Yahoo made a big leap into the Middle East market when it bought Maktoob for $164 million in 2009.
Yahoo made a big leap into the Middle East market when it bought Maktoob for $164 million in 2009.

Local social networks have home advantage in taking on big boys



There are more than 600 million faces on Facebook, and the number of regular users is expected to rise to 1 billion in the next few years.

The social networking site overtook Google last year as the most visited website in the US and ranks as one of the top websites in the Middle East, with 15 per cent of the site's user base living in the region.

Facebook, which was recently valued at US$50 billion (Dh184bn), is the second most popular website in Egypt, while it ranks fourth in Saudi Arabia, according to the web information company Alexa.com. Any local start-up trying to compete with the US giant faces an epic battle.

That has not stopped a host of social networking sites setting up shop in the Middle East, vying for the attention of local consumers, including more than 90 million Facebook members.

Is this a battle worth fighting, given the dominance of sites such as Facebook and LinkedIn?

Many consumers in the region will be loath to set up another account, remember another login and password, and upload reams of personal information that is already on international sites.

But the founders of home-grown versions of Facebook and LinkedIn say their sites have something else to offer: true regional relevance.

The potential of Middle East social networking sites was illustrated by Yahoo's acquisition of the Maktoob portal for $164 million in 2009.

Other such sites in the region include Jeeran, which is based in Jordan, and Anayou, which was launched last year by the UAE telecommunications operator du.

More sites are emerging in this increasingly crowded market. One is Alshabaka.me, a Middle East take on LinkedIn. The site was originally called Intheloop.me but was recently rebranded to emphasise its Arab roots.

Rony el Nashar, the founder of Alshabaka, says the site has several advantages over LinkedIn. "The most obvious one is the ability to communicate in Arabic. LinkedIn doesn't have an Arabic interface," Mr el Nashar says. "The second thing is that you can't really have a 'one size fits all' model that fits all cultures across the globe.

"When it comes to professional networking, there's definitely value in being local. If you're focused on building a social network that's regionally orientated, people will automatically gravitate towards it."

Another LinkedIn-style web business is being developed by the online jobs portal Bayt.com.

Bayt is building a network of sites focusing on different sectors, which will allow users to set up profiles, make contact with industry peers and comment on business articles.

The first community is MarketingHub.me, which is geared towards marketing professionals and claims to have attracted between 20,000 and 25,000 registered users since its launch last month.

But what is the point? LinkedIn, the go-to website for professionals, has several groups focused on marketing. Why build another site?

Ali Sinaei, the head of advertising sales and commercial content at Bayt.com, says the likes of Facebook and LinkedIn "don't provide you with localised content". But the Bayt communities have articles written by local commentators, Mr Sinaei says.

"Any region demands and clamours for content and things written for themselves in particular," he says.

"One real opportunity for social networks here in the region is to couple a user's network of friends and followers with localised content that is of importance to them. Giving me something I can relate to in my own day-to-day life is much more interesting."

Mr Sinaei says MarketingHub has "about 20 or 25 conversations going on at any one time", with information specifically for the Middle East making the site distinct from LinkedIn.

"You don't join LinkedIn to have conversations. You don't join LinkedIn to get content," he says. "Everyone who is on MarketingHub has exactly the same interests as you. The understanding from the beginning is that it's [about] marketing in the Middle East."

Bayt plans to launch more LinkedIn-style communities this year, Mr Sinaei says. "We're looking to roll out six communities this year. Our second community, which is aimed at female professionals, is aimed to be launched at the end of this month.

"The kind of content we're going to be rolling out is really varied. [The new site will have contributions] from women in the region who have made a name for themselves and are at the top of their profession."

Local relevance is also key to SocialCirclesUAE.com, a Facebook-style site that launched in 2009. While the site's membership base is overshadowed by many international sites, the founder of SocialCircles, Rachel Morton, says it provides a local experience not found on other networks.

The site has more than 200 sub-groups around interests such as scuba diving, tennis, food, even shisha smoking, Ms Morton says. The site is focused on local events.

One successful event was "a camping trip to Oman where 16 4x4s, with around 50 strangers, drove together for hours to camp and hike and make new friends," she says.

"Events are a big part of it. At the last event there were 150 people."

Ms Morton says the site is currently making money through advertising and sponsorship, and has a growing user base. "Today we have 5,268 members on the site. We have about 200,000 page views a month."

While SocialCirclesUAE is a "pure" social networking site, some commentators say there is room in the market for sites that employ social aspects but do not try to recreate what is done by the likes of Facebook and LinkedIn.

Mr el Nashar says he sees many opportunities for sites that employ aspects of social media in the Middle East.

"There are an infinite amount of possibilities for social networking in the Middle East region," he says. "Maybe not just for pure social networking sites like Facebook, but for sites that introduce social networking concepts to a unique business idea."

Company profile

Company name: Ogram
Started: 2017
Founders: Karim Kouatly and Shafiq Khartabil
Based: Dubai, UAE
Industry: On-demand staffing
Number of employees: 50
Funding: More than $4 million
Funding round: Series A
Investors: Global Ventures, Aditum and Oraseya Capital

Sweet Tooth

Creator: Jim Mickle
Starring: Christian Convery, Nonso Anozie, Adeel Akhtar, Stefania LaVie Owen
Rating: 2.5/5

Sarfira

Director: Sudha Kongara Prasad

Starring: Akshay Kumar, Radhika Madan, Paresh Rawal

Rating: 2/5

 


 

Company Profile

Company name: Namara
Started: June 2022
Founder: Mohammed Alnamara
Based: Dubai
Sector: Microfinance
Current number of staff: 16
Investment stage: Series A
Investors: Family offices

How to get exposure to gold

Although you can buy gold easily on the Dubai markets, the problem with buying physical bars, coins or jewellery is that you then have storage, security and insurance issues.

A far easier option is to invest in a low-cost exchange traded fund (ETF) that invests in the precious metal instead, for example, ETFS Physical Gold (PHAU) and iShares Physical Gold (SGLN) both track physical gold. The VanEck Vectors Gold Miners ETF invests directly in mining companies.

Alternatively, BlackRock Gold & General seeks to achieve long-term capital growth primarily through an actively managed portfolio of gold mining, commodity and precious-metal related shares. Its largest portfolio holdings include gold miners Newcrest Mining, Barrick Gold Corp, Agnico Eagle Mines and the NewMont Goldcorp.

Brave investors could take on the added risk of buying individual gold mining stocks, many of which have performed wonderfully well lately.

London-listed Centamin is up more than 70 per cent in just three months, although in a sign of its volatility, it is down 5 per cent on two years ago. Trans-Siberian Gold, listed on London's alternative investment market (AIM) for small stocks, has seen its share price almost quadruple from 34p to 124p over the same period, but do not assume this kind of runaway growth can continue for long

However, buying individual equities like these is highly risky, as their share prices can crash just as quickly, which isn't what what you want from a supposedly safe haven.

UAE currency: the story behind the money in your pockets
Five famous companies founded by teens

There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:

  1. Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate. 
  2. Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc. 
  3. Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway. 
  4. Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
  5. Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

HEADLINE HERE
  • I would recommend writing out the text in the body
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  • But I recommend you use the bullet point function (see red square)
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  • Be wary of other embeds lengthy fact boxes could crash into
  • That's about it
PROFILE BOX

Company name: Overwrite.ai

Founder: Ayman Alashkar

Started: Established in 2020

Based: Dubai International Financial Centre, Dubai

Sector: PropTech

Initial investment: Self-funded by founder

Funding stage: Seed funding, in talks with angel investors

TO CATCH A KILLER

Director: Damian Szifron

Stars: Shailene Woodley, Ben Mendelsohn, Ralph Ineson

Rating: 2/5

While you're here
TOURNAMENT INFO

Women’s World Twenty20 Qualifier

Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November

UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi