Jordan’s ICT Industry

ICT Association of Jordan – int@j

October 2014

int@j Background

Driven by His Majesty’s vision for a strong private ICT Sector

Established in 2000 as the ICT industry-support association under the REACH Initiative

Lead with MoICT implementation of the REACH Initiative (2000-2006), National ICT Strategy (2007-2011) and (2013 – 2017)

• Includes more than 200 companies in IT, Telecom, Outsourcing,

Content, Internet and Mobile businesses, membership is open to

all ICT companies

• Focuses on advocacy, promotion and marketing, capacity

building, research and publications, and ICT Clusters

Sector Vision

Jordan to become a major regional

ICT leader and an internationally recognized exporter of ICT products & services, capitalizing on its core

human capital advantage

Jordan’s ICT Sector

Started back in 1999 (REACH Initiative) followed with the National ICT Strategies (2007 – 2011) and (2013 – 2017)

Fastest growing sector in Jordan's economy (Avg. 25% growth)

More than 84,000 jobs in total (direct/indirect/induced)

Contribution of 12% to GDP (10% direct, 4% indirect)

On the ground international companies (Cisco, Microsoft,

Oracle, HP, Yahoo, Intel, Ericsson)

Strong ICT Sector accomplishment (12% to 14% of GDP)

ICT Average salaries is JD 800 to JD 900 (upper middle class)

ICT is an enabler of the whole economy and creator of wealth

ICT is a pillar of Jordan’s Economy

Source:

- Manufacturing, Construction, and Agriculture GDP and Employment: Department of Statistics

- ICT: int@j Industry Classification and Statistics 201

- Tourism: Ministry of Tourism

Manufacturing Tourism ICT Construction Agriculture

17.70%

14.30%

12.00%

4.30% 2.30%

10.60%

3.28% 1.23%

4.50% 2.80%

GDP Contribution Direct Employment

$210 $202 $231

$300 $324

16,253 15,574 17,090 14,597 15,835

442 456

490 495

540

2009 2010 2011 2012 2013

IT Export Revenue Total ICT Employment Number of Companies

Good News – Growing Sector

Increasing Companies

Increasing Exports

Stable Employment

CAGR +5.1%

CAGR +7.4%

Amman is the

10th best place to start

a technology company in the world

4th Oasis500 Angel Network 11

References: - Bloomberg.com - Sindibad Business Report for Wamda.com

Good News – Int’l Recognition

$685 $530

$508

$317 $313

$895 $732 $738

$617 $638

$1,538 $1,637

$1,721 $1,691 $1,582

$2,433 $2,369

$2,459 $2,308 $2,220

2009 2010 2011 2012 2013

IT Domestic Revenue IT Total Revenue Telecom Revenue ICT Revenue

Some Bad News

Declining Telecom Revenue

Overall Declining ICT Revenue

Declining Domestic IT Revenue

52 Companies closed in 2011, and 48 closed in 2012

83 Companies closed in 2013

CAGR +0.56%

CAGR -14.5%

CAGR -6.5%

CAGR -1.8%

Declining total IT Revenue

Sources:

- Telecom: Telecommunications Regulatory Commission

- IT: int@j Industry Classification and Statistics 2013

ICT Sector Landscape

• 540 Companies in Telecom, IT, Online and Mobile Content, Outsourcing, and Games

• All Number in USD million

IT ExportRevenue

IT DomesticRevenue

IT TotalRevenue

TelecomRevenue

ICT SectorRevenue

$12 $48 $60

$500 $560

$324 $313

$638

$1,582

$2,220

2000 2013

• Exporting to more than 40 countries

• Major Export Markets

– Saudi Arabia $86m (26%)

– USA $69m (21%)

– Iraq $41m (12%)

– Nigeria $23m (7%)

– UAE $21m (6%)

Regional Opportunities

– Saudi Arabia (Over $4b IT spending) 50% of GCC

– UAE (Over $1b IT spending Annually)

– Qatar (Over $500mn IT spending Annually)

ICT Sector Exports

Segments and Companies

Sector Segments

• Operators

• ISPs/ASPs Telecom

• Hardware

• Networking IT Infrastructure

• Enterprise Solutions

• Emerging Applications IT – Software

• Content

• Applications Online and Mobile

• IT Outsourcing

• Business Process Outsourcing

• Knowledge Process Outsourcing Outsourcing

• Online and Mobile

• Console Games

Sample Companies

Banking: CCS, Progress Soft, ManafSoft, EastNets, Focus Solutions

Payment: STS, Gate2Play, Jabbar, Access2Arabia, MEPS, Madfo3at

Insurance: Eskadenia, TechnoSys, KeySoft, NatHealth

Health: EHS, ATS, Optimiza, NatHealth, N2V, AlTibbi, Eskadenia

Education: ITG, Rubicon, Al-Hudhod, Eskadenia

Telecom: Globitel, Eskadenia

Gov: Estarta, Savvytek, Optimiza, SSS Process, Offtec, Primus, ITG

HR: MenaITech

ERP: Sermon, Savvytek, Intracom

CRM: Eskadenia, MenaITech

VAS: Info2Cell, MIT, BeeCell, Access2Arabia, PACT, Javna

Web: Dot.Jo, Primus, Imagine

Online: D1G, Jeeran, Maktoob, Jabbar

Games: Quirkat, Maysalward, Beladcom, Mixed Dimension

Animation: Rubicon, Kharabeesh, CurleStone, Media Plus

Outsourcing: Aspire, Extensya, CrysTelCall, Primus, KeySoft, 4th Dimension

Opportunities

More Opportunities

E-Learning:

Jordan Education Initiative

Local firms delivering world-class products

– ITG - EduWave Platform, World Summit Award Winner

– Rubicon, Math Curricula with Cisco

New models: Al-Hudhud, Nibras, Darebni

Recently established Jordan’s ICT for Education Cluster to promote Jordan’s ICT capabilities in Education

More Opportunities

E-Health:

Electronic Health Solutions Royal Initiative Based on VistA with pilot in 3 Public Hospitals and to build on and replicate in other countries

Opportunity to build health applications (Cloud, Mobile, Infrastructure)

Established Jordan’s Healthcare ICT Taskforce as an open group to develop Health ICT

Opportunities

Telecommunications:

Liberalized Telecom Sector

– Liberalized mobile telephone subsector

– Liberalized fixed line subsector

Independent regulator – TRC

Licensed WiMAX & 3G Infrastructure

More than 9 million mobile phone subscribers

Opportunities

Business Process Outsourcing:

9th globally in AT. Kearny Global Services Location Index (2009)

Availability of necessary ingredients

– Manpower and human talent

– The “right” Arabic and English dialect

– An alternative destination

– The right telecom infrastructure

– The investment climate

– The political and economic stability

Online/Mobile Content and Gaming

3% Arabic content in the world – Jordan is the largest contributor

Neutral Arabic speaking community

Mobile:

– Applications, Games, and Content

• Multiplatform applications, content, and games (including iPhone and Blackberry)

Online

– Applications and Gaming Solutions (example online payment)

– Communities (example web forums, football sites)

– Media and Content (example Online Newspapers, social media, and directories)

Thank You