The Middle East: Establishing trust

Come 19-23 October, more than 130,000 visitors are expected to visit the Dubai International Convention and Exhibition Centre for GITEX Technology Week, the region's leading ICT show. According to market research company IDC, the total investment in IT spending by countries in the Gulf Cooperation Council (GCC) could reach US$9.1 billion this year, an increase of 15.3 per cent over 2007. GCC countries comprise Bahrain,
Qatar, Kuwait, Oman, Saudi Arabia and the
United Arab Emirates.

To help Singapore's infocomm Local Enterprises (iLEs) tap on these opportunities, the Infocomm Development Authority of Singapore (IDA) set
up its first point of presence in the Middle East in 2007. The IDA Middle
East Office (MEO) promotes infocomm solutions developed by iLEs to
targeted sectors such as e-Government, education, healthcare, logistics
and telecommunications.

According to Centre Director Mr Shaik Umar, MEO enjoys strong working relationships with government agencies, IT associations and local partners in the Gulf region. It provides market information to iLEs keen to venture into the Middle East market, and facilitates business matching for iLEs. It also identifies overseas projects, tradeshows or seminars to create opportunities for iLEs to meet with partners and potential customers in the Middle East. For example, at previous GITEX events, iLEs have successfully signed deals with Middle East clients at the Infocomm Singapore Pavilion organised by IDA, said Mr Umar.

To develop a successful and sustainable presence in the Middle East, there are some characteristics of the market that iLEs have to be aware of, Mr Umar continued. One of these is the relatively long business cycle compared to what they may be used to in Singapore.

The total investment in IT spending by GCC countries could reach US$9.1 billion this year.

"Depending on the nature of the partnership, the sales cycle could take anytime between three to 24 months, sometimes even longer. Hence iLEs should not confine themselves with expectations based on their experiences in Singapore or other regions," he said.

It is also crucial that iLEs scope the requirements of the project carefully before pitching for it, especially with regard to the time and cost required to complete the project. This will help to manage clients' expectations while giving iLEs a better overview and control over their resource allocation, he added. "iLEs have to always check for completeness and the quality of the proposal before submission, even if it is a Request For Information document."

Demonstrating confidence and gaining trust are also key to doing business in the region. "Generally, iLEs should build up their portfolios in Singapore before they venture into the Middle East market so that they have successful case studies to showcase when they are pitching for projects. But the key factor is to be sincere and deliver what you promised," said Mr Umar.

Face-to-face meeting is also very important and most of the time, the only way to get things done. These could translate to higher business costs from out-of-pocket expenses, for example, hotel and airfares, and iLEs should set aside a budget in preparation for such expenditure, he advised. Other channels of communication, such as phone calls, emails and faxes, are best used for appointment making and status updating.

"Be culturally sensitive and adapt to local practices. Have lots of patience and build trust with clients," said Mr Umar. "However, customer loyalty is strong in the Middle East, especially after trust is established."

The Infocomm Development Authority of Singapore (IDA) will be leading a delegation of 11 Singapore infocomm companies to GITEX Technology Week 2008 in Dubai, United Arab Emirates.

Exhibiting under the Infocomm Singapore brand, the delegation comprises Clearhub, CrimsonLogic, e-Cop, Genovate, Infologic, MicroUsability, SecureAge Technology, SQL View, ST Electronic (Training & Simulation Systems), Teliwave and Transfer To. Alongside GITEX, IDA will also be hosting an Infocomm Singapore Networking Night on 20 October for invited guests from Singapore and Middle East to network and exchange pointers.

The Infocomm Singapore pavilion at GITEX is at Hall 2, Stand E2-30. Click here for more information on the Infocomm Singapore companies who will be participating in the show.

Dr Foong: Government-level assistance is a great boost to Singapore businesses.

Ecquaria (www.ecquaria.com) is a leading provider of e-government consultancy services and infrastructure solutions that power high-volume, mission-critical applications. Its flagship solution Ecquaria Service-Oriented Platform (Ecquaria SOP) has earned global recognition and accolades as a platform for delivering innovative integrated government solutions. Dr Foong Wai Keong, its President and Chief Executive Officer, tells iN.SG about the company's Middle East experience.

When did Ecquaria first venture into the Middle East market and why?
Ecquaria successfully made its foray into the Middle East market in 2006 with the signing of a landmark deal with the Qatar Supreme Council of Information and Communications Technology (ictQATAR) to develop e-government services based on the company's flagship software platform, the Ecquaria Service-Oriented Platform, for the Qatar government.

What role can IDA play in supporting companies like Ecquaria in your business activities in the region?
Ecquaria has been partnering with IDA to promote the company's e-government expertise and capabilities in the Middle East through e-government forums in countries such as in Saudi Arabia and through IDA-led contingents to events such as GITEX. With the assistance of IDA's Middle East Office, Ecquaria is able to extend its presence and reach to partners and customers in the region. The organisation of mission trips between the Middle East and Singapore further helps open doors for local companies like Ecquaria to engage in opportunities and to benefit from a sharing of experiences.

What are some of the characteristics of the Middle East market?
The Middle East market presents a vast opportunity with its accelerated pace of e-government progress. The political will is very strong, and this is a significant factor in achieving e-government success.

What is Ecquaria doing to further develop its presence in this market?
Ecquaria will continue to build on the success of our flagship Qatar Service Platform e-government project and to contribute to similar initiatives in other parts of the Middle East. We provide consultancy services and are drawing up e-government blueprints for other governments in the region.

However, we will not lose sight of the need for constant innovation, in order to help governments build integrated service-oriented government solutions. To do this, we draw from our extensive experience in Singapore, Qatar and other parts of the world such as Brunei, Thailand, Mexico and Botswana.

What are some of the key learning points that you can share with other Singapore infocomm companies venturing into the region?
Having a credible branding and extensive business reach into new markets such as the Middle East are two key challenges faced by many local infocomm companies. Local businesses are often constrained by resources and manpower when it comes to venturing overseas.

Government-level assistance and support are a great boost to Singapore businesses pursuing opportunities in the Middle East. This support is made possible through strong bilateral political and economic ties and diplomacy. For example, memorandums of understanding such as the landmark agreement between the Infocomm Development Authority of Singapore and the Qatar Supreme Council of Information and Communications Technology, have helped facilitate business for both the private and public sectors.

Mr Lim: It is important to deploy sufficient manpower in the region.

NCS (www.ncs.com.sg) provides a holistic range of IT and communications engineering solutions to support its customers' business goals throughout the technology lifecycle. It has a presence in six countries across the Asia Pacific and Middle East, from which it offers customers the convenience and cost-effectiveness of local support.

NCS' services include consulting, applications development, systems integration, IT infrastructure and outsourcing services such as business recovery, call centre services, data centre management, hosting and Internet services, infrastructure services, communications and network integration, communications engineering and IT security services. Mr Lim Yew Seng, NCS' Chief of Global Business/Communications Engineering, tells iN.SG about the company's plans in the Middle East.

When did NCS first venture into the Middle East market and why?
NCS Bahrain began its operations in the Kingdom of Bahrain in June 2005, when it worked on a multi-million dollar project for the iconic Bahrain World Trade Centre. The project involved the development of a unified voice-data-video network that would enable tenants to enjoy a whole range of high-tech services from high-speed broadband Internet access to Internet telephony, and wireless and messaging applications.

How has the IDA office in the Middle East assisted your company in its business activities in the region?
IDA has helped to promote Singapore companies as a whole to the region. NCS participated in the Infocomm Singapore delegation to the Saudi e-Government forum in Riyadh in the early part of 2008, which helped to showcase and share the Singapore experience to Saudi Arabia.

Tell us about your Middle East operations.
We have full-fledged offices in Bahrain and Dubai, with project and network expertise to respond quickly and proactively to our clients' needs. Our staff strength in the region ranges from 50 to 100 at any one time, with project teams mobilised based on the expertise and core competency required. Our key offerings in the region include intelligent building/integrated building management services, public sector services, airport and infrastructure solutions, and financial services solutions.

Describe the Middle East market.
It is optimistic, bullish and most importantly, the governments in the Gulf Cooperation Council are eager to develop the IT space to improve efficiencies and benefit the people. There is definitely robust growth and plenty of business opportunities.

What are some of the major achievements of your Middle East operations to date?
The Bahrain World Trade Centre project marked the start of a series of projects in the Gulf region. Examples of these include the development of a re-engineering of processes and procedures plan for the Bahrain Civil Service Bureau; the Ubar Portal for the Information Technology Authority of Oman (one of the key initiatives under the Digital Oman programme); QATAR's e-Government portal Hukoomi (www.gov.qa) and consultation work for a smart service centre for the Saudi Arabian General Investment Agency's Economic Cities Agency. Over the past three years, we have clinched a total of US$50 million worth of projects.

What are some of the key learning points that you can share with other Singapore infocomm companies venturing into the region?
It is important to manage the human resource challenge, that is, to expand the workforce fast enough and to deploy sufficient manpower in the region. It is also very important not to compromise on the quality of the projects that we deliver to our clients.

Singapore Technologies Electronics (www.stee.stengg.com) delivers innovative e-Government and e-Enterprise solutions worldwide. It specialises
in purpose-built advanced electronics and infocomm systems such as satellite communication, intelligent rail and traffic management systems, homeland security, modelling and simulation, and interactive digital media and
animation products.

The company has a presence in more than 18 countries and markets its solutions to over 70 countries worldwide. Within the Middle East, it has branch offices in Dubai (United Arab Emirates or UAE), Doha (Qatar) and Riyadh (Saudi Arabia). ST Electronics' President, Mr Seah Moon Ming, tells iN.SG about the company's inroads into the region.

When did ST Electronics venture into the Middle East market and why?
ST Electronics' business activities in the Gulf Cooperation Council (GCC) started more than five years ago with the delivery of infosecurity and VSAT solutions to the region in 2002. This is an exciting growth market. The Middle East started to look east in the early part of this decade as it is diversifying from its oil industry base to broaden development in other parts of the economy. ST Electronics has the systems and products to help build the intelligent infrastructure which they need to do this. This presents an attractive business opportunity for us and we expect to secure more new projects in the years to come.

Mr Seah: People on the ground have to work hard to understand local best practices and rules.

What role can IDA play in supporting companies like ST Electronics in your business activities in the region?
The Singapore Government and its agencies including IDA are well respected in the Middle East. IDA can provide great help as a point of first contact for relevant business opportunities. We have benefited from our participation in IDA-organised activities and trade missions for overseas exposure. IDA has also invited ST Electronics to host visiting missions from GCC countries where they see a fit in business and needs.

The launch of the Infocomm Singapore brand has also positioned the Republic's products well in the eyes of overseas customers. The good standing of Singapore companies overseas is in no small part due to the efforts of organisations such as IDA in actively positioning Singapore-based companies
to the Governments in the various regions.

How different is the Middle East from Singapore and other markets that you have ventured into?
The Governments of the various countries in the Middle East have initiated economic and other reforms since the start of this decade, albeit at different development stages since they started at different times and their baselines were different.

As Singaporeans working in a foreign land with different cultures, it is necessary to understand the local culture, learn and adapt ourselves to
the way they conduct their business and to understand their history. The Middle East is quite a diverse area made up of different countries with
different business environments at different stages of development, so to succeed one must understand, respect and learn how best to deal with all these differences.

What are some of the major achievements of your Middle East office
to date?
We started from a relatively small base and have now a reasonable volume of business in the GCC. In 2006, we enjoyed the highest growth in sales there. For 2007 and 2008, we clinched new orders with aggregate dollar value greater than all the orders combined over the previous five years.

Our projects in the region include equipping an air control tower in the UAE with an Integrated Control System, providing the total design, supply and implementation of an Integrated Security System for the Dubai Festival City, developing an Intelligent Transport Management and Security System in Saudi Arabia, and providing an advanced Taxi Despatch and Management System in Sharjah, UAE. During the SARS crisis in 2003, we also shipped more than 10 units of the award-winning Infrared Fever Screening System to the region. To date, we have secured contracts worth more than S$220 million in the Middle East and we are actively pursuing business opportunities in all six states in
the GCC.

What are some of the key learning points that you can share with other Singapore infocomm companies venturing into the region?
Our experience in going into different markets is that at the macro level the strategies are similar (for example, build relationships and leverage on the in-depth local knowledge of in-country partners). The differences lie at the micro level where people on the ground have to work hard to understand local best practices and rules and separate the myths from the facts, and of course offer the best solutions to meet the customers' needs.