018 as a wholly owned subsidiary of stc Group, the digital enabler in the region has grown to become the region’s largest digital wallet, empowering communities, businesses, and entities with an expansive suite of leading-edge products and services.

stc pay, the first mobile wallet service in the Kingdom provides purely digital payments and financial transactions. The company has garnered over 7.5 million users to date and remains wholly committed to advancing financial inclusion through the development of transformative technology.

The efforts gained stc pay various awards, including the “Most Innovative Digital Payment Technology Company” in 2022

Global Economics Awards, as well as it gained the “Best Emerging CEO In Digital Payments” in 2022 Global Economics Awards and the “Best Digital Wallet in the MENA” during 2020 Global Banking & Finance Awards.

Within stc Group journey of success and continued achievements in the digital transformation, the group vested “ccc by stc” the joint venture between Saudi-based stc, a world-class digital leader and the most valuable brand in the Middle East with Startek, a US-based global leader in customer experience management, especially that Startek operates across 46 locations in 13 countries that manage almost half a billion customer interactions every year for over 150 clients in different industries.

“ccc by stc”, headquartered in Riyadh, operates three strategic locations across the country (Riyadh, Jeddah, AL

Madinah) with state-of-the-art facilities and technology that ensure the best quality, consistent services to its customers. The company achieved the 1st and only COPC (OSP) certified organization in Saudi Arabia in 2022, as well as the Company of the year; best practices award by Frost & Sullivan, in addition to Market Leadership; best practices award. In 2020 “ccc by stc” received the Contact center of the year award, while in 2018 the company received the best female empowerment company by insight awards.

Nevertheless, stc Group vested the public telecommunication company «specialized by stc» which is the executive arm of the critical communications group of stc, providing instant group wireless communication solutions and services to the business, government, industrial and commercial sectors in the Kingdom. “specialized by stc” derives its strength from its mother company stc Group, which contributed to improving its work mechanism and developing its customer base, in addition to its long history of serving important vital sectors, and its commitment to the highest standards of performance and quality.

stc group has continued to expand its scope and launched the (sirar by stc); the cyber security arm of stc focusing on security advisory, advance security professional service, providing cybersecurity platforms and managed security services. sirar by stc is enabling enterprises to protect and secure digital assets as they embark on digital transformation.

The group has also launched stc Play, the eSports and gaming platform that provides casual and professional gamers access to online tournaments, content, and gaming merchants in one platform.

Lately, stc Group, the leading digital enabler, inaugurated one of its largest and significant projects, Center3 Company, the digital regional center for the Middle East and North Africa. The new company will be the owner of the digital infrastructure assets owned by stc Group, including data centers, submarine cables, international points of presence, and internet exchange points.

With the launch of Center3, stc Group would have completed the digital system pursuit by launching several companies specialized in cybersecurity, artificial intelligence, cloud computing, Internet of Things & digital infrastructure. This will contribute to transforming the digital industry in KSA into a leading industrial power & a global logistics center, which puts KSA at the forefront of global countries, in transforming business environments.

stc pay has garnered over 7.5 million users to date

Confidence in central banks at risk as inflation keeps economies in stranglehold Putting at stake central bank confidence

By: Hala Saghbini

Every day, the world wakes up to news that reinforces fears of a less-thanpromising economic future, with dreary headlines such as “Highest inflation rate in decades,” “Central banks aggressively raise interest rates,” “Consumer sentiment at all-time low,” and “Energy prices approach all-time high.”

All such headlines emanate from a predominant crisis, namely that inflation has skewed the planet’s economic outlook and will very likely redraw the course of global economies for years to come.

To combat and contain this rapidly spreading affliction, central banks around the world have resorted to raising bank interest rates as a “remedy.”

However, it appears that to date interest rate hikes in the vast majority of countries, especially in the United States and the Eurozone, have failed to keep pace with rising inflation rates.

Typically, in order to maintain stable economic growth and price stability, central banks target the inflation rate in a country as a basic measure of their monetary policy. If the prices of basic goods and services rise faster than the target, central banks tighten their monetary policies by increasing interest rates or restricting the money supply, which are contractionary monetary policies designed to reduce inflation.

That policy is being severely tested by the price hikes that began in 2021 and were exacerbated by the Russian-

Ukrainian war, resulting in a global food security crisis and a rapid rise in oil prices, a situation made worse by China’s tough isolation measures to rid itself of Coronavirus.

These developments left central banks in a quandary as international institutions rushed to downgrade their economic growth forecasts following positive indications that an economic recovery was underway, with Coronavirus being held in check thanks to global vaccination efforts.

However, what is important is that although last year they had been in a state of denial about the extent to which inflation was entrenched in the economy, led by the Federal Reserve, which staunchly considered inflation as “temporary,” central banks finally

acknowledged that inflation had a strong grip on the economies of their countries and that it would remain in place for the foreseeable future.

Thus, central banks declared a fierce war on inflation using every tool at their disposal to eliminate the scourge by force, whatever the cost and whatever its repercussions on the economy, even if it resulted in a phased economic recession.

Inflation in the United States

Federal Reserve Chairman Jerome Powell’s speech last August during the annual economic symposium in Jackson Hole, Wyoming, in the presence of governors and representatives of global central banks, laid a road map for the next phase.

While his eight-minute speech was the shortest since 2010, there was no ambiguity about the message he sought to convey: Extremely high inflation means interest rates have to rise and will not be reduced until the Federal Reserve’s 2 percent inflation target is reached.

Powell’s speech did not require the opinions of analysts about the risks faced by the U.S. economy and, by extension, the global economy. In fact, his use of the word “inflation” 46 times in eight minutes sufficed in illustrating the gravity of this affliction and the extent of its impact on economies. The figures show that core inflation, which is the focus of the monetary authorities’ attention, continues to rise despite the gradual increases in interest rates. This suggests that the Fed may have to raise interest rates for an extended period in order to tame inflation, in the process exacerbating the pain for housing and labor markets. More worryingly, the Fed’s war on inflation may lead to a decline in the American economy, bearing in mind that the FOMC July meeting minutes clearly indicated the risks of excessive tightening.

… and what of the eurozone?

The situation is not any better in the eurozone, where inflation rates continue to soar as economies brace for a severe winter, in both the literal and metaphorical sense. Gas and electricity prices have been skyrocketing since Russia cut fuel exports to Europe in response to Western sanctions over its war with Ukraine, leaving many European families struggling to pay energy bills as energy sectors grappled

with a cash crunch.

BlackRock says in a note that Europe will enter a severe recession, with the energy supply shortage set to drive inflation higher and have a major impact on Europe’s GDP.

Experts also expect Europe to face its worst energy crisis this winter, as demand for heating will put further pressure on short supplies and drive prices higher. Although the EU has built up gas reserves for more than 80 percent of its capacity, the 27-nation bloc is still struggling to ration supplies before winter.

Central banks and trust issues

Central banks need to be resolute in their decisions and policies. They have spent decades building their credibility on the “skills and arts” of fighting inflation and engineering a stable environment in terms of price stability for consumers.

Consequently, losing this battle may lead to destabilizing the foundations of modern monetary policy, especially since one of its main tasks is to keep inflation rates under control, and as targeted.

This was brought to the attention of the European Central Bank, with executive board member Isabelle Schnabel saying central banks around the world were at risk of losing the public’s confidence and had to act aggressively to combat inflation, even if it pushed their economies into a recession.

She stressed that quickly returning inflation to its target was imperative in restoring and maintaining confidence, because the longer inflation remained

high, the greater the risk of the public losing confidence in the design of central banks and their ability to maintain their purchasing power.

Central banks were certainly widely praised during the Covis-19 outbreak as they prevented their countries from slipping into a recession because of the fallout from the virus. At the time, strong measures helped people and companies to weather and surmount the health crisis.

However, central banks’ failure to predict the severity of today’s situation, and their miscalculation of the magnitude and duration of the worst rise in inflation in decades, has left a bad impression.

Investors and markets usually have faith in the ability of central banks to rescue the economy during difficult times, and have grown accustomed to monetary policies finding a way to save them from crises. However, if confidence in central banks is lost, the ensuing rogue behavior will further fuel the crisis, and lowering inflation will be so costly that it will lead to a recession, which currently appears to be in the cards for Europe.

Finally, a key lesson from the hyperinflationary period of the 1960s and 1970s is that moving too slowly to rein in inflation results in a far-morecostly policy tightening in order to return inflation expectations to a target base and restore the credibility of monetary policy. Central banks must bear this experience in mind as they navigate the difficult path ahead.

A PwC exclusive: Restructure your business early and often, not when it's too late

Where your cash is going determines where your business is heading

Large enterprises didn’t get that big or profitable by not doing several things right. But sometimes the simplest things can result in these companies’ undoing.

The thing is, sometimes, size gets in the way. Companies start to falsely believe they can venture into non-core businesses or foreign territories, simply fail to check which business units are consistently experiencing negative cash flows, or neglect to recognize what legacy systems need to be overhauled or sold.

To delve further into these critical issues, Economy Middle East interviewed Mo Farzadi, Partner, Business Restructuring Services leader, PwC Middle East, who has more than 19 years of experience in leading complex, financial advisory mandates in Europe and the Middle East, with 12 of those years in the latter.

Our discussion about distresscausing factors started with the issue of cash.

“It’s important to look back at the pre-pandemic period when businesses in our region were dealing with less than bestin-class capital management, liquidity management and cash culture practices,” Farzadi said.

“A cash culture then was not a priority. Most businesses were looking at growth, top line, profitability and PNL, instead of focusing on liquidity matters which, if ignored, can become drivers for business failure,” he added

Partner PWC Middle EAST: Mo Farzadi

The need for a cash culture

Covid-19 shone a spotlight on liquidity, working capital, supply chain and localization when businesses suddenly experienced a halt in orders and foot traffic.

“After an initial survival period during the pandemic, many companies have now taken steps to improve and support their working capital and embed a cash culture,” Farzadi said, but cautioned: “We still have a lot of room for improvement when compared to more mature territories and markets.”

He explained that the most common challenge with PwC clients – usually large enterprises, governments or GREs –was that they perceived cash, liquidity and working capital matters as functions that reside within the finance team, or the CFO.

“That’s not the case. If during a commercial activity, such as payment terms with suppliers, the operation is not in line with the company’s working capital cycle, that action will already put the business in a difficult position. The finance team will simply be a recipient, rather than an active player, of key decision-making outcomes within Ops,” Farzadi said.

“As such, embedding a cash culture within all layers of the business, from finance to the commercial side of the business, as well as Ops, is critical, and when done right, would really add value to the business.”

Funding for the wrong reasons

Most businesses, from inception and all the way to growth and beyond, require external funding or debt, which historically is a cheaper source of funds than equity.

In a corporate environment where you have proper governance, funding will likely always be used for the right reasons, be it geared to expand a factory by another 20 percent as part of CAPEX, or to build new staff offices.

“But one of the issues we see is around the mismatch of funding to assets, i.e. short-term borrowing to fund longterm assets,” Mo said.

He explained that businesses can have huge overdrafts and revolving working capital facilities in the billions of dirhams

or Saudi riyals that have been used to buy long-term assets like real estate.

“Although these facilities may have expensive repayment terms, banks will not object especially when companies are able to return credit facilities on time. But that becomes a big challenge when market conditions change or if the values of the assets that those funds have been used to purchase them drop,” Farzadi said.

Not sticking to core business

Another related issue for businesses that struggle is when funding is used for buying non-core assets, or expanding to new unfamiliar geographies.

“I had a client in the MEP contracting sector who was very profitable but for some reason decided to take on the role of main contractor and paymaster in Saudi. Initially, there was a lot of positivity around what projects they won,” Farzadi said, “and that was the reason for the company’s downfall, because it lacked the expertise to operate, wasn’t able to meet the terms of the contracts, and was met with geographical challenges in the new territory it was in.”

Weak corporate governance

One of the common and main causes of business distress and failure is weak corporate governance where management fails to pick up on issues and warning signs early on.

“Corporate governance means having a proper and qualified board in place to then select a qualified management team empowered to make proper business decisions. It’s also about having the right hierarchy on who can sign and make decisions in a seamless manner,” Farzadi said.

Farzadi added that he worked with exemplary familyrun businesses in which the head of the family holds the chairman or vice chair position, but in the presence of a proper structure with the right CEO and CFO placed in strategic leadership positions.

Farzadi warned that any dilution in corporate governance is a recipe for disaster.

Performing and underperforming business sectors

Farzadi said that in October PwC Middle East would publish a more detailed analysis and results of its annual working capital survey, with initial indicators showing that, compared to 2021 Covid-related struggles, retail and consumer segments, along with transport and logistics, had shown great improvement on the working capital and liquidity side.

“However, the construction and contracting sector continues to be challenged. For various reasons, one of the underlying reasons comes down to contractors not being paid in a timely fashion by paymasters, these often being huge development companies,” Farzadi added.

“Contractors get squeezed from the top and their profit margins are already very thin, usually in the 5-6 percent range. All it takes is one challenging project to undo the profitability for the current year, the one before it or even going back three years.” Farzadi said construction was a business that needed to be managed very carefully, adding that UAE contractors continued to have challenges in the sector, even as many in this field learned how to deal or pre-empt those situations in a favorable manner, or exited the sector to avoid them altogether.

What companies look for: Sustainable value

Farzadi said that PwC clients, specifically the C-suite, board members and CEOs, are always interested in sustaining a longterm value proposition by asking questions around three areas:

1-Growth and value enhancement

2- Value preservation

3- Funding

In growth and value enhancement, clients ask PwC: Where can I grow? Should I diversify or not from my core business? What is my diversification strategy and what should my approach be? And can I tap into new markets and sectors?

In value preservation, PwC encounters questions like: What do I do with legacy non-performing assets? How do I manage these? Do I sell them or shut them down? How do I optimize my existing operations? How do I use digital tools more efficiently and effectively?

And, on the funding side, the questions PwC clients ask are: How can I deploy capital from an equity and debt

perspective to manage my working capital more efficiently? Should I access pools of capital outside the region that might be more cost effective or have fewer restrictions?

“Every single challenging situation creates an opportunity for businesses to come out from it leaner, more profitable and better managed,” Mo said. “We advise our clients to conduct a full evaluation of their existing business portfolio, starting at the top, and look at areas like funding, cost and performance, with a strategic review from a growth perspective,” Farzadi said.

Depending on the size of the company and the depth of investigation, this process could take anywhere between two to six months.

Farzadi also referenced PwC’s three Cs: character, capital and capacity, and stressed the need for each portfolio company to really understand under those three Cs what their character is, what their capital requirements are and what capacities they have or need.

“Companies need to know the cash flow of each business portfolio company at both the individual asset level and the consolidated level, as well as its contribution to business growth, and identify optimization areas like corporate and capital structure, financing and working capital,” Farzadi said. “This allows companies to understand the areas they want to strategically focus on, what their capital and funding requirements are for that growth, where the cash cows and cash generative assets are, and what are the things that are pulling the business back from funding and liquidity perspectives,” he added.

Sometimes, Farzadi said, a profitable company would have a few business units generating two or three times as much cash as the entire group at a consolidated level, while the rest of the cash flow would be burned by perhaps legacy businesses that were generating negative EBITDA (earnings before interest, taxes, depreciation and amortization).

“Newer ventures that are in the investment stage always burn money, and need funding and loss-making years, but legacy ventures and businesses need closer inspection to decide on whether to shut them down, turn them around or sell them,” Farzadi said.

Restructuring: A question of when

Farzadi said a restructuring effort should not take place when companies are in trouble.

“Restructuring should not be a reactive measure. We think businesses should use it as a proactive measure when their businesses are absolutely healthy, allowing them to make decisions early and remain in control of their processes and portfolios, and then decide what to do with assets and debt positions with external stakeholders,” Mo advised.

“A lot of distressed businesses, facing breached governance or cash flow issues, come to us late in the game when solutions and options are limited. Coming early allows for making better choices such as selling non-core assets and using funds to improve other parts of the business.”

Finally, Farzadi, who leads a team of 40 professionals on a day-to-day basis, said PwC was very cognizant of the delicate nature of their operation, always conducting it in a manner that was not disruptive to employees or day-to-day operations.

“Having inside knowledge of where challenges are, and seeing us as solutions providers to help turn around the group, employees are often very supportive of our activities and ultimate goal of securing the survival and prosperity of the overall organization,” Farzadi added.

Al-Hamidi: Arab Monetary Fund expects 7.6 percent inflation in Arab countries in 2022

By: Hala Saghbini

As the global economy passes through a prolonged period of desolation, the world is witnessing an unprecedented rise in inflation accompanied by unexpected declines in economic growth. Behind these circumstances are a number of factors, spearheaded by the ongoing Russian-Ukrainian war, which alone has imposed a new economic agenda.

Amid this state of affairs, Arab countries appear to be faring much better than their global counterparts. Nonetheless, Dr. Abdulrahman bin Abdullah Al-Hamidi, the Director-General and Chairman of the Board of Directors of the Arab Monetary Fund, expects the inflation rate to reach nearly 7.6 percent in 2022 before declining to 7.1 percent in 2023.

Dr. Al-Hamidi also expects GDP growth rates to hover around 5.4 percent, driven by numerous factors, at the top of which is relative improvement in global demand, high oil and gas growth rates, and the continued adoption of stimulus packages by Arab governments to support economic recovery.

In addition, he stressed the importance for Arab governments to accelerate efforts toward digital transformation and the transition toward a knowledge economy.

Economy Middle East conducted a wide-ranging interview with Dr. Al-Hamidi on the economic, financial and social developments taking place in the world, as well as their repercussions on Arab countries.

Director, General and Chairman of the Board of Directors of the Arab Monetary Fund: Dr. Abdulrahman bin Abdullah Al Hamidi.

The world has entered a state of uncertainty spurred on by current regional and global developments. The IMF described the economic scene as bleak. What are your expectations for the remainder of this year, particularly for Arab countries?

Developments in the global economy, the ongoing challenges related to food security, the rapid rise in commodity prices, fluctuations in global supply chains, and consequently the emergence of an inflationary wave, in addition to the repercussions of expansionary policies adopted by global central banks to confront the recession that accompanied the Covid-19 pandemic, have all prompted international institutions to re-evaluate the condition of the global economy and reassess the expectations they had made public in January 2022 regarding global economic growth for the year.

Their recent expectations reflect this new state of uncertainty and the potential repercussions it will have in the future, as well as the possibility of stagflation taking hold as was the case in the 1970s.

In line with rising global inflation rates during the first half of 2022, the general level of prices is expected to increase in Arab countries, exacerbated by high levels of domestic demand, an increase in consumption taxes, as well as the pass-through effect resulting from currency devaluation in some regional states.

As such, the inflation rate in Arab countries is expected to reach 7.6 percent in 2022, and decline to 7.1 percent in 2023.

It is anticipated that central banks will work to formulate tighter monetary policies to curb inflationary pressures caused by expansionary monetary policies during and following the pandemic.

Therefore, the main challenge facing regulatory and supervisory authorities in Arab countries is to find the optimal mix of economic, monetary and financial policies to meet the challenges, without sacrificing long-term sustainable growth.

In light of the aforementioned conditions, what are the prospects for Arab countries’ economic growth during the current year and the next?

The growth paths for Arab countries during 2022 and 2023 will be impacted by three main factors, including developments related to continuing efforts on financial arrangements and packages to contain the repercussions resulting from the pandemic, plus dealing with those resulting from the current global developments on Arab economies, in addition to the expected course of macroeconomic policies, especially monetary ones.

According to Arab Monetary Fund estimates, the growth rate of Arab economies is expected to rise in 2022 to about 5.4 percent, compared to 3.5 percent recorded in 2021, driven by many factors, foremost of which is the relative improvement in global demand levels.

Not to be discounted is the growth of the oil and gas sectors, and the continuing adoption of stimulus packages by Arab governments to support economic recovery.

The pace of economic growth is expected to decline in 2023 to about 4 percent, in line with the decline in the global economic growth rates.

At the level of Arab oil-exporting countries, these states will benefit in 2022 from the increase in oil production quantities within the framework of the “OPEC +” agreement, and the continued increase in oil and gas prices in international markets. These will support the levels of public spending

that stimulate growth in these countries, helping raise the growth rate there to 6 percent in 2022, compared to 3.2 percent in 2021. Meanwhile, the growth rate is expected to decline to 3.7 percent in 2023 in light of expectations of a drop in global oil and gas prices, and the gradual fading of the effects of supporting fiscal and monetary policies.

As for the oil-importing Arab countries, they are expected to record a growth rate of 4.1 percent in 2022, compared to 2.7 percent in 2021, despite the challenges they face in terms of their internal and external balances.

A relative improvement in the economic growth rate of these countries is expected at 4.6 percent in 2023 due to expectations of improving aggregate demand levels, and a gradual easing of pressures facing public budgets and balances of payments as a result of the expected decline in commodity prices next year.

From your point of view, to what extent can the global economy fall into a recession?

Our reading of the current global economy, coupled with developments at the global level and their repercussions, shows that the global economy entering a state of stagnation in the future remains a possibility, especially if the decline in economic activities in most countries of the world is accompanied by the persistence of high levels of inflation that we are now witnessing, better known as stagflation. Even in countries that were able to maintain appropriate levels of production despite the current global conditions, the decline in real income as a result of relatively high levels of inflation will play an adverse role due to the decrease in consumer purchasing power.

In the foreseeable future, it is expected that the forecast decline in the level of investment flows, the drop in government investments, the continuous rise in international energy prices, and the rise in interest rates, will together have a role in the upsurge in unemployment rates, which of course will exacerbate the pressures related to the decline in consumer spending and then the decline in economic activities that, in turn, may be reflected in the form of a recessionary wave in the global economy.

The rise in oil prices has benefited oil-exporting countries while putting some pressure on oil- importing countries. In your opinion, what policies should these latter countries follow in order to weather the storm with the least possible damage?

Oil and related products are considered a strategic commodity in the global market and are impacted by regional and international developments that cast a shadow on the economies of countries. Of course, fluctuations in oil prices have different effects on the economies of many countries, whether they are oil exporters or importers.

For Arab oil-exporting countries, it is natural that the rise in prices will contribute to achieving fiscal growth to support the current account of the balance of payments, as well as the general budget, thus giving the state space to formulate its overall policies with more ability to manage economic pressures.

As for the oil-importing countries, the rise in oil prices is likely to negatively impact their current account balance and the states’ general budgets as a result of high financial costs and narrow policy space.

How do you evaluate the overall performance of Arab countries in addressing challenges from varying rates of inflation?

The pandemic has had varied repercussions on Arab countries, against the backdrop of different production structures, the degree of openness and exposure to the global market, and the varying financial space available to finance stimulus packages and precautionary measures taken by central banks.

Therefore, what oil-exporting countries have done to address the challenges is different from what those net oil importers have done.

The rise in global oil prices contributed to an increase in revenues, which supported the public finances of Arab oilexporting countries. In addition, these countries were able to provide vaccines at an early stage, which helped them get a jump on the recovery stage.

As for Arab net oil-importing countries, they were able to face the challenges arising from the pandemic by redirecting part of government expenditures originally allocated to government investments and direct them in support of social security systems and networks, and to provide unemployment benefits, support wages, as well as

subsidize public utility bills such as electricity and water, while stimulating productive activities, especially small enterprises, and ensuring intensive provision of vaccinations and healthcare.

This in itself was necessary, and indeed helped to confront and limit the repercussions of the pandemic, but it adversely affected economic activity, which in a large number of Arab countries depends on government investments as one of the main drivers of such economic activity.

The challenges arising from the pandemic required the application of stimulus financial packages to support families and establishments, which had a positive impact in mitigating the negative repercussions of the pandemic, but it resulted in a rise in the levels of financial deficit and public debt.

How do you evaluate the performance of the economies of the Gulf Cooperation Council countries at this stage? Do you think the bloc will succeed in diversifying its economies and benefit from its budget surpluses to implement development projects?

For the countries of the GCC, performance and economic recovery are enhanced by the fiscal and monetary stimulus policies that support the recovery from the pandemic and the efforts to vaccinate the population, which led to the GCC countries as a group achieving growth of about 3.1 percent in 2021. It is also expected that the economic growth gains will continue to be enhanced, according to expectations of the Arab Monetary Fund, at a relatively high rate in 2022 and at an estimated 6.3 percent.

This result stems from benefits related to the rise in oil and gas prices in international markets, in addition to recovery in non-oil sectors, in light of expectations that the inflation rate in the GCC will stabilize at around the moderate level 2.2 percent in 2022.

With the recovery of the oil sector, the main driver of the GCC and other Arab oil countries – assuming the aforementioned global economic conditions continue – the financial resources will continue to grow, which will enhance government revenues and increase the strength of financial buffers, while also liberating more financial resources for investment projects in light of development plans and strategic visions of these countries.

The carryover from this situation will provide an opportunity for these countries to implement the strategies and future visions that they launched in previous years aimed at increasing economic diversification, i.e. reducing the contribution of the hydrocarbon sector to the composition of GDP and its percentage in exports, to the benefit of other sectors, while supporting the role of the private sector in stimulating work and investment environments.

In this regard, the GCC countries have made great achievements at the infrastructure level such as the high trust in and quality of transport, tourism facilities, advanced banking services, digitization, as well as laws and legislation, bringing these countries to an advanced position in ease of doing business regionally and globally.

All this contributes to attracting more foreign direct investment in sectors other than oil, including renewable energies and knowledge economy projects. In addition, efforts to localize industries, raise competitiveness and attract large tourism projects support economic diversification efforts, thus raising the contribution of the non-oil sector to the total GDP.

I must also commend the accelerated and deep efforts and measures toward digital transformation in the GCC to maximize opportunities and benefit from modern technologies to improve services and create an environment conducive to attracting investments.

A number of GCC countries top the Index of Modern Financial Technologies (FinxAR), which is issued annually by the Arab Monetary Fund to measure the extent of progress in the manufacturing of modern technologies and their applications in Arab countries.

In your opinion, what are the most important economic challenges currently facing Arab countries in general?

Arab countries, like their global counterparts, are at this stage facing economic challenges that require making a lot of efforts and moving toward the adoption policies that help support attempts to achieve the desired economic growth and levels of economic and social development that meet the aspirations of nationals and residents.

Perhaps one of the most important of these challenges, in addition to the previously mentioned rising inflation rates, is the high unemployment rates in the Arab region, which registered about 11.3 percent, almost double the global average, according to World Bank data.

The biggest challenge in this context is the concentration of unemployment rates among young people, as youth unemployment in the Arab region has risen to 33 percent, compared to 15.6 percent for the global average.

On the other hand, the challenge of rising indebtedness rates, in particular, is also considered among the most important challenges facing our Arab economies in light of the rise in public debt levels in the wake of the pandemic, reaching some $756.2 billion, and representing around 107.3 percent of these countries’ gross domestic product. Here, the importance of containing public debt trajectories and promoting its movement at sustainable levels is worth highlighting.

In addition to the above, there is an urgent need to enhance the ability of Arab economies to increase levels of fiscal resilience in order to meet any potential economic challenges. Perhaps the Arab countries’ continuation of structural and institutional reforms is an urgent necessity dictated by the current economic developments, more so than ever before.

Institutional reforms also play an important role in the current phase with the aim of developing Arab business environments to enable the private sector to be an essential engine for growth and employment.

On the other hand, the importance of the Arab governments’ inclination toward accelerating digital transformation and the transition toward a knowledge economy is emerging. Lessons learned from the pandemic indicate that countries that were able to quickly recover from the repercussions of the crisis were those that boasted higher levels of digital readiness, as some Arab states proved. But, if we look at the contribution of the knowledge economy sectors to the GDP of Arab countries, which ranges between 4 to 12 percent, it’s a lower percentage compared to levels recorded in many pioneering countries in this field, including China, where this percentage is estimated at about 36 percent.

Strength in numbers: The power of partnership in fighting cybercrime

How sirar by stc is securing organizations’ digital transformation efforts

Reliable cybersecurity is key to protecting customers and businesses as well as providing peace of mind to stakeholders in enterprises of all sizes. Established by Saudi Telecom (stc), the region’s prominent ICT and digital services provider, sirar by stc is a trailblazing cyber security provider that empowers organizations to take control of their cyber capabilities and digital environments. Serving over 20 industries and with 500+ clients, sirar by stc offers a comprehensive range of solutions that help companies operate online safely, securely and efficiently, allowing companies to focus on growth, profitability and operational sustainability. To find out more about the underlying strategies behind their successes, Economy Middle East interviewed Fahad Al-Jutaily, CEO of sirar by stc.

Sirar by stc was recently recognized and received the “Managed Security Service Provider Partner of the Year 2021” award. To what do you attribute winning this award?

This comes as part of sirar by stc’s efforts to capitalize on its value proposition, which brings together world-class partners to drive innovation and deliver high quality products and services. It is

Sirar CEO: Fahad Al-Jutaily

also driven by our STORM strategy, which defines our strategic priorities toward building and capitalizing on a network of strategic cyber partners and key players that entails the implementation of best practices in operations management, service delivery, key account management, and partnerships. In addition to the above, it is worth noting that sirar by stc has recently won two additional awards highlighting Excellence in Operations & Procedures, as well as Customer Experience & Go-To- Market Strategy. These were awarded by international vendors that recognized sirar by stc’s stellar efforts within the cybersecurity field.

What benefits can sirar by stc provide over other global cybersecurity providers operating in Saudi Arabia?

As Saudi Arabia’s leading cybersecurity company, we are also proud to be part of stc, which is the largest telecom provider in the Middle East. This allows for scope and scale not shared by global firms operating in the Kingdom. This affords sirar by stc greater leverage in catering to customers and partners with best-in-class cybersecurity services, thereby allowing them to achieve their objectives. Our unprecedented value comes in the form of proactively protecting our expansive customer base from current and potential threats. This is also underscored by our close engagement with industry regulators, understanding of local and regional landscapes, and customizing our offering to fit market needs. Sirar by stc is a 100 percent Saudi-owned company, with a strong Saudi team operating and delivering our products and services. Furthermore, sirar by stc has unique access to a plethora of threat intelligence tools and resources, which allow us to cater to [our] subsidiaries, regulators and strategic business partners [such as Saudi Aramco] and continuously inform and protect them from any potential threats.

What are the most common or prevalent types of cybersecurity issues in the Kingdom that business enterprises face?

One of the key issues is the everincreasing demand for cybersecurity personnel across industries. In foreseeing this issue, sirar by stc

has accumulated some of the finest expertise within the KSA landscape to accommodate market demand over the coming period. This is why most enterprises turn to sirar by stc as a service provider that can run their cybersecurity operations using solid Service Level Agreements. Another key point would be the acceleration of digital transformation initiatives by governments and institutions alike that have expanded the incident surface for cyberattacks. This was particularly predominant during the Covid-19 pandemic, which led many businesses to enable remote working and introduce online services. These developments eventually led to a larger spike of cyberattacks.

How do your services support the security of digital transformation at the public and private sector levels?

At sirar by stc, we made sure that our products and services are well positioned in every aspect of the digital transformation journey in order to protect our clients through the entire value chain. When organizations start moving to the digital front as a result of their digital transformation efforts, this widens the potential attack surface. Sirar by stc would incorporate cybersecurity solutions in order to assist these companies in implementing a robust digital transformation path. The second aspect is our digital trust (digital signature) offering that we call “Sayen,” a high trust solution to protect organizations, their users and their documents against unauthorized, accidental or fraudulent acts. Itself being a digital transformation enabler, Sayen deploys a robust set of cryptography features that will insure safe and secure document management workflows.

EME also interviewed Waleed Ali, the Chief Business Excellence officer at sirar by stc.

How do you assess the current culture at sirar by stc, enabling the attainment of future objectives and aspirations?

Excellence is the result of a culture that is collaborative, devoted and driven. We strive for excellence, are committed to providing uncompromising cybersecurity services for our clients, and tirelessly work to create an agile, dynamic culture for our employees.

Our values and vision are reinforced in the everyday life of our people, their accomplishments and future career goals. Sirar by stc’s culture is defined by a drive to improve shared objectives that emphasize the professional aspirations of our employees.

This is evident in the latest survey conducted by the “Great Place to Work” organization, where our employees shared their sincere appreciation toward a model organization.

Is this the beginning of the end for stablecoins?

Stablecoins are being put in the dock

By: Mayank Sharma

Tether Limited Inc. has been ordered by a US judge to produce financial records relating to the backing of its USDT stablecoin. When seen together with the increasing scrutiny stablecoins have been under ever since the collapse of Terra, one can’t help but wonder if stablecoins are well past their glory days.

Poor macroeconomic condition notwithstanding, Terra’s collapse earlier this year has been one of the defining moments of the current crypto winter. When it happened, many investors were unable to wrap their heads around it. After all, how can something with the word “stable” destabilize, and collapse?

Crypto investors had never been too kind to stablecoins, despite the fact that as an investment class, stablecoins have recorded impressive growth, ballooning from nothing to over $180 billion in just a few years. Initially, they were looked down upon as unexciting. Then came Terra’s collapse that according to some estimates caused investors to lose over $60 Billion, which marked them as dangerous too.

Many countries are using the event as an excuse to introduce regulations and controls to safeguard investors and help avoid a repeat. While both the US and UK have been meeting regularly to brainstorm a regulatory framework, Japan has

taken the lead on this front by introducing a legal framework to essentially classify stablecoins as digital money, compelling any issuers to guarantee their holders the right to redeem them at face value.

Then comes the news of the order against USDT, which isn’t just the most popular stablecoin, but also the third-mostpopular cryptocurrency, only behind Bitcoin and Ether.

Tether has been asked to furnish all kinds of documents to prove what backs its $68 billion USDT stablecoin, in a bid to convince the court that it didn’t manipulate the cryptocurrency market by issuing unbacked Tether with an intention to drive up the price of cryptocurrencies like Bitcoin, as alleged by a group of investors.

It wasn’t too long ago that we reported on a survey, which found that about 50 percent of the companies outside the US use cryptos, particularly stablecoins like USD Coin (USDC), as the primary form of payment.

From the highs of being the preferred means of compensation to the lows of being put firmly in the dock, the crypto winter has been particularly harsh on stablecoins. We’re not sure if the move by the US court is the final straw that breaks the camel’s back. But we’re certain that this development doesn’t do the market any favors.

Thriving under the sun: Shams home to future creativity

Sharjah Media City targets talented individuals in media

Following the recent fifth anniversary of Sharjah Media City (Shams) and the inauguration of a new, state-of-the-art Business Centre for registered companies, in line with its commitment to support business and encourage creativity, Economy Middle East interviewed H.E. Dr. Khalid Omar Al Midfa, Chairman of Sharjah Media City (Shams),

1How do you intend to become a major contributor to the country’s future at the level of governance?

What steps has Shams taken to become a catalyst for creative businesses to grow and thrive?

Sharjah Media City (Shams) has maintained the same ambitious vision since the beginning – we strive to empower the emirate’s media sector and to help its business community grow.

We are working to develop an innovation-led system, designed to empower people in the creative industries through meaningful media content in line with Sharjah’s strategy to spearhead progress, enhance the community’s wellbeing, and boost the emirate’s economic performance, diversity and competitiveness.

We are encouraging gamechanging ideas and creating opportunities for innovators and creators to transform their visions into concrete and viable media projects with a meaningful message. With a 2 million sqm area up for development, Shams is home to a dynamic, technologically advanced community of businesses involved in

everything from media to real estate and e-commerce.

Shams aims to ensure members, companies, startups and innovators can all thrive, as well as for investors to back successful ventures. We offer a host of benefits, including 100 percent ownership for foreign investors, a suite of integrated business development solutions, a range of commercial activities, and flexible regulations to switch between these activities.

The Business Centre consists of three buildings housing a physical incubator for entrepreneurship, innovation and smart projects. The 6,200 sqm project offers 3,400 sqm of leasable office space, including offices, conference rooms, customer service offices, a restaurant, a gymnasium and more.

2What is the role of Shams in supporting young people to contribute to the process of preparing for the next 50 in the UAE and Sharjah in particular? And how does Shams seek to ensure the inclusion of women in this field?

Young people are the beacon of hope. Shams communicates with youth to be part of a two-way media development approach – to be creative and professional media professionals, and secondly to transform that creativity into thriving businesses that boost the economy and diversification.

Shams targets talented individuals in the media field with efforts and initiatives that provide them with new

Chairman SHAMS: H.E Dr. Khaled Omar Al Midfa

opportunities to transform their ideas into inspiring media projects and businesses.

During 2021 and 2022, Shams held 70 workshops attended by 1,834 participants from youth groups. Topics included design, social media, marketing, script writing, radio and television presentation, social media content, speaking on camera, building a media plan, media risk management, socializing, photography, music and media production. The workshops were held in partnership with several associations in Sharjah and the UAE.

In this day and age, our youth is particularly interested in gaming. To capitalize on these interests, a total of four online tournaments with 1,000 players were organized through this cooperation which received more than 150,000 views and follow-ups.

To further empower our youth, Shams launched the innovative “Ghaya” package specifically for young entrepreneurs, students and graduates who have graduated less than a year ago. The package offers licenses at a heavily subsidized rate to enable them to discover their potential in the world of unlimited creativity.

Shams also believes in empowering young women to pursue their entrepreneurial dreams. Thus, we launched a special package targeted

toward women who aim to venture into their entrepreneurial journey. Since the launch of our “womenpreneur” package, we have a substantial number of companies in Shams owned solely by women entrepreneurs that continues to grow exponentially over the years.

3In your opinion, what is the importance of building a governmental communication system for any country? How can you contribute to its development?

Building a governmental communication system is essential to every country. It aims to raise the level of coordination and enhance communication between government entities, in addition to supporting the country’s strategic vision by establishing transparency in government sector practices and enhancing government excellence in the field of communication.

At Shams, we are contributing to the development of governmental communication systems by following international best practices through keeping abreast of the most prominent developments in this field and using modern media channels to ensure messages reach our target audience.

4What is your assessment of the importance of the International Government Communication Forum and the Sharjah Government Communication Award, locally and abroad?

The International Government Communication Forum is an important annual initiative in the UAE that connects international experts in the field of government communication. The forum impacted government communication significantly through its unique platform regionally. Shams has been keen to participate in the forum annually to benefit from the latest practices and policies presented. The award is a great competition between participating parties, and it reflects their keenness to adopt the best practices and innovations to develop their government communication system. It is also a great opportunity to show the extent of the development that the various bodies and entities have reached to build an effective government communication system. Over the years, the award has succeeded in highlighting landmark experiences in the field for others to benefit from. On a global scale, the award will be an opportunity to enhance the image of Sharjah and the UAE and highlight the outstanding achievements made in the field of government communication.

The effect of Covid-19 on digitization has been profound, precipitating advances ranging from improved broadband connectivity and the widespread adoption of 5G to the spread of online businesses, digital wallets and sales, not to mention bid data analytics and AI, cloud computing, remote working, teleconferencing and others.

A reduction in face-to-face interaction led to a boom in cloud kitchens and food deliveries, digital and hybrid banks, online learning and telemedicine.

Technology has touched every aspect of our lives. The global online food delivery services market is expected to grow from $115.11 billion in 2021 to $128.32 billion in 2022, according to Research & Markets. It also found that the overall telemedicine market would reach $210 billion by 2027.

And now an entire virtual world, the Metaverse, is reshaping how we live, shop, learn and travel. Our list is in alphabetical order and comprises big tech and technology leaders making an impact on businesses and end-users in this region. We look at partnerships, products and services that champion this digital transformation toward economic growth and prosperity.

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A ccentureAccenture is a global professional services company with leading capabilities in digital, cloud and security using specialized skills across more than 40 industries, serving over 7,000 clients in more than 120 countries. Accenture’s clients include 89 of the Fortune Global 100 and over 75 percent of the Fortune Global 500. The company has 48 offices worldwide.

Employing 710,000, Accenture’s fiscal 2021 revenues for the 12 months ended Aug. 2021 ,31, reached 50.5$ billion, while earning nearly 6$ billion in net income. Its current EPS is 2.79$

In February 2022 Accenture was selected by the CBUAE to lead a consortium of companies to help execute its National Instant Payment Platform (IPP) over the next five years.

Global consulting firm Accenture has brought its CEO-led Transformation service line to the Middle East region, helping C-suite clients with a focus on the people side of change.

Accenture Middle East is focused on climate adaptation and decarbonization with plans to be net zero by 2025, supported by plans to transition to renewable energy.

Globally, Accenture announced it was acquiring supply chain specialist firm Inspirage to further boost its Oracle Cloud capabilities.

Accenture has also acquired Carbon Intelligence, a leading carbon and climate change strategy consultancy, adding more than 160 professionals to its rapidly growing group of data scientists, consultants and sustainability experts.

The company has additionally invested in Pixxel, an earth imaging technology building the world’s highest resolution hyperspectral imaging satellite constellation offering AI-powered insights that discover, solve, and predict climate issues.

Accenture was recognized as the No. 1 cybersecurity service provider overall in July 2022, according to analyst firm HFS Research.

A vayaAvaya Holdings Corp. (Avaya) is a multinational technology company that specializes in cloud communications and workstream collaboration solutions using the OneCloud experience platform to include unified communications and contact center solutions, serving 90,000 customers in 190 countries worldwide. The company employs over 8,000

The company, which operates from 9 offices, grew full-year revenues for the 2021 fiscal year by about 100$ million from 12 months ago, to 2.97$ billion and registering gross profits of 1.65$ billion.

Avaya’s annual earnings per share in 2021was 0.2-$, a major improvement from 0.745$- in 2020

Cupola Teleservices, a Middle East outsourced contact center, recently rolled out the first AI-powered enterprise learning platform in the region, using Avaya Spaces, a cloud-based team collaboration app that connects teams and video conferencing tools in one place.

Spaces Learning is a fully integrated platform that transforms into a virtual classroom to provide training programs and assessments on demand.

Earlier this year, Avaya’s OneCloud platform became available on Microsoft Azure for hybrid, public and private cloud deployments.

Avaya’s CCaaS is already available on Microsoft’s infrastructure platform to help businesses reach their customers. Avaya recently acquired Esna Technologies, a provider of real-time collaboration and communications software, enabling endusers to easily access multi-vendor communications capabilities – voice, video, IM/presence, conferencing and messaging.

Crossing into logistics, Evergreen Shipping recently transformed its operating model to one using Avaya Cloud Office in order to ease global port congestion. This enabled the global shipping giant to provide staff access to consolidated “office in a pocket” capabilities, including video conferencing, messaging and calling.

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AAWS is the world’s leading cloud infrastructure provider, spanning 87 Availability Zones within 27 geographic regions, offering over 200 fully featured services from global data centers. AWS UAE recently became the second region in the Middle East, joining AWS Bahrain.

The company employed 20,000 in 2021 and looks to raise that number to 25,000 in 2022

AWS posted full-year revenues of 62.2$ billion for the 2021 financial year. Its full-year profit topped 18.5$ billion, up from 13.5$ billion in 2020. Amazon 2021 annual earnings per share was 3.24$ while Amazon 2020 annual EPS was 2.09$

For the tenth year in a row, AWS ranked as Leader in the 2021 Gartner Magic Quadrant for Cloud Infrastructure and Platform Services.

OutSystems, a low-code global leader, recently announced availability in AWS Bahrain creating enhanced DevOps, data and analytics, as well as AI/ML capabilities.

E& has extended its collaboration with AWS to address the growing demand for digitization and build solutions that offer low latency and high-performance computer services, leveraging 5G networks in oil and gas, manufacturing, and logistics sectors, with use cases like interactive AR/VR, ML and AI at the edge.

AWS also announced the general availability of AWS Cloud WAN, connecting on-premise data centers, colocation facilities, branch offices, and cloud resources to simplify operating a global network.

Oracle has recently announced that MySQL HeatWave is available on AWS, combining online transaction processing, analytics, machine learning, and automation within a single database. AWS users can now run transaction processing, analytics, and machine learning workloads in one service.

Cisco

Cisco develops, manufactures and sells networking hardware, software and high-technology services and products, geared for business networking, cloud and security solutions. Cisco ended fiscal 2022 with 51.6$ billion in revenues, employing nearly 26,000. It registered a 2022 net income of 11.8$ billion. Cisco called for adjusted earnings per share of 3.49$ to 3.56$ (from a current 2.82$).

Cisco Systems CEO Chuck Robbins told managers last August that the Company would increase its operating expenses by 1$ billion over the next 12 months, in part to raise employee pay.

Cisco launched its cloud-based network management suite Cisco Meraki in the Middle East. Meraki is a set of hardware products including access points, edge switches and security appliances, which can be managed through a web-based dashboard via the cloud.

Majid Al Futtaim’s Mall of the Emirates collaborated with Cisco to bring customers an immersive, fully digital, and personalized shopping experience called the “Store of the Future.”

At the now-concluded Expo 2020, Cisco deployed over 30 technologies including Cisco Wi-Fi, security solutions, Cisco Vision and others.

Close to 3 million users connected to the Wi-Fi network during the first five months of Expo 2020. The deployment of “Cisco Vision” screens resulted in streaming over 230,000 minutes of high-definition digital content and video.

Moving into sports, McLaren Racing was an early test partner of Cisco’s Webex Hologram, a product of the company’s conferencing portfolio. An object placed in front of a camera array can be digitally displayed in 3D by meeting attendees wearing augmented reality headsets anywhere around the world, and is replicated for close examination and annotated alterations.

Dell Technologies is a leading global technology company offering hybrid cloud solutions, high-performance computing and optimization software that simplify continuous innovation from edge to cloud with intelligent solutions.

Employing around 133,000, Dell revenues for the 12 months ending July 2022 ,31 was 106.96$ billion, while net income for the same period was 5.43$ billion.

Dell’s 2022 annual earnings per share was 7.02$, improving over its 2021 annual EPS of 4.22$

Dell garnered 16.1 percent of all Middle East PC device shipments in Q2022 2, according to IDC. Dell Technologies has introduced new infrastructure solutions, co-engineered with VMware, generating greater automation and performance for organizations embracing multi-cloud and edge strategies.

Dubai Customs has implemented Dell Technologies’ suite of data protection solutions to accelerate its digital transformation agenda, and allow over 2,500 users in 17 customs centers in Dubai to operate in a secure, hybrid environment.

Meanwhile, multinational tech company NVIDIA announced a new data center solution using Dell PowerEdge servers designed for the era of AI, bringing advanced AI training, AI inference, data processing, data science and zero-trust security capabilities to enterprises worldwide.

As well, Salesforce signed a major multi-year agreement with Dell to create a centralized infrastructure in support of global growth across more than 60 data centers, 230 countries and hundreds of thousands of customers.

Salesforce will use a platform built on Dell servers and includes more than 1,500 Dell storage systems, delivering 50 25 percent performance improvement for Salesforce’s critical databases.

Dell laptops offer Salesforce workforce greater mobility in their hybrid work environment.

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Du now operates from its new HQ in Dubai Hills, delivering smart city infrastructure, unique enterprise ICT solutions, as well as fixed and broadband connectivity.

Employing nearly 1,600, the United Arab Emirates’ telco du drives the UAE’s digital transformation, earning $3.1 billion in 2021, and nearly $300 million in profits. It reported a 21 percent Q1 2022 net profit increase of $84.6 million, and a 26.2 percent Q2 2022 net profit increase of $82.5 million, with subscribers reaching 7.4 million. YoY revenues amounted to 11.68 billion for FY2021. Du enjoys a P/E ratio of nearly 25 and earning per share of $0.24.

Du announced that senior UAE nationals and residents aged 60 and above can now avail themselves of a 50-percent discount on their standard Business Mobile Plan.

Emirati women can also enjoy special discounts on top du plans along with unlimited national calls and data.

Du announced that the popular Home Wireless mobility service now provides new unlimited 5G-powered capabilities for homeowners across the UAE.

Ericsson partnered with du to deliver its latest generation of 5G radio solutions. Huawei will also build 5G cloud edge applications to help du unlock more applications in industry, entertainment, education and retail enterprise customers. And in a bid to make UAE one of the safest countries in the world, du and Injazat, a market leader in the region for IT, Data Center and Managed Services, selected Software AG’s Cumulocity IoT platform for the Ministry of Interior’s “Hassantuk” Fire and Life Safety systems. With the upgraded platform, 25,000 buildings and properties will continue to be monitored for smoke and fire detection around the clock.

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E& (formerly Etisalat Group) changed its brand identity in February 2022, aiming to accelerate growth through the creation of a resilient business model. Employing some 43,000 employees, e& reported consolidated net revenue of AED53.3 billion ($14.58 billion) and net profit of AED9.3 billion in 2021. It reported consolidated net profits of AED4.9 billion for H1 2022.

The company had earnings per share reaching AED1.12 based on Q2 2022. The latest 12 months for e& showed a P/E ratio of 22.5x and the company averaged 19.3x for fiscal years ending December 2017 to 2021.

This year, e& launched its first set of non-fungible tokens (NFTs). The company’s blockchain arm crossed AED10 billion worth in transactions last year.

E& and Hub71, Abu Dhabi’s global tech ecosystem, recently announced the launch of the region’s first AI Center of Excellence (CoE). E& had earlier entered into a strategic three-year alliance with DataRobot, a global AI platform provider, to launch the first AI as a Service (AlaaS) offering in the MENAP region.

To become a leading techco player, driving innovation and enhancing organizational performance, e& announced in March a strategic partnership road map with Meta.

In February this year, e& partnered with First Abu Dhabi Bank (FAB) and UAE-based conglomerates ADQ and Alpha Dhabi Holding to launch a digital bank named Wio, with a total invested capital of $626 million in which e& holds a 25 percent share. Launched on Sept. 13, 2022, Wio will provide solutions in Digital Banking apps, Embedded Finance and Banking-as-aService solutions.

Ericsson

Ericsson is a multinational networking and telecommunications company at the forefront of information and communications technology (ICT), providing hardware, software and services.

Employing over 101,000, Ericsson has over the 12 months ending June 30, 2022 turned over $26.878 billion, with an annual net income for 2021 of $2.65 billion. Ericsson’s 2021 annual earnings per share was $0.79, while the 2020 annual EPS was $0.57.

Ericsson’s new triple-band, tri-sector radio 6646 cuts energy consumption by 40 percent, and combines 900, 800 and 700MHz frequency bands into one compact 2G- to 5G-capable radio.

Moreover, the 60-percent reduction in radio weight will allow communication service providers (CSPs) to minimize deployment costs, tower rent as well as carbon footprint. This radio will replace the job of nine single-band radios.

A team of Ericsson ONE intrapreneurs have created a recycling tracking and reporting solution that brings connectivity and transparency to waste ecosystems, helping create circular economies. A specialized platform uses the Ericsson fintech Wallet Platform that financially incentivizes recycling at scale in the MEA region, by compensating people for returning their PET bottles.

Ericsson has won the Digital Transformation Award - Vendor at the Telecoms World Middle East Conference 2022, which recognizes the Ericsson Exposure and Service Enablement Solution used with mobile consumer services across MEA.

The Ericsson Exposure solution allows for the establishment of partner-based business models and bi-directional APIs that benefit from the exposed network capabilities. Use cases can be either Mobile Broadband or IoT with exposure APIs in 4G and 5G networks. The 5G network exposure product enables additional use cases such as edge sites or Multi-access edge computing (MEC) exposure capabilities between devices or subscribers.

Better known as a search engine technology giant, Google has a thriving business in sectors like online advertising, cloud computing, computer software, AI and consumer electronics such as Google Nest.

Employing nearly 140,000 in 2021 and with an earnings per share of $1.21, Alphabet, Google’s parent company, registered $278.139 billion in revenues for the 12 months ending June 30, 2022, compared to 2021 revenues of $257.64 billion. Alphabet net income for 2021 was $76.03 billion.

Google has a strong presence and influence in the GCC. A recent report by Public First research agency shows 52 percent of Saudi businesses reported larger proportions of their customers arriving from online searches or search advertising. Some 85 percent of people in the UAE said they used Google Search to learn a new skill. It also showed 45 percent of people in Egypt last year used Google Maps to find a local business.

In 2021, Google products like Search, YouTube, Android and Google Ads drove $3.2 billion, $3 billion and $600 billion to the Saudi, UAE and Egyptian economies respectively.

Moreover, Google Cloud announced a collaboration with the Saudi Data & Artificial Intelligence Authority (SDAIA), Ministry of Environment, Water and Agriculture (MEWA), and Climate Engine to launch the Earth Observation and Science Program.

Google Cloud will train scientists to apply technology from AI, Climate Engine and Google Earth Engine to drive sustainable initiatives. Google Cloud is expected to open a region in Doha.

Internationally, Google recently said it would bring access to a number of its popular apps, including Search, Maps, Gmail and more, to the iPhone’s Lock Screen.

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Hewlett Packard Enterprise (HP) is the global edge-to-cloud company employing 60,400 as of 2021, delivering cloud services, high-performance computing & AI, intelligent edge, software, and storage.

HP’s annual revenue for 2021 was $63.48 billion as of Aug. 30, 2022. HP’s gross profit for the 12 months ending July 31, 2022, was $12.88 billion. It announced $7 billion in net income for Q3 2022. HP 2021 annual earnings per share was $5.33, while its 2020 annual EPS was $2.

HP, which operates from 17 offices, has been transforming from a supplier of server hardware to establishing its own server systems and providing clients with subscription services called GreenLake. The company’s edge hybrid cloud provides data backup, data recovery as well as high-performance computing.

With HP conferencing, users can personalize how they show up in meetings, having the myHP application to provide a single dashboard to control and customize their PC experience.

Catering to hybrid work, the under 1 kg HP Elite Dragonfly G3 devices come with Windows 11 and 12th Gen Intel processors. Equipped with intelligent charging, the battery learns work patterns to optimize power consumption. HP Wolf Security for Business provides a resilient defense against malware and hacking.

HP has reported $3.5 billion in sales associated with sustainability in the last three years. The company targets a 50 percent reduction in greenhouse gas emissions through the value chain by 2030 as part of achieving net zero emissions by 2040.

HP’s current carbon footprint is 9 percent less than in 2019, primarily due to energy efficiency improvements across its product range.

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Huawei

Established in 1987/88, Huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices. The company specializes in R&D (55 percent of workforce, spending, 22.5 percent of revenues), providing consumers personalized and intelligent experiences across home, travel and office, as well as solutions for telecom carriers in optical, fixed, mobile and data communications networks.

Hiring over 200,000 employees and operating in over 170 countries and regions, Huawei generated 2021 revenues of $91.94 billion. Its net profit for the year amounted to approximately $16.34 billion, rising more than 75 percent in 2021.

The company built 5G networks for customers in 13 countries, including Saudi Arabia. Over 700 cities and 267 Fortune Global 500 companies worldwide choose to partner with Huawei for digital transformation.

Huawei has confirmed its largest ever presence at the Oct. 10-14 GITEX Global in Dubai 5G, where it will focus on 5G, cloud, AI, digital power, cybersecurity and industry applications.

Meanwhile, Huawei is setting aside $1 million for global contest “Apps UP 2022,” which for the first time includes the “best Arabic app,” aimed at app developers to create solutions that address the region’s needs and enrich Arabiclanguage content.

Developers on the platform can reach 730 million global Huawei device users on The AppGallery. A growing community of 5.4 million registered Huawei developers exist worldwide.

The contest categories include the Best App, Best Game, Best Social Impact App, All-Scenario Coverage Award, Tech Women’s Award and the Best Huawei Mobile Services (HMS) Innovation Award. The HMS Innovation Award encourages developers to create apps that integrate new HMS capabilities and services.

IGlobal microprocessor supplier Intel showed a turnover of over $73.394 billion for the 12 months ending June 30, 2022. Intel’s net income for the same period was $19.1 billion. Employing close to 121,000, Intel registered $15.3 billion in revenues in Q2, 2022. It had an earnings per share of $1.24 in 2021.

Operating from 28 offices worldwide, Intel and Broadcom Inc. recently showcased the industry’s first cross-vendor Wi-Fi 7, the platform for the next 10 years of wireless experiences, with speeds greater than 5 gigabits per second.

Wi-Fi 7 enables new product classes, including AR/VR and ultra-high-definition 16K media streaming, while supporting large numbers of connected devices in the home or office.

Intel also agreed with global alternative asset manager Brookfield to jointly invest up to $30 billion in leading-edge chip factories in Arizona, U.S., which will provide Intel with a new expanded pool of capital for manufacturing build-outs to accelerate the company’s integrated device manufacturing (IDM 2.0) strategy.

Intel is focusing on enabling secure and responsible AI as part of its strategy to develop quantum-resistant cryptography for the coming computing era.

At Intel Vision 2022, Intel announced seven new HX mobile processers to the 12th Gen Intel® Core™ mobile family, available in Core i5, Core i7 and Core i9 models.

Intel recently revealed that Raptor Lake, Intel’s codename for the upcoming 13th-generation of Intel Core processors based on a hybrid architecture, is capable of operating at 6GHz at stock settings and that it has set a world overclocking record at 8GHz. The peak of 6 GHz is 300 MHz faster than the 5.7 GHz for AMD’s Ryzen 7000 processors.

Mastercard

Mastercard Middle East and Africa (MEA) HQ has been operating out of Dubai since 2001. The company aims to connect and power an inclusive digital economy that benefits everyone, everywhere, by making transactions safe, simple, smart and accessible. Its pledge is to bring 1 billion people and 50 million micro and small businesses into the digital economy by 2025.

Mastercard revenue for the 12 months ending June 30, 2022, was $20.8 billion. Its net income for the 12 months ending June 30, 2022, was $9.7 billion. Mastercard‘s earnings per share for the 12 months ended in June 2022 was $9.87. it employed some 24,000 in 2021.

Mastercard’s EziPay’s digital wallet allows for global transactions with brands and businesses wherever Mastercard is accepted, a service from which customers can benefit even if they do not have a bank account. Mastercard has a key partnership with One Global and i2c which will enable more fintechs and startups across the region to issue digital wallets. Mastercard is empowering over 35 million migrant workers in the MEA via a collaboration with fintech Sokin enabling them to transfer money cheaply and easily. Mastercard’s PayD card will allow an unbanked labor force to buy goods offline or online or pay utility bills.

Mastercard is bringing crypto to everyday purchases, working with Binance to let people use their cryptos and make purchases at more than 90 million stores that accept Mastercard.

FinTech Mercury is launching a corporate Mastercard to help startups scale their business, with the card offering 1.5 percent cashback without any annual fees or personal credit checks.

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MetaIn October 2021, Facebook changed its name to Meta to reflect the new direction the company is taking with the metaverse. In 2021, Meta’s revenue was $117 billion plus, up by more than $31 billion on 2020. Net 2021 income was $39.37 billion, with an earnings per share of $13.77 compared to $10.09 in 2020. Meta employed 71,979 in 2021.

In March 2022, Meta opened its new regional headquarters in Dubai Internet City to serve MENA markets. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, launched the Dubai Metaverse Strategy to create more than 40,000 virtual jobs by 2030.

Meta recently launched the “Creators of Tomorrow” showcase in the EMEA region, celebrating emerging talents and digital creators for video formats, technology and interactive entertainment.

Meta has channeled billions of dollars into virtual reality-powered services. Since buying Oculus eight years ago, Meta has claimed 90 percent of all VR headset sales, according to IDC last June.

The Oculus mobile app has seen over 20 million installations globally.

Meta poured billions more into Reality Labs producing Quest 2, smart glasses, and its video-calling device Portal.

Meta has granted startup virtual reality developers anywhere from $25,000 to more than $1 million, adding more than 400 apps to its Quest store which has surpassed $1 billion in software sales.

Meta is encouraging more engagement from Facebook Groups via a new Community Chat option that facilitates topicbased discussion groups within Messenger.

Meta spends around $5 billion annually on “community integrity” teams responsible for identifying and removing abusive content, and fighting misinformation.

Microsoft

Microsoft Gulf FZ LLC has over the past 30 years acted as a regional office out of Dubai for the UAE, Bahrain, Qatar, Oman and Kuwait. It believes technology should be a force for good and that meaningful innovation contributes to a brighter world. Microsoft does business in 170 countries, with over 114,000 employees.

Microsoft annual revenue for 2022 rose to $198.3 billion from $168.1 billion in 2021. Microsoft annual net income for 2022 was $72.7 billion, an 18.72 percent increase over the $61.2 billion net income for 2021.

Microsoft‘s earning per share for the 12 months ended in June 2022 was $9.64.

Microsoft, which produces computer software systems, applications and consumer electronics, showcased over 50 new products and features at its 2022 flagship event “Build” for developers. It displayed a range of tools to assist AI development, including GitHub Copilot, an AI pair programmer offering full-code suggestions.

Its newest solution is Microsoft Cloud for Healthcare, bringing together capabilities from Microsoft Dynamics 365, Microsoft 365 and Microsoft Azure, as well as enabling capabilities to manage health care data at scale.

Microsoft opens its first global datacenter region in Qatar, bringing new opportunities for a cloud-first economy. The new cloud datacenter region launches with Microsoft Azure and Microsoft 365, giving organizations access to hundreds of scalable, highly available and resilient cloud services.

On the sustainability end, Microsoft used 4,477,865 cubic meters of water, equivalent to more than a billion gallons, in its 2021 fiscal year across all operations. It has pledged to be water positive by 2030.

Ooredoo

Qatar’s Ooredoo provides mobile, fixed, broadband internet, corporate managed services, and devices across MENA and Southeast Asia markets.

Employing over 15,000, Ooredoo Group announced revenues of $8.24 billion for FY 2021 with net profits of 12.91 million, covering a customer base exceeding 121 million. Ooredoo’s P/E ratio today is 19.80.

It recently launched its new corporate transformation strategy tagline “Upgrade Your World,” reflecting a future-proof, employee- and customer-centric narrative.

Ooredoo business also unveiled “Shamel Complete,” an integrated solution that allows entrepreneurs and SMEs run their business without the need to hire experts from different fields.

Ooredoo Telecom also introduced its 5G smartphone, the new HONOR Magic4 Pro as part of its premium series. Ooredoo Kuwait recently launched FIBER+, a new generation of a unique solution (FTTR: Fiber to The Room) to enhance and improve internet coverage in homes and large areas.

Ooredoo Qatar is looking to boost the transport and logistics industries in the country by bundling Aamali Mobile business plans with a competitively priced vehicle tracking solution to simplify operations and increase transport and logistics efficiency. The transport and logistics package offers an Aamali 5G SIM bundled with an Optimum vehicle tracking device and software.

Ooredoo Qatar also said it would provide a discount of up to 90 percent on roaming rates with Ooredoo Passport, a special SIM card aimed at frequent travelers. The Ooredoo Passport provides customers with low roaming prices in over 200 destinations, including more than 100 4G enabled ones.

OPPO

OPPO is a Chinese consumer electronics manufacturer of smartphones, smart devices, audio devices and more. Oppo has a 21 percent share of China’s market as of Q3 2021, and is now selling in 40 different countries. In H1 2021, OPPO ranked first in 5G global shipments among Android manufacturers.

Hiring almost 40,000, OPPO saw a revenue increase of 47 percent YoY to $37 billion while its average asking price grew 15 percent to reach $259 in 2021.

OPPO launched its new Oppo X 2022 in September 2022, while the Find X5 Pro is OPPO’s flagship line. Oppo’s line-up of Reno 8 Pro is its latest addition.

Regionally, OPPO will build a mobile phone factory in Egypt with investments reaching $20 million, aiming for 4.5 million units in production capacity at start.

OPPO started MEA operations in 2015 from its regional office in Egypt and today has a presence throughout the GCC. In 2019, it inaugurated its country operations in the UAE. On March 15, 2022, OPPO lit up Ain Dubai in celebration of the Reno7 GCC launch.

OPPO is investing heavily in the chip sector. In addition to MariSilicon X, Oppo has also developed a power management chip that it uses for some of its chargers.

OPPO recently announced a major partnership with UEFA across different tournaments including the Champions League, Super Cup and Youth League Finals for the upcoming next two seasons. It will offer football fans the unique opportunity to capture key soccer moments with their smartphones.

OPPO is in its fourth year partnering with Wimbledon and Roland-Garros and a global partner of the International Cricket Council (ICC).

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O racleWith 430,000 customers in 175 countries, Oracle technologies is a global provider of business software with a broad portfolio of solutions for companies of all sizes.

Employing over 143,0000, Oracle’s total revenues for fiscal year 2022 edged up 5 percent to $42.4 billion. In its 2022 fiscal year, Oracle reported an annual net income of $6.7 billion.

Oracle 2022 annual earnings per share was $2.41, a 47.03 percent decline from 2021, when it reached $4.55.

Oracle Corp.’s quarterly sales jumped 18 percent buoyed by the software maker’s transition to cloud computing and the acquisition of health records provider Cerner. For the period ending Aug. 31, Oracle earned $1.03 a share, on $11.45 billion in revenue including $8.42 billion from cloud services and license support, which rose 14 percent from a year ago. The total annual cloud revenue for Oracle currently stands at over $11 billion.

Recently, Amana Group, a multinational construction conglomerate, decided to implement Oracle Fusion Cloud Applications Suite to optimize finance and HR processes, respond rapidly to changing market demands and support its growing workforce.

The Abu Dhabi National Marine Dredging Company also selected the Oracle Fusion Cloud Applications Suite to standardize business processes on a single platform.

In 2021, the Emirates Post Group implemented the Oracle Fusion Cloud Applications Suite for finance, supply chain and HR to support its rapid expansion and remote workforce.

Saudi Arabian Mining Company (Ma’aden) also chose Oracle’s Gen 2 Cloud Infrastructure to create an agile, secure and modern IT infrastructure.

Investment firm Guggenheim recently noted that Oracle could become the fourth “hyperscaler” of cloud computing services.

SAP is the market leader in enterprise application software innovations helping more than 1,350 companies worldwide simplify processes and generate growth opportunities.

Since its establishment in 2007, SAP MENA expanded into 12 regional offices spread across the GCC, Pakistan and Cairo, including a regional Training and Development Institute in Dubai.

Over 1,600 qualified SAP consultants and 120 business partners support the MENA market in 16 countries across the region. Employing over 107,000, SAP recorded revenues of $33.2 billion for the 12 months ending June 30, 2022. SAP’s annual net income for 2021 was $6.218 billion.

For Q2 2022, a 34 percent cloud-revenue growth rate made SAP one of the world’s fastest-growing major cloud providers, second only to Google Cloud’s 36 percent.

SAP’s earnings per share for the 12 months ended in June 2022 was $3.78.

In June 2022, MEPCO, the largest paper manufacturer in the MEA, deployed SAP solutions to streamline its expanding business processes and increase efficiencies.

For the six-month duration of Expo 2020, SAP provided key support to run the event seamlessly, serving as the backbone for finance, HR and procurement services using SAP Ariba. SAP Customer Checkout supported retail innovation with over 300 retailers processing more than 450,000 daily payments.

SAP House provided an immersive CX area with live demos, hosting 2,500 visitors over 75 events, and garnering more than 80 million social media impressions.

Recently, Deloitte announced five new sustainability offerings built on the SAP enterprise software. ESG strategy, performance & reporting, climate & decarbonization, sustainable supply chains, and financing sustainability combine SAP’s technologies with Deloitte’s expertise across sustainability reporting, performance management, finance transformations, and system implementations.

Samsung

Samsung is a South Korean multinational manufacturing conglomerate and one of the world’s largest producers of electronic devices. It employed 287,439 people in 2021 when the company generated total revenues of $232.4 billion and $42.9 billion in operating profits. It has current earnings per share of $27.83.

Samsung Electronics recently announced an investment of $5 billion in a comprehensive effort to tackle climate change. It aims to achieve net zero carbon emissions for all operations in the Device eXperience (DX) Division by 2030, and across all global operations by 2050.

Samsung Gulf Electronics inaugurated the newly renovated Samsung store in Deira City Centre in Dubai, in partnership with Jacky’s Retail.

Samsung Electronics recently announced the launch of its fourth generation of Galaxy Z foldable smartphones for the UAE market with prices starting at $1,035 for the Galaxy Z Flip4 (128 GB), and up to $1,975 for the Galaxy Z Fold4 (512 GB) model.

After integrating Snapchat’s AR Lenses into the Galaxy A-series camera app as “Fun Mode,” Fun Mode was used 2.5 billion times from March 15, 2021, to August 22, 2022. This AR mode has since expanded to some Galaxy F and M series models.

Samsung recently pledged to invest $15 billion in semiconductor development over the next six years after the company broke ground on a new $15 million, 100,000-square foot R&D center facility in South Korea. In June, Samsung became the first company to commercialize 3nm chips, the smallest, most efficient production process developed so far.

S iemensSiemens is a technology company focused on industry, infrastructure, transport, and health care, with a diverse portfolio of consumer products ranging from electrical installation systems and home automation to security systems and investment funds.

In fiscal 2021 ended Sept. 30, 2021, Siemens generating revenue of $62.3 billion and net income of $6.7 billion while employing 377,000 worldwide.

Siemens Middle East boasts over 7,000 people. The company powers Abu Dhabi’s Yas Marina Formula One circuit’s race control center, and produces 1.4 billion liters of drinking water for the UAE. It has developed systems for two driverless subway lines in Saudi Arabia and is now helping boost power generation in Egypt by 50 percent to reach 16.4 GW.

Emirates Health Services (EHS) and Siemens Healthineers recently signed an MoU of mutual cooperation with a focus on medical excellence, improving productivity and health care innovation.

Hub71, Abu Dhabi’s global tech ecosystem, partnered with Siemens Energy to advance CleanTech and ClimateTech in Abu Dhabi, supporting tech startups in developing innovative technologies that address global climate change.

Meanwhile, Siemens Smart Infrastructure and Shell signed an MoU to collaborate on developing low-carbon and highly efficient energy solutions that support in areas of biofuels and circular chemistry.

FIA has also announced a new partnership with Siemens’ Xcelerator portfolio to assist its sustainability efforts throughout all of its championships, including Formula 1, to develop vehicles that decrease energy use and emissions.

Siemens, along with German national rail company Deutsche Bahn (DB), is trialing the Mireo Plus H hydrogen train, aiming for the technology to replace diesel-powered trainsets with trains that operate emission-free with green hydrogen, and which only release water vapor.

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Saudi Telecommunication Company, stc, with a presence in GCC countries, is a pioneering digital enabler of telecom services, ICT solutions and digital services across IT, fintech, digital media, cybersecurity, and more. The Riyadh corporate office employs 19,000 employees.

stc announced revenues for 2021 reaching $17.28 billion, an increase of 7.57 percent compared to 2020. It registered 2021 operating profits of nearly $3.58 billion.

As of Sept. 12, stc had a PE ratio of 7.02.

In August 2022, stc shareholders agreed to increase the company’s capital by 30 billion riyals ($810 million).

stc’s ICT sector is growing and in Saudi Arabia may reach $53 billion in 2025 from the current $33 billion, according to Omer Abdullah Al Nomany, CEO, Solutions by stc.

stc lately announced the installation of its “Saudi Vision Cable,” the first high-speed cable laid in the Red Sea, spanning 1,160,000 meters.

stc recently boosted its 5G network capacity by over 60 percent to become the first operator in MENA to enable 5G Carrier Aggregation technology, initially using 2.3GHz band on more than 1,000 sites, and within a year will link to the main 5G carrier on 3.5GHz.

In May 2022, Prince Mohammed Bin Salman Nonprofit Smart City appointed Solutions by stc to implement a smart city strategy, including Mobility, Sustainability, Security verticals and a Digital Twin.

Solutions by stc received approval to buy a $158 million stake in Egypt’s Giza Systems Co., a company that designs and deploys technology solutions. It had entered into a binding deal for an 89.5 percent stake in Giza Systems.

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VISA

Pioneering electronic payments since 1958, VISA stands for “A better way to pay and be paid,” helping level the playing field for the traditionally underserved. VISA employed 21,500 in 2021, connecting billions of cardholders to millions of merchants, and 15,500 financial institutions and governments in more than 200 countries and territories.

VISA’s annual revenues for 2021 reached $24.1 billion and net income reached $12.1 billion that same year.

VISA’s earnings per share for the 12 months ending June 30, 2022, was $6.06, while in 2021 its annual EPS was $5.04.

VISA has a new 10,000 sq. ft. regional headquarters at Dubai Internet City, which manages operations in 90 countries across the CEMEA. Its Innovation Centre, one of five globally, is where startups and VISA partners can develop and experiment with technologies such as blockchain, VR and AI in order to build innovative payment mechanisms.

The space is also CEMEA’s first VISA University campus, host to training and educational programs for VISA employees, clients and partners.

In August 2022, VISA announced issuing over 4 billion network tokens worldwide, through Visa Token Service, to help secure digital payments.

VISA recently announced the winners of its “She’s Next” grant program in Egypt in partnership with Commercial International Bank (CIB) and USAID. Five Egyptian women-led businesses in Egypt received $10,000 in grants and a year of business coaching to help their enterprises grow and expand. Two of the five winners will participate in the VISA virtual event “She’s Next: Spotlighting Women Entrepreneurs in the Middle East,” featuring female business leaders from the UAE, Saudi Arabia, Egypt and Morocco.

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ZZain is a leading Kuwaiti mobile voice and data services company operating in seven Middle Eastern and African countries, employing over 7,500, and providing services to over 51 million individual and business customers as of March 2022. The Group ended 2021 with a customer base of 48.9 million, an annual increase of 2.4 percent, reflecting an addition of 1.2 million customers. For the full-year 2021, Zain Group generated consolidated revenues of $5 billion. It registered a net income of $167 million, and earnings per share of $0.04. Throughout 2021, Zain Group invested $1.1 billion in CAPEX, or 21 percent of revenues.

The Zain brand has been valued at over $2.4 billion. The group’s Q2 2022 net profit reached $165 million on $1.4 billion in revenues. For H1, Zain generated consolidated revenues of $2.7 billion.

Jordan’s Telecommunications Regulatory Commission penned a Sept. 13, 2022 agreement with Zain in preparation for the launch of 5G services, following an investment of around $2.62 billion into infrastructure by the local telecoms sector.

Additionally, Zain KSA and Zain Group partnered with global gaming platform PLAYHERA to launch their new Saudi-based regional esports platform PLAYHERA MENA.

RAYA Customer Experience (RAYA CX) also signed a partnership with Zain KSA to manage its customers’ experience in Saudi. Zain Cloud, the cloud computing service by Zain KSA, had launched a suite of new cloud computing products and services to support businesses in the kingdom. Services include tie-ups with leading tech companies like Fortinet, Red Hat, Veritas, SpeechLogix, WakeCap and Hikvision.

With more than 55 apps in nearly every major business category, Zoho is one of the world’s most creative multinational technology companies, employing nearly 11,000 employees. A maker of web-based business tools, it currently has over 80 million users and is renowned for its online Zoho Office Suite. Zoho’s product catalog uses a freemium model to drive usage.

Zoho turned over $697 million in 2021 increasing from $570 million in 2020. It registered a net income of $255.7 million compared to $106.8 million in fiscal 2020.

Zoho recently said it would help Arabic e-commerce companies build their website and cater to an Arabic-speaking audience through its right-to-left (RTL) Arabic-language website builder. Only 1.1 percent of the top 10 million websites use Arabic as their language.

The company announced its integration with Tap Payments, a prominent MENA payment solutions provider to empower businesses in their path towards digital transformation.

Zoho additionally announced it will be launching its ‘Zoho for Startups’ program globally, starting with the Middle East and Africa (MEA) region. It signed an MoU with the Saudi-based Falak Investment Hub to work together to digitally empower youth and startups in Saudi, and support them in their digital transformation journey, starting with a network wallet credit worth $2,500.

Along with its ongoing global expansion, it has investments in automotive, robotics and healthcare technologies. It invested in Silicon Valley-based smart electric utility vehicles and powertrains manufacturer Boson, electric motorcycle company Ultraviolette Automotive, and in Voxelgrids, an Indian startup that builds Magnetic Resonance Imaging (MRI) scanners.

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DEW's revolutionary path toward energy sustainability

WETEX, Dubai Solar anchor UAE’s image as green tech leader

Between 27th and 29th September 2022, Dubai Electricity and Water Authority (DEWA) organized the 24th Water, Energy, Technology and Environment Exhibition (WETEX) and Dubai Solar Show (DSS) under the directives of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and under the patronage of HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy, in order to achieve the vision of the Dubai government in building a sustainable future for the emirate.

WETEX & DSS showcase the latest global technologies and innovations in energy, water, sustainability, green technologies, renewable and clean energy, green mobility solutions, sustainable development, green buildings, electric vehicles and water desalination technologies, with the participation of major companies from the region and the world. The exhibition also introduces to the world the UAE’s achievements in the renewable and clean energy sector, and sheds light on Dubai’s efforts in renewable and clean energy in line with the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100 percent of Dubai’s total production capacity from clean energy sources by 2050. Over 24 years, WETEX and Dubai Solar Show have established their position as the

largest exhibition in the region in the energy, water, green development, sustainability and related sectors and have become one of the largest specialized exhibitions worldwide. It provides a leading platform for international organizations and companies to present their latest solutions and products, as well as to learn about innovative technologies from all over the world, in addition to exchanging expertise and best practices.

WETEX & DSS 2022 coincided with the 8th World Green Economy Summit (WGES), which was organized by DEWA, the World Green Economy Organization, and the Dubai Supreme Council of Energy. The two-day event brought together officials, experts and specialists from around the world. The two events come within the framework of preparations for the UAE’s hosting of the 28th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) next year.

WETEX and DSS 2022 spanned an area of 62,513 square meters, with the participation of 1,750 companies from 55 countries, in addition to 64 sponsors. The exhibition also included 20 international pavilions. Between 2011 and 2021, the number of visitors to WETEX increased nearly tenfold. WETEX and Dubai Solar Energy 2022 had 110 seminars by international experts over the three days of the exhibition.

DEWA showcased its key projects and services that use the latest technologies of the Fourth Industrial Revolution, and global achievements that made it one of the most distinguished utilities worldwide. Some of these include:

The Mohammed bin Rashid Al Maktoum Solar Park

The Mohammed bin Rashid Al Maktoum Solar Park is the largest single-site solar park in the world using the Independent Power Producer model with a planned production capacity of 5,000 MW by 2030. DEWA is currently implementing the fourth and fifth phases of the solar park.

DEWA’s Space-D program

DEWA’s space program (Space-D) aims to improve the operations, maintenance, and planning of its networks with the support of nanosatellite technology, Internet of Things (IoT), and remote sensing technologies. The program also aims to train Emirati professionals to use space technologies to enhance its electricity and water networks and take advantage of the Fourth Industrial Revolution technologies such as IoT, AI and blockchain.

Green Hydrogen project

DEWA is implementing the Green Hydrogen project in cooperation with Expo 2020 Dubai and Siemens Energy at the Mohammed bin Rashid Al Maktoum Solar Park. Implementing the project, which is the first of its kind in the MENA to produce hydrogen using solar energy at the Solar Park, contributes to achieving competitive prices in producing green hydrogen.

Hydroelectric power plant in Hatta

The production capacity of the pumped-storage hydroelectric power station plant in Hatta is set to reach 250 megawatts (MW) with a storage capacity of 1,500 megawatt-hours and a lifespan of up to 80 years. This is the first of its kind in the Gulf region, with investments of around AED1.421 billion ($387 million). High power generation and storage efficiency will reach up to 78.9 percent and with a 90-second response to demand for electricity.

Aquifer Storage and Recovery system

The full scale of the Aquifer Storage and Recovery (ASR) project can store up to 6,000 million imperial gallons of water once completed by 2025. This makes it the largest ASR of its kind in the world to store potable water and retrieve it in case of an emergency. This will secure the emirate with an additional source of potable water strategic reserve of 50MIGD for 90 days in emergencies, while ensuring the quality of the stored water.

SWRO desalination plant

The Sea Water Reverse Osmosis (SWRO) desalination plant, implemented by DEWA at Jebel Ali Power Plant and Desalination Complex, has a production capacity of 40 MIGD and investments worth AED897 million.

Green Charger initiative

DEWA launched the “Green Charger” initiative in 2015 to promote green and sustainable mobility in Dubai and support the Smart Dubai initiative. The initiative includes more than 336 Electric vehicle charging stations distributed across Dubai to ensure a smooth and fast experience based on the latest smart and innovative technologies.

Innovation Centre

DEWA’s Innovation Centre is a platform for innovations in clean energy technologies that promotes a sustainable energy future in Dubai and abroad. The Centre is an inspiring and educational landmark that attracts tourists and visitors from different age groups, including students, families and individuals. It also attracts businesses and specialists.

Smart Living

The “Smart Living” initiative enables customers to understand, monitor and manage their consumption in real-time through the Smart Living dashboard, which includes several features such as comparing consumption with similar homes with the “My Sustainable Living Programme” Self-Assessment Tool, exclusive offers at DEWA Store, Away Mode service, a call-back feature, autoscheduling, in addition to the High-Water Usage Alert.

Rammas

DEWA’s virtual employee uses AI to serve customers and respond to their enquiries in Arabic and English around the clock. Rammas can learn and understand the needs of customers based on their enquiries, which it analyses based on the available data and information, and responds to them accordingly.

Showroom showcase: One man's vision for future mobility Boldness, resilience and innovation key drivers of Al Masaood Automobiles legacy

By: Alp Sarper

A true automotive aficionado with more than 40 years of experience across three continents, Irfan Tansel, CEO of Al Masaood Automobiles, is the recipient of some of the highest regional and international accolades for his inspirational leadership as CEO and visionary.

Al Masaood Automobiles serves as the authorized dealer for Nissan, Infiniti and Renault in Abu Dhabi, Al Ain and the UAE’s Western region.

Tansel relentlessly pursues a culture of excellence and under his leadership the company has received numerous awards, the latest of which is the Global Nissan Aftersales Award for the fiscal year 2021. This marks the second consecutive year that Al Masaood Automobiles has been granted this award for exceeding Nissan’s aftersales business targets and outperforming other dealers internationally within its segment.

In an interview with Tansel, Economy Middle East asked:

What are the latest trends disrupting the mobility industry?

Billions are poured yearly into technology, interconnectivity and smart automation, and the arrival of Industry 4.0 is now reshaping the automotive industry.

In my opinion, the automotive industry is heading toward two main trends: the mainstream adoption of electric and autonomous mobility. These two trends will also trickle into the new mobility services like electric water shuttles or maybe even self-driving taxi drones.

For electrification to become ubiquitous, infrastructure to support the adoption of EVs is highly needed. The majority of EVs are currently considered luxury vehicles, above the desired price point for many, so to gain traction in this direction, the volume segment must catch up, and the desired price point for prospective customers must be considered. We should expect this to be resolved over the coming two to three years driven by improvements in batteries.

Also, the possibility of cars driving themselves is now becoming a reality thanks to cross-industry collaboration and technologies.

Another trend is the rise in e-commerce sales as customers are demanding more digitally enhanced experiences when they are researching, purchasing and operating a car.

Al Masaood Automobiles’ virtual, live and interactive sales platform enabled us to connect closely with our customers, selling more cars from digital leads than ever before. We have also launched cashless purchases at our Nissan showrooms in Abu Dhabi, where buyers can now make easy, seamless and convenient online payments using debit/ credit cards, payment gateway transactions and online bank transfers. Security being paramount, we launched high-level protocols and various encryption and data authentication mechanisms for safe payment processes.

How do you see the evolution of autonomous vehicles and the adoption of electric mobility in the region? The current focus on electric vehicles and zero emissions

Al Masaood Automobiles

CEO: Irfan Tansel

presents avenues to catalyse the targets previously set in the Paris Agreement.

Auto executives say more than half (52 percent) of U.S. car sales will be EVs by 2030, KPMG surveys show. The International Energy Agency predicts there will be around 145 million electric vehicles in use by the end of the decade. Nissan, our primary automotive partner, set a long-term vision, “Ambition 2030,” for empowering mobility and beyond, driving toward a cleaner, safer and more inclusive world. Nissan aims to accelerate the electrification of its vehicle lineup and rate of technology innovation with investments of 2 trillion yen ($13.8 billion) over the next five years. Nissan also aims to introduce 23 new electrified models, including 15 new EVs by fiscal year 2030 aiming for an electrification mix of more than 50 percent globally across the Nissan and INFINITI brands.

On the way to becoming mainstream, autonomous mobility has the potential to build the cities of the future, lowering carbon emissions and paving the way for more sustainable living.

I would also like to highlight that many auto brands have already adopted autonomous or semi-autonomous technologies in their vehicles, like the Advanced Driver Assistance Systems (ADAS). Nissan, for example, installed the ProPILOT system, premiered in the region on the 2021 Nissan Altima, and the all-new Nissan Pathfinder. ProPILOT combines Nissan’s intelligent cruise control system with steering assist technologies, making driving easy and stress-free by automatically maintaining a set distance from the car ahead. Nissan is aiming to expand its ProPILOT technology to over 2.5 million Nissan and INFINITI vehicles by 2026.

Having said you launched your Nissan e-commerce platform in 2019 and your virtual showroom experience in 2020, tell us more about the importance of omnichannel experience for customers.

Technologies, including Artificial Intelligence (AI) and Omnichannel platforms, will support and influence future mobility. We expect the selling of vehicles and delivery of services to be radically simplified. Most customers start their shopping journey online and expect continuity across channels. Omni-channel is the future of online sales.

Digitization has been a core component of Al Masaood Automobiles’ strategy. In 2019 we launched Nissan’s firstever e-commerce platform in the region, and in 2020 implemented Nissan’s global Shop@Home service that

provides customers a seamless experience.

Al Masaood Automobiles has also rolled out Nissan Service, a suite of products and services that present an innovative, seamless aftersales experience across online and offline channels. Nissan has also rolled out an innovative digital survey, designed to gauge customer fulfillment.

Our Al Masaood Auto App is also a solution that was launched to help customers manage service appointment bookings, track car servicing in real-time, seek road-side assistance, and view our new and certified pre-owned models, as well as a range of vehicle accessories and trade-ins.

And to help with real-time customer services, we launched a dedicated CX intelligence platform that also allows our team to get customers’ feedback on our services and experience in real-time.

We also introduced the Connected Live Interactive Xperience (CLIX), which is a virtual experience that allowed customers to enjoy a fully interactive live showroom experience from the comfort of their home.

In your opinion, will car usership (leasing) be dominant over ownership in the future?

A good number of industry experts believe that customers may drop the need to own a car and rely on shared mobility such as public transport, ride hailing, leasing and subscription models. This was already happening preCovid, however the onset of the pandemic has brought it to a halt. The trend nowadays is picking up again, as many users are enjoying the convenience of shared mobility. Also, dealerships will start downsizing physically and upgrading technologically. Their focus will change from attracting leads to offering meaningful customer experiences. Technology investments in fleet analytics is expected to rise, however, and these will also bring on prickly topics like user privacy and data protection.

Will the future of the dealership be affected by technology solutions?

Car dealerships are moving into the future of easy mobility services by focusing on digitizing their offerings such as touch screens for showcasing car models, as well as car configurators that give customers a full 360 view of their vehicles. Other retail experiences are being supplemented with pop-up stores and satellite service centers.

Contrary to what some people think, the dealership model is not dying, it’s only morphing into a new phase.

Porsche on track for leadership position in global EV market Community building around marque’s enthusiasts remains a priority

By: Alp Sarper

Porsche, one of the world’s most successful sports car manufacturers, heralded a new era with the successful initial public offering (IPO) on the Frankfurt Stock Exchange in late September 2022, in a €75 billion ($74 billion) listing.

The German car manufacturer wants to spend some of the proceeds developing electric cars (EVs), an area in which the business has pledged to become a global leader.

Economy Middle East discussed this and more with Dr. Manfred Bräunl, CEO Porsche Middle East & Africa FZE.

How important is electromobility for Porsche and where does it extend beyond EV cars?

The ambition of Porsche AG is for more than 80 percent of vehicles delivered to customers globally in 2030 to be all-electric. Our first all-electric vehicle, the Taycan four-door sports car, is already a success. The Taycan shows that we can produce electric vehicles that are also true Porsche sportscars.

How important is the region for Porsche?

This is a very important region for Porsche. A passion for the Porsche brand and its cars already exists here. At the same time, there are tremendous opportunities for growth in parts of this region as well.

How does Porsche help with EV infrastructure in the region?

Staff in our Porsche Centres are trained to ensure they can assist and inform owners on charging options at their homes, as well as charging options at dealerships and as part of public networks. This is an area where we will continue to focus in the future.

What does the customer community mean to Porsche?

The Porsche community is very important to us. There is a strong and vibrant Porsche community in the

Middle East. There are some amazing Porsche sports cars here, with many passionate owners and collectors. We are working to grow this passion for Porsche even further and to connect these likeminded Porsche fans and enthusiasts with events like our Icons of Porsche festival.

5What is the purpose behind Icons of Porsche?

Porsche sportscars, even those considered classic or special edition, are regularly driven and enjoyed by their owners. The idea behind Icons of Porsche is to give these cars a stage. It allows fans and the general public to see these amazing cars. It is also an opportunity for enthusiasts to come together and share their passion for the brand they love.

Last year’s inaugural Icons of Porsche festival attracted over 7,000 people. The event caters to car enthusiasts as well as families, tourists art lovers and luxury consumers. We have different areas offering art exhibitions, live performances, clothing, food and beverage options, and of course Porsche sports cars from the Porsche Museum in Germany and local cars from across the region.

This year’s festival will have a “safari” theme as we celebrate Porsche’s heritage and success in off-road and rallying. This links well with the adventurous nature of many car enthusiasts in the Middle East. We will also celebrate 20 Years of our Cayenne SUV and 70 Years of Porsche Clubs globally.

Porsche Middle East & Africa CEO: Manfred Bräunl

Thriving in the brave new world of retail

By: Aref Yehia, Head of Retail & E-Commerce Business Partnerships, TikTok MENA

As online shopping continues to gain significant traction globally and regionally - community commerce has emerged as one of the core trends underpinning this development. During cult shopping seasons such as Black Friday, community commerce can help millions of customers cut through the noise to discover the right products, aided by reviews and recommendations from trusted individuals.

However, community commerce – which we define as the digitalization of word-of-mouth marketing – isn’t just about making a quick sale. In an age when customers want simplicity, personalization and authenticity, it’s all about delivering experiences that combine an accelerated, seamless shopping experience with a community’s ‘intimacy’ at scale. Community commerce is therefore reshaping how people buy and sell, providing marketeers with new revenue streams through compelling content that just so happens to feature brands. As consumers continue to evolve past attention-based ad solutions designed to purely sell and interrupt, the real potential of community commerce remains largely untapped. In the Middle East and North Africa (MENA) region alone, the retail market is currently estimated to be worth $1 trillion – with digital platforms serving up to 40 percent of the total retail spend, according to MENA e-commerce platform Zbooni. While leading brands understand the critical importance of community commerce as part of their marketing mix, they may not yet fully realize the lucrative opportunity offered by this online revolution.

Reimagining the commerce experience

Indeed, the only constant in commerce is change, and businesses have dealt with more change in the last two years than in the previous two decades. The most impacted facet has been experience: there is no commerce without experience, because in essence, commerce is an exchange. It is the experience of that exchange that has fundamentally changed throughout the years.

We are embarking upon a new era of marketing, with a paradigm shift that has changed the way brands and consumers connect. The days of brands interrupting a user›s content experience with irrelevant messaging are almost behind us - consumers now need an experience that is interactional and collaborative.

The experience is truly being reimagined, evolving from buying and selling goods between businesses and consumers, into an exchange of knowledge, advice, and support. This encourages collaboration amongst communities for more authentic shopping experiences, subsequently resulting in higher rates of customer delight, which encourages users to joyfully share their discoveries

and perpetuate word of mouth.

Liberated from the shackles of traditional sales pitches, commerce is now gaining ground as an experience that entertains, enables and connects, and allows for product discovery at rapid speed.

Back to basics

In a cookie-less, Web 3.0 trust-deficit world, commerce will need to re-focus on bridging the gap of trust and connection using its core building block: interactions. What does this look like in practice? For starters, the moment of conversion should be built with joyful discovery in mind, underpinned by a wide gamut of creative communities. This approach stems from the knowledge that positive mindsets enhance shopping behaviors, helping to explain how users are regularly leading brands to sell out overnight.

An example of a regional brand that is tapping into community commerce is Ounass. By leveraging a combination of creator-led content and ad solutions on TikTok, the luxury online retailer successfully managed to own the luxury fashion marketing moment during Ramadan and achieved more than 52% audience penetration in Saudi Arabia.

A brave new world

Although there have never been as many opportunities in the commerce space as there are today, there also has never been as much competition. Navigating this ultracompetitive and almost saturated environment requires a profound understanding of the wants and needs of shoppers and the opportunities that will shape the future of commerce.

Businesses today have the opportunity to reinvigorate their digital shopping journey by bringing back the intimate and shared experience of commerce. Community commerce is the space where brands can shape this future – making every transaction joyful, trustworthy and personal, and taking commerce back to its interactional roots.

Aref Yehia

New destination AMAALA coming to life in the Kingdom

Progress updates on the ultra-luxury tourism destination AMAALA have been revealed this month spanning design and ongoing construction efforts. Led by The Red Sea Development Company (TRSDC), AMAALA is on track to welcome first guests in 2024.

Construction activity on site continues to ramp up, along with the required procurement efforts, including over 300 contracts signed to date, worth in excess of SAR 6.62 billion ($1.7bn). More than 98% of the total contract value has been awarded to Saudi firms, in line with the organizations commitment to strengthening the local economy. These include agreements for the design and build of state-of-the-art accommodation and facilities at the destination for future employees. An additional 6.1 billion riyals of contracts is currently out to tender, across 54 proposals.

AMAALA recently revealed design plans for its state-of-the-art marine life institute. Created by world-class architectural design firm Foster + Partners, it will function as both a scientific research center and a tourist destination.

It will accelerate conservation-driven research, while offering visitors truly multidimensional experiences that bridge educational exhibitions with adventure-filled excursions.

“We wanted to design a first-of-its-

kind facility that extends far beyond any existing marine life attraction. With 10 zones that provide everything from augmented reality experiences to night diving, and spaces for the scientific community to effectively progress their environmental projects, the marine life institute is undeniably unique. Not only will it drive global green and blue innovations, it will also help put Saudi Arabia on the map for travelers seeking trips that enrich their lives,” explained Group CEO, John Pagano.

“The institute will live in the Triple Bay marina at AMAALA, but is the beating heart of our broader ambitions to protect and enhance the thriving Red Sea coast of Saudi Arabia. Through our expanding portfolio of projects, we will share our valuable scientific discoveries with the world and enable our guests to experience the true beauty of our thriving coral reefs.”

Expected to host up to 650 people at any one time, guests will be able to walk underwater, snorkel with rare species, participate in lab tours and dive the depths of the Red Sea in a submarine. A testament to TRSDC›s coral farming operations, the facility will also be home to one of the world’s largest manmade reefs, measuring an astonishing 40 meters long and 10 meters deep and providing an epic “Grand Reveal” moment for visitors on arrival.

Located on the waterfront of Triple

Bay, the 10,340 square meter institute will comprise three levels – one above ground and two below – and offer stunning panoramic views of the Red Sea and the marina.

Inspired by the Red Sea›s thriving coral formations, the glass-reinforced concrete that is being used to build the institute will be intricately molded to resemble reef patterns against the skyline. Inside, exhibition displays have also been integrated into the infrastructure, with visitors flanked by suspended semi-spherical tanks containing colorful local marine wildlife from the point of entry.

More than 40 percent of the site will be covered by native plants, and a system to collect runoff water put in place to prevent erosion and pollution, while reducing mains water use.

Meanwhile, lighting throughout the institute has also been designed with the company’s green ambitions in mind, with an innovative framework to prevent light pollution to protect the nocturnal environment.

Site preparation works have already commenced with bulk earthworks now complete and 170,000 cubic meters of soil transported. Piling and shoring efforts are underway, plus the excavation of 12m below the surface water level for the institute’s Grand Reveal aquarium.