HopeHub is a co-working space for freelancers in Gaza. Photo: HopeHub
HopeHub is a co-working space for freelancers in Gaza. Photo: HopeHub
HopeHub is a co-working space for freelancers in Gaza. Photo: HopeHub
HopeHub is a co-working space for freelancers in Gaza. Photo: HopeHub

How global tech experts are supporting Palestinian start-ups and cause


Neil Halligan
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  • Arabic

As the Israel-Gaza war continues, there has been increasing support for Palestine from the technology industry, particularly for start-ups that have been affected.

In the coming weeks, an initiative backed by the Bank of Palestine is set to use more than $2 million in raised capital to support 20 well-established Palestinian start-ups affected by the crisis.

The tech industry contributed almost $500 million to the Palestinian economy in 2021, accounting for close to 3 per cent of the gross domestic product in the occupied West Bank and Gaza, a report by the World Bank showed.

In its latest report on Palestine’s economy, the World Bank said nearly half a million jobs have been lost since the start of the war in October, with more than 200,000 of those in the Gaza Strip and 148,000 due to commuters from the West Bank losing access to work in Israel.

Another 144,000 positions have been eliminated in the West Bank “due to escalating violence and the repercussions on supply chains, production capacity, and breadwinners’ ability to access their workplace”, the institution said.

TAP (Talent Acceleration Platform) co-founders, Christian Vezjak and Jafar Shunnar, talking to Software Development graduates. Photo: TAP
TAP (Talent Acceleration Platform) co-founders, Christian Vezjak and Jafar Shunnar, talking to Software Development graduates. Photo: TAP

Education programmes, such as those offered by Talent Acceleration Platform (TAP), a Dutch-Palestinian upskilling and job placement company, have been severely affected, but they are still working to assist those they can.

Jafar Shunnar, co-founder of TAP, said their programmes in software development, digital marketing and business development have been hit.

“All the people that we had in Gaza working with external companies are no longer working with these companies. And all the participants in our programme are no longer participating,” Mr Shunnar told The National from the West Bank.

Three weeks ago, “things started to look a bit calmer” and they started to re-engage with people in Gaza, but then violence erupted again and they had to put their plans on hold, he said.

TAP, which has created 150 jobs for Palestinians, has partnered with HopeHub – an NGO that offers co-working space for freelancers in Gaza – to allow people to work or access Tap Education. It also helps those who have left Gaza to go to Egypt.

It has also launched a campaign called Palestine Future, which aims to connect 1,000 Palestinian youths with 1,000 global professionals from companies such as Google, Meta, Microsoft, LinkedIn and Accenture to help them with career coaching, mentorship or even job opportunities.

Lifeline

The tech economy in Palestine has always been able to thrive better than other sectors, given its ability to bypass a lot of the physical restrictions on the movement of people and goods.

Ryan Sturgill, principal at Cross Boundary and investment adviser to the Bank of Palestine, said technology had been a “lifeline for many people”.

“Since October, I think it's become even more important, certainly for people in the West Bank,” Mr Sturgill said.

“You see lots of companies, physical or digital, unable to have the people come to work or to communicate or interact effectively with the violence occurring all across the West Bank.”

Ryan Sturgill is leading a Bank of Palestine initiative called Safe Palestine, which aims to raise $5 million for bridge equity investments for the most promising Palestinian start-ups. Photo: TNW
Ryan Sturgill is leading a Bank of Palestine initiative called Safe Palestine, which aims to raise $5 million for bridge equity investments for the most promising Palestinian start-ups. Photo: TNW

He said he has been in contact with some internet companies about re-establishing hotspot Wi-Fi for the camps in Gaza, where infrastructure has been decimated.

The violence has led to increased attention from regional and global investors towards start-ups in Palestine’s tech sector, he said.

“They [Palestinian start-ups] are high-quality companies that are targeting big regional and global markets,” Mr Sturgill said.

He is leading a Bank of Palestine initiative called Safe Palestine, which aims to raise $5 million for bridge equity investments for the “most promising” start-ups that have already demonstrated significant traction.

Launched in February, the fund has done its first close at just under $2.5 million and will shortly do a first disbursement to 20 start-ups.

“We're looking at start-ups that are kind of at an inflection point,” Mr Sturgill said.

“They're kind of at the seed stage going to like a Series A and have traction, real customers, they’re revenue-generating, but they also have the most to lose potentially by not being able to extend that runway and continue to do product development and things like that.”

The companies are digital, scalable product or service-oriented start-ups from sectors like logistics, B2C booking apps, construction tech, legaltech, FinTech and healthtech.

Details of the funding will be announced shortly but the money came from “big technology companies” as well as public and individual and venture firms in Silicon Valley and across the Middle East region, Mr Sturgill said.

Rallying support

However, support from the US tech sector for Palestine has been starkly divided.

Silicon Valley is the headquarters for 35 Israeli-founded unicorns – privately held companies valued at $1 billion or more – the US-Israel Business Alliance said last year.

Paul Biggar, co-founder and former chief executive of software company CircleCI, which had a valuation of $1.7 billion in 2021, wrote a blog post in December against the tech industry for being complicit in “genocide” in Gaza.

The I Can't Sleep blog post went viral and led to Mr Biggar being contacted by people telling him about their Palestinian projects. He promptly created Tech for Palestine, a community of tech industry experts that has grown to 5,000 since its launch in January.

“The way it works is people join and we help people get connected to projects to start projects that will help Palestine in some way,” Mr Biggar, who lives in New York, told The National.

“In many cases, it's a boycott tool to help … boycott different parts of society. For example, we have some people who focus on boycotting specific companies, some people focused on boycotting general consumer applications, some people doing that via mobile apps versus Chrome extensions versus web apps.”

  • Students at King's College Cambridge University camp out in solidarity with Palestinians, in Cambridge, Britain, on May 9. EPA
    Students at King's College Cambridge University camp out in solidarity with Palestinians, in Cambridge, Britain, on May 9. EPA
  • A woman takes part in the King's College Cambridge University protest camp on May 9. EPA
    A woman takes part in the King's College Cambridge University protest camp on May 9. EPA
  • A banner at King's College shows the students' determination to support Palestinians under siege in Gaza. EPA
    A banner at King's College shows the students' determination to support Palestinians under siege in Gaza. EPA
  • Another banner, from Jewish students at Cambridge University, supporting Gaza's Palestinians. EPA
    Another banner, from Jewish students at Cambridge University, supporting Gaza's Palestinians. EPA
  • The pro-Palestinian camp at King's College. EPA
    The pro-Palestinian camp at King's College. EPA
  • Students at the university maintain their vigil. EPA
    Students at the university maintain their vigil. EPA
  • A protest outside Senate House at Cambridge University on Wednesday over the Gaza conflict. PA
    A protest outside Senate House at Cambridge University on Wednesday over the Gaza conflict. PA

Adil Abbuthalha, creator of the app Boycat, is among those who joined Tech for Palestine, which he said helped to launch his product.

Launched in January, the app allows users to scan a product’s bar code to tell if it’s pro-Palestinian. If it’s not, the app will provide pro-Palestinian alternatives.

Mr Abbuthalha, who lives in the US, said the app has more than 100,000 monthly active users and estimates that its diverted sales are worth several million dollars.

“We've calculated that we're looking around just around $10 million diverted in one-time purchases, which doesn't count continuous purchases,” Mr Abbuthalha told The National.

“So, if you bought Starbucks or Coca-Cola three times a week, we only count it as once because we don't count the continuous effect.”

The free app doesn’t make any money and will redirect any donations to those raising funds for humanitarian aid.

The next stage of development will be to localise the app and give alternatives in Europe, Africa, Asia and the Middle East. He also plans to create a shop on the app, which will have pro-Palestinian-only products.

Fact-checking

One of Tech for Palestine’s more successful projects so far is October 7 Fact Check, which Mr Biggar said was nearly complete by the time it joined the community.

“The tool has been incredibly effective and it continues to be developed,” Mr Biggar said.

“It has helped expose a lot of the myths around October 7 – when I say myths, I mean, atrocity propaganda which has been bought [and] is used by Israel to manufacture consent for the invasion and further genocide.”

Newscord, a website that compares news stories to reveal media bias, was also fully formed by the time it joined Tech for Palestine.

London-based Nima Akram created the website after he noticed “two distinct narratives being set from mainly the western sources”, which are “prioritising the Israeli side and covering whatever Israel says as fact”, he said.

“And then you're seeing Al Jazeera, the Middle East Eye and The National as well, I would say looking at both sides, or maybe kind of focusing on the humanitarian outcome and how it's affecting innocent people's lives.”

As a data scientist by trade, he said he wanted to use his skills to create a website that would evaluate both sides of the story and highlight the contradictions.

Newscord uses the AI technology that runs Chat GPT – Open AI’s GPT 3.5 – to compare articles with a summary of the facts and information, as well as the key contradictions.

“It's not saying this is the truth, but this is a lie. It's saying there are significant differences here,” he said.

“Hopefully, the user kind of gets to their own conclusions by seeing all of these different views.”

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Bio

Born in Dibba, Sharjah in 1972.
He is the eldest among 11 brothers and sisters.
He was educated in Sharjah schools and is a graduate of UAE University in Al Ain.
He has written poetry for 30 years and has had work published in local newspapers.
He likes all kinds of adventure movies that relate to his work.
His dream is a safe and preserved environment for all humankind. 
His favourite book is The Quran, and 'Maze of Innovation and Creativity', written by his brother.

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