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Tunisia’s Salafis – behind the beards

by Eileen Byrne April 26, 2013
written by Eileen Byrne

Tunisia's Salafis, adherents of a stricter interpretation of Islam than the majority of the country’s Muslims, are increasingly familiar protagonists in news stories. Two years after the revolution that overthrew dictator Zine al-Abedine Ben Ali, Salafis are often portrayed as violent, intimidating, resisting official decisions or stopping practices they judge forbidden by Islam.

Overshadowing all the more minor incidents is the still unsolved assassination of the leftist politician Chokri Belaid in February. Belaid was a vocal critic of Salafi ideology, which he regarded as running counter to Tunisia's liberal values. Authorities have pointed the finger of blame at those from the shadowy world of Salafi groups.

Beyond the news headlines, however, Salafism is a complex social phenomenon among young Tunisians looking for a direction in life following the 2011 revolution. While only a very small minority of Tunisia's regard themselves as Salafis – a recent report suggested their total number at around 50,000 — the influence of their worldview is extending.

Tunisians drawn to Salafism often still live in their home neighborhoods alongside the peer group they grew up with — and with whom they have often shared the demoralizing experience of unemployment. Take the example of Hergla, a pretty coastal village north of Sousse. During the 2011 revolution, Hergla did not stir: “here it was just the birds tweeting as usual,” one young man explains. With a population of not much more than 6,000, crime is low and just four officers usually staff the local police station. Like many other places in Tunisia, the town now has a small group of local Salafis.

On April 11, a mob of Salafi sympathizers tried to storm the police station to free one of their number who had been arrested. Local police described the man as a known petty criminal who had converted to Salafism. Amid the tear gas, two policemen opened fire, killing 23-year-old Mahmoud Mrad and seriously injuring a child. When the clashes continued after the dead man's funeral the next day, those clashing with the police were not Salafis, but just young men who had grown up with Mrad – a studious type who was well liked locally. Some villagers blamed Salafis for having brought trouble to the town, but were, naturally, unhappy about the police shootings.

Elsewhere, young people have mobilized against intimidation by Salafis. High-school students in Menzel Bouzelfa, east of Tunis, that same week cheerfully organized a small demo in support of their head teacher and to face down local Salafis. In line with an education ministry directive, the head had prevented a girl from attending class in the full niqab, or face veil. Local Salafis appeared outside the school with megaphones and speeches aimed, unsuccessfully, at converting students to their cause. Three masked men  then attacked the head teacher with sticks as he arrived for work on April 10.

But this image of fundamentalism lacks some nuance. Aware of an image problem, some Salafi groups have avoided confrontation. When football fans in the port town of Bizerte clashed with the police for three days last week — over a decision that had blocked the Bizerte team from going through to a cup final — the Salafis told local youths "we will not revolt with you," recounts one young man. Locals appealed to Salafis for help in protecting their businesses during the disorder, he said, as "here the Salafis are more respected than the police." The fundamentalists declined, but did have contacts with the provincial governor over how to calm the situation.

One of the best analyses of the many-layered context of Tunisian Salafism is a lucid report by the NGO International Crisis Group. It reviews the full spectrum of groups, from the quietist to the fundamentalists. Those involved in violence typically have low educational levels and sometimes previous criminal records. It cites an estimate of around 2,000 Tunisians engaged in armed jihad in Syria, and notes that by February there had been 14 Salafis killed in confrontations with the Tunisian state, including two men who died on hunger-strike alleging wrongful imprisonment.

Salafism in Tunisia is still a relatively new phenomena, with limited in-depth research. The challenge for sociologists and others, therefore, is to piece together a better understanding of this most radical of movements. Looking for grassroots stories beyond the headlines will provide rich material to nuance their narratives.

April 26, 2013 0 comments
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Economics & Policy

‘We tried our best to stay in Lebanon’

by Joe Dyke April 25, 2013
written by Joe Dyke

For a hugely popular Lebanese-founded company, Woopra has had almost no success in the Middle East. The real-time web analytics company – which provides analysis of customer behavior on websites as well as aggregate numbers of visitors – has over 200,000 global users to its free service, while its premium service has 3,000 companies registered, each paying up to $30,000 a month. But of those 3,000, founder Elie Khoury estimates that fewer than 10 are from the Middle East.

Silicon stars

Khoury’s five tech companies to watch out for in Silicon Valley

Cloudera

Formed by engineers from Google, Yahoo and Facebook, Cloudera is a platform for big data

SendGrid

Allows companies to move their email infrastructure into the cloud

Box

Helps customers access their data anywhere in the world

Zendesk

Helps companies to improve their customer support online, including one on one advice

Marketo

Online support to helps companies design better marketing campaigns

“We have customers all over the world – Japan, Sweden, Germany and of course the US, [which makes up] around 40 percent of our revenue, [but] the Middle East is our weakest spot.”

The reason, he says, is that technology trends in the region, such as e-commerce and online tech startups, are years behind the rest of the world. As such the service they provide, which gives companies the ability to track in-depth their customers’ actions online and even interact with them live, is still not really understood. “Whatever they are doing in the Middle East right now, they were doing in the Bay Area [of San Francisco] like four or five years ago,” he says. “As a market size the Middle East is not very appealing for us – there are far fewer companies, [companies are] much less educated and it takes a long time to close a sale with them. We would rather skip it for now.”

It is perhaps admirable, then, that Khoury and co-founder Jad Younan made such a strong effort to remain in Lebanon despite the lack of business opportunities. Ultimately, however, they found that the lack of talented Lebanese in the technical sectors made the move to America inevitable. “I was always trying to keep Woopra in Lebanon. Not many companies manage to run a global B2B business from Lebanon. We tried everything possible with the resources that were available,” he says. “If we managed to hire the right developers I think we could have definitely left an office in Lebanon.” Perhaps, he jokes, the “Lebanese people are not made to be techies.”

So it was that in January 2012, five years after setting the company up in the northern Lebanese town of Byblos, Woopra moved its entire operations to Silicon Valley, San Francisco. The company has grown rapidly, being tipped by e-week as the top analytics company to watch out for and increasing its staff to 15. Though its share of the market remains small, with Google Analytics the dominant force, the remarkably accurate real-time service it provides has enabled the company to carve out a niche in an incredibly competitive field.

Related articles: ‘Not everyone can be an entrepreneur’

More support needed for Middle Eastern entrepreneurs

Despite this, Woopra has yet to turn a profit, a fact that Khoury is perhaps surprisingly proud of. “The second [we] become profitable, [we] hire more people to grow faster. What we are pushing to do is to stay breaking even at any point in time. As we grow the revenue we hire more people and add more expenses to the company. But we are not at a stage where we can be profitable – I wouldn’t let this happen!”

Khoury willingly admits that the company is still battling against the odds, referring to their ‘bootstrapping’ – meaning a keeping costs low to become self-sustainable without external help. But he enjoys the thrill of trying to compete in the most competitive tech environment in the world. “Honestly until now Woopra is still bootstrapping, we have done a couple of rounds of funding – we didn’t raise a lot of money. But we are still able to compete on the global level by just bootstrapping.”

Yet this small fish, big pond situation may change if they get the investment he wants. Later in the year the company aims to work on a major financing package. Khoury refuses to give specific details of the amount they expect to raise but described it as their “first mega round of funding, raising the money here in the Bay Area.”

Pining for home?

What then, of Lebanon. When Executive first interviewed Khoury back in 2008, he bemoaned the lack of support for entrepreneurs in the Middle East, saying “our universities are generally producing employees, instead of creating long-term inspirational projects.” Does he still feel that way? Yes and no.

“Some of the colleges in Lebanon are now more aware at this, [for example] the American University of Beirut now has an entrepreneurship center. Back in 2007 I remember when I was graduating if you said to anybody you wanted to build a tech company, they would look at you in a weird way. One of my professors even said ‘do you really want to compete with Google or YouTube?’”

Now, Khoury argues, there has been such a buzz around entrepreneurship in the Middle East in recent years that the problem is not lack of capital for entrepreneurs but of good ideas. “In my opinion looking at the scene there is more money than potential successful startups,” he says. “You need a better education system, you need mentorship, we have started seeing development but it is still not good enough.”

What, then, would his advice be for budding Lebanese entrepreneurs, either in the tech sector or outside. “I want people to stay in Lebanon and bootstrap the way we did. We stayed in Lebanon for four or five years building a world-class product… I think people should work on building prototypes, proving themselves – especially as first-time entrepreneurs.”

April 25, 2013 4 comments
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The Buzz

Morning briefing: 25 Apr 2013

by Executive Staff April 25, 2013
written by Executive Staff

Economics and Policy

Syria hopes to clinch more financial aid from its allies Russia and Iran soon, but still has enough foreign reserves to pursue its war on rebels trying to oust President Bashar Assad, the central bank governor said.

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Oman’s central bank plans to issue rules to boost lending to small and medium-sized firms, its chief said on Wednesday, in a new move to help bring unemployment down in the sultanate.

More from Reuters

 

The 1,000-year-old minaret of Aleppo's Umayyad Mosque has collapsed in clashes between Syrian rebels and forces loyal to president Bashar al-Assad, activists and state media said.

More from The National

 

Business and Companies

Two Lebanese currency exchange firms accused of money laundering by the United States Treasury Department have vehemently denied the allegations, saying they were considering legal action to clear their names.

More from The Daily Star

 

A consortium led by Abu Dhabi-backed asset management firm Carlyle Group has acquired US financial advisory Duff & Phelps for $665.5m in an all-cash transaction.

More from Arabian Business

 

Bahrain's Ahli United Bank posted a big jump in first-quarter net profit on Wednesday as its earnings were boosted by a one-time gain from the sale of a stake in a Qatari associate.

More from Reuters

 

Dubai-based builder Arabtec will buy the 45 per cent of Emirates Falcon Electromechanical Co (EFECO) it does not already own for $45 million as it expands into affordable housing projects, two sources with knowledge of the deal said.

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Emirates NBD, Dubai’s largest bank by market value, on Thursday said its first-quarter net profit rose 31 per cent, beating the average forecast of analysts.

More from Reuters

April 25, 2013 0 comments
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Economics & Policy

Gebran Bassil: Lebanon’s divisive power player

by Zak Brophy April 25, 2013
written by Zak Brophy

To his admirers he is intelligent, principled and steadfast. To his adversaries he is uncompromising, avaricious and self-indulgent. All may be partly true of Minister of Energy and Water Gebran Bassil but, as he battles to maintain his position in any coming government, he certainly can’t be accused of being idle.

Rarely a day passes without a press conference covering some new development he is championing. During his tenure he has registered an impressive array of achievements; a new power plant is to be built at Deir Ammar; energy producing power ships are set to boost the grid while renovations are done on existing power stations; an extensive dam building scheme has been initiated; and even a solar roof for part of the Beirut River is in the cards.

On top of these achievements is the steady development of the oil and gas sector, which has transformed the ministry of energy and water (MoEW) into one of the most coveted positions in the cabinet. “This is an unprecedented step towards entering the oil and gas producing world,” exclaimed Bassil while announcing the 46 companies that successfully passed through the pre-qualification phase for the first offshore oil and gas exploration round last week.

However, the means by which these impressive advancements have been achieved raise important questions for those interested in trivial things such as transparency and good governance. The criticisms of Bassil’s stewardship of the hydrocarbons sector are extensive. Minister Bassil pushed the bylaws of the Petroleum Administration (PA) through the cabinet before sending them to the Shura Council – the body that checks the legal and constitutional veracity of government decrees – for prior review, as is required by law. The Shura Council subsequently raised a number of objections, which were blithely dismissed. Again the minister made a legal sidestep when he secured the cabinet’s approval on the petroleum activities regulations before the board of the PA was appointed. And finally, the PA is, of course, paid by the MoEW, which somewhat brings into questions the independence of the body as is enshrined in the 2010 law for the sector.

Warning signs

It is not just in the oil and gas sector that warning flags have been raised. Few things rouse Lebanese fervor as much as the state of the nation’s sporadic and expensive electricity supply. Currently Lebanon’s electricity demand exceeds supply by around 1000 Megawatts (MG). In June 2010 Bassil’s team at the ministry unveiled a comprehensive master plan, encompassing 42 projects to reform the sector. An initial series of schemes to boost generation capacity by 700MW at a price tag of $1.2 billion has been the defining success in this domain to date.

While significant and commendable strides have been made, the management of some of the major contracts once again raises questions over the competence of the ministry. “There is a complete lack of transparency. In many cases we were not allowed to look at the original [tender] documents. This is not acceptable,” opposition MP Ghazi Youssef complains.

From the $1.2 billion that Minister Bassil had wrestted from the government, $850 million was allocated to the construction of a new power plant at Deir Ammar as well as the addition of new reciprocating engines at the Zouk and Jiyeh power plants. The tender process, however, was bungled – leaving one consortium with its nose out of joint, projects delayed and doubts cast over the ministry’s engagement with the private sector on big-ticket projects.

The government launched the Deir Ammar and Zouk and Jiyeh contracts at the same time. The first to be awarded was for Zouk and Jiyeh – with the contract going to Danish firm BWSC for $348 million. Minister Bassil, however, was displeased with the decision and challenged it twice, for unclear reasons, at the Council of Ministers (COM) – insisting that a second company be brought on board. While the minister eventually had to back down, it took a further six months to agree on the contract when it should have taken two.

Having agreed that deal, the MoEW was left with $502 million from the allocated $850 million left for the Deir Ammar II project. The tender commission, based on the conditions of the project design and criteria that the MoEW had submitted, awarded the contract to a Spanish-Lebanese consortium between Abinar and Butec.

But shortly after, the companies were told that their bid had actually been rejected because their proposal carried a price tag of $650 million and the ministry would not be able to foot the bill with money they had remaining. “There was no price on the conditions of the tender. We should have known if there was a limit…it is not professional to do that and it reflects badly on how the government engages with private companies,” Myrna Zakaria, PR manager at Butec, told Executive.

Bassil asked the Lebanese cabinet for more cash to push the contract through, but his plea fell on deaf ears, and so it was that a very good deal for the government had to be scrapped and a second tender round was launched. “If we look to the long term and what this project entailed then I think [the rejection of extra funding] was a huge mistake by the Council of Ministers,” argued Bassil’s advisor Raymond Ghajjar.

Ghajjar reasoned that they could not have known the available funds for Deir Ammar II at the beginning of the tender process, as it was dependent on the outcome of the reciprocating engines deal. Critics would charge that this amounts to a serious lack of foresight. As one senior member of government said on condition of anonymity, “this stinks – there was surely incompetence and at best a poorly managed tender document.” To leave prospective companies, who exhaust considerable time and money in preparing bids, to guess the value of projects is opaque in the extreme.

The companies were given only a month to resubmit tenders after the minister’s engineers had shaved back the specifications on the project to save money – at the expense of becoming technically inferior. With Abiner-Butec out of the running, and the timeframe too tight for new entrants to the bidding process, the deal eventually went to the Greek firm J&P Avax.

With the ink on the contract barely dry, objections were raised that J&P Avax had misled the government and had not even met the specifications on the original document. “They were awarded the tender even though they hadn’t reached the qualifications, which called for two plants of at least 250MW. The two plants they had worked on were not of this capacity, but closer to 200MW,” opposition MP Youssef explained.

While the Shura Council finally decided that the deal should stick, Ghajjar at the ministry could only offer a somewhat spurious technical explanation for the divergence between what J&P Avax claimed in their bid and what existed on the ground. In any case, he is confident the government’s back is covered by strict penalties if the firm fails to meet the contractual agreements. “If any numbers have been cooked then they will have to pay in the end…we are very well protected. You could say we are goof-proof.”

Opaque efficiency?

Gebran Bassil’s impression on the oil and gas, energy and waters sectors is indisputable. When compared to many of his ministerial colleagues, most of whose impact on their sectors has been negligible at best, this is laudable. But pugnacious attitude has won him as many enemies as it has policy victories.

His somewhat liberal approach to the rules, regulations and laws may speed up the processes but it does little to inspire confidence in the probity of his dealings. The battle is too easily taken to the COM where it is fought with the political weight of the Free Patriotic Movement behind him. Transparency is an afterthought.

The foundations laid for the oil and gas sector cause concerns over the power being placed directly under the minister and his engagement with the institutions of the state. Furthermore, the power sector contracts fiasco is one of a number of examples where the efficacy and rectitude of the ministry in engaging the private sector is unconvincing.

So as we contemplate the flurry of press conferences we can ask ourselves, is Lebanon getting a good deal? We can only hope so.

April 25, 2013 0 comments
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The Buzz

Morning briefing: 24 Apr 2013

by Executive Staff April 24, 2013
written by Executive Staff

Economics and Policy

Egypt said its economy will grow by 3.8 percent in the fiscal year starting in July as ministers outlined the 2013-14 budget to parliament Tuesday.

More from Reuters

The head of Lebanon's central bank Riad Salameh remains confident growth will be over 2 percent in 2013.

More from The Daily Star

 

Morocco expects to sign a $2.4 billion loan deal next month with the Saudi-based Islamic Development Bank (IDB).

More from Reuters

 

Business and Companies

The U.S. Treasury Department has designated Lebanese money exchange firms Kassem Rmeiti & Co. and Halawi Exchange Co as a “primary money laundering concern,” alleging they may be laundering millions of dollars of narcotics profits and funneling the money to Hezbollah.

More from AFP

 

Higher income from investments and fees helped National Bank of Abu Dhabi, the United Arab Emirates' largest lender by market value, to a 35.5 percent jump in first-quarter net profit, the bank said on Tuesday.

More from Reuters

 

Dubai Investments, the largest investment company listed on the Dubai Financial Market, has announced that its net profit in 2012 attributable to shareholders rose 58 per cent.

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Etisalat, the Gulf’s biggest telecoms operator, reported a near-flat first-quarter profit, missing analysts’ estimates as margins weakened.

More from Reuters

April 24, 2013 0 comments
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The Buzz

‘Drones attacked my village’

by Executive Staff April 24, 2013
written by Executive Staff

Shortly after writing an article for Executive about the US drone strikes in southern Yemen, Executive's correspondent Farea al-Muslimi was contacted by representatives of the US Senate about discussing the issue in Washington.

Yesterday, in an impassioned speech in which highlighted how he believed the US drone attacks had helped Al-Qaeda, Muslimi outlined to senators how the attack had "tore my heart."

"I have personal experience of the fear [drones] cause," he told the senators, recalling how a US drone had flown above him while in southern Yemen. "My heart sank, I felt helpless — it was the first time I had truly feared for my life," he said.

See the video of the Muslimi's speech below:

 

April 24, 2013 0 comments
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The Buzz

Morning briefing: 23 Apr 2013

by Executive Staff April 23, 2013
written by Executive Staff

Economy and Policy

Gold edged higher due to physical buying on Tuesday, holding near a one-week peak touched in the previous session, but more outflows from gold exchange-traded funds summed up investors’ weakening confidence in the metal.

More from Reuters

 

Saudi Arabia’s Shoura Council has denied reports it has approved moving the weekend forward one day to Friday-Saturday.

More from Arabian Business

 

Also in Saudi, the country is expected to keep oil output steady throughout the second quarter as more high pace demand in Asia, its biggest oil export market, has yet to materialise.

More from Reuters

 

Companies and Business

Lebanon's BLOM Bank reported first-quarter net profit rose 3.4 percent to $87 million, despite what it described as difficult economic circumstances in the region.

More from The Daily Star

 

Abu Dhabi-listed Dana Gas is expanding its operations in Egypt and Lebanon.

More from Reuters


France’s Total aims to start offshore exploratory drilling for gas in Libya next month, in a further sign the OPEC member’s energy industry is returning to normal after the 2011 war.

More from Reuters

 

The developer behind Qatar's multi-billion dollar Pearl-Qatar has said its net profits for the first quarter rose 16 percent compared to the same period last year.

More from Arabian Business

 

April 23, 2013 0 comments
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Society

Buying goods with your phone

by Benjamin Redd April 23, 2013
written by Benjamin Redd

Imagine a day in the not-too-distant future when you sit searching an app on your phone. You find something you want to buy, but you don’t have your credit card to hand. No worries, you can purchase the item directly, with the payment being charged to your phone bill.

This is the future envisioned by Lebanese mobile carrier Touch and developer services company Apstrata. The two companies have teamed up to provide an impressive set of tools that programmers will use to develop mobile apps to make your life a little simpler.

Related articles: PayPal – a breakthrough for Lebanese e-commerce?

Beirut City Centre Mall – a work in progress

The most significant and exciting of these tools for consumers is operator billing, whereby customers can buy goods in the application, with the amount deducted from your mobile account balance or added to your monthly phone bill. “There is strong evidence [suggesting] that mobile payments will explode in the coming years,” Touch’s Chief Commercial Officer Nadim Khater says.

Apstrata’s marketing vice-president Tarek Naaman highlights the lack of credit cards and internet banking as major problems in Lebanon and the Arab world that they are seeking to counter. A recent study by pollster Ipsos found that just five percent of Lebanese people currently use online banking.

“Penetration of credit cards is very low. Even people who have cards rarely use them to shop online, and when they do it is with international websites, not local ones,” Naaman says. Apstrata and Touch’s tools will allow developers to create applications that offer services which can be bought directly without needing a card. For this reason, Naaman claims, “paying with your phone will be somewhat transformational.”

Khater adds that as the company’s customers are used to paying through their system, trust – one of the most significant barriers that prevents people paying for goods online – is already established. “60 percent of Touch’s customers already use their phone to transfer credits (dollars) between their prepaid accounts. The potential is definitely there,” he says.

Mobile connection

The motivation for Touch’s interest appears to lie in global trends – as mobile phones and apps have grown smarter and more powerful, there has been a negative effect on phone companies’ bottom lines. Applications like Whatsapp and Viber now allow low-cost text messages and voice calls over the internet, reducing the fees mobile carriers once got from these services. In Lebanon – which has the highest voice rate and third-highest SMS rate in the Arab world – this presents a huge challenge for mobile operators.

“Traditional telecom revenue streams like voice and SMS have seen considerable decline; SMS revenue alone has dropped 60 percent over a period of two years,” Khater admits. “We feel there [are] potential revenue streams in app downloads and in-app payments given the growth in app usage.”

To increase profits, Khater says that Touch will implement revenue-sharing agreements with developers that implement phone payments. However, “Touch’s initial approach is to have the revenue share component significantly to the advantage of the service or content provider to encourage usage and penetration.”

The power of potential

As such, mobile payments aren’t the only aspect to Apstrata and Touch’s tools. The developer library is extensive, allowing coders to use a single set of tools across iOS, Android and web platforms. These tools range from identity management – such as logging into a website – to secure data storage. It is believed to be the first time globally that a mobile operator has offered a full backend-as-a-service capability.

Overall, the ‘Touch Cloud’ aims to make life easier for Lebanese programmers to code useful, safe apps at a reasonable price. “The main objective of the cloud is to power these locally made apps. There’s a problem with budgets in Lebanon; [app development] is elbow grease and after-hours work, so this is where we think we can help,” says Naaman.

To get developers interested in the tools, Touch, Apstrata and AltCity teamed up to host a hackathon in March and a pitchfest earlier this month. At the pitchfest three finalists were selected to receive three months of ‘acceleration’ – including special perks such as free internet and expert advice. This summer, Apstrata will begin a larger marketing push using these three products as examples for others.

The concept appears to be piquing interest among developers outside Lebanon. Naaman claims there are currently a couple of hundred individuals and companies using Apstrata’s technology, with many of these in New York.

Once Lebanese developers begin to code using Touch and Apstrata’s tools, there’s no telling what they might come up with. Coders have already given us news aggregators, a Beirut International Airport real-time flight tracker and – somewhat ironically for the internet age – a schedule app for daily electricity outages.

As Naaman happily concedes, “We don’t have a monopoly on creativity. When Apple created the iPhone, they didn’t imagine what would happen.” He then confidently predicts: “This will shake things up.”

April 23, 2013 0 comments
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Society

‘Online retail is the future’

by Joe Dyke April 22, 2013
written by Joe Dyke

With global revenues of $4.7 billion annually, Landmark Groups are among the giants of the retail and hospitality sectors in the Middle East and Asia. The group has been in the Lebanese market since 2011, with stores in Beirut’s City Mall and others. In December, the company went online, launchings “Landmarkshops.com” with the aim of using the United Arab Emirates as a launchpad before moving into other markets in the coming years. Savitar Jagtiani, business head of the group’s e-commerce branch, talked to Executive about online retail in the Middle East.

 

Currently Landmark Groups have three of your 17 retail companies online. Are you planning on putting all of them in one portal?

Over a period of time that is the plan. We believe to really succeed in the online retail space we have to do very well in multi-concept, multi-channel, multi territory, multi-lingual, multi-currencies — a whole lot of multis!

Over what period are they going to go online?

I am not able to reveal the specifics but we will be doing so as and when we are ready.

Are you worried that you may be entering the online market a little late?

As a matter of fact, from a traditional retail perspective, we think we are one of the earlier ones to do it. As part of us differentiating ourselves from the rest of the pack, we have really thought hard about what our unique selling points will be and why.

The first part of that is building a great interface for a great user experience, to bring a great selection of our products — focusing on the best of our stores — online.

Related articles: Chart: The Middle East's online potential

Lebanon's newest online startups

One other feature we have is a beautiful ‘lookbook,’ which is our online version of an offline consumer [catalogue], and through that customers can look at goods for any of our fashion businesses.

For electronics we have the ability to compare technical aspects of products — for everything we have you can write a review. In today’s world we know how incredibly important user-generated content and users’ views are.

When you have a successful offline retail company, how do you avoid taking away your own customers as you go online?

One way to avoid that is by maintaining price parity for online and offline. That way you are kind of setting up the online businesses to complement offline and you want offline to complement online as well. So it is a very symbiotic relationship. In 99 percent of the cases, you are going to see price parity between online and offline and the only exceptions is if we want to do an online-only offer. But these will be more the exception than the rule.

With regard to markets, you have said that after the UAE you are focusing on expanding to Saudi Arabia and India. Does that mean you are not going to be offering your services in other parts of the Middle East, such as Lebanon any time soon?

We have 19 territories already that we operate in physically. The beauty of digital is that not only does it allow you to reach those countries where you have a physical presence, but to reach into countries where you do not have a physical presence. I think that is the challenge of online, the countries we decide to reach out to will be a business decision.

How developed is the online retail market in the UAE and the Middle East in general?

We think it is a rapidly growing market right now. E-commerce in the Middle East is worth over $1 billion and is set to grow to $15 billion by 2015.

In a region where many people still don’t have bank accounts, how important are cash payments?

When we started three months ago we started with pure online payments because we know that that is the most popular form of online payments. But we also know that there is a section of our target audience that may prefer paying in cash as opposed to paying with credit and debit cards. So it is an area of interest, we are keeping our eyes and ears open to it.

Moving forward, where will the site be in 10 years time?

The vision is to become an incredibly successful online retailer, in addition to the great amount of success our online business have experienced. [We want] to really make our online an incredibly relevant channel for the group and for our customers and 10 years down the line to be lord and master of the different multis I talked about.

April 22, 2013 0 comments
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The Buzz

Morning briefing: 22 Apr 2013

by Executive Staff April 22, 2013
written by Executive Staff

Economics and Policy

The International Monetary Fund has further cut its growth prediction for Lebanon to 2 percent.

More from The Daily Star

 

The UAE economy will continue to grow at four per cent in 2013, Bank of America Merrill Lynch (BoAML) has said.

More from Khaleej Times

 

Qatar is the most attractive country in the world in terms of investment potential, according to the boss of the Gulf state’s national airline.

More from Arabian Business

 

Bahrain's real estate market has bottomed out but continuing political unrest is still holding back an upturn, CB Richard Ellis has said in a new report.

More from Arabian Business

 

A US$10 billion American weapons sale in the region is a signal to Iran that an Israeli military strike on its nuclear sites remains a possibility, the US defence secretary Chuck Hagel said yesterday.

More from The National
 

The National Social Security Fund could provide health care for registered Palestinian workers in Lebanon, the International Labor Organization said over the weekend.

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Companies and Business

The Middle East has the least competitive airline industry of any region in the world, with 50 percent of routes served by only one or two carriers, according to a global analysis.

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Rick Pudner, chief executive of Emirates NBD, Dubai’s largest bank, is resigning, the bank said on Sunday without giving a reason.

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Saudi Telecom Co (STC), the Gulf’s No.2 telecom operator, missed forecasts with a 38.5 per cent year-on-year plunge in first-quarter net profit on Sunday attributed to charges relating to an Indian affiliate.

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Qatar Petroleum (QP) has signed an agreement with a consortium led by France’s Total to build the $1.5 billion Laffan 2 refinery project, a statement from the Qatari firm said on Sunday.

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Egypt's largest steel producer, Ezz Steel, said it expects its profit to increase in 2014 thanks to a new sponge iron factory that should shave $50 to $100 off the cost of each tonne of iron it produces.

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Since its first edition emerged on the newsstands in 1999, Executive Magazine has been dedicated to providing its readers with the most up-to-date local and regional business news. Executive is a monthly business magazine that offers readers in-depth analyses on the Lebanese world of commerce, covering all the major sectors – from banking, finance, and insurance to technology, tourism, hospitality, media, and retail.

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