Governments in the Middle East and North Africa, like governments elsewhere, have recognised the power of information and communications technology to boost social and economic growth.
Regional leaders have acknowledged that nationwide high-speed broadband - enabled by a combination of fixed and wireless networks - is a crucial foundation for socio-economic development, and they are pushing forward to construct such "digital highways".
Etisalat, in which the UAE Government owns a majority stake, has announced it will invest Dh55 billion (US$15bn) in upgrading its broadband infrastructure.
But broadband networks alone are not enough. These digital highways become truly effective only when "digital communities" spring up beside them, with functions such as e-health, e-education and smart grids developed to take advantage of the connectivity that broadband offers.
When policymakers and telecommunications operators collaborate with leaders in other sectors, they are laying the groundwork for profound improvements - boosting national competitiveness, innovation, economic productivity and social inclusion. As a result, these efforts offer crucial benefits to the citizens of countries whose leaders push to build digital communities.
For countries in the Middle East and North Africa (Mena) region to realise the ultimate potential of broadband, they must first make its access widely available and affordable. The GCC countries have high broadband adoption, but internet speed varies significantly.
However, these countries are taking steps to continue promoting broadband. In the UAE, Qatar and Saudi Arabia, telecoms operators and policymakers are exploring new business models that could potentially separate their network assets from services.
These multi-layer business models allow operators to reduce their focus, investment and dependency on traditional revenue streams and instead position themselves to scale next-generation networks and related apps and services.
As the construction of the region's digital highways continues, members of the broadband ecosystem are unlocking the true potential of digital highways by facilitating the creation of digital communities: apps that deliver better services and boost national competitiveness.
One example is "smart government". Information and communications technology (ICT) today is playing a key role in helping governments to maintain public service standards while they attempt to curb national spending.
Countries such as Bahrain rank high on the UN e-Government Readiness Index. In Egypt, government portals have allowed citizens to go online to register appeals in court cases, make utility service payments, and retrieve birth certificates, national ID card details and family records.
Health care offers another example. ICT is vital in enhancing the quality and reducing the cost of health care, via apps such as electronic health records and e-health services.
Finally, digital communities can enhance environmental sustainability: the adoption of green ICT apps could produce a 15 per cent reduction of global emissions by 2020, according to a Smart 2020 study.
Applications such as smart grids are enabling sustainable smart city concepts such as Abu Dhabi's green city of Masdar.
Each member of the broadband ecosystem needs to play a role in building communities around digital highways.
Policymakers will need to adopt a holistic approach that encourages the development and use of apps. This will require collaboration with their counterparts in adjacent industries - such as health care, education, energy and transportation - to develop sector-specific ICT policies. They must also stimulate the development of apps, such as cloud computing, including selectively investing in the initiatives needed to drive their use.
For operators, the foremost priority is to develop their ability to create and maintain partnerships, as they will need to engage and incentivise large developer communities and build go-to-market partnerships that offer access to specialised skills. They will also need to move away from their traditional focus on network deployment to emphasise services and apps.
Device manufacturers and application developers will need to collaborate with each other as well as with operators on the propositions that will most appeal to users. Specifically, there is a clear and increasing need to develop tools for search capabilities, information management and prioritised storage, as well as security and privacy protection.
Finally, there is the need to quantify the impact of broadband and the apps it enables.
A standard global approach to understanding and measuring how broadband affects socio-economic progress will be critical to unlocking its potential.
Mena countries that hope to compete in the 21st-century economy must take a carefully considered approach to their digital futures.
Their success will rely on a collaborative, committed and capable ecosystem that not only delivers high-speed broadband but also builds vibrant communities around it.
Communities that facilitate stakeholders' innovation, adoption and collaboration will realise the extraordinary potential of broadband.
Karim Sabbagh is a senior partner and the global practice leader for communications, media and technology at Booz & Company, while Bahjat el Darwiche is a partner and Milind Singh is a senior associate
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
What are the GCSE grade equivalents?
- Grade 9 = above an A*
- Grade 8 = between grades A* and A
- Grade 7 = grade A
- Grade 6 = just above a grade B
- Grade 5 = between grades B and C
- Grade 4 = grade C
- Grade 3 = between grades D and E
- Grade 2 = between grades E and F
- Grade 1 = between grades F and G
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
THE SPECS
GMC Sierra Denali 1500
Engine: 6.2-litre V8
Transmission: 10-speed automatic
Power: 420hp
Torque: 623Nm
Price: Dh232,500
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Company%20profile
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