Yahoo aims to go local in Saudi Arabian expansion



Yahoo, the world's second-largest internet search company, has applied for a trade licence in Saudi Arabia to establish a sales and editorial presence in the kingdom's growing media market. Ahmed Nassef, the managing director of Yahoo Middle East, said the effort will also make it easier to hire local staff. "The goal here is localisation," Mr Nassef said. "We want to be able to offer localised services over time. Having that trade licence will help us with more flexibility with hiring and visas and office space and stuff like that. We don't need to work with a third party to do that."

The US company has trade licences for Egypt, Jordan and the UAE following its acquisition of Maktoob for US$164 million (Dh602.3m) last August. Mr Nassef expects the Saudi licence to be approved within six months. "I just got an update from my counsel last week that the process is already on track," he said. "Saudi Arabia's just complicated. It's the most complicated country in the region as far as trade licences go. It just takes time."

Google, the number one search engine, has a consultant that works with companies based in Saudi Arabia but does not have a trade licence to operate there, said a company spokeswoman in Dubai. Various reports suggest that internet advertising spending in the Middle East is expected to increase from 4 per cent of the total ad spend last year to about 13 per cent by 2014. Being the largest and most influential media market in the Gulf, Saudi Arabia is expected to command the lion's share of online ad revenues as more companies establish offices in the kingdom.

The region's online advertising market grew from $65m in 2008 to $90m last year, according to the consultancy Booz and Co. "The advertising industry is still very much focused around Dubai," Mr Nassef said. "Most of the campaigns that are coming out of the Dubai agencies are targeting the Saudi market. A lot of final buying and planning is being done out of Dubai but we expect over time there's going to be more localisation happening for decision making. But it will take some time for it to shift to Saudi Arabia."

Mr Nassef said he would not know the size of Yahoo's presence in Saudi Arabia until the company received its licence and decided on a hiring strategy. "With Yahoo, there's a whole process to vet the various options between having a service office space and a full office," he said. Until Yahoo's Saudi plans are finalised, Mr Nassef is preparing for his own office move. The Yahoo Middle East team plans to move next month into the Al Salam Tower in the Dubai Media City.

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At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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All you need to know about Formula E in Saudi Arabia

What The Saudia Ad Diriyah E-Prix

When Saturday

Where Diriyah in Saudi Arabia

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Suggested picnic spots

Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
 
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes 

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