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Alternative Transport market is Egypt-born startup Halan

Alternative Transport market is Egypt-born startup Halan

Taking a bite out of the opportunity in the alternative transport market is Egypt-born startup Halan. So, Egypt’s Halan is keen to dominate the Ride-Hailing Space for Two And Three-Wheelers. Let us read more on that if you please. But before we do so here is Codatu’s intro to their essay on the matter two years ago.

Greater Cairo (GC) is the largest urban area in the Middle East and one of the most populated cities in the world. The urban growth patterns of the metropolitan area reveal a fragmented city of heterogeneous parts that developed unplanned over the years. GC public transport network offers a large variety of means of transportation throughout three governorates but its lack of efficiency is forcing more and more people to use private cars. The extreme density of the urban fabric and the widespread congestion on the road network end up making the city’s livability very difficult.

Pamella de Leon, Startup Section Editor, on October 29, 2019, wrote in Entrepreneur Middle East, an international franchise of Entrepreneur Media the following.

Egypt's Halan Is Keen To Dominate The Ride-Hailing Space For Two And Three-Wheelers

Aside from private cars, taxis, and other four-wheeled vehicles, a ubiquitous sight on the streets of Cairo (and in other parts of the MENA, as well as the world at large) are the three-wheeled tuktuks and two-wheeled motorcycles to navigate daily traffic- and taking a bite out of the opportunity in the alternative transport market is Egypt-born startup Halan. The ride-sharing app for tuktuks, motorcycles, and tricycles -a first in the region- was launched in November 2017 in underserved communities in Cairo where roads tend to be too narrow for cars, and provided a cheaper alternative to cars and buses.

It grew across Giza, Alexandria, Minya, Luxor and Qalyubia governorates, and expanded to Sudan in 2018. It also offers on-demand logistics solutions to support large organizations and small businesses alike in their distribution and supply chain. Founded by Mounir Nakhla and Ahmed Mohsen, the former had the lightbulb moment when the idea was proposed to him by one of Gojek’s seed investors.

After meeting Nadiem Makarim, the CEO of Gojek, a startup that has been dubbed Indonesia’s first unicorn venture and has grown as an on-demand tech company for the transport, payment, and food sector, Nakhla was inspired from its success, and saw potential for a similar impact in Egypt. With Egypt’s population of more than 100 million, internet penetration, fast-growing sales of smartphone devices and a growing use of mobile apps, all the elements were positive, he notes.

“Transportation is one of the fastest ways of acquiring customers by solving a real need, and we wanted to be the app of choice for the underserved,” he says. “Egypt has north of 700,000 tuktuks already operating as taxis, and just over 1.5 million two-wheeler vehicles, used for both personal transportation and for delivery services, and this is where Halan comes in.”

Halan team

As part of the startup’s efforts to organize the market and ensure safety, Nakhla says they also have a meticulous screening process when recruiting drivers. Besides offering convenience to customers, Nakhla says they also provide incremental business for their drivers, and thus increase their incomes.

The founder and CEO is no stranger to working with Egypt’s mobility scene and underserved communities- he co-founded Mashroey, an Egypt-based light transport financing business, and Tasaheel, an Egypt-based micro-financing venture, which Nakhla says, has served more than 1 million customers combined. And the rest of the founding team are veterans in the transport field too: co-founder and CTO Ahmed Mohsen has published several papers in IEEE on AI, was part of the founding team and a shareholder in SecureMisr, a security consultancy company in Egypt, and founded MusicQ and CircleTie.

Plus Mohamed Aboulnaga, Careem’s former Regional Director and Fawry’s Business Development Manager, joined as co-founder and COO. They also have key members who have worked previously with Uber and Ghabbour Auto, which has resulted in a team that is comprised of “technically very competent, passionate, creative, results-driven individuals with a high work ethic. Each one with a unique strength, that when brought together make for an unrivalled team.”

After launching in 2017, Nakhla says that the company was doing around 50,000 rides by March 2018, and they closed their Series A round in the same year in a round co-led by Battery Road Ventures Holdings (BRVH) and Algebra Ventures. As for their funding, Nakhla put in 20% of the seed capital and raised the rest from Raouf Ghabbour, founder of GB Auto, as well as BRVH.

According to Nakhla, Halan has so far raised single-digit millions in total, and are currently in the process of their Series B funding round. The company’s business model involves taking a percentage of the ride fare as commission. Currently serving more than 100,000 customers, Halan has exceeded 10 million rides and operates in around 20-25 cities in Egypt and Sudan. As for its on-demand logistics offering, Halan is currently partnering with prominent names in the fast-food industry, including McDonald’s, KFC, Pizza Hut, Hardees, and many more. The startup has also been recently awarded Fastest-Growing Mobility Solution in the Market during the second edition of the E-Commerce Summit in September this year.

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Related: UAE App CAFU Brings The Fuel To Wherever You (And Your Vehicle) May Be

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Does micro-mobility have a place in the GCC?

Does micro-mobility have a place in the GCC?

Mark Anthony Karam in an October 21, 2019, article that is a response to his “Does micro-mobility have a place in the GCC?” elaborates on possibilities of moving around obviously the plush urban centres of the GCC. But only during certain times of the year unless a personalised Air Conditioning apparatus is provided with the ‘cyacle’. The image above is credit to The National.ae .

Does micro mobility have a place in the GCC?

With the rest of the world continues to see the micro-mobility sector enjoy growing success, could we see a similar success in the GCC?

  • Micro mobility was an ideal solution to the last-mile issue in countries like China or the US
  • The GCC might not be as ideal for a replicated success
  • There are several factors today that pose obstacles impeding its growth

Micro mobility, which involves light-weighted means of transportation like electric scooters and bikes for short trips, usually in urban areas, has continued to grow internationally. Countries like China, the United States and many EU nations are finding great success with this novel sector, which builds on many of the concepts of the sharing economy that innovators like Uber brought into the mainstream.

Lime and Bird, US rivals in the sector, reached unicorn status in a handful of years each since their founding. One of the reasons for their sudden success is that they solved the long-standing last-mile issue, capitalizing on a neglected market gap.

Does micro-mobility have a place in the GCC?
Image: Careem

The GCC goes mobile
Today in the GCC, some are attempting to solve this last-mile problem as well. Earlier this year, Careem announced that it had acquired Abu Dhabi bikeshare startup Cyacle, which would add a micro-mobility offering to their services. Launched in December 2014, Cyacle is a fully-automated docked bike-share service currently operating in Abu Dhabi. Stations run 24-hours a day via an app, a touch screen kiosk and docking system that releases bikes using a ride code or a member key.

At the time, Careem had also announced that it was partnering with Dubai’s Roads and Transport Authority (RTA) to install 350 bike docking stations across the Emirates, where citizens would have access to 3,500 bicycles to bike share.  

Besides Careem and its affiliates, many startups have ventured into the field as well. European e-mobility startup Circ launched its Middle Eastern HQ in the UAE this summer, bringing the region a new player in the micro-mobility field. It deployed its bikes in Abu Dhabi, recently partnering with real estate management services provider Provis to make its e-scooters available across their communities. 

Another firm, Dubai-based Arnab Mobility, is also providing a similar service. 

“Global cities are currently trying to find solutions to the global warming problems mainly caused by fossil fuel vehicles,” Dr. Dheeraj Bhardwaj, Group CEO of Arnab Mobility, tells Gulf News. He ponders an age-old question: “Also, city inhabitants and visitors struggle with first/last mile transportation, congestion and expenses. How efficient is it for a one-ton hulk of metal to take one person two to three miles? Conventional transportation systems are currently insufficient with people dealing daily with traffic, a lack of parking spaces, as well as long walks from bus stops and metro stations.”

Yet, while these solutions offer a service on par with international counterparts, it is important to remember the financial, cultural, and climate situation of the region. 

Does micro-mobility have a place in the GCC?
Image: Arnab Mobility

Regional-specific constraints

Firstly, it is important to remember that the GCC region is known for its oil-derived wealth, with many nationals owning multiple vehicles and often employing personal drivers to help family members commute. Secondly, travel distances for major outings are already quite short. 

“With urbanization on the rise, the majority of trips people take fall within the category of micro-mobility and thus are prime candidates for bike and scooter usage. In the US, for instance, roughly 60% of all trips are 5 miles or less,” CBinsights explains. 

One of the reasons micro-mobility solutions are so attractive abroad is because of their perceived value for the service provided. Instead of paying a whopping fee for a taxi get you across 4 city blocks in New York, a US citizen would opt to rent a Lime scooter for a fraction of the cost. In the GCC, with its small-sized nations, large roads and affordable taxi services, this is not yet a problem. The countries in the region, save for Saudi Arabia, are sometimes comparable to entire Western cities in size. Bahrain, for example, has an area of 765.3 km², which is half the size of London (1,572 km²). 

Therefore, from a financial and spatial perspective, micro-mobility services might struggle. 

Then arises the issue of culture perceptions. While women have been driving for more than a year now in Saudi Arabia for example, breaking gender bias and perception is still an ongoing challenge. The country is certainly moving towards progress, but micro-mobility firms will have to consider this nonetheless. Also, consider that environmental awareness and consideration only just recently began to receive mass attention in the region in the past few years. Getting people to opt for bikes over a more convenient car ride will still prove a struggle. 

Finally, and perhaps the most glaring of the issues plaguing micro-mobility companies in the region, is the climate and weather. The GCC is infamous for its scorching desert sun and sweltering heat. While public transportation like the Dubai metro or public buses offer some reprieve from the heat with their AC units, an e-scooter or bike doesn’t. When it’s 50 degrees Celsius outside and you need to just get home after a long day at work, a taxi or Uber, even for the higher fee, will prove the go-to choice. That remains the sector’s greatest obstacle. How it addresses it is still in question. 

Mark Anthony Karam has 4 years of experience in the field of visual and written media, having earned his Masters degree from the UK. You can get in touch with him here: m.karam@mediaquestcorp.com

A Decade of Entrepreneurship in MENA

A Decade of Entrepreneurship in MENA

Looking back at a decade of entrepreneurship in MENA is by Triska Hamid of WAMDA who on September 30, 2019, reported the following.

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.

Ten years later, the region boasts its own unicorn: Careem, which was acquired by Uber earlier this year for $3.1 billion, global investors are investing in Middle East startups and entrepreneurship is increasingly becoming a viable career path.

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.”

Read more from WAMDAs

Global standoff going on about who stores your Data

Global standoff going on about who stores your Data

There is a global standoff going on about who stores your data. At the close of June’s G20 summit in Japan, a number of developing countries refused to sign an international declaration on data flows – the so-called Osaka Track. Part of the reason why countries such as India, Indonesia and South Africa boycotted the declaration was because they had no opportunity to put their own interests about data into the document.

‘Digital colonialism’: why some countries want to take control of their people’s data from Big Tech

By Jacqueline Hicks, University of Nottingham

Global standoff going on about who stores your Data
knyazevfoto/Shutterstock

With 50 other signatories, the declaration still stands as a statement of future intent to negotiate further, but the boycott represents an ongoing struggle by some countries to assert their claim over the data generated by their own citizens.

Back in the dark ages of 2016, data was touted as the new oil. Although the metaphor was quickly debunked it’s still a helpful way to understand the global digital economy. Now, as international negotiations over data flows intensify, the oil comparison helps explain the economics of what’s called “data localisation” – the bid to keep citizens’ data within their own country.

Just as oil-producing nations pushed for oil refineries to add value to crude oil, so governments today want the world’s Big Tech companies to build data centres on their own soil. The cloud that powers much of the world’s tech industry is grounded in vast data centres located mainly around northern Europe and the US coasts. Yet, at the same time, US Big Tech companies are increasingly turning to markets in the global south for expansion as enormous numbers of young tech savvy populations come online.

Accusations of ‘digital imperialism’

Take, for example, the case of Facebook. While India is the country with the biggest amount of Facebook users, when you look at the location of Facebook’s 15 data centres, ten are in North America, four in Europe and one in Asia – in Singapore.

Countries with the most Facebook users in 2019. We Are Social, DataReportal, Hootsuite, Facebook via Statista

This disconnect between new sources of data and the location of data centres has led to accusations from countries such as India of “data colonisation” and “digital colonialism”.

The economic argument for countries in the global south to host more data centres is that it would boost digital industrialisation by creating competitive advantages for local cloud companies, and develop links to other parts of the local IT sector.

Many countries have flirted with regulations on what sort of data should be stored locally. Some cover only certain sectors such as health data in Australia. Others, such as South Korea, require the consent of the person associated with the data for it to be transmitted overseas. France continues to pursue its own data centre infrastructure, dubbed “le cloud souverain”, despite the closure of some of the businesses initially behind the idea. The most comprehensive laws are in China and Russia, which mandate localisation across multiple sectors for many kinds of personal data.

Countries such as India and Indonesia with their massive and growing online populations arguably have the most to gain economically from such regulations as they currently receive the least data infrastructure investment from the tech giants relative to the number of users.

The economics aren’t clear cut

Supporters of data localisation cite developing countries’ structural dependency on foreign-owned digital infrastructure and an unfair share of the industry’s economic benefits. They dream of using data localisation to force tech companies into becoming permanent entities on home soil to eventually increase the amount of taxes they can impose on them.

Detractors point to the high business costs of local servers, not just for the tech giants, but also for the very digital start ups that governments say they want to encourage. They say localisation regulations interfere with global innovation, are difficult to enforce, and ignore the technical requirements of data centres: proximity to the internet’s “backbone” of fibre optic cables, a stable supply of electricity, and low temperature air or water for cooling the giant servers.

Attempts to measure the economic impact of localisation are extremely partisan. The most cited study from 2014 uses an opaque methodology and was produced by the European Centre for International Political Economy, a free trade think-tank based in Brussels, some of whose funding comes from unknown multinational businesses. Not surprisingly, it finds gross losses for countries considering localisation. Yet, a 2018 study commissioned by Facebook found that its data centre spending in the US had created tens of thousands of jobs, supported renewable energy investments and contributed US$5.8 billion to US GDP in just six years.

Like the equivalent arguments for and against free trade, taking a dogmatic position for or against the issue masks other complexities on the ground. The economic costs and benefits depend on the type of data stored, whether it’s a duplicate or the only copy, the level of government support for wider infrastructure subsidies, to name just a few factors.

India has been the most vocal supporter for localisation, promoting its own regulation as “a template for the developing world”, but it’s in a strong position to do so given the country’s relatively advanced digital industrialisation and technical manpower. Other emerging economies with large online populations, such as Indonesia, have vacillated on their localisation regulations under pressure from the US government which has threatened to pull preferential trade terms for other goods and services if they went ahead with restrictive regulations.

What governments do with the data

While the international economics of personal data may follow some of the same general dynamics as oil production, data is fundamentally different from oil because it does a double duty – providing not just monetary value to businesses, but also surveillance opportunities for governments. Some civil society activists I’ve met as part of my research in India and Indonesia told me they were sceptical of their own governments’ narratives about data colonialism, worrying instead about the increased access to sensitive personal information that localisation gives to governments.

It’s not just large corporations and states that have roles to play in this bid for “data sovereignty”. Tech developers may yet find ways to support the rights of individuals to control their own personal data with platforms such as databox, which gives each of us something akin to our own personal servers. These technologies are still in development, but projects are springing up – mostly around Europe – that not only give people greater control over their personal data, but aim to produce social value rather than profit. Such experiments may yet find a place in the developing world alongside what states and large corporations are doing.

Jacqueline Hicks, Marie-Curie Skłodowska Fellow, University of Nottingham

This article is republished from The Conversation under a Creative Commons license. Read the original article.

The Conversation

The Middle East moves towards a Smart Cities Future

The Middle East moves towards a Smart Cities Future

In a Press Release, CommScope Reveals Connectivity Trends During GITEX. GITEX is one of the largest regional IT exhibitions and conferences in the MENA and South Asia region that takes place annually in Dubai, the United Arab Emirates at the Dubai World Trade Centre. It was held that the Middle East moves toward a smart cities future.

DUBAI, UNITED ARAB EMIRATES – As data connectivity is becoming the Fourth Utility in cities across the Middle East, businesses and homes across the region are rushing to implement it.  The region is prioritizing innovative technologies that pave the way for the future of smart cities as network operators start the commercial rollout of 5G.

“The Middle East is focused on high speeds, low latency and building connections that support smart city transformation,” said Ehab Kanary, vice president of Enterprise, CommScope.  “With the acquisition of ARRIS and Ruckus Networks, CommScope has the resources of a Fortune 250-sized company that is well placed to drive the future of connectivity in the region.”

Below are three trends that will impact smart cities in the Middle East:

  • City planners must continue to make investments for the long term: Governments in the region are playing a key role in leading and funding smart city projects. City planners must continue to educate themselves about the future possibilities of – and requirements for – smart city infrastructure, consulting with IoT vendors and network connectivity vendors, and working to develop a plan for the long term.
  • Governments and the private sector must join forces: Connectivity is the basic requirement for smart cities, and fiber-fed 5G wireless is the infrastructure that will make it possible. But to enable 5G universally, cities and service providers will have to work together. Shared infrastructure makes 5G a viable business model for both cities and service providers. 
  • As 5G technology spreads, cities will leverage it to become “smarter”: Most people think of 5G as a new wireless service for faster smartphones, but it is also a medium that enables a city to become smarter. Citizens and visitors will demand virtual reality, augmented reality and autonomous vehicle applications also be integrated into city services and capabilities.  In the near future, countries in the Middle East are engaged in projects aimed at improving public services, security and quality of life.

During GITEX Technology Week 2019, CommScope will highlight its latest solutions to enable a smart future for network operators across the region:

  • Fiber for High-Speed and Robust Connectivity: Smart cities will be built on fiber. CommScope will be demonstrating fiber technologies for faster connectivity in buildings, the data center and central office.
  • Ultra-Connected Homes are Becoming a Reality: Consumers are experiencing an increasingly digital life and network operators are seeking ways to unlock the best user experience. CommScope will demonstrate how the company is delivering reliable, high-bandwidth Wi-Fi to every corner of the home and showcase how the smart media device brings connected home technologies together for a unique personalized experience. 
  • Powering Connectivity for Smart Cities: As smart cities add new mobile-connected devices like security cameras and air quality sensors, they must have access to electricity. This is not always an easy task considering devices may be several hundred meters away from a power source. Network operators are using CommScope’s powered fiber cable systems to speed and simplify installation, and power these types of network devices.
  • Digital foundation for Smarter Buildings: As the number of connected devices grows, the location of these devices is becoming more important. CommScope’s automated infrastructure management (AIM) system knows exactly what is connected, how it is connected and where it is located.  The software automatically tracks changes, issues work orders and documents the entire network. It also provides root-cause analysis in the event of failure, helping restore services faster.

Journalists are invited to learn more about these trends and technologies from CommScope’s experts in Hall 7, Stand H7-D43, taking place in Dubai on October 6-10, 2019.

About CommScope:

CommScope (NASDAQ: COMM) and the recently acquired ARRIS and Ruckus Networks are redefining tomorrow by shaping the future of wired and wireless communications. Our combined global team of employees, innovators and technologists have empowered customers in all regions of the world to anticipate what’s next and push the boundaries of what’s possible. Discover more at www.commscope.com.

News Media Contact:
Komal Mishra
+971 43602440
Komal@activedmc.com

A globalised solar-powered future is wholly unrealistic

A globalised solar-powered future is wholly unrealistic

A globalised solar-powered future is wholly unrealistic – and our economy is the reason why is elaborated on by Alf Hornborg, Professor of Human Ecology at Lund University.

Over the past two centuries, millions of dedicated people – revolutionaries, activists, politicians, and theorists – have been unable to curb the disastrous and increasingly globalised trajectory of economic polarisation and ecological degradation. This is perhaps because we are utterly trapped in flawed ways of thinking about technology and economy – as the current discourse on climate change shows.

Rising greenhouse gas emissions are not just generating climate change. They are giving more and more of us climate anxiety. Doomsday scenarios are capturing the headlines at an accelerating rate. Scientists from all over the world tell us that emissions in ten years must be half of what they were ten years ago, or we face apocalypse. Schoolchildren like Greta Thunberg and activist movements like Extinction Rebellion are demanding that we panic. And rightly so. But what should we do to avoid disaster?

Most scientists, politicians, and business leaders tend to put their hope in technological progress. Regardless of ideology, there is a widespread expectation that new technologies will replace fossil fuels by harnessing renewable energy such as solar and wind. Many also trust that there will be technologies for removing carbon dioxide from the atmosphere and for “geoengineering” the Earth’s climate. The common denominator in these visions is the faith that we can save modern civilisation if we shift to new technologies. But “technology” is not a magic wand. It requires a lot of money, which means claims on labour and resources from other areas. We tend to forget this crucial fact.


Read more: Should we engineer the climate? A social scientist and natural scientist discuss


I would argue that the way we take conventional “all-purpose” money for granted is the main reason why we have not understood how advanced technologies are dependent on the appropriation of labour and resources from elsewhere. In making it possible to exchange almost anything – human time, gadgets, ecosystems, whatever – for anything else on the market, people are constantly looking for the best deals, which ultimately means promoting the lowest wages and the cheapest resources in the global South.

It is the logic of money that has created the utterly unsustainable and growth-hungry global society that exists today. To get our globalised economy to respect natural limits, we must set limits to what can be exchanged. Unfortunately, it seems increasingly probable that we shall have to experience something closer to disaster – such as a semi-global harvest failure – before we are prepared to seriously question how money and markets are currently designed.


This article is part of Conversation Insights
The Insights team generates long-form journalism derived from interdisciplinary research. The team is working with academics from different backgrounds who have been engaged in projects aimed at tackling societal and scientific challenges.


Green growth?

Take the ultimate issue we are facing: whether our modern, global, and growing economy can be powered by renewable energy. Among most champions of sustainability, such as advocates of a Green New Deal, there is an unshakeable conviction that the problem of climate change can be solved by engineers.

What generally divides ideological positions is not the faith in technology as such, but which technical solutions to choose, and whether they will require major political change. Those who remain sceptical to the promises of technology – such as advocates of radical downshifting or degrowth – tend to be marginalised from politics and the media. So far, any politician who seriously advocates degrowth is not likely to have a future in politics.

Mainstream optimism about technology is often referred to as ecomodernism. The Ecomodernist Manifesto, a concise statement of this approach published in 2015, asks us to embrace technological progress, which will give us “a good, or even great, Anthropocene”. It argues that the progress of technology has “decoupled” us from the natural world and should be allowed to continue to do so in order to allow the “rewilding” of nature. The growth of cities, industrial agriculture, and nuclear power, it claims, illustrate such decoupling. As if these phenomena did not have ecological footprints beyond their own boundaries.


Read more: An ecomodernist’s manifesto: save wildlife by embracing new tech


Meanwhile, calls for a Green New Deal have been voiced for more than a decade, but in February 2019 it took the form of a resolution to the American House of Representatives. Central to its vision is a large-scale shift to renewable energy sources and massive investments in new infrastructure. This would enable further growth of the economy, it is argued.

A globalised solar-powered future is wholly unrealistic
What will it take for us to seriously consider the roots of our problems? PicsEKa/Shutterstock

Rethinking technology

So the general consensus seems to be that the problem of climate change is just a question of replacing one energy technology with another. But a historical view reveals that the very idea of technology is inextricably intertwined with capital accumulation, unequal exchange and the idea of all-purpose money. And as such, it is not as easy to redesign as we like to think. Shifting the main energy technology is not just a matter of replacing infrastructure – it means transforming the economic world order.

In the 19th century, the industrial revolution gave us the notion that technological progress is simply human ingenuity applied to nature, and that it has nothing to do with the structure of world society. This is the mirror image of the economists’ illusion, that growth has nothing to do with nature and so does not need to reckon with natural limits. Rather than seeing that both technology and economy span the nature-society divide, engineering is thought of as dealing only with nature and economics as dealing only with society.

The steam engine, for instance, is simply considered an ingenious invention for harnessing the chemical energy of coal. I am not denying that this is the case, but steam technology in early industrial Britain was also contingent on capital accumulated on global markets. The steam-driven factories in Manchester would never have been built without the triangular Atlantic trade in slaves, raw cotton, and cotton textiles. Steam technology was not just a matter of ingenious engineering applied to nature – like all complex technology, it was also crucially dependent on global relations of exchange.

Sketch showing a steam engine designed by Boulton & Watt, England, 1784. Wikimedia Commons

This dependence of technology on global social relations is not just a matter of money. In quite a physical sense, the viability of the steam engine relied on the flows of human labour energy and other resources that had been invested in cotton fibre from South Carolina, in the US, coal from Wales and iron from Sweden. Modern technology, then, is a product of the metabolism of world society, not simply the result of uncovering “facts” of nature.

The illusion that we have suffered from since the industrial revolution is that technological change is simply a matter of engineering knowledge, regardless of the patterns of global material flows. This is particularly problematic in that it makes us blind to how such flows tend to be highly uneven.

This is not just true of the days of the British Empire. To this day, technologically advanced areas of the world are net importers of the resources that have been used as inputs in producing their technologies and other commodities, such as land, labour, materials, and energy. Technological progress and capital accumulation are two sides of the same coin. But the material asymmetries in world trade are invisible to mainstream economists, who focus exclusively on flows of money.


Read more: Decolonise science – time to end another imperial era


Ironically, this understanding of technology is not even recognised in Marxist theory, although it claims to be both materialist and committed to social justice. Marxist theory and politics tend toward what opponents refer to as a Promethean faith in technological progress. Its concern with justice focuses on the emancipation of the industrial worker, rather than on the global flows of resources that are embodied in the industrial machine.

This Marxist faith in the magic of technology occasionally takes extreme forms, as in the case of the biologist David Schwartzman, who does not hesitate to predict future human colonisation of the galaxy and Aaron Bastani, who anticipates mining asteroids. In his remarkable book Fully Automated Luxury Communism: A Manifesto, Bastani repeats a widespread claim about the cheapness of solar power that shows how deluded most of us are by the idea of technology.

Nature, he writes, “provides us with virtually free, limitless energy”. This was a frequently voiced conviction already in 1964, when the chemist Farrington Daniels proclaimed that the “most plentiful and cheapest energy is ours for the taking”. More than 50 years later, the dream persists.

The realities

Electricity globally represents about 19% of total energy use – the other major energy drains being transports and industry. In 2017, only 0.7% of global energy use derived from solar power and 1.9% from wind, while 85% relied on fossil fuels. As much as 90% of world energy use derives from fossil sources, and this share is actually increasing. So why is the long-anticipated transition to renewable energy not materialising?

One highly contested issue is the land requirements for harnessing renewable energy. Energy experts like David MacKay and Vaclav Smil have estimated that the “power density” – the watts of energy that can be harnessed per unit of land area – of renewable energy sources is so much lower than that of fossil fuels that to replace fossil with renewable energy would require vastly greater land areas for capturing energy.

In part because of this issue, visions of large-scale solar power projects have long referred to the good use to which they could put unproductive areas like the Sahara desert. But doubts about profitability have discouraged investments. A decade ago, for example, there was much talk about Desertec, a €400 billion project that crumbled as the major investors pulled out, one by one.

Today the world’s largest solar energy project is Ouarzazate Solar Power Station in Morocco. It covers about 25 square kilometres and has cost around US$9 billion to build. It is designed to provide around a million people with electricity, which means that another 35 such projects – that is, US$315 billion of investments – would be required merely to cater to the population of Morocco. We tend not to see that the enormous investments of capital needed for such massive infrastructural projects represent claims on resources elsewhere – they have huge footprints beyond our field of vision.

Also, we must consider whether solar is really carbon free. As Smil has shown for wind turbines and Storm van Leeuwen for nuclear power, the production, installation, and maintenance of any technological infrastructure remains critically dependent on fossil energy. Of course, it is easy to retort that until the transition has been made, solar panels are going to have to be produced by burning fossil fuels. But even if 100% of our electricity were renewable, it would not be able to propel global transports or cover the production of steel and cement for urban-industrial infrastructure.

And given the fact that the cheapening of solar panels in recent years to a significant extent is the result of shifting manufacture to Asia, we must ask ourselves whether European and American efforts to become sustainable should really be based on the global exploitation of low-wage labour, scarce resources and abused landscapes elsewhere.


Read more: Lithium is finite – but clean technology relies on such non-renewable resources


Collecting carbon

Solar power is not displacing fossil energy, only adding to it. And the pace of expansion of renewable energy capacity has stalled – it was about the same in 2018 as in 2017. Meanwhile, our global combustion of fossil fuels continues to rise, as do our carbon emissions. Because this trend seems unstoppable, many hope to see extensive use of technologies for capturing and removing the carbon from the emissions of power plants and factories.

Carbon Capture and Storage (CCS) remains an essential component of the 2016 Paris Agreement on climate change. But to envisage such technologies as economically accessible at a global scale is clearly unrealistic.

To collect the atoms of carbon dispersed by the global combustion of fossil fuels would be as energy-demanding and economically unfeasible as it would be to try to collect the molecules of rubber from car tires that are continuously being dispersed in the atmosphere by road friction.

The late economist Nicholas Georgescu-Roegen used this example to show that economic processes inevitably lead to entropy – that is, an increase in physical disorder and loss of productive potential. In not grasping the implications of this fact, we continue to imagine some miraculous new technology that will reverse the Law of Entropy.

Economic “value” is a cultural idea. An implication of the Law of Entropy is that productive potential in nature – the force of energy or the quality of materials – is systematically lost as value is being produced. This perspective turns our economic worldview upside down. Value is measured in money, and money shapes the way we think about value. Economists are right in that value should be defined in terms of human preferences, rather than inputs of labour or resources, but the result is that the more value we produce, the more inexpensive labour, energy and other resources are required. To curb the relentless growth of value – at the expense of the biosphere and the global poor – we must create an economy that can restrain itself.

The evils of capitalism

Much of the discussion on climate change suggests that we are on a battlefield, confronting evil people who want to obstruct our path to an ecological civilisation. But the concept of capitalism tends to mystify how we are all caught in a game defined by the logic of our own constructions – as if there was an abstract “system” and its morally despicable proponents to blame. Rather than see the very design of the money game as the real antagonist, our call to arms tends to be directed at the players who have had best luck with the dice.

I would instead argue that the ultimate obstruction is not a question of human morality but of our common faith in what Marx called “money fetishism”. We collectively delegate responsibility for our future to a mindless human invention – what Karl Polanyi called all-purpose money, the peculiar idea that anything can be exchanged for anything else. The aggregate logic of this relatively recent idea is precisely what is usually called “capitalism”. It defines the strategies of corporations, politicians, and citizens alike.

All want their money assets to grow. The logic of the global money game obviously does not provide enough incentives to invest in renewables. It generates greed, obscene and rising inequalities, violence, and environmental degradation, including climate change. But mainstream economics appears to have more faith in setting this logic free than ever. Given the way the economy is now organised, it does not see an alternative to obeying the logic of the globalised market.

It’s the rules which are the issue – not those who win. Theera Disayarat/Shutterstock.com

The only way to change the game is to redesign its most basic rules. To attribute climate change to an abstract system called capitalism – but without challenging the idea of all-purpose money – is to deny our own agency. The “system” is perpetuated every time we buy our groceries, regardless of whether we are radical activists or climate change deniers. It is difficult to identify culprits if we are all players in the same game. In agreeing to the rules, we have limited our potential collective agency. We have become the tools and servants of our own creation – all-purpose money.

Despite good intentions, it is not clear what Thunberg, Extinction Rebellion and the rest of the climate movement are demanding should be done. Like most of us, they want to stop the emissions of greenhouse gases, but seem to believe that such an energy transition is compatible with money, globalised markets, and modern civilisation.

Is our goal to overthrow “the capitalist mode of production”? If so, how do we go about doing that? Should we blame the politicians for not confronting capitalism and the inertia of all-purpose money? Or – which should follow automatically – should we blame the voters? Should we blame ourselves for not electing politicians that are sincere enough to advocate reducing our mobility and levels of consumption?

Many believe that with the right technologies we would not have to reduce our mobility or energy consumption – and that the global economy could still grow. But to me, that is an illusion. It suggests that we have not yet grasped what “technology” is. Electric cars and many other “green” devices may seem reassuring but are often revealed to be insidious strategies for displacing work and environmental loads beyond our horizon – to unhealthy, low-wage labour in mines in Congo and Inner Mongolia. They look sustainable and fair to their affluent users but perpetuate a myopic worldview that goes back to the invention of the steam engine. I have called this delusion machine fetishism.

A globalised solar-powered future is wholly unrealistic
Not the guilt free option many assume them to be. Smile Fight/Shutterstock.com

Redesigning the global money game

So the first thing we should redesign are the economic ideas that brought fossil-fueled technology into existence and continue to perpetuate it. “Capitalism” ultimately refers to the artefact or idea of all-purpose money, which most of us take for granted as being something about which we do not have a choice. But we do, and this must be recognised.

Since the 19th century, all-purpose money has obscured the unequal resource flows of colonialism by making them seem reciprocal: money has served as a veil that mystifies exploitation by representing it as fair exchange. Economists today reproduce this 19th-century mystification, using a vocabulary that has proven useless in challenging global problems of justice and sustainability. The policies designed to protect the environment and promote global justice have not curbed the insidious logic of all-purpose money – which is to increase environmental degradation as well as economic inequalities.

In order to see that all-purpose money is indeed the fundamental problem, we need to see that there are alternative ways of designing money and markets. Like the rules in a board game, they are human constructions and can, in principle, be redesigned. In order to accomplish economic “degrowth” and curb the treadmill of capital accumulation, we must transform the systemic logic of money itself.

National authorities might establish a complementary currency, alongside regular money, that is distributed as a universal basic income but that can only be used to buy goods and services that are produced within a given radius from the point of purchase. This is not “local money” in the sense of LETS or the Bristol Pound – which in effect do nothing to impede the expansion of the global market – but a genuine spanner in the wheel of globalisation. With local money you can buy goods produced on the other side of the planet, as long as you buy it in a local store. What I am suggesting is special money that can only be used to buy goods produced locally.

A globalised solar-powered future is wholly unrealistic
Locally produced goods. Alison Hancock/Shutterstock.com

This would help decrease demand for global transports – a major source of greenhouse gas emissions – while increasing local diversity and resilience and encouraging community integration. It would no longer make low wages and lax environmental legislation competitive advantages in world trade, as is currently the case.

Immunising local communities and ecosystems from the logic of globalised capital flows may be the only feasible way of creating a truly “post-capitalist” society that respects planetary boundaries and does not generate deepening global injustices.

Re-localising the bulk of the economy in this way does not mean that communities won’t need electricity, for example, to run hospitals, computers and households. But it would dismantle most of the global, fossil-fuelled infrastructure for transporting people, groceries and other commodities around the planet.

This means decoupling human subsistence from fossil energy and re-embedding humans in their landscapes and communities. In completely changing market structures of demand, such a shift would not require anyone – corporations, politicians, or citizens – to choose between fossil and solar energy, as two comparable options with different profit margins.

To return to the example of Morocco, solar power will obviously have an important role to play in generating indispensable electricity, but to imagine that it will be able to provide anything near current levels of per capita energy use in the global North is wholly unrealistic. A transition to solar energy should not simply be about replacing fossil fuels, but about reorganising the global economy.

Solar power will no doubt be a vital component of humanity’s future, but not as long as we allow the logic of the world market to make it profitable to transport essential goods halfway around the world. The current blind faith in technology will not save us. For the planet to stand any chance, the global economy must be redesigned. The problem is more fundamental than capitalism or the emphasis on growth: it is money itself, and how money is related to technology.

Climate change and the other horrors of the Anthropocene don’t just tell us to stop using fossil fuels – they tell us that globalisation itself is unsustainable.


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This article is republished from The Conversation under a Creative Commons license.

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Dubai remains one of the world’s most visited cities

Dubai remains one of the world’s most visited cities

AMEinfo on September 5, 2019, came up with this superlative statement article because Dubai remains one of the world’s most visited cities in the world of today. The same media has already covered the same topic last year.

Dubai remains one of the world’s most visited cities – Global Destination Cities Index 2019

Dubai remains one of the world's most visited cities

“The impressive visitor numbers are set to increase even further next year, as we welcome 192 nations for a once-in-a-lifetime celebration at Expo 2020 Dubai” – Sanjive Khosla, CCO, Expo 2020 Dubai

  • Dubai welcomed 15.93 million overnight visitors in 2018, retaining its ranking as fourth most popular destination globally
  • Abu Dhabi is Middle East and Africa’s fastest-growing city with a 2009-2018 CAGR of 16.7%
  • When looking at the cities by dollar spent, Dubai tops the list with travellers spending USD $553 on average a day

Dubai has retained its position as the fourth most visited city in the world for the fifth year in a row, according to Mastercard’s Global Destination Cities Index (GDCI) 2019. The city welcomed 15.93 million international overnight visitors last year and the city is expected to continue building on its success in 2019.

The UAE’s capital, Abu Dhabi, was ranked as the fastest-growing city in the Middle East and Africa, with a Compound Annual Growth Rate (CAGR) of 16.7% between 2009 and 2018 in overnight arrivals.

“Once again, Dubai has earned and maintained its position as the fourth most visited city in the world in Mastercard’s Global Destinations Cities Index. As the most attractive destination in the Middle East and Africa region for international visitors, Dubai connects people from all over the world with a diverse range of offerings for leisure and business travellers alike,” said Girish Nanda, General Manager, UAE & Oman, Mastercard.

Sanjive Khosla, Chief Commercial Officer, Expo 2020 Dubai, said: “The impressive visitor numbers are set to increase even further next year, as we welcome 192 nations for a once-in-a-lifetime celebration at Expo 2020 Dubai. With millions of visitors projected to come from outside the UAE, we anticipate that the region’s first ever World Expo will create short- and long-term benefits for Dubai’s tourism industry while enhancing its reputation as a dynamic and diverse global meeting point.” 

Read: New real estate committee in Dubai aims to balance supply and demand in the property market

Mastercard Global Destination City Index 2019 – Key Findings

Over the past ten years, the world has seen economic ebbs and flows, evolving global competition and partnership, and boundless technological innovation. But, one thing has remained constant: people’s growing desire to travel the world, visit new landscapes and immerse themselves in other cultures. Mastercard’s Global Destination Cities Index, released today, quantifies this desire: since 2009, the number of international overnight visitors grew an astounding 76 per cent.

This year, the Global Destination Cities Index—which ranks 200 cities based on proprietary analysis of publicly available visitor volume and spend data—reveals that Bangkok remains the No. 1 destination, with more than 22 million international overnight visitors. Paris and London, in flipped positions this year, hold the No. 2 and 3 spots, respectively both hovering over 19 million. All top ten cities saw more international overnight visitors in 2018 than the prior year, with the exception of London, which decreased nearly 4 per cent. The forecast for 2019 indicates across-the-board growth, with Tokyo expecting the largest uptick in visitors.

When looking at the cities by dollar spent, Dubai tops the list with travellers spending USD $553 on average a day. Makkah, new to the top 10 last year, remains at No. 2 for the second consecutive year, with Bangkok rounding out the top three. 

Read: Exclusive: Musafir.com allows corporates to pilot their own journeys and save big

Notably this year, the Global Destination Cities Index offers a decade of insights to consider, with three key trends standing out. 

-Consistent & Steady Growth: Over the past decade, the one constant has been continual change. Each year, more people are travelling internationally and spending more in the cities. Between all of the destinations within the Index, arrivals have grown on average 6.5 per cent year-over-year since 2009, with expenditure growing on average 7.4 per cent. 

-The Sustained Dominance of Major Cities: While there has been significant movement in visitors to smaller cities, the top 10 has remained largely consistent. London, Paris and Bangkok have been the top 3 since 2010, with Bangkok as No. 1 six of the past seven years. New York is another top 10 stalwart, with 13.6 million overnight visitors this year.

-The Rise of Asia-Pacific International Travelers: Cities in the Asia-Pacific region have seen the largest increase in international travellers since 2009, growing 9.4 per cent. In comparison, Europe, which saw the second highest growth, was up 5.5 per cent. This is spurred on by the growth in mainland Chinese travellers. Since 2009, mainland China has jumped up six places to be the No. 2 origin country for travellers to the 200 included destinations—behind only the U.S.

Dubai remains one of the world's most visited cities

Read: 

Why media performance has declined in the MENA?

Why media performance has declined in the MENA?

Shehab Al Makahleh, a consultant, senior political, media adviser and the executive director of Geostrategic Media Centre-USA, wondered Why media performance has declined in the MENA? He contributed this article dated August 31, 2019, to The Jordan Times.

There are many challenges facing Arab media, starting with national newspapers, news sources, magazines to television stations due to digital incursion, which trespasses geographical boundaries, putting an end to monopoly in the fields of communication that were once the task of giant institutions operating on a global scale. Thus, it is highly recommended to help users and the audience identify false news that has become a phenomenon.

In the past decade, advertising resources for print media fell by two-thirds. The distribution of national newspapers dropped as well, either because of digital copies due to easy access to the Internet by the audience or because many advertisers prefer posting their ads online. Newspapers’ revenues as a result have dropped remarkably. Publishers rely on ads that have now been fully automated and based on traffic volume on news sites.

The question that arises is: Who is responsible for this decline of regional media and lack of professional craftsmanship? The dilemma lies in the collective responsibility of individuals and the media. For example, many people follow social media celebrities, who have millions of followers without providing any useful content. Thus, fame at present does not require people to appear on television and satellite channels, as some Youtubers and Instagrammers have millions of followers; more than TV channels and newspapers due to flip-flopped interests.

A major segment of the deterioration of Arab media lies on recipients or the audience. In other words, some media outlets which respond to audience requests and demands achieve tangible successes. Social media celebrities go by the whims of their followers to secure stardom.

In some countries, there is fear from the media, and this has created a psychological barrier that prevents journalists from dealing with vital issues. Extremist parties and other actors have also contributed to this decline in media and journalism. Lack of journalistic professionalism is a direct outcome of failure of media institutions to provide necessary training for journalists.

Over the past 25 years, the number of media channels, newspapers and websites have mushroomed. In other words, the quantity has not matched the quality due to lack of professional journalists who are well-trained to manage media institutions independently. If we look at the state of journalism now, there are more media outlets, but media independence and freedom of coverage had become less than before. Technological advances on social media have also led people to follow media that are consistent with their views.

Traditional Arab media has lost its role in the industry of opinion and has a marginal contribution to the formation of awareness of the Arab world, while social media has become more powerful and influential. Some media have moved away from traditional means and turned to social media as a better platform to address the public directly. Newspapers have become weak in many Arab countries, even those which are funded, and supported by governments, as the main issue is not related to funding but rather professionalism. Many newspapers do not have remarkable content to grab readers to purchase such newspapers due to citizens’ weak purchase power and absence of real professional journalism.

What these newspapers currently offer depends on news agencies and other sources of content. Very few still have strong journalistic topics that are presented to the reader. Unfortunately, the way such topics are covered and addressed have less freedom of expression and opinion in terms of analysis and prognosis. Since the basis in successful media work relies on science and information, absence of these two elements is one of the major loopholes of media coverage in the whole Middle East and North Africa (MENA) region.

Technological transformation in the world of media industry have raised concerns among the media industry, as this has adversely affected the media spectrum in the MENA.

Thus, we need to improve the horizons of high-level journalism and encourage new media models not only in terms of available technologies, but also in terms of innovation and creativity by hiring national press, digital media and advertising industry figures in order to restore a balance between news publishers and digital platforms that publish what they produce. This comes at a time when many changes in technology and consumer attitudes pose challenges for quality journalism in the region.

Government oversight should be effective from time to time in order for Internet news platforms to adhere to media standards and to enhance confidence in the news such platforms broadcast. The government should also consider direct support for local news sources and provide tax exemptions for media. Information authorities should provide more support to local publishers so that their coverage complements local news. Furthermore, governments concerned should set up independent institutes to provide news of public interest in the future.

Therefore, we should adhere to new standards to restore balance between publishers and online platforms. In addition, Internet platforms must exert an effort to improve their users’ access to news in a good manner.

A deep dive into the MENA games industry

A deep dive into the MENA games industry

SPECIAL REPORT of Region focus: A deep dive into the MENA games industry dated August 30th, 2019, by Will Freeman is literally illuminating in the sense of shedding the light on the presence of the games industry in the MENA region that was discretely kept away from the attention of the many. Here it is.

A deep dive into the MENA games industry

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.

A deep dive into the MENA games industry
Petra, Jordan

“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.

Hussam Hammo

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 GSMAcounted 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.

A deep dive into the MENA games industry
United Arab Emirates

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.

Cultural localisation

‘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.

Jawad Abassi

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.

And then there are those taking the opposite approach. Saudi Arabia’s Manga Productions, for example, endeavours to deliver ‘animation and video game projects to promote Saudi ideas and messages internationally through unique and professional productions’. As a local market, MENA is culturally distinct, but that doesn’t stop it from being globally ambitious.

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.

Get the latest mobile games news, interviews and in-depth analysis on TwitterFacebookLinkedIn and our daily newsletter.


Pocket Gamer Connects Helsinki is on October 1st and 2nd 2019. Book now!

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Will Freeman
A deep dive into the MENA games industry
  • Will Freeman is the former editor of trade publication Develop, having also written for the likes of The Guardian and The Observer.
It’s Good To Teach Entrepreneurial Thinking At A Young Age

It’s Good To Teach Entrepreneurial Thinking At A Young Age

Published by Entrepreneur Middle East, an international franchise of Entrepreneur Media, this article dated August 15, 2019, is an eye-opener on not only the educational requirements of the near future but on the times we’re presently going through. There are according to Helen Al Uzaizi CEO, BizWorld UAE, Three Reasons Why It’s Good To Teach Entrepreneurial Thinking At A Young Age.

Teaching entrepreneurial thinking at a young age can help kids learn and hone valuable skills that they can use to cope with stress and unforeseen issues that arise in their ever-changing world.

Three Reasons Why It's Good To Teach Entrepreneurial Thinking At A Young Age

Moving from childhood into adolescence can be a very challenging time for kids. Not only are social norms changing, but their ability to adapt to their quickly evolving environments is being developed. Schools change, responsibilities change, and their lives become different from day to day. Throughout this time, maturing happens, and it aids in their ability to critically think, react to situations, and become more independent.

But is there a way to develop these skills sooner to help them mature, and ultimately, cope better? In a nutshell, yes. Teaching entrepreneurial thinking at a young age can help kids learn and hone valuable skills that they can use to cope with stress and unforeseen issues that arise in their ever-changing world. Creativity, problem-solving, and emotional intelligence are just a few of these skills that can be gained through early teaching and long-term practice. For kids that practice entrepreneurial thinking, in difficult situations, they are able to problem solve effectively by analyzing long-term ramifications. This kind of processing comes with so many benefits that will bode well for kids from childhood all the way into adulthood.

1. Positive habit-forming Entrepreneurial thinking is not just an activity, but rather a lens through which all situations are viewed. This is also known as a “positive habit.” Instead of going down another path, the child has to make a conscious decision to change their perspective. By making these daily decisions, kids become more aware of the benefits that come along with forming positive habits and find them easier to engage in a variety of life aspects.

2. Emotional support When a child is able to effectively problem solve, and see the fruit of their efforts, positive feelings and increased self-worth follow. This internal confidence leads to kids feeling emotionally supported, and it has a great effect on their ability to take criticism and grow without fear of failure.

3. Behavior Most of the time, bad behavior comes from the inability to control one’s emotions and/ or the inability to communicate. Practicing entrepreneurial thinking solves both of those inhibitors by giving the child the tools to be able to look at the problem from a big-picture and emotionally intelligent perspective. All of the attributes that are gained from teaching entrepreneurial thinking tend to lead to better behavior, emotional health, and positive habits by giving kids the tools to not only cope, but thrive. Equipping them early helps kids navigate the landscape of their lives so that they can face obstacles with creativity and without fear. Difficult situations, new experiences and issues that arise are all the more easily handled and learned from by learning and practicing entrepreneurial thinking young.

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