IDAL to team up with PCA to boost Lebanese IT exports

Dubai, UAE
IDAL and PCA, a non-profit organization are working together to devise common strategies for Lebanon's IT industry, to increase software exports, through enhanced participation in IT exhibitions in the region and globally, and a more dynamic performance in the B-to-B segment.

The partnership was announced at a press conference held yesterday on the eve of GITEX Dubai 2002 and attended by top officials from IDAL and PCA, as Lebanese IT companies prepared to participate in the exhibition for the fifth successive year. The participating Lebanese ICT companies will use GITEX 2002 to display their world-class applications and programs as well as highlight their competitive pricing, estimated to be 3 to 5 times lower than the European counterparts. The companies participating at GITEX this year include Automation Computer Technology (ACT), Software Design, International Gateway, Dot Lb, Terravision, DC Soft, BMB, SETS, Internet Facilities and Al Yousifi.

"The Lebanese IT industry, challenged by internal adverse factors and stiff competition from emerging regional countries, needs to undergo dramatic changes if it is to grow stronger in today's changing times. Much has changed since Lebanon first made waves with its pioneering software solutions that were immediately accepted by the countries in the region. Today, the Lebanese IT industry will perform better if it receives extensive support to help it re-position itself as one of the IT hubs of the region," said Samih Barbir, Chairman and Managing Director, IDAL.

"As a body committed to the economic revival of Lebanon, the Investment and Development Authority of Lebanon is more than pleased to join hands with the Professional Computer Association to work together to carry out this mission of promoting Lebanese software expertise to the region and the world, and devise strategies that would trigger demand for Lebanese IT solutions. PCA, being the body which coordinates the activities of the member IT companies, will be authorised to use the IDAL assistance to support activities, exhibitions and tie-ups that would in the long run provide impetus for Lebanese software exports not only to regional countries but to new markets as well."

"PCA's commitment to the Lebanese IT industry has already begun to show positive results in recent times and we are working constantly to provide our members with extensive opportunities to export and market their software and services," said Jalal Fawaz, President of PCA. "During our last meeting with the Prime Minister's office, it has been agreed to launch a workshop to discuss ways and means to support the IT sector in the country. In addition, we have also just signed a joint venture with Trans Media Airlines to use the facilities at Beirut airport to launch a free zone for Information technology. This free zone is expected to have warehousing facilities and product assembly services."

"Though recent years have witnessed a significant increase in Lebanese software exports to the Gulf, the growth is not proportional to the size of the IT industry and its potential," said Michel Nseir, Board Member, PCA and Head of the Lebanese Pavilion, at Gitex Dubai 2002. "The Professional Computer Association is acutely aware of the urgent need to increase software export. The IT industry in Lebanon needs concrete support if it is to remain a force to reckon with. We are, therefore, very pleased with the initiative taken by IDAL to provide assistance to the industry through PCA. We at PCA are strongly committed to the Lebanese IT industry and promote it aggressively on regional and global platforms."
"This is indeed a pleasant moment for Lebanese IT companies because IDAL has decided to play a proactive role in supporting this vital industry. We are positive this step will bring tangible results in the near future and consolidate the position of the Lebanese IT industry on the global IT scenario," Nseir added.

Lebanese companies have acquired high levels of expertise in recent times. There have been several positive developments in recent times. Some of Lebanese companies have begun exploring new territories by opening offices in the Gulf and North Africa. More significantly, major global IT companies have started developing software products in Lebanon and exporting them to Europe.

A recent study by SRI International & PricewaterhouseCoopers funded by US aid, declares that prospects for Lebanon's IT sector remain positive if it can successfully implement key initiatives and reforms to complement the country's competitive advantages.

The inherent strengths of Lebanon are a strong entrepreneurial tradition, a private sector oriented business climate, open markets and supportive government policies and an outward-looking multi-cultural and multi-lingual society with a strong interest in technological progress.

On human resource development, the report highlights the detrimental effects of the loss in intellectual capital underlining the fact that while Lebanon's universities graduate about 300 computer science graduates annually, the country faces a major problem in actually retaining young IT professionals. Figures released show that nearly 70 per cent of IT students who graduated in the year 2000 left Lebanon with half of them moving to the Gulf, and the other half departing to the US or Europe.

Lebanon, one of the first countries in the region to embrace IT, boasts an impressive rate of personal computer access and Internet penetration. The telecommunication infrastructure in the country is undergoing expansion, with a modern $1 billion communications network under development. Lebanon has attracted major international IT investors such as Microsoft, Cisco, Nortel Networks and Ericsson.

"The report is a timely reminder that Lebanon needs to take urgent measures to emerge as a leading IT player in the region," said Michel Nseir. "The findings of the report have motivated the Government and the industry to formulate long-term policies to put Lebanon among the top IT players in the region. This is easily attainable because Lebanon has all the pre-requisites to emerge as a leader in IT software."

The report's action agenda recommends short-term measures like reduction in connectivity costs, preparation of an IT action report for adoption by the Government, compiling of reliable industry data, developing industry/university partnerships, extending incubation services, matching core competencies with regional opportunities and developing regional marketing capabilities.

The long-term measures include creating public-private sector partnerships; implementing legal and regulator reforms; expanding e-awareness and computer/Internet access; strengthening human resources for IT; promoting capital and financing mechanisms and new investment in IT; lobbying Government support for IT and upgrading of IT infrastructure.

The report highlights the need for greater integration with overseas players through mergers and acquisitions making the Lebanese companies insular in outlook, though it adds that companies like Fiberling Networks and Cyberia were leading the way by venturing beyond their territories. It also calls for more linkages with major international institutions through strategic alliances to boost competitiveness.


For further information, please contact:

Kim Pinto
PR Account Executive
Orient Planet, PR & Marketing Communications
PO Box 23345, Dubai, UAE
Tel: + 971 4 3988901, Fax: + 971 4 3988941
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