Technological Innovation in Israel

Technological Innovation in Israel

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Technological innovation in Israel

Key trends and developments driving an increasing number of foreign businesses and investors into the region.

Authored by David Osborne and Barak S. Platt of Yigal Arnon & Co

The publication of Start-up Nation: The Story of Israel’s Economic Miracle by Saul Singer and Dan Senor in 2009 called the world’s attention to what many multinational technology companies and overseas venture capital (VC) funds already knew ‘ that many of the world’s most cutting-edge technological innovations were being developed in Israel. These innovations have led VC funds from Silicon Valley, London and Hong Kong to make regular visits to Israel and have resulted in a number of global VC funds opening offices in the region. They have brought Israel to the attention of leading global technology companies such as Apple, Google, Facebook, Intel, Amazon and eBay, each of which has enriched its existing products by acquiring Israeli technology companies.

Well before Israel came to be identified as the ‘start-up nation,’ its harsh desert climate and scientific prowess combined to make it a recognised international leader in agricultural technology. Israeli companies created drip and micro-irrigation, biological pest control, as well as solutions for water conservation, over-fishing and produce storage. More recently, large reserves of natural gas were discovered off the coast of Israel, making it likely the country will become an exporter of natural gas to neighbours such as Jordan, Egypt and Turkey. The Israeli government is committed to encouraging business activities by giving tax breaks and grants for investments to entrepreneurs who wish to expand their businesses, especially in development areas.

Each of these sectors has continued to grow in 2017. The technology sector saw the largest transaction in Israeli history with Intel’s US$15.3 billion acquisition of Mobileye, a Jerusalem-based leader in autonomous vehicle technology.

In 2016, US$4.8 billion was invested in Israeli start-up companies. A significant percentage of this came from Chinese investors. Delegations of executives from China interested in investment opportunities in Israel have become commonplace. Chinese companies have also been acquiring controlling stakes in Israeli companies. In one example, ChemChina acquired 100% control in Adama, the global agricultural chemical company. Subsequently, Adama entered into a reverse merger with a local Chinese company, which resulted in it being traded on the Shenzhen Stock Exchange.

In agricultural technology, Mexichem acquired 80% of Israel’s drip irrigation company Netafim for US$1.5 billion.

In May 2016, after a number of legal setbacks, the Israeli government approved a Natural Gas Framework, which has led to renewed development of Israel’s natural gas resources and has revitalised the industry. Following the Petroleum Commission’s approval, the partners in the Leviathan natural gas field approved a development plan that aims to reach first gas by the end of 2019. The first phase of this plan represented the largest energy project in Israel’s history with a US$3.75 billion investment. Concurrently, each of the Leviathan partners raised external financing, including the reported US$400 million financing to Ratio Oil Exploration and the US$1.75 billion financing to the Delek Group, constituting the largest project financing ever held in Israel for a project in the development stage.

In November 2016, a tender for oil and gas exploration in Israel’s offshore exclusive economic zone was published. This, together with the sale of existing gas fields, may spur new development and potential exploration together and lead to a new dawn for the expanding Israeli natural gas sector.

Shari Arison, who holds a controlling interest in Bank Hapoalim Ltd., Israel’s second-largest bank, has signed a memorandum of understanding with certain North American investment firms and institutional investors to sell 49% of her shares in Arison Holdings, the controlling shareholder of Bank Hapoalim. Should this transaction be consummated, not only would it represent one of the largest in the history of Israel’s financial sector, it is hoped it will contribute to an increase in competition in the local banking environment.

OurCrowd, led by Jon Medved, has introduced an equity crowdfunding platform that allows accredited investors to invest in the Israeli start-up market. This has opened the potential for foreign investment in early-stage Israeli companies.

On the regulatory front, there have been a number of recent reforms designed to make Israel more attractive to foreign businesses. The Israeli Tax Authority (the ITA) has lowered corporate income tax rates on income based on intellectual property and on capital gains from the future sale of IP for qualifying corporations. In addition, the ITA published circulars designed to eliminate uncertainty regarding several standard provisions commonly applicable to start-up companies. In one circular, the ITA clarified provisions related to consideration paid in ‘holdback’ arrangements in merger and acquisition (M&A) transactions – i.e., in which a founder or key employee holding shares in the target company will only receive a portion of the compensation for selling such shares if he or she remains employed by the target company or the acquirer following the closing of the transaction. In another circular, the ITA clarified provisions related to shares subject to “reverse vesting” mechanisms ‘ i.e., in which a shareholder is required to forfeit a portion of his or her shares if he or she ceases to be employed by the company. These circulars helped to provide a level of certainty to buyers and shareholders of Israeli companies as well as to potential investors in the market.

In general, the Israeli economy operates autonomously and has not suffered from the world economic dips, such as those of 2008-2009. There remains a strong culture among Israelis of discovery and invention, with Israel being a major hub for start-ups and technological developments. This culture of innovation, along with M&A exits occurring on an ongoing basis, has generated considerable revenue for the local economy. After picking up to 4% in 2016, growth is projected to stabilize around 3.25% in 2017-2018. Finally, as a consequence of the foreign investment in Israel, the shekel has remained a strong currency when measured against all the leading world currencies.

Even with the regional geopolitical challenges, the Israeli economy has been identified as one of the healthiest and most stable in the world, and this is expected to continue in 2018 as strong developments seen in recent years continue to advance. In the promising field of autonomous vehicles, companies will continue to grow and there are likely to be more acquisitions in the field. In addition, Israeli companies will begin listing on foreign stock exchanges (Canada, Australia and Hong Kong) with more frequency ‘ such as the recent first IPO of an Israeli company on the Hong Kong Stock Exchange. Furthermore, the strong M&A activity in Israel, especially in the high-tech field, will remain robust and will continue to draw in major global companies, as well as foreign investors ‘especially from China ‘ that will continue to explore what this great start-up nation has to offer.

Increased Salesforce Adoption in Middle East Drives Triple Digit Growth for 4C

Increased Salesforce Adoption in Middle East Drives Triple Digit Growth for 4C

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Increased Salesforce Adoption in Middle East Drives Triple Digit Growth for 4C

Dubai-based cloud-CRM implementation company is now set to further expand its workforce and introduce new configure, price and quote (CPQ) service to cater to regional demand.

Cloud computing in the Middle East is rapidly evolving from a buzzword to an industry-wide trend with large scale implementations by regional enterprises, particularly in the Software-as-a-Service (SaaS) segment. As a case in point, 4C, one of the leading CRM software implementation companies in Dubai, today announced another year of triple digit growth in the region, driven by increased market confidence, and demand for cost-effective solutions that drive digital transformation. The company, which doubled its office space in the Middle East last year, also tripled its workforce following the successful addition of more than 30 new customer accounts in the same period.

Jake Callaway, Managing Director, MENA at 4C explained, ‘Initial reluctance to trusting vital business processes to third-party providers has faded as businesses have realised the cloud is the fundamental enabler of digital transformation. 4C strategically timed its entry in to the region and the investments we have made over the last two years now place us in a strong position to capitalize on this change in mindset.’

4C is EMEA’s largest independent Salesforce Platinum partner and sees the cloud-based CRM system as a robust and versatile platform to match the technological ambitions of digitally-driven businesses.

‘Salesforce is the global CRM leader with a powerful solution that spans all verticals and caters to the needs of organizations of all sizes. Last year, our Dubai based consultants achieved nineteen Salesforce certifications, with this expertise – and as a premium implementation partner – customers who work with 4C, have the ability to unlock the full potential of the Salesforce platform’ he added.

The company has been recognized as the number one Configure, Price and Quote (CPQ) partner in EMEA and number two globally and is working to introduce a local CPQ practice to meet the demand from Middle East businesses for quote-to-cash billing services.

In 2017, 4C signed its largest deal in the Middle East for the design and execution of the digital transformation strategy for a top UAE-based life insurance company. Other prominent customers in 4C’s portfolio include Biz Group and AESSEAL, as well as industry leaders in the real estate, manufacturing and finance sectors.

Outlining his company’s strategy for the year ahead, Jake Callaway said, ‘We are focused on maintaining this momentum and have ambitious plans for the region in 2018. This includes expanding our Commercial and Professional Services departments to accommodate the growing demand for our services. We will continue to actively drive awareness around Software-as-a-Service and CRM through conferences, drop-in clinics, webinars and whitepapers.’

Five Steps for Re-tooling Your Organisation with Machine Learning

Five Steps for Re-tooling Your Organisation with Machine Learning

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Five Steps for Re-tooling Your Organisation with Machine Learning

Despite investing in machine learning, a new survey from ServiceNow indicates that most CIOs do not have the talent, data quality and budgets to fully leverage the technology. Allan Leinwand, Chief Technology Officer, ServiceNow, provides an overview on the five steps that Middle East organisations can take to maximize the value of their machine learning investments.

Let say you decide to build a new house. Not only do you have to buy the materials, but you also have to hire the skilled talent who can get the job done. That is a lesson many CIOs in the Middle East are learning about their plans to implement machine learning technologies that are able to analyse and improve performance without direct human intervention. Despite investing in machine learning, a new survey from ServiceNow indicates that most CIOs do not have the talent, data quality and budgets to fully leverage the technology. If your organisation is embarking on the machine learning journey (and it should be), there are five steps CIOs must take to maximize the value of their investment.

Take these steps today, because the long-awaited Age of Machine Learning may be upon us soon. Computer science has caught up to the hype around machines that emulate human intelligence. Now, the technology occupies the peak position of Gartner’s Hype Cycle for Emerging Technologies, indicating that it has matured enough to spur wide interest. In other words, your competitors are also investing in machine learning.

Five hundred CIOs were recently polled for the annual Global CIO Point of View Survey, and the findings reveal that businesses are preparing for the widespread adoption of this transformational technology to automate decision making. Nearly 90% are using machine learning in some capacity, and most are still developing strategies or piloting the technology. However, the full potential of machine learning remains largely unrealised. For most organisations, many decisions still require human input. Only 8% of respondents say their use of machine learning is substantially or highly developed, as opposed to 35% for the internet of things or 65% for analytics.

Designing an organisational structure to support data and analytics activities, an effective technology infrastructure and ensuring senior management is involved are the three most significant challenges to attaining data and analytics objectives related to machine learning, according to a McKinsey study. It goes on to claim that organisations that can harness these capabilities effectively will be able to create significant value and differentiate themselves, while others will find themselves increasingly at a disadvantage.

Capturing greater value requires regional organisations to invest in more than just technology. It is also necessary to make significant organisational and process changes, including approaches to talent, IT management and risk management. Making progress requires following five steps:

Improve Data Quality

Ensuring the quality of data is a common obstacle to machine learning adoption. Poor data leads to machines making poor decisions, which can lead to increased risk. CIOs need to consider implementing solutions that simplify data maintenance in order to accelerate the transition to machine learning. The first step should be to consolidate redundant legacy and on-premise IT tools into a single data model.

Establish Value Realisation

Articulate the business value of all technology goals, then determine how best to reach those goals. This includes examining existing processes to identify which unstructured work patterns will benefit most from automation. Determining where fragmented data ‘lives’ will enable you to identify how automation will lead to gains in productivity.

Create the Best Possible Customer Experience

Using machine learning for automation will boost operational efficiency, but do not overlook the ROI of accelerating decision making (without sacrificing accuracy) to improve the customer experience. Start by envisioning the customer experience you want to create, then prioritise investment against those elements of business processes that could most improve the customer experience. Machine learning allows organisations to personalise advertisements, call-centre interactions and even products and services for individual customers’and to predict what they want next.

Set and Measure Metrics

CIOs understand the value that machine learning offers, but the other members of the senior executive team and board may not. CIOs must therefore set expectations, develop metrics of success before beginning the implementation process and prepare a solid business case to present to the leadership team when requesting the necessary funding. Metrics will need to change as you adopt machine learning capabilities and reap the benefits of intelligent automation.

Understand the Effect on Corporate Culture

How employees’ roles will change as the organisation introduces machine learning requires CIOs to adjust their hiring and training processes. This should not be too difficult, as it requires the same skill sets needed for the cloud era, such as data science, engineering, math and critical thinking. This transformation will likely be uncomfortable for some employees, so be sure to communicate the value machine learning will bring to their day-to-day work. The machines are not taking over the enterprise’they will alleviate employees of tedious manual processes and free them up to focus on more strategic projects.

It’s also important to understand that CIOs are not immune to that uncomfortable feeling. Their roles must evolve as well from being responsible for keeping the lights on when it comes to operational matters to an executive who has a much broader engagement across the business and, therefore, a new level of strategic importance.

Realising a return on machine learning investments requires planning and disciplined follow-through’all while adjusting employees to how rapid and ongoing technology changes will affect their day-to-day work. Following the five steps described above will ease that transition for Middle East organisations.

residential hotspots for investment in London

residential hotspots for investment in London

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Innovative new research from Cluttons identifies upcoming residential hotspots for investment in London

With London retaining its position as the most attractive international investment destination for Middle East investors, Cluttons’ latest research report has identified East Dulwich, Greenwich, Canada Water, Maida Vale and Hammersmith as upcoming residential hotspots, likely to offer the highest rental returns for prospective investors.

Conducted in partnership with the Consumer Data Research Centre and University College London, Cluttons’ unique research, ‘Residential Mobility in London: Unlocking Migration Patterns’, has been carried out using spatial interaction modelling. It examines flows of people over time and gives a novel insight into the push and pull factors of London’s various residential areas, highlighting the factors that most influence the attractiveness of an area to residents and, in turn, investors.

Commenting on the findings of the research, Faisal Durrani, Partner and Head of Research at Cluttons said, ‘The top five hotspots identified are most likely to attract investments and residential migrants, not least due to their relative affordability, compared to prime Central London locations. The desirability of Maida Vale, in particular, as a location for habitation appears to have spiked in recent years due to its perceived value for money, when compared to nearby Marylebone, or Hyde Park, where average prices have risen by 180% in the last 20 years to hover at roughly $3.1 million today.’

The strength of the US dollar, to which a range of Gulf currencies have historically retained a fixed peg, has positively positioned property assets in London, creating a strong appetite for a London-based investment. ‘London remains the most preferred location for investment amongst Middle East Family offices owing to factors like close trading links that date back to the 1800’s, around 39 direct daily flights from the Gulf, and a 175% rise in capital value in the last 20 years. For Middle East investors, the circa 15% to 18% decline in the value of sterling since just before the Brexit referendum has aided London’s appeal. This trend is likely to continue into 2018,’ explained Durrani.

The report also discusses the decisions taken by many Londoners, who forego home ownership, albeit temporarily, in order to access a certain lifestyle, or to achieve what is perceived to be an optimal commute. ‘This trend contributes to increasing the population density in many prime Central London locations where accessibility levels are high due to the high concentration of Tube stops, adding to the opportunities for strong rental returns,’ added Durrani.

To find out more about investment prospects in London, please visit this link:

http://www.cluttons.com

Virtual leadership training is as impactful as face-to face learning

Virtual leadership training is as impactful as face-to face learning

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Dubai, United Arab Emirates – Given the growth in reliance on virtual collaboration and the development of new technologies facilitating online engagement, working virtually is becoming increasingly common in many organizations. This is also reflected in the increasing use of virtual learning technologies which help companies to save on the cost of employee travel and accommodation for training at a physical location, and reduces the number of days required away from the office. Ashridge Executive Education, a leader in developing Middle East business executives, recently conducted research into the effectiveness of virtual learning to address the pertinent question in today’s digitalised world – whether business leaders can develop competencies, resilience and resourcefulness to face leadership challenges through online learning.

The research involved 37 executives who participated in an Ashridge program called ‘Leading on the Edge’. The program was delivered by the same three members of faculty utilizing three different learning environments- Face to Face (F2F), Blended (a combination of face to face and online learning) and Virtual experiential. The F2F two-day program was residential, the Blended two-day program was conducted virtually and one residentially, and the Virtual two-day program was fully virtual and participants were either at their own home or in their office. 

The behavioral simulation which formed the basis of the three programs consisted of a simulated exercise where participants ran a company of the future, during which time they had to deal with critical incidents typical of leadership challenges, including dealing with complexity and effective decision making, leading rapid change and ambiguity, difficult conversations, balancing strategic and operational challenges, and board presentations. Everyone was asked to wear a Heart Rate Variance (HRV) monitor so that faculty could track their response when faced with stressful situations. Increased HRV is related to improved learning experience. 

The research results were shared by Sona Sherratt, senior faculty member at Ashridge and one of the authors of the report, at a showcase event in the Hult campus in Dubai following roadshows in London and other European cities. The event in Dubai was attended by senior leaders from regional companies.

In summary, the results show that virtual learning is equivalent to face to face delivery when developing leaders, if designed and delivered effectively. For instance, when it comes to responding to ambiguous circumstances, 85% of F2F participants showed confidence, the percentage was 100% for those in the Blended program and 85% for those participating virtually. In tackling a difficult conversation, 85% of F2F participants showed confidence, while this was 80% for Blended and 100% for Virtual. 

When faced with difficult situations, a higher HRV was recorded in participants of all the three types of learning experience, indicating a higher level of arousal, which translated into higher impact and residual learning outcomes. What was critical to the impact, however, was that the learning methodologies used involved opportunities for experience, for interaction, and for feedback.

According to Sona: ‘There is an increasing use of virtual technologies to deliver distance learning, virtual learning and eLearning in academia and among learning and development professionals. Learning methodologies employed in different environments involve opportunities for experience, for interaction, and for feedback. Adhering to the principles, virtual experiential learning holds enormous promise for a scalable, practical solution to developing leaders in our global, digital environment.’  

BNC Launches AIR App

BNC Launches AIR App

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Capturing and analyzing Big Data, the BNC AIR App is set to revolutionize the way consultants, project managers, contractors, sub-contractors and suppliers collaborate on construction projects in future

 News Announcements

1. BNC AIR App is set to change the construction industry in the GCC region by providing construction intelligence involving 25,324 live projects worth $7.2 trillion (Dh26.4 trillion) and offering them on an user-friendly application for tracking.

2. The powerful application with construction intelligence will empower project managers and help them remain well informed.

3. AIR App will help subscribers to monitor the GCC construction projects and benefit from the growing opportunities.

19 June 2017

Capturing and analyzing Big Data, the BNC AIR App is set to revolutionize the way consultants, project managers, contractors, sub-contractors and suppliers collaborate on construction projects in future 

News Announcements

1. BNC AIR App is set to change the construction industry in the GCC region by providing construction intelligence involving 25,324 live projects worth $7.2 trillion (Dh26.4 trillion) and offering them on an user-friendly application for tracking.

2. The powerful application with construction intelligence will empower project managers and help them remain well informed.

3. AIR App will help subscribers to monitor the GCC construction projects and benefit from the growing opportunities.

Dubai, UAE – BNC Network, the largest and most comprehensive construction research and intelligence provider in the Middle East and North Africa (MENA) region, has launched AIR App, a revolutionary construction project-tracking and project-collaboration software that helps construction professionals to track projects, prepare for bids and collaborate through a smartphone application ‘ all while on the move.

The AIR App captures the big data and analyses them to offer a clear picture of each construction sector. The subscription-based smartphone application enables the consultants, engineers, construction professionals, contractors, sub-contractors and suppliers to monitor current and future tenders and new projects and helps increase sales with a stream of project leads.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, said, ‘Our aim is not to have the most data, but to unleash the greatest value from data, creating new opportunities and improved experiences for all.’

BNC AIR App is a step in this direction, bringing all the construction projects and development works under a big data analytics that helps the construction industry fraternity to make informed and intelligent decision.

AIR stands for Analytics, Interact and Research. The Analytics section provides construction reports. Interact is a sales management software and the Research module provides construction project data and associated company details.

‘The AIR App is a game changer as it provides unprecedented efficiency and transparency within the construction industry. It puts the power of an entire sales office in the palm of your hand,’ Avin Gidwani, Chief Executive Officer of BNC Network, says.

‘The AIR App makes life infinitely easier for sales professionals by providing construction intelligence anywhere on the go. They can generate leads, track projects and even share project specific interactions with each other through the AIR App.’

About BNC
BNC, the largest project intelligence provider in the MENA region, tracks 25,324 live construction projects with a value exceeding $7.2 trillion (Dh26.4 trillion). It publishes more than 250 project updates that are distributed amongst 73,000 executives and professionals every day.

It is used by thousands of business leaders and construction industry professionals around the world to track developments, gain insight on projects and do business in the construction industry. BNC covers construction projects, across all sectors including urban construction, mega developments, transportation, utilities, industrial developments and oil and gas and publishes over 2,000 construction analytics annually based on extensive research and analysis.

Sharjah ramadan majlis debates the rising power of social media

Sharjah ramadan majlis debates the rising power of social media

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SHARJAH/Sharjah Government Media Bureau, June 12, 2017 ‘ Top Arab social media celebrities and influencers last night (Sunday, June 11) turned the spotlight on the growing power of social media, debating its immense potential, both positive and negative, vis-‘-vis traditional media. 

Speaking during the fifth session of the popular Sharjah Ramadan Majlis at Al Majaz Amphitheatre, Mahira Abdel Aziz, Al Arabiya TV news anchor and celebrity, argued that while social media are fast emerging as a popular platform, it would be wrong to compare it to the traditional media.  

‘Traditional media has an advantage over the new media or social media as it enjoys credibility. What appears on television or in a newspaper is viewed with greater seriousness and credibility. This is why even social media celebrities are always looking for coverage by traditional media. MBC TV is an example of this reality,’ she asserted.  

‘Social media may be a growing phenomenon but traditional media still matters. Social media certainly offers greater freedom but traditional media demands serious commitment and professionalism,’ emphasised the anchor.    

Power of Social Media 

Mohammed Hilal, eminent Emirati businessman and CEO of Mohammed Hilal Group, however, disagreed with her saying social media is the present and future of the media.  ‘What happens in 30 seconds (over social media) has changed the experience of 40 years of traditional media,’ he declared. 

Hilal argued that social media has a huge role to play in areas like marketing, sales and development.  ‘Social media stars have been doing a great job of promoting various products and lifestyle across the region.  We must give due credit to social media stars for this,’ he added. 

He said that both social media and traditional media have their roles defined and there is no need to run down each other.  Thanks to social media, companies like his have been able to promote their business successfully and effectively, he added. 

Positive Role Models

Faisal Albasri, popular Kuwaiti media personality, while acknowledging the potential of social media, called for celebrities to be careful about the kind of products they endorse.  ‘If we promote a bad or corrupt product, we set a bad example and are responsible for its ill effects,’ he said. 

While asking social media celebrities, who have tens of thousands of followers across the Arab world to be good role models, he said ultimately it is the responsibility of parents to groom their children and set a good example. 

Pointing out that social media channels are public spaces, he called for everyone including celebrities to behave. ‘Just remember Allah is watching you, and not just your followers,’ he asserted.

Esraa Al Hajri, social media celebrity and fashion icon, said that it is wrong to describe people like her as ‘fashionistas.’  ‘I like fashion and follow fashion.  However, there is more to me than mere fashion.  I am a blogger and have my own successful business, besides endorsing certain products,’ she emphasised. For example, she added, during the holy month of Ramadan, I take part in lot of charity activities.  Social responsibility is also another duty of a celebrity. 

Al Hajri argued that money being paid to social media celebrities to endorse lifestyle products is well invested and spent as these endorsements encourage thousands of people to buy those products. 

Rejecting the criticism of social media phenomenon as being unhealthy, she said society does not accept anything new.  ‘At the end of the day, social media engagement is a hobby.  Some people take it too seriously,’ she added. 

The debate was moderated by Hamad Al Ali, media personality and chairman and CEO of Al Ali Group.  HE Sheikh Sultan bin Ahmed Al Qasimi, Chairman of Sharjah Media Council presided over the session, which was attended by a number of senior officials, social media stars and critics.

Social media are immensely popular across the Arab world with the majority of the population, especially young people, spending a great deal of their time engaged with them.

The Sharjah Ramadan Majlis is hosted every year as part of the Emirate’s efforts to promote a culture of tolerance, dialogue and understanding.  The Ramadan Majlis sessions will continue twice a week until June 14 at Al Majaz Amphitheatre after taraweeh prayers. 

Middle East Digital Transformation on Rapid Pace

Middle East Digital Transformation on Rapid Pace

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Middle East Digital Transformation on Rapid Pace

The Middle East’s digital industry is currently enjoying continuous growth fuelled by increased enthusiasm from consumers who are ready to quickly embrace new digital offerings, thus transforming the region into a potential digital hub.

By 2025, the Middle East is estimated to have 160 million potential digital users that will largely contribute to rapid economic growth as more countries in the region with higher GDP are able to spend more on digital adoption.

Andrej Vckovski, CEO of Netcetera, a Swiss-based software company specialized in software products and custom solutions, said that the readiness of the UAE population to adopt new technology and the capacity of government leaders and organisations to spend on technology will position the Middle East into a rapid digital transformation.

A recent report published by the Global Manufacturing and Industrialisation Summit (GMIS) and conducted by PwC noted that digital transformation could generate US$16.9 billion in extra revenue each year for companies in the Middle East from 2017 to 2021, as well as a further US$17.3 billion in annual cost savings and efficiency gains.

‘The last decade saw the accelerated pace of technology in the region. The business environment and steady growth of the UAE economy were perfect for Netcetera to establish presence in the region and it has been a very good business decision. After an initial phase driven mainly by technology, with our clear industry focus we have established a strong position also in the vertical markets. Today, our strong industry-knowledge is combined with our ability to successfully master technical challenges in the digital age,’ added Vckovski. 

Netcetera was established in Switzerland in 1996 and expanded into the Middle East in 2006 after seeing the high level of digitization in the region. As expert for payment security and convenience, future mobility and digitalization, the company’s solid base of customers include the banking, healthcare, transport, media, insurance and the energy industry.

The company excels at providing custom solutions for large-scale projects. The team oversees the entire life cycle of a company’s IT system: from strategy to software development and operation. ‘Inquisitiveness and curiosity that go far beyond the IT department are hallmarks of our employees. This makes it easy for them to be up to date, genuinely understand clients’ needs and efficiently translate them into forward-looking, useful applications,’ said Vckovski. 

‘Through thorough planning, we ensure that the solution is perfectly suited to the business environment and forms a solid foundation for future needs. Further, we take on project risks via fix price models or agree on individual financing models together with our customers. We offer cost flexibility also with our established nearshore development model,’ explained Vckovski.

A pioneer in digital transformation, Netcetera’s unique mix of Swiss engineering quality and knowledge of the local market contributed to the success of the company which is now planning to expand in other region. ‘The experience Netcetera gained in the Middle East helped us grow in the other regions and advance the company in a way that would not have been possible without it. We are proud that we gained the trust of our customers and established ourselves as relevant partners in the respective markets.’

Netcetera is proud to offer a wide range of digital solutions, for example the timetable planning software for SBB, the first mobile payment app, the trouble management system ESISplus for ewz, the live voting tool DirectPoll, or the e-wallet Tellwa. Visit Netcetera’s website at netcetera.com to learn about its products and services.

Cyber Security

Cyber Security, Virtual Reality and Machine Learning

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Cyber security, virtual reality and machine learning are at the centre of a series of ground-breaking research projects being delivered over the coming year by experts from TRL (the Transport Research Laboratory) ‘ the global centre for innovation in transport and mobility.

The critical topics have been identified as key areas that will inform and evolve the ever-changing global transport landscape, with further projects developing the research around areas such as truck platooning, data science, mental health, smart infrastructure, head injuries and driving simulation. 

Funding for the projects is one part of the annual investment made by TRL in innovative research and development and is supported by parent company, the Transport Research Foundation, a non-profit distributing organisation. The programme of ten innovative projects was devised by the TRL Academy in response to the challenges facing future transport and further supports TRL’s independence and impartiality. 

Professor Nick Reed, TRL Academy Director, comments: ‘It is an absolute honour to be part of a process which helps to drive the future of transport. Choosing the projects that will go on to shape policy, design and technological development is always a challenge but we apply key criteria around ensuring the research is relevant, disruptive and deliverable. More than that, it is about providing the TRL team with the opportunity to follow their ideas ‘ no matter how left field ‘ in a structured and strategic way.

‘I continue to be impressed by the ingenuity and vision of my colleagues as they advance projects beyond the theoretical and deliver practical, evidence-based knowledge which can be applied to solve complex transport challenges. With an overall goal to produce a transport system that is safe, clean, affordable, accessible and efficient, it is a real privilege to be at the forefront of such innovative research.’ 

An overview of the TRL Academy’s reinvestment projects in 2015/16, as well as a glimpse of what is to come in 2016/17, has been released in the TRL Quarterly Research Review (July to September 2016). Summarising the brief for each of this year’s research topics, the document outlines the key research aims and intended applications for each project. The review offers a rare glimpse into some of TRL’s more secretive research in delivering the future of transport.

The report also details the practical outcomes and next steps from six key projects from the previous 12 months, including a smart asset management technology review, data applying science to develop a route risk tool and the environmental impact of fuel cell electric vehicles. Other projects include developing a cellular automata model for modelling bicycle traffic, investigation fast response NO2 sensor testing equipment and 3D capture and visualisation.

Huawei Sees 5G as the Road to Connectivity

Huawei Sees 5G as the Road to Connectivity

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Huawei, a leading global information and communications technology (ICT) solutions provider, shared its vision for a future of connected possibilities that will be made real with the advent of 5G technology during the GSMA Mobile 360-Middle East Conference, which was held on the sidelines of GITEX 2016.

Addressing an audience of regional ICT professionals at the event, Huawei’s President of Wireless Marketing Operations for Wireless Network Product Line, Qiu Heng, highlighted a future where the impact of 5G will extend beyond the traditional ICT industry to touch on every aspect of modern life as we know it, with everything mobile and everything connected.

£5G is being developed at just the right time, when the world is demanding better, faster, higher capacity connectivity to accommodate the explosion of connected devices that are poised to help us power everything from autonomous cars and industrial facilities, to enabling connected education, healthcare and smart cities. This demand is driving real innovation in the telecoms space and has led to a collaborative approach by global players to define a new global network technology led by 4 key success factors ‘ unified standards, spectrum availability on a global level, key technologies development and global collaboration,’ said Heng. 

‘The development of 5G will enable a host of advanced and new technologies to become a part of everyday life,’ Heng added. ‘With speeds of up to 10Gbps, Enhanced Mobile Broadband (eMBB) will affect every aspect of modern day life, from augmented and virtual reality to self-driving vehicles, from smart homes and buildings, to mission critical applications and smart city technologies.’

Heng stressed the importance of adding more connections and enabling digital transformation prior to the introduction of 5G. 

Huawei continues to work closely with various operators across the region, in an effort to drive 5G development forward in the Middle East.

In May, Huawei was named the ‘Best 5G Innovator in MENA’ at inaugural LTE & 5G MENA Awards in Dubai.  Huawei also received the ‘Biggest Contribution to 5G Development’ at the 5G World Summit last year, for its role in leading research and development around fifth generation networks.

Mobile 360 ‘ Middle East is designed to cover the latest innovations developing in the region and outlines specific topics such as 5G, connected living, identity, IoT, privacy and security. The two-day conference features thought leaders from across the region and representatives from the largest MNOs, the most exciting technology suppliers and industry movers and shakers.

Electronics Market to Grow at 4.7% by 2020

Electronics Market to Grow at 4.7% by 2020

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Dubai, UAE: A recent Dubai Chamber of Commerce and Industry analysis, released on the occasion of its participation in GITEX Technology Week 2016 predicted that the Dubai consumer electronics market size is forecast to grow at 4.7% over the next 4 years to exceed $3bn by 2020. 

According to the analysis based on latest UAE retail sales data from Euromonitor, the portable consumer electronics sub-category is expected to keep its lead with a 2020 sales forecast of $1.27bn.

Also, the computers and peripherals sub-category is forecast to retain its size at $937m, whereas in-home consumer electronics are expected to gain some traction to reach $900m; while no growth will take place under in-car entertainment sub-category with a sales forecast of $23m. 

The analysis highlights Dubai’s retail sales activity which continued to show growth despite mounting pressure from low oil prices and rising global economic uncertainties. Such resilience is attributed to solid fundamentals that include rising population and incomes together with a steady influx of tourists to the emirate.

In terms of future growth, in-home consumer electronics is forecast to lead the 4 sub-categories with a Compound Annual Growth Rate CAGR of 7.6% between 2015 and 2020, portable consumer electronics is forecast to follow with a CAGR of 6.4%.

Growth is set to cool off in the computer and peripherals sub-category with a forecast CAGR of 0.9%; while in-car entertainment is only expected to retain its size with a CAGR of 0.7% over the forecast period.

Market size

The analysis’ estimate of Dubai’s consumer electronics market size during 2015 stands at $2.4bn after effectively expanding at a CAGR of 8.9% over the past 5 years.

Total sales for the category stem from portable consumer electronics ($930m), computers and peripherals ($902m), in-home consumer electronics ($621m) and in-car entertainment ($22m).

In terms of growth, in-home consumer electronics have led the 4 sub-categories with a CAGR of 17% between 2010 and 2015, computers and peripherals followed with a CAGR of 6.9%, while portable personal electronics came in 3rd after growing at a CAGR of 6.8%.

In-car entertainment did not do as good, as it saw its size shrink at a CAGR of -3.5% over the same period.

Recent developments

Market observers indicate that the main trend seen last year in consumer electronics sales is the gradual move towards more compact and multifunctional devices, especially those that offer internet connectivity, with consumers’ lifestyles becoming increasingly highly mobile and fast paced.

As a result, items such as tablets and smartphones are enjoying solid growth in sales. However, the increasing quality, processing power, and range of applications offered by these devices are taking market share from many other items, such as digital cameras, portable mp3 players, DVD players, laptops and desktops.

Dubai’s electronics and appliance specialist retailers continue to be the leading channel in consumer electronics due to their advantage in having a wide product selection and price range, as well as offering expert advice and tailored recommendations.

It is worth noting that the number of electronics and appliance specialist retailer outlets is strongly linked with the opening of new malls and shopping centres. Moreover, hypermarkets are also showing strength, with leading chains such as Carrefour and Lulu Hypermarkets competing to offer wide product ranges at very reasonable prices. 

The strong presence if shopping-malls in the emirate has limited the size of internet retailing channel. However, store based electronics retailers are realizing that having a complimentary internet retailing site is becoming increasingly important to driving sales of consumer electronics in their stores, with many consumers checking prices and models online before or during shopping trips.

Dubai’s young population is interested in technological developments and keep up to date with the latest innovations. In addition, many consumers see electronic gadgets such as smartphones, tablets and smart watches as status symbols.

Another sub-category, the home audio and cinema has benefited greatly from the residents’ frequent purchases and product upgrades as it saw its sales volume rise by 16% last year, despite the high price tags. A similar growth rate is seen in sales of ‘Smart TVs’, which kept gaining popularity at the expense of -28% decline in demand for conventional TVs.