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.
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.
As Climate change could cause 29% spike in cereal prices: leaked UN report, because Food supply chains will get disrupted globally, the study warns. Report to be officially released in August informs Nitin Sethi, of New Delhi in this article of Business Standard.
As far as the MENA region is concerned, food has always been in short supply, but does this mean it would get worse.
The report will be put before all member countries of the UN Framework Convention and once it gets their stamp of approval by consensus it will be made public on August 8. Photo: Representative Image
“The rate and geographic extent of global land and freshwater resources over recent decades is unprecedented in human history,” a report authored by UN’s panel of scientists from across the world on climate change is set to inform. Business Standard reviewed a leaked copy of the draft report sent to the governments of 197 countries. The report warns that as the global temperatures rise, the stress on land resources and its productivity is set to rise.
The report by the UN Inter-governmental panel on climate change, is called, “IPCC Special Report on Climate Change, Desertification, Land Degradation, Sustainable Land Management, Food Security, and Greenhouse gas fluxes in terrestrial ecosystems.”
The report will be put before all member countries of the UN Framework Convention and once it gets their stamp of approval by consensus it will be made public on August 8.
The authors of the report, gleaning through state-of-art science research have concluded that, “Observed climate change is already affecting the four pillars of food security – availability, access, utilization, and stability – through increased temperatures, changing precipitation patterns, and greater frequency of some extreme events.”
Continuing climate change is expected to further “create additional stresses on land systems exacerbating risks related to desertification, land degradation and food security,” the report says.
In a significant finding for countries such as India, the authors say, at global warming of 2° Celsius, the population of drylands exposed and vulnerable to water stress, increased drought intensity and habitat degradation could be as high as 522 million. Scientists conclude that at current levels of greenhouse gas emission reductions committed by the countries under Paris Agreement there is a good likelihood for the planet to breach the 2° Celsius temperature rise barrier.
“In drylands, desertification and climate change are projected to cause further reduction in crop and livestock productivity, modify the composition of plant species and reduce biological diversity,” research endorsed by the scientific panel shows.
Half of the vulnerable population due to the climate-change induced aridity would be in South Asia. The degradation of land due to climate change is already leading to consequent shaving off of the global economy, the scientific panel notes. “There are increasingly negative effects on GDP from impacts on land-based values and ecosystem service as temperature increases,” the report says. But, it notes that, at the regional level, the impacts would vary. “Compound extreme events, such as a heat wave within a drought or drought followed by extreme rainfall, will decrease gross primary productivity of lands, the authors warn
The impact on agriculture in higher latitudes is recorded to be different than in lower ones, such as one covering India. “Increasing temperature are affecting agricultural productivity in higher latitudes, raising yields of some crops such as maize, cotton, wheat, sugar beets, while in lower-latitude regions yields of crops such as maize, wheat and barley are declining.
Modelling results, that the scientific panel reviewed, show that cereal prices could rise by up to 29 per cent in 2050 due to climate change, which would impact consumers globally through higher food prices, though the impact would vary by regions. The stability of food supply is expected to decrease as the magnitude and frequency of extreme events caused by climate change increases, disrupting food chains globally.
The increase in global temperatures and consequent climate change is already affecting the productivity of livestock, which is one a main-stay of Indian rural economy. The authors conclude, “Observed impacts in pastoral systems include pasture declines, lower animal growth rates and productivity, damaged reproductive functions, increased pests and diseases, and loss of biodiversity.”
At the same time coastal economies are already suffering an impact as well. “Coastal erosion is affecting new regions as a result of interacting human drivers and climate change such as sea-level rise and impacts of changing cyclone paths,” though the scientists hold a low level confidence in the scientific research that concludes the impact of climate change on cyclone paths.
Saudi Gazette posted an article dated July 9, 2019, on MENA start-up ecosystem on the rise, explaining that it is all “positive news for the continually growing ecosystem with strong growth through a record number of transactions.”
DUBAI — Total funding across the Middle East and North Africa (MENA)-based start-ups was up 66% from H1 2018, MAGNiTT, the region’s most powerful startup platform, said in its H1 2019 MENA Venture Investment Report, which provides an in-depth analysis of start-up funding and venture capital across the Middle East and North Africa.
The report highlights positive news for the continually growing ecosystem with strong growth through a record number of transactions.
Philip Bahoshy, MAGNiTT’s founder, said “the MENA region is hitting its inflection point. The acceleration of funding we saw in the latter half of 2018 has continued into 2019.”
Bahoshy noted that “there are many signs of an ever maturing ecosystem. As start-ups grow, we have seen more start-ups raising larger tickets, more exits and a continued interest from International investors in the region, especially from Asia.”
He also pointed to “UBER’s acquisition of CAREEM is another example of a large international player acquiring a local company after Amazon’s acquisition of Souq. This will further act as a catalyst to spur on the regions entrepreneurial environment.”
The report noted that H1 2019 saw 238 investments in MENA-based start-ups, amounting to $471 million of total funding. This is an excellent indicator, a 66% increase in investment dollars compared to H1 2018, in which $283 million was invested.
The number of deals remained healthy at a record high, up 28% compared to H1 2018, showing continued appetite in start-ups from the region at all stages of investment.
Noor Sweid, General Partner of Global Ventures, said “the growth in the start-up and tech ecosystem in the region is phenomenal, and yet, we are just at the beginning of a trajectory that will see technology-driven companies grow significantly and incredibly quickly over the coming years. These numbers illustrate the momentum and successes that the underlying companies and founders are achieving, and the growth in the investment ecosystem and opportunities alongside them.”
The UAE remains the most active startup ecosystem with 26% of all deals and 66% of total funding. Saudi Arabia was one of the fastest growing ecosystems, up 2% from H1 2018 recording 26 investments in H1 2019.
The UAE has maintained its dominance with 26% of all transactions made in to UAE-headquartered start-ups in H1 2019, while it also accounted for 66% of total funding.
Khalfan Belhoul, CEO of the Dubai Future Foundation, explains this by highlighting that “With the vision of our leaders, and a strong strategy in place, the UAE has cemented its position as an ideal destination for startups, founders, creative thinkers, and innovators. We have leveraged that vision, through creating dynamic co-working spaces, agile legislation that supports innovation and attractive visa policies for entrepreneurs and business professionals, and we continue our efforts toward positioning Dubai as a global testbed for cutting-edge technologies.”
However, the landscape continues to evolve. Tunisia was the fastest growing ecosystem in H1 2019 – receiving the 5th highest number of deals at 8% of all deals, up 4% from H1 2018. While Saudi Arabia recorded 2% increase in number of deals, up to 11% of all transactions across the MENA region.
FinTech retained its top spot in H1 2019 and accounted for 17% of all deals. Notable investments include the $8 million in Yallacompare, $6 million in Souqalmal and $4 million in Beehive.
E-commerce still remains prevalent accounting for 12% of all deals, followed Delivery & Transport, which was the third most popular industry in terms total deals in H1 2019, accounting for 8%.
The report furthered said 130 institutions invested in MENA-based start-ups in H1 2019, of which 30% were from outside the region.
500 Startups remained the most active venture capital firm, especially at early stage investments, while Flat6Labs was the most active accelerator program.
Moreover, H1 2019 saw the influx trend of foreign investors continue. The entrance of China’s MSA Capital and Germany’s food conglomerate Henkel, among others, highlighted continued international interest in MENA start-ups. In fact, 30% of all entities that invested in MENA-based start-ups were international investors.
Walid Faza, Partner and Chief Operating Officer of MSA Capital, said: “Chinese models are shaping the consumption habits of emerging market tech consumers and MSA’s deep knowledge in both ecosystems positions us to add a lot of value to companies based in MENA.”
EMPG leads the start-up ecosystem with a $100 million fundraise, followed by Yellow Door Energy and Swvl
EMPG receives the highest amount of funding by a single start-up, raising $100 million in February 2019. Yellow Door Energy ($65M) and Swvl ($42 million) complete the top 3.
In total, the top 10 deals in H1 2019 account for 62% of the total investment amount in H1 2019, down 9% from H1 2019. In terms of exits, H1 2019 has seen 15 start-up exits take place across MENA, an increase of 5 compared to H1 2018.
The largest of these was Careem’’ landmark exit to Uber. Magnus Olsson, Co-Founder, Chief Experience Officer noted “Our $3.1 billion deal with Uber was a hugely significant moment, not just for Careem, but also for the Greater Middle East. It was the largest tech deal this part of the world has ever seen and puts our region’s emerging technology ecosystem on the map of both regional and foreign investors.” On the impact the deal will have across the ecosystem, Olsson noted that “Careem views its colleagues as owners of the business and so we introduced an equity scheme that will now see them financially benefit from the transaction. We hope that the deal will act as a catalyst for the next generation of tech startups in our region.”
The World Economic Forum article dated 28 May 2019, could well be applied to most of the countries of the MENA region. Apart from the oil exporting ones, all the others’ informal economy appears to the naked eye as undergoing the same phenomenon but perhaps at a lesser density. In effect, very much like in the neighbouring sub-Saharan regions, the MENA’s informal markets seem to be pushing towards a new kind of business structure. A new kind of company is revolutionising Africa’s gig economy?Aubrey Hruby, Senior advisor to Fortune 500 companies replies.
For more than 30 years, governments and international development organizations have followed the same recipe for formalising the world’s informal economy; enacting new legislation and regulations or abolishing those that get in the way of the process.
By 2035, Africa will contribute more people to the workforce each year than the rest of the world combined. By 2050, the continent will be home to 1.25 billion people of working age. In order to absorb these new entrants, Africa needs to create more than 18 million new jobs each year. Given the urgent need to provide jobs and livelihoods to Africans, it is time to examine the conventional wisdom that informal markets must transition into formal markets. Development finance institutions (DFIs) and private investors in African markets can play a critical role in both advancing Africa’s gig economy and changing the narrative that growth in informal markets is incompatible with sustainable development.
Across African markets, companies are pioneering business models that bridge the formal and informal sectors; in these models, each company is a formal entity but can mobilise large numbers of informal actors in their supply chains or service delivery. While this has been done in dairies in Kenya and at coffee and cocoa outgrowers across the continent and in other sectors for nearly a century, the penetration of mobile phones has enabled a new breed of African companies to monetise their ability to organize and inject trust into fragmented informal markets. However, unlike Uber or Airbnb, which disrupted largely formal sectors, many of Africa’s new ‘gig economy’ firms are writing the rules for whole new industries in local markets.
Perhaps the most high-profile example is Safaricom’s M-PESA. Since its launch in 2007, M-PESA, a mobile payments system developed by Kenya’s largest telecoms operator, has enabled millions of informal sector workers to move money at a lower cost, which has provided a significant boost to the Kenyan and Tanzanian economies. Another, more recent example, is Nigeria’s Cars45, operated by Frontier Car Group. Nigeria’s $12 billion used car industry is largely informal and characterised by distrust, a lack of standardisation and the absence of a structured dealer network. Cars45 facilitates the buying and selling of used cars by pricing and rating their condition transparently and conducting online auctions. Many sectors throughout the continent remain highly informal and would benefit from these types of bridges into formality. These ‘bridge companies’ are going to define the future of employment in African countries.
DFIs are ideally placed to invest in bridge companies in African markets, given their long presence and in-depth engagement with local financing environments. The International Finance Corporation (IFC) and the UK’s CDC Group already invest in technology-enabled start-ups, and others, including OPIC, are adapting their strategies to be able to do so. Many of the continent’s most promising technology-enabled bridge companies are starting to raise funding large enough to attract the attention of DFIs. Frontier Car Group recently raised $89 million, Kenya’s Twiga Foods raised $10 million, and Nigeria’s Kobo365 has raised $6 million. Overcoming a dearth of funding remains one of the highest barriers for African entrepreneurs, and the development impact of investing in those that improve employment is enormous.
The gig economy comes with limitations. Lack of legal rights, limited career progression, stagnant pay and a lack of benefits are just some of the issues that will need to be addressed in an ‘Uberised’ world. These challenges, plus the day-to-day economic uncertainty, make the informal sector far worse in many ways than the formal. Bridge companies – because they are registered, and have a public brand and centralised management – can be pressured into addressing issues around workers’ wellbeing. Studies into the financial behaviours and needs of low-income families by BFA, a consulting firm specialising in financial inclusion policies, found that workers often aspired to ‘gig economy’ jobs but hated casual labour (such as waiting on a corner to be hired for the day) because of the lack of reliability and predictability.
The future of work is changing and the mass job creators of today will not be able to meet the needs of tomorrow’s workforce in the same way. Bridge companies are pioneering new ways of injecting efficiency and higher productivity into traditional informal markets. Investing in this trend is critical to solving Africa’s pressing job creation need.
A new tide of people power is rising in Africa. On April 2, a nonviolent resistance movement in Algeria succeeded in pressuring Abdelaziz Bouteflika to resign after 20 years as president. Nine days later, protesters in Sudan were celebrating the ouster of Omar al-Bashir, Sudan’s president of 30 years, after a three-month-long uprising against his regime.
The nonviolent overthrows of Bouteflika and Bashir are not aberrations. They reflect a surprising trend across the continent: despite common perceptions of Africa as wracked by violence and conflict, since 2000, most rebellions there have been unarmed and peaceful. Over the past decade, mass uprisings in Africa have accounted for one in three of the nonviolent campaigns aiming to topple dictatorships around the world. Africa has seen 25 new, nonviolent mass movements—almost twice as many as Asia, the next most active region with 16.
The AU said it noted “with deep regret” that the military had not stepped aside and handed power to civilians within a 15-day period set by the AU last month.
The bloc also reiterated “its conviction that a military-led transition in Sudan will be totally unacceptable and contrary to the will and legitimate aspirations, to democratic institutions and processes, as well as respect for human rights and freedoms of the Sudanese people”.
The military assumed power in Sudan after toppling the country’s long-time ruler Omar al-Bashir following months of anti-government protests.
It promised to hold elections within two years but protesters have rejected that and remained on the streets of the capital, Khartoum, demanding immediate civilian rule.
The council, led by General Abdul Fattah al-Burhan, has been negotiating with protest leaders on the formation of a new transitional government. But the two sides are divided over the role of the military, which is dominated by al-Bashir appointees.