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Wikipedia may have answer for Arabic advertisers


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  • Arabic

Boosting the amount of Arabic-language content on the internet, including the number of Arabic articles on Wikipedia, would help increase advertising spending in digital media, says the chief executive of the largest online advertising network in the MENA region. Only between 1 and 2 per cent of the region's advertising outlay goes to online media, but boosting local content, along with more internet penetration and building up broadband infrastructure, could lift this, said Isam Bayazidi, the head of the Ikoo advertising network.

Online ad revenue in the pan-Arab region will rise by between 70 and 80 per cent this year to between US$100 million (Dh367.3m) and $110m, Mr Bayazidi said. "Most of the growth is outside the UAE, in [Saudi Arabia], Egypt and Morocco," he said. "But to increase the online spend [in the MENA region] from 1 per cent to 4 or 5 per cent of the total market, we need to push content." Mr Bayazidi said he was in talks with Wikipedia contributors to look at boosting Arabic articles. Despite being the fifth most-spoken language in the world, there are only 128,610 Arabic entries on Wikipedia, ranking it the 24th language by number of articles. Wikipediahas more than 3.3 million articles in English.

Norwegian is spoken by just 5 million people, but there are more than twice the number of Wikipedia articles in Norwegian as Arabic. There are more Wikipedia articles in Esperanto, an artificial language, than Arabic. "I have been in talks with the guys at the Arabic Wikipedia to see how we can help them grow," Mr Bayazidi said. "It would help us in an indirect way. One of the things holding back the growth of internet advertising is the availability of online content.

"The Arabic language is the fifth most-spoken language in the world, but the Wikipedia for it was in a sorry state. I was leading the Arabic Wikipedia for three years [starting in 2004-2005]. When I came in [I] found the Arabic Wikipedia had about 10 articles, which was pathetic." Wael Ghonim, Google's product and marketing manager for MENA, agrees that more Wikipedia content in Arabic could help boost ad revenues. He said he launched a drive to create more Arabic Wikipedia entries last year by recruiting a group of students at Cairo University.

"Last year we noticed Arabic content on Wikipedia was pretty low. The Indonesian version had 60 million words, the Portuguese version had 140 million, but the Arabic version had only 22 million. This was a joke considering that 350 million people speak Arabic." After the campaign the Arabic content on Wikipedia rose by 7 million words, Mr Ghonim said. Mr Bayazidi said he was confident online advertising spending would increase, adding his company was on a regional expansion drive. Ikoo was founded as E-Marketing in 2005 and sells ads across 120 regional websites.

This year it was acquired by Jabbar Group, which comprises most of the remaining assets of the Maktoob Group after Yahoo bought it last year. @Email:bflanagan@thenational.ae

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PROFILE OF STARZPLAY

Date started: 2014

Founders: Maaz Sheikh, Danny Bates

Based: Dubai, UAE

Sector: Entertainment/Streaming Video On Demand

Number of employees: 125

Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners

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Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.

Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born. 

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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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The specs: 2018 Audi R8 V10 RWS

Price: base / as tested: From Dh632,225

Engine: 5.2-litre V10

Gearbox: Seven-speed automatic

Power: 540hp @ 8,250rpm

Torque: 540Nm @ 6,500rpm

Fuel economy, combined: 12.4L / 100km

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