Sheikha Lubna Al Qasimi

New first quarter 2003 statistics show the number of auctions up from 730 a year ago to 2,179. Purchase orders are up from 55 in Q1 2002 to 4,017 in Q1 2003. While the number of Tejari marketplace members is up from 482 to 1,528 in the past year.

'To begin with the fact that we had the Dubai Government's procurement was critical. But now we are winning business from the private sector as well, banks, ENOC, and Emirates Airline,' says dynamic chief executive officer Sheikha Lubna Al Qasimi who has become a well know figure in the world of global e-marketplaces.

'So many companies have tried in this field and some have disappeared,' she says. 'The important thing is to build confidence in online transactions, to have good, secure systems. And it is a shame that more business is not using e-commerce today in this region, the 2% figure is pitiful'.

Sheikha Lubna points to the accelerating growth in Tejari.com as evidence that e-commerce really does work in the Middle East, and claims that her company has now reached a critical mass that is suddenly bringing more and more people into her e-marketplace.

'The momentum has grown and we can now provide buyers with a large community of suppliers. It was very difficult in the first year when we did no always have enough for an auction.

'Now we recognise that as a service provider we have to call-up and pursue suppliers to make sure that they are included in our auctions. We do that with emails, SMS and are developing a system of automatic alerts'.

Today Tejari has around one hundred supplier communities, anything from heavy construction equipment to office supplies. The benefits for Tejari members - and both buyers and suppliers have to be members of this private exchange - is a level and transparent playing field. All information is available to all parties who do not know who they are until the auction is over. There is also a system to handle spot purchases.

'Cost savings from using Tejari can be high,' says Sheikha Lubna. 'One buyer saved Dhs6 million ($1.6 million) in two deals and was understandably impressed.

'We also offer quick access to market, with auctions all over in 2-5 days as opposed to weeks with traditional methods. Pre-approvals cut out committee meetings. It is simply a more efficient system.

'Buyers are also beginning to ask us to find foreign suppliers, and this must be a good sign for the future. But all suppliers have to be pre-approved by us to ensure that they can honour their commitments and that is one reason why our business model has worked so well.'

For the future Tejari will also be able to lever its first-mover advantage in the growing Internet market of the region. The UAE has 30% Internet penetration but other market lag behind.

'Jordan is rather similar to the UAE in many ways and that is why we have chosen to expand there,' says Sheikha Lubna. 'Again the Government's e-government initiative has played a key role, and people are used to the Internet.

'Another Tejari initiative is the creation of Project Collaborative Tools for particular sectors such as construction. We are offering contractors, suppliers and engineers a complete solution including the updating of documents, and with the growth of real estate in this country we can see a lot of potential here.'

Clearly a world class business in its own right, Tejari's next challenge is to bring the whole region into its e-marketplace. The growth numbers speak for themselves, and as the Middle East moves online Tejari is set to be one of the winners in the Internet space.