Space cooling and heating is a common need in most inhabited areas. In Europe, the energy consumed for air conditioning is rising, and the situation could get worse in the near future due to the temperature increase in different regions worldwide. The increasing cooling need in buildings especially during the summer season is satisfied by the popular air conditioners, which often make use of refrigerants with high environmental impact and also lead to high electricity consumption. So, how can we reduce the energy demand for building cooling?
A new study comes from a research group based at the Politecnico di Torino (SMaLL) and the National Institute of Metrological Research (INRiM), who has proposed a device capable of generating a cooling load without the use of electricity: the research has been published in Science Advances*. Like more traditional cooling devices, this new technology also exploits the evaporation of a liquid. However, the key idea proposed by the Turin researchers is to use simple water and common salt instead of chemicals that are potentially harmful for the environment. The environmental impact of the new device is also reduced because it is based on passive phenomena, i.e. spontaneous processes such as capillarity or evaporation, instead of on pumps and compressors that require energy and maintenance.
“Cooling by water evaporation has always been known. As an example, Nature makes use of sweat evaporation from the skin to cool down our body. However, this strategy is effective as long as air is not saturated with water vapour. Our idea was to come up with a low-cost technology capable to maximize the cooling effect regardless of the external water vapour conditions. Instead of being exposed to air, pure water is in contact with an impermeable membrane that keeps separated from a highly concentrated salty solution. The membrane can be imagined as a porous sieve with pore size in the order of one millionth of a meter. Owing to its water-repellent properties, our membrane liquid water does not pass through the membrane, whereas its vapour does. In this way, the fresh and salt water do not mix, while a constant water vapour flux occurs from one end of the membrane to the other. As a result, pure water gets cooled, with this effect being further amplified thanks to the presence of different evaporation stages. Clearly, the salty water concentration will constantly decrease and the cooling effect will diminish over time; however, the difference in salinity between the two solutions can be continuously – and sustainably – restored using solar energy, as also demonstrated in another recent study from our group**”, explains Matteo Alberghini, PhD student of the Energy Department of the Politecnico di Torino and first author of the research.
The interesting feature of the suggested device consists in its modular design made of cooling units, a few centimetres thick each, that can be stacked in series to increase the cooling effect in series, as happens with common batteries. In this way it is possible to finely tune the cooling power according to individual needs, possibly reaching cooling capacity comparable to those typically necessary for domestic use. Furthermore, water and salt do not need pumps or other auxiliaries to be transported within the device. On the contrary, it “moves” spontaneously thanks to capillary effects of some components which, like in kitchen paper, are capable of absorbing and transporting water also against gravity.
“Other technologies for passive cooling are also being tested in various labs and research centres worldwide, such as those based on infrared heat dissipation into the outer space – also known as radiative passive cooling. Those approaches, although promising and suitable for some applications, also present major limitations: the principle on which they are based may be ineffective in tropical climates and in general on very humid days, when, however, the need for conditioning would still be high; moreover, there is a theoretical limit for the maximum cooling power. Our passive prototype, based instead on evaporative cooling between two aqueous solutions with different salinities, could overcome this limit, creating a useful effect independent of external humidity. Moreover, we could obtain an even higher cooling capacity in the future by increasing the concentration of the saline solution or by resorting to a more sophisticated modular design of the device” commented the researchers.
Also due to the simplicity of the device assembly and the required materials, a rather low production cost can be envisioned, in the order of a few euros for each cooling stage. As such, the device could be ideal for installations in rural areas, where the possible lack of well-trained technicians can make operation and maintenance of traditional cooling systems difficult. Interesting applications can also be envisioned in regions with large availability in water with high saline concentration, such as coastal regions in the vicinity of large desalination plants or nearby salt marshes and salt mines.
As of now, the technology is not yet ready for an immediate commercial exploitation, and further developments (also subject to future funding or industrial partnerships) are necessary. In perspective, this technology could be used in combination with existing and more traditional cooling systems for effectively implementing energy saving strategies.
[*] Matteo Alberghini, Matteo Morciano, Matteo Fasano, Fabio Bertiglia, Vito Fernicola, Pietro Asinari, Eliodoro Chiavazzo. Multistage and passive cooling process driven by salinity difference, SCIENCE ADVANCES (2020), URL: https://advances.sciencemag.org/content/6/11/eaax5015
[**] Eliodoro Chiavazzo, Matteo Morciano, Francesca Viglino, Matteo Fasano, Pietro Asinari, Passive solar high-yield seawater desalination by modular and low-cost distillation, NATURE SUSTAINABILITY (2018), URL: https://www.nature.com/articles/s41893-018-0186-x
Oman’s Ministry of Technology and Communications (MTC) has committed to a memorandum of cooperation (MoC) with BankDhofar at the Sas Center for the 4th Industrial Revolution (4IR), in order to manage a technology innovation lab at the center.
The MoC was reportedly signed by Dr Salim bin Sultan Al Ruzaiqi, CEO at MTC, and Abdul Hakeem Omar Al-Ojaili, CEO at BankDhofar.
The innovation lab has been established to help students and local Fintech startups, as they focus on developing innovative financial technology products and services.
“The Ministry has launched the SAS Center for the 4th Industrial Revolution to keep pace with the current developments in the ICT sector. Signing this MoC with BankDhofar reflects the significant role of the private sector in supporting this dynamic sector and the Omani youth initiatives in entrepreneurship.”
He added that through this cooperation, they aim to create an encouraging environment that can help develop useful Fintech solutions, which could become part of the 4th IR technologies.
He also said the project aims to encourage and support Oman’s private sector organizations to continue to empower the nation’s emerging technology fields.
“The innovative lab at Sas Centre for 4th Industrial Revolution serves our vision of contributing to such projects of national value, and it also contributes to the development of the Fintech field in general.”
“We are in the midst of the 4th Industrial Revolution where the banking sector has to seize the opportunity and take part, supporting the youth and encouraging them to become effective in a field which will positively contribute to the national economic growth in the future.”
MTC and BankDhofar will work cooperatively to establish, host, and manage the innovation lab. They will provide mentorship and training for Omani students, staff, local startups and Fintech firms.
In December 2019, Bank Muscat, the leading financial services provider in the Sultanate, revealed that the Central Bank of Oman had approved the institution’s request to establish a $100 million (appr. OMR38.5 million) nationwide, strategic Fintech investment program.
The investment program is reportedly part of Bank Muscat’s strategic growth initiative.Sponsored Links by DQ Promote
Qatar-based Industrial Solutions leader ‘Nehmeh’ has organised the annual Mega Industrial Expo 2020 showcasing a range of the world’s leading brands in construction solutions,
The two-day event was held on February 4 and 5 at a five-star hotel in Doha where Nehmeh showcased power tools, ventilation systems, light construction tools and machinery with a focus on concrete machinery along with demonstrations to let guests have a first-hand product experience of the machines and its applications.
An important part of the event was the launch of the Qatar’s first locally manufactured ‘Roof Top Package Unit’ by Nehmeh Air Conditioners and introduction of Belgium based ‘Beton Trowel’ brand renowned for Concrete & Compaction Equipment.
The event also featured key note address by experts from Beton Trowel, Nehmeh Air Conditioners and Makita over the two days. ‘Nehmeh App’ the region’s first industrial solutions mobile app was highlighted to guests at the expo. Nehmeh, one of the leading industrial solutions providers in the GCC, represents world class brands which are leaders in their respective categories.
For over 65 years, tens of thousands of people depend on reliable industrial performance solutions by Nehmeh. This mega event succeeded in attracting visitors including retail partners, suppliers, end-users and others related to the construction industry.
Visitors also included managers from Qatar looking for solutions to improve their efficiency and productivity on sites. Brands participating at the expo were Makita, Nehmeh Air Conditioners, Stampa, SDMO, Beton Trowel, Sofy, Portacool, Koshin, Awelco, Dr. Schulze among many more. Demonstrations were held on specially prepared areas showcasing tools, equipment and machinery. Expert professionals from Singapore, Germany and Belgium presented to the audience new introductions and technologies along with an informative Q & A session.
“Nehmeh range of Industrial Solutions cover major solutions required for the Qatari construction market. This concept event has been developed keeping in mind the requirements of our customers and I am glad to say that the event has been well received by the guests over the years,” said Emil A. Nehme, Chief Executive Officer at Nehmeh.
“With the support of our partners, we have the ability to cover major construction solutions as required here in Qatar. Witnessing the popularity of such an event, we are inclined to hold more such regular events as part of our calendar of activities,” he added.
‘The Nehmeh Corporate Catalogue 2020’ was launched during the event. Awards bestowed to various partners as tribute to their efforts and achievements. In addition, four lucky visitors also walked away with reward trips, gold coins and stay vouchers.
The value of a liberal arts education has become a pivotal discussion within the global higher education sector over the last decade. No longer confined to the hallowed halls of ivy-covered American colleges, this multidisciplinary approach, which focuses on developing creative thinking skills, has begun to transform the curricula of institutions worldwide.
To examine this further, the Times Higher Education MENA Universities Summit 2020, taking place at NYU Abu Dhabi on 10-12 March, will explore the benefits and challenges of broadening the liberal arts educational model across Middle Eastern and North African countries.
Fostering discussions on how to prepare students for a variety of career paths after graduation is high on the list of the summit’s objectives. Hoda Mostafa, director of the Center for Learning and Teaching at the American University in Cairo, will share useful practices to facilitate the leap between an interdisciplinary education and careers both in and out of academia.
Wasif Rizv, founding president of Habib University, Pakistan’s first liberal arts and science institution, will provide an instructional model from south-east Asia to demonstrate how a liberal arts education can develop talent to meet the demands of a global workforce.
Another key focus will be enhancing the research culture in countries where talent attraction has faced challenges. Rana Dajani, associate professor at Hashemite University, who established stem cell research ethics law in Jordan, will debate with other panellists which tools are needed to support the next generation of researchers in the MENA region.
Safwan Masri, the current vice-president for Global Centers and Global Development at Columbia University, who has written extensively on the role of Tunisia in the Arab Spring, will deliver the summit’s closing keynote, underlining the power of research and knowledge transfer in the region to ultimately promote a greater cultural understanding and bridge political boundaries.
The summit will include an exclusive THE rankings masterclass that will dissect the methodology behind the World University Rankings, giving an analysis of the MENA region’s successes and future opportunities. Additionally, delegates will enjoy a deep-dive into THE’s new University Impact Rankings, which are based on universities’ successes in working towards the United Nation’s Sustainable Development Goals.
John Gill, editor of THE, said: “We are at a crucial moment for the world on numerous fronts – from how to respond to global threats such as climate change, to how to navigate a path to greater understanding and collaboration. Higher education and research will play crucial roles in finding the answers.
“At this summit, we will discuss the role of liberal arts education, at a time of debate about how best to prepare students for the new economy, and how to support societies in transition. We will consider how a global perspective can transform the impact of education, and address the interplay between education and research in the MENA region. These topics touch on every aspect of what universities do, as institutions that educate, create new knowledge, and drive economic and social progress, so we are delighted to have such a diverse programme of speakers, and to be meeting at NYU Abu Dhabi, itself a great example of innovation.”
The Times Higher Education MENA Universities Summit 2020 will take place 10-12 March at NYU Abu Dhabi. Find out more.
The world of fungi has attracted a lot of interest and seems to be becoming very fashionable of late. A new exhibition at Somerset House in London, for example, is dedicated to “the remarkable mushroom”. No surprise: we’re being promised that mushrooms may be the key to a sustainable future in fields as diverse as fashion, toxic spill clean ups, mental health and construction. It’s in this last field that my own interests lie.
Climate change is the fundamental design problem of our time: buildings are hugely complicit in the crisis. Together, buildings and construction contribute 39% of the world’s carbon footprint. Energy used to heat, cool and light buildings accounts for 28% of these emissions: households are the biggest emitter of greenhouse gases since 2015, accounting for a quarter of total UK greenhouse gas emissions in 2017.
The remaining 11% of buildings’ carbon emissions consists of those associated with construction and building materials. The UK construction industry, for example, uses around 400 million tonnes of materials each year and approximately 100 million tonnes become waste. Cement alone is responsible for a whopping 8% of global CO₂ emissions. Compare this to the much maligned global aviation industry, which emits 2% of all human-induced CO₂ emissions. Buildings and, by association, the construction industry, are profoundly responsible for climate change.
There is evidently a real need for the construction industry to reduce the impact of its material and energy use and to take part in the transition towards a more sustainable economy by researching and using alternative materials. This is not an absurd ask: such materials already exist.
And yes, one such material happens to be derived from fungi: mycelium composites. This material is created by growing mycelium – the thread-like main body of a fungus – of certain mushroom-producing fungi on agricultural wastes.
Mycelium are mainly composed of a web of filaments called “hyphae”, which acts as a natural binder, growing to form huge networks called “mycelia”. These grow by digesting nutrients from agricultural waste while bonding to the surface of the waste material, acting as a natural self-assembling glue. The entire process uses biological growth rather than expensive, energy intensive manufacturing processes.
Mycelium materials offer an exciting opportunity to upcycle agricultural waste into a low-cost, sustainable and biodegradable material alternative. This could potentially reduce the use of fossil fuel dependant materials. The materials are low-density, making them very light compared to other materials used in construction. They also have excellent thermal and fire resistant properties.
To date, mycelium materials have been used in a number of inventive ways in building projects. One particular company of note is The Living, a New York based architectural firm which designed an organic mycelium tower known as “Hy-Fi” in the courtyard of MoMA’s PS1 space in midtown Manhattan. Designed as part of MoMA’s Young Architects Program, the structure illustrates the potential of this biodegradable material, in this case made from farm waste and cultured fungus grown in brick-shaped moulds.
Another project of note is MycoTree, a spatial branching structure made out of load-bearing mycelium components. This research project was constructed as the centrepiece for the “Beyond Mining – Urban Growth” exhibition at the Seoul Biennale of Architecture and Urbanism 2017 in Seoul, Korea. The project illustrates a provocative vision of how building materials made from mycelium can achieve structural stability. This opens up the possibility of using the material structurally and safely within the construction industry.
I am investigating the development of mycelium materials using locally sourced materials such as wheat straw. Wheat straw is a cheap and abundant source of waste in the Yorkshire region, so would be a fantastic raw material for construction. My main objective is to develop a material for use in non-load bearing applications, such as internal wall construction and façade cladding. The material displays similar structural properties to those of natural materials like wood.
The development of mycelium materials from locally sourced agricultural waste could reduce the construction industry’s reliance on traditional materials, which could improve its carbon footprint. Mycelium composite manufacturing also has the potential to be a major driving force in developing new bioindustries in rural areas, generating sustainable economic growth while creating new jobs.
The construction industry is faced with a choice. It must be revolutionised. If we carry with business as usual, we must live with the potentially catastrophic consequences of climate change.
Digital adoption key to cope with growth of mega cities or as put by Fida Kibbi: “As we continue to advance towards a more urbanized world and the impacts of climate change grow progressively, there is a greater need to accelerate digital adoption in line with the Sustainable Development Goals (SDGs).”
The number of megacities is forecast to increase to 43, each with more than 10 million inhabitants by 2030, said an industry expert, citing a report by the United Nations Department of Economic and Social Affairs.
More than half of the world’s population will live in urban areas by 2050, the report said.
“As we continue to advance towards a more urbanized world and the impacts of climate change grow progressively, there is a greater need to accelerate digital adoption in line with the Sustainable Development Goals (SDGs),” said Fida Kibbi, vice president and head of Marketing, Communications and Sustainability & Corporate Responsibility at Ericsson Middle East & Africa.
Digitalization has a unique potential to enable other industrial sectors to move towards the low-carbon economy. According to the “2019 Exponential Roadmap” report, the digital industry has an important role to play in reducing global carbon emissions through existing ICT solutions across energy, manufacturing, agriculture, land use, buildings, services, transportation and traffic management.
According to research by Ericsson, ICT solutions could help to reduce greenhouse gas (GHG) emissions by up to 15 per cent by 2030, amounting to around ten gigatonnes of CO2e—more than the current carbon footprint of the EU and US combined. Examples of areas where the savings can be enabled by ICT solutions are: transportation, energy, industries and agriculture.
Ericsson takes a proactive stance and collaborates with a wide range of stakeholders to scale the impact of our joint programs and initiatives in areas like climate change, agriculture, financial inclusion and, humanitarian response.
Technology innovations have the potential to accelerate global efforts to achieve Sustainable Development Goals:
Technology to address the impacts of climate change
According to a report by the Global Humanitarian Forum, climate change is responsible for some 300,000 deaths each year and over $100 billion worth of economic losses, mainly because of shocks related to health and agricultural productivity. According to a recently published report, Africa is the region at the most immediate risk of droughts and floods.
With the acceleration of extreme weather, sea level rise, and other climate change impacts – precise weather information has become an absolute necessity. Innovators at Ericsson and the Swedish Meteorological and Hydrological Institute (SMHI) have been leveraging microwave data to solve the problem in a unique new initiative being piloted in Rwanda.
Ericsson Weather Data creates detailed and cost-efficient rainfall and flood predictions using the existing telecom infrastructure. Ericsson and SMHI leverage cellular network data to measure rainfall in real time, utilizing signal disturbances in microwave links.
By applying an algorithm, these disturbances can be used to measure exactly how much rain has fallen between two points on a microwave network. Potential use cases include climate mitigation efforts, flood prevention in sewage and stormwater systems in cities, agriculture, transport solutions, tourism, insurance, weather agencies and water utilities.
Banking the unbanked
Mobile financial services are a global game-changer with an open money network being the connection needed between the financial industry and telecom to increase both the commercial and social inclusion benefits.
With mobile money, people can make payments anywhere at any time with their mobile devices connected with Internet. This allows end-users to seamlessly purchase products or services without having to physically hand overcash or swipe a card. The freedom to send, spend and receive money with a mobile phone is quickly becoming an essential part of life for billions of people.
According to data from Ericsson ConsumerLab, more than half of consumers in Africa are using mobile money services through an agent, and some 20 per cent use mobile money themselves on a mobile phone. However, the unbanked are the ones who are least involved in the formal financial system, due to factors such as distance to banks, education, and the inability to authenticate their identity,
Increasing financial inclusion through the use of digital technology is an essential element in furthering the economic development of Africa. And the story does not end here. Mobile money services have become an essential, life-changing tool across Africa, providing access to safe and secure financial services but also to energy, health, education and employment opportunities.
“Ericsson is committed to using technology to contribute to new innovative solutions for a better tomorrow, and our aim is to develop solutions that support the achievement of the Sustainable Development Goals within the context of sustainable business practices,” Kibbi concluded.
This year marks a decade since Yahoo acquired Maktoob, in a deal worth $164 million. It was the first time that a technology company based in the Middle East had attracted such significant interest from a giant of its day.
At the time, the deal paled in comparison to the acquisitions and mergers typical in the region, between telecoms operators, industry and real estate. But for the entrepreneurship ecosystem, it was a seminal moment, validating the region as a place for technology and startups.
Back when this happened, there were no venture capital (VC) funds, mobile and internet penetration was low, Apple’s iPhone was still out of reach for most people and unicorns were mythical creatures with the power of flight.
Maktoob was founded in Jordan by Samih Toukan and Hussam Khoury as an Arabic webmail service. It grew to become the main destination for Arabic speakers on the internet and amassed 16 million users. Beyond the main portal, Maktoob offered online payments through CashU, an e-commerce platform that resembled US-based eBay called Souq and gaming company Tahadi MMO Games.
Yahoo was only interested in the main portal and so Toukan and Khoury established Jabbar Internet Group to absorb Maktoob’s other assets. In hindsight, Yahoo failed to see the consumer trends that unfolded in the region and the inevitable rise of online payments and shopping.
Souq became the biggest asset in Jabbar’s network. Emaar Malls reportedly made an offer of $800 million in 2017, but it was Amazon that would come to acquire the e-commerce site for $680 million of which $580 million was paid in cash. Emaar’s chairman Mohamed Alabbar decided to pump $1 billion into launching his own e-commerce platform, noon, as a result.
In between these two acquisitions, the technological landscape in the region had changed drastically. Internet penetration was on the rise, mobile penetration was close to or exceeded 100 per cent in every country of the Middle East and North Africa (MENA). Smartphones were also popular and Nokia’s dominance in the mobile phone market had been dismantled across the region, replaced by the app-friendly iPhones and Android-based Samsung and Huawei phones. With the introduction of 4G technology, the cost of mobile broadband fell from an average of $9.50 for half a gigabyte in 2016 to $5.27 for double the amount of data.
Empowering The Youth
Amid the protests and revolutions that disrupted the region’s economies in the so-called Arab Spring, the high youth unemployment highlighted the importance of the private sector for job creation. Entrepreneurship was presented as the silver bullet to stymie the rise of unemployment and a way to empower the youth, who make up two thirds of the region’s population.
Government policies and regulations across the Middle East and North Africa (Mena) slowly became friendlier to entrepreneurs and investors. Efforts to cut down startup costs continue as regional competition to become a hub for entrepreneurship has ignited. Startups have been recognised as a way to create not only employment but a means to solve for problems that societies and economies face in the Middle East.
The general shift in attitude and government policies created fertile ground for companies like Dubizzle, Talabat and Babil to emerge, most replicating models and ideas that had proved successful in other parts of the world. Germany’s Rocket Internet arrived in 2011 and began founding startups aggressively, replicating successful business models to launch companies like Namshi, which was recently acquired by Emaar Malls, wadi.com and Carmudi. Serious investors began to emerge and institutionalise and the region became home to VCs and angel investors with an eye to reap lofty returns. Today, there are several funds dedicated to entrepreneurship and a few governments have established fund of funds, to co-match VCs and help develop a local ecosystem that can generate economic growth.
One of the most prolific of these early angel investors was Aramex founder and Wamda chairman Fadi Ghandour. He was one of the initial investors in Maktoob and then in Jabbar Internet Group before establishing Wamda Capital.
“The world was changing and I had felt the internet change the world, I already felt it affecting Aramex, so when Samih and Hussam came for investment, for me, it was a no-brainer,” he says.
Still On The Backfoot
But even after all these years, there has only been a handful of exits valued at more than $100 million across the Middle East. Oil still accounts for the majority of gross domestic product (GDP) in the GCC, youth unemployment is the highest in the world at 26.5 per cent according to the World Bank and costs to start a business in the current hub of the region, Dubai is among the highest in the world. For almost every country, regulations still need improvement beyond registering a business. Innovation is also lacking, the highest-ranking MENA country in the Global Innovation Index is the UAE at 36th place, behind smaller economies like Cyrpus and Malta.
Yet, there is hope.
“There are more mature companies and more mature VCs, so there are better deals happening. Exits like Careem and Fawry, those kinds of big companies that are having a real impact is one key metric of a potentially successful ecosystem,” says Abdelhameed Sharara, founder of RiseUp. “I think we are still very early compared to the US and China, but it’s a very promising space compared to the past.”
The region also has a more active female population in the startup sector, with 23 per cent of startups in Gaza and the West Bank led by women, while 19 per cent are led by women in Beirut, both ahead of New York which stands at 12 per cent. Even at RiseUp, women accounted for almost 40 per cent of the attendees last year.
“The region has really become a place where entrepreneurs can thrive and provides supportive environments for startups,” says Amina Grimen, co-founder of e-commerce beauty site, Powder. “In the beauty space, looking at the accomplishments of big female players like Huda Kattan and Dr Lamees Hamdan is truly inspiring.”
The Brookings’ FUTURE DEVELOPMENT elaborated these 5 steps to reshape economic geography and rejuvenate the MENA this Friday, September 20, 2019, as a demonstration that it is possible to do so. The story is by Somik V. Lall and Ayah Mahgoub. Here it is.
The destinies of people in the Middle East and North Africa are shaped more by accidents of where they were born than in any other part of the world (Figure 1). This is considered a problem by governments in the region, and it should be. They have tried many ways to respond to the needs of people in lagging areas; much money has been spent on investment in these places. Thus, to add jobs in poorer areas, policymakers have tried to strong-arm new production facilities into these areas. To meet the need for decent homes and amenities in poor urban neighborhoods, money has been poured into massive housing projects.
Even so, spatial disparities continue to grow, or are closing more slowly than would be expected given the volume of investment directed to these locations. The main reason: the causes of spatial exclusion are not locational and physical but are economic and institutional.
Figure 1: With a few exceptions such as Jordan, spatial inequality is higher in MENA
WHY IS MENA SO FRAGMENTED?
Why is territorial convergence so difficult? In a report that we just completed at the World Bank, we identified four reasons.
Most lagging areas in MENA have not been able to leverage the full returns to their endowments because the business environment and infrastructure in their cities and towns makes it hard for new firms to start and grow (Figure 2). One reason is that outside the capital city in MENA countries, smaller cities invariably lack the authority to raise their own revenues and to manage local service provision.
Most residents in lagging areas are “stuck in place,” unable to take full advantage of jobs that more vibrant urban economies offer. Credentialist education systems may be most to blame for making people immobile.
In leading areas, rigid and outdated regulations distort land markets and stymie development. For example, regulations in Tunisia prohibit residential buildings more than three stories high, and regulations in Jordan impose a minimum lot size of 100 square meters—restricting the supply of affordable formal housing.
MENA’s governments have created formidable obstacles to trade and migration. The main barriers are limits on news and information and practical constraints on travel and trade (visa difficulties, weak infrastructure, logistics hurdles).
Figure 2: It’s tough for firms outside MENA’s capital cities
Notice that while they result in spatial inequalities of opportunity, the reasons for fragmentation are not themselves spatial.
ENGINEERING A CONVERGENCE MACHINE
Increasing the pace of integration and convergence will require fixing these problems. Governments in the region can reduce territorial disparities quickly and effectively by doing five things:
Strengthen coordination and complementarities across initiatives. Development strategies are more likely to succeed if they are multidimensional, including access to energy, transport, land, and markets—in the same place, whether sequentially or concurrently. A good place to start is by anchoring investments in and around cities. Complementary reforms that help get the prices right—for energy and for land—can go a long way in creating the conditions for job creation in lagging areas. The good news is that governments don’t have to pay more to see better results, because spatial coordination will generate cost savings in the medium to longer term.
Redistribute roles and responsibilities across tiers of government. Citizens in different parts of the country have varying needs, and local conditions require flexible service delivery models. Redistributing responsibilities for local revenue generation and local service provision to local governments can make them better equipped and more accountable.
Enable mobility of people between lagging and leading areas. On average, people in MENA are half as mobile domestically as people in other parts of the world (Figure 3). Our research shows that living standards of people moving internally to major cities can increase by an average of 37 percent in the region. Women are more likely to move and find jobs in urban areas, but they need support to do so. Education systems across the region need to be reoriented toward marketable skills.
Build dense and connected cities. Well-functioning cities offer a wide variety of jobs—for women and men. Making land markets in cities more efficient is critical for agglomeration and specialization—two dynamics that enhance job creation and economic prosperity. Whether in larger or in smaller (secondary) cities, agglomeration and specialization require the benefits from high economic density, which concentrates economic activity geographically. For this, the fabric of cities needs to be spatially connected, dense with people, and transit-oriented—not sprawling that perpetuates the dispersion of people and jobs. Planners and regulators can attract firms to invest in cities by reducing frictions such as zoning regulations, impediments to property acquisition and new construction (costs, height limits, density limits), challenges to local business registration and licensing, limits on news and information, and obstacles to developing local business networks.
Enhance market access nationally and regionally. Historically, MENA’s cities were part of economically important global trade networks. Many of these cities persisted into modern times as large urban areas. But governments in the region have managed to shrink the networks from global to local. These networks have, at a minimum, to be expanded to national and regional dimensions. A good place to start would be to improve the links across national borders—reducing tariffs, improving logistics, and facilitating trade, and instituting migration protocols. Such efforts will grow the economies, providing much-needed resources to redistribute in areas left behind.
Figure 3: Just 14 percent of MENA’s people have left their place of birth, compared with 28 percent in countries elsewhere
In other words, MENA’s governments have to start putting together a modern convergence machine. The main parts of the machine are institutions that integrate and infrastructure that connects. MENA is no longer a poor place: Last year, the region’s GDP per capita was nearly $7,000 placing it comfortably in upper middle-income levels. Its people should have access to quality basic services such as education, clinics, sanitation, and public security. Well-chosen infrastructure initiatives—roads, railways, ports and communication facilities—can provide its entrepreneurs access to the region’s sizeable markets (the region’s GDP is $3 trillion) and even bigger nearby markets to MENA’s north and east. Spatially targeted interventions might also be needed, but they are not the main components of the machine.
Perhaps the biggest mistake that governments have been making is to regard these interventions—programs to push economic activity into lagging areas while simultaneously favoring capital cities—as the mainstay of the machine. It’s time to stop these self-defeating measures that exacerbate fragmentation in MENA, and speed up efforts to engineer integration.
Somik V. Lall, Global Lead on Territorial Development Solutions and Lead Economist for Sustainable Development in Middle East and North Africa – World Bank. somikcities
Ayah Mahgoub, Senior Urban Development Specialist – World Bank
Ask anybody with their ear to the rail of the global games industry about the MENA region and they’ll very likely assert that it offers ‘opportunity’.
The vast area has for some time now been associated with market potential that games companies from across the globe would be wise to harness.
However, the detail around what founds that opportunity, how it should be seized and the reality of its distinct challenges can seem like something of a mystery. A thorough analysis, however, reveals a region that might not be as atypical or enigmatic in its machinations as many assume.
As the oft-talked about BRIC region – ‘Brazil, Russia, India and China’ – has blossomed from ‘emerging’ to ‘emerged’, the MENA countries have been quietly building an impressive momentum of their own. And it is the mobile games sector specifically that provides the region with its most striking prospects.
By MENA, of course, we mean ‘Middle East and North Africa’. It is ultimately an area without a firm or agreed definition. But for the purposes of this article – which kickstarts a series of pieces looking at MENA – we’re considering numerous countries, including but not limited to, Jordan, Saudi Arabia, the United Arab Emirates/Dubai, Bahrain, Iran and Lebanon.
Nations such as Israel, Turkey and Egypt also warrant reflection, though those are places with games sectors that are relatively well-known to the outside world and even distinct from the rest of their MENA family.
Speaking the same language
While one could spend a lifetime developing a universally agreed framing of ‘MENA’, the reality is that the opportunity for mobile games developers, publishers, platforms and service providers is significantly defined by a language; not a list of countries. That language is Arabic, and one thing is clear; the Arabic speaking world provides a substantial audience for those that make a living from mobile games to consider.
“The reason why the mobile gaming market [here] is so interesting comes from the fact that Arabic is the fourth most spoken language in the world, yet less than one per cent of all content available online is in Arabic,” offers Hussam Hammo, CEO of Jordanian outfit Tamatem, which specialises in publishing and maintaining mobile games in the MENA region.
“More than 70 per cent of the population of the Arabic speaking countries – around 400 million – use Arabic as their default language on their smartphones. Add to that that countries like Saudi Arabia have the highest ARPPU in the entire world, and you have a perfect opportunity.”
Record-breaking ARPPU alone should immediately prick the ears of industry observers. For while the world’s biggest gaming market China has ARPPU of around $32, Saudi Arabia’s ARPPU is a striking $270. Tamatem’s own figures, meanwhile, point to consumers in MENA spending $3.2 billion on games broadly back in 2016.
Arabic is the fourth most spoken language in the world, yet less than one per cent of all content available online is in Arabic.
And then there are those 400 million people keen to digest Arabic language smartphone titles. They are presently served with a bounty of gaming content; but a great deal more fails to support both Arabic language – and culture.
An appetite for growth
It seems clear there is an underserved and ravenous appetite for gaming in MENA, which means one thing; there is a generous capacity for growth. Indeed, consulting giant strategy& predicts that by 2022, mobile gaming across MENA will stand as a $2.3 billion industry.
Smartphone penetration has also hit alluring levels in many MENA countries. 46 per cent of Saudi Arabia’s 33,554,000 residents own a smartphone, according to Newzoo data. That’s just shy of 15.5 million people.
The United Arab Emirates, meanwhile, can boast of an 80.6 per cent smartphone penetration rate. That is against a relatively modest population of 7.5 million, but it still presents a demographic worth serious attention.
Contemporary data on smartphone penetration on Jordan is a little harder to come by, but the Pew Research Center’s data for 2016 lists a 51 per cent rate. The same study gives Lebanon a slight lead at 52 per cent. Of course, not every country in MENA provides such appealing device penetration, but looking at the region as a whole, growth is forecast.
The global trade body for mobile network operators, the GSMA, counted 375 million unique mobile subscribers across MENA in 2017. They expect that number to reach 459 million by 2025. By that same year, GSMA predicts the area will count 790 million individual SIM connections, not including IoT devices. That’s a striking 118 per cent penetration rate, if you consider the region’s entire population, across all languages.
As for the make-up of mobile device breakdown in MENA, region-specific data is in relatively short supply. StatCounter figures for specific countries in the area do, however, paint a fairly familiar picture.
As of July 2019, in Saudi Arabia specifically Android accounts for 65.6 per cent of in-use handsets, while iOS trails at a still-healthy 34.12 per cent. That leaves a trivial amount of unknown and fringe or legacy OSs, including the likes of Series 40, which still has a 0.01 per cent penetration rate in the country.
Over in Jordan, Android dominates with 84.65 per cent of the market, while iOS accounts for 15.15 per cent of smartphones. And in the UAE, Android can claim 77.34 per cent of the market, with iOS holding on to 22.18 per cent. The picture appears reasonably consistent, including looking back over the last year.
The Google Play and Apple App Stores dominate, but that is a topic PocketGamer.biz will return to in-depth later in this series of features.
‘Growth’ remains the keyword if you look at MENA as a place to succeed with gaming content. And, when considering mobile specifically, that growth which will likely be significantly facilitated by providing a great deal more games in the Arabic language. Those 400 million handsets set to Arabic by default are active now, and their number is likely to climb.
Not that language is the only factor in localising a game for MENA. The region is culturally a different place from both the West and areas like China or Southeast Asia. Making a game created outside of MENA culturally appropriate for the market will perhaps offer the biggest challenge to companies external to the area.
The UAE and the Gulf region are at the forefront globally in terms of 5G launches and plans.
It’s a perfect example of the distinction between translation and true localisation. As for the key to mastering cultural localisation? Collaboration with resident MENA outfits may be an absolute necessity.
Tamatem is one of a number of companies specialising in publishing to MENA, and it’s certainly not alone in its effort. Babil Games, MENA Mobile and others are striving to connect international games companies with the local market.
Another factor central to the potential of mobile gaming in MENA is, of course, the arrival of 5G networks. GSMA points out that in some parts of MENA, 5G has already been commercially deployed.
“The UAE and the Gulf region are at the forefront globally in terms of 5G launches and plans,” confirms Jawad Abbassi, head of Middle East and North Africa at GSMA.
“Operators in MENA – particularly in the GCC States – are among the first to launch 5G networks commercially. Following these launches, operators in 12 other countries across MENA are expected to deploy 5G networks, covering around 30 per cent of the region’s population by 2025. By then, regional 5G connections will surpass 50 million. Early global 5G pioneers include the GCC countries, South Korea, the United States, Australia and the United Kingdom.”
Clearly, when it comes to infrastructure, much of the MENA region rivals some the rest of the world’s tech leading nations.
Ultimately, of course, MENA is a diverse and multifaceted place. Its various nations all bring their own distinct make-ups, and in taking a broad perspective this round-up has perhaps just served to highlight the fundamentals of a very real opportunity.
The figures speak for themselves. But if you want to move on what MENA offers? You’ll want a little more detail.
That is why this piece is just the start of a series of articles looking at the companies, countries and trends shaping MENA’s mobile gaming future.
So keep an eye on Pocketgamer.biz and consider joining us at Pocket Gamer Connects Jordan on November 2nd and 3rd, where you can come and meet the publishers, developers and game tech outfits that might be the future of your success in MENA.
The UAE Government, in cooperation with the World Economic Forum (WEF), has opened the Centre for Fourth Industrial Revolution in the UAE at AREA 2071, Emirates Towers in Dubai, the first of its kind in the region and the fifth globally.
In line with the rapid global changes and developments of the Fourth Industrial Revolution, the Center aims at preparing strategies, policies and developing solutions to the most pressing challenges in the region and the world. In addition, it works towards developing mechanisms, applications and uses for the fourth industrial revolution in the UAE.
Mohammed Abdullah Al Gergawi, Minister of the UAE Cabinet Affairs and The Future, vice chairman of the Board of Trustees and managing director of Dubai Future Foundation stated that the opening of the Centre for the Fourth Industrial Revolution reflects the vision of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
Al Gergawi also highlighted that the UAE is continuously developing new business models that are dependent on technology and the outcomes of the Fourth Industrial Revolution, to join global efforts for shaping a better future.
Borge Brende, president of WEF said: “In the Fourth Industrial Revolution, countries and businesses need to move fast or risk getting left behind. Emerging technologies like artificial intelligence and blockchain have the power to benefit everyone, but they must be shaped strategically to maximize the benefits and mitigate the risks.”
“We are looking forward to working with the UAE to accelerate the impact of the Centre for the Fourth Industrial Revolution Network’s work in this area and scale projects globally” Brende added.
The opening of the Centre was attended by His Excellency Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Deputy Managing Director of Dubai Future Foundation, His Excellency Borg Brenda, President of the World Economic Forum, Her Excellency Dr Aisha Bint Butti Bin Bishr, Director General of Smart Dubai, His Excellency Khalfan Belhoul, CEO of Dubai Future Foundation, alongside a number of senior representatives from the local government and the World Economic Forum.
The Centre for the Fourth Industrial Revolution (C4IR UAE) is a collaboration between the Dubai Future Foundation (DFF) and the World Economic Forum (WEF).
An affiliate center of C4IR San Francisco, opened in 2017, C4IR UAE researches key focus areas in the fourth industrial revolution network: Blockchain and Distributed Ledger, AI and Machine Learning, and Precision Medicine.
Blockchain is the first project area launched under C4IR UAE in 2019 and will look into the governance frameworks around implementing blockchain across government sectors. The center will also trial a supply chain pilot, focusing on the correct governance protocols and practices with regards to security, data privacy and identity verification within blockchain. Across the three project areas, C4IR UAE aims to showcase UAE case studies, policy, and governance frameworks to WEF’s global network, as well as develop new research and policy around relevant UAE 4IR topics.
The Centre’s official launch follows the MOU signing that took place at the Annual Meeting of the Global Future Councils at the World Economic Forum in Davos earlier this year, in the presence of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council.
The Centre for Fourth Industrial Revolution in the UAE, seen as the fifth of its kind in the world after the United States of America, Japan, India and China, comes as part of the strategic partnership between the UAE government and the World Economic Forum.
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