let us start at the beginning 2009 - gsma mobile 360 series · “mena region is the fastest...

Let us start at the beginning 2009

Then Gave Birth To This 2017

With lots of this

And Jeff Comes To Town

Which Got the Attention Of

Mohammad Al Abbar’s $1B noon

ST Ventures $500 Million

Oman Launches$129m VC fund

$400 Million Lebanon

Circular 331

Dubai $270m “Future

Accelerators”

And Lots of Technology Funds

Jordan Central

Bank $100 Million

Kuwait SME $7 Billion

Fund

SO WHAT’S HAPPENING IN MENA?

Young. Urban. Empowered.

Levant$325 billion

GCC$1.4 trillion

North Africa$700 billion

71 million

54 million

180 million

Population

70%

82%

55%

Urban

50%

40%

45%

Under 25GDP

Source: International Monetary Fund

Source: Global Internet Geography, TeleGeography, McKinsey Global Institute analysis

And Connected..

In the past 10 years, data flow between MENA and the world increased by 150 –fold

Source: http://www.internetworldstats.com/stats5.htm , June 2016

Today..

Internet Penetration in MENA

8% Higher Than World Average

Source: GSMAi

Kuwait 156% UAE

144%

KSA 157%

Average 126 %

With more than

one smartphone per person in the GCC

% Internet users that have used the service 2015 “MENA region is the fastest growing consumer of videos on Facebook”, Dubai PR Network, 2015

KSA ranked in #1 in YouTube per capita consumption per month

Region highest ranked in twitter usage globally

Region fastest growing consumer of embedded videos:

Twice the global average

And the highest in the world

Social media consumption

$50M

$1B

$100M

In 2009, tech companies worth $100m+

ONLY ONE

$50M

$1B

$100M

Today...

Mohammad Bin SalmanVisits Silicon Valley

PIF Invests $3.5b in Uber

Softbank and PIF Announce$100b Fund

Careem Raises $500m Led by Rakuten, STC and an investment by DIDI

Governments, Traditional Players and

Global Giants are now Responding

“We will celebrate the export of the last barrel of oil”

Sheikh Mohammed bin Zayed’s

inspirational vision for a post-oil UAE

Dubai 10X

Saudi national transformation plan 2030

72%

64%

61%

57%

57%

53%

52%

52%

51%

50%

47%

43%

39%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Media

Telecom

Consumer Finance

Retail

Technology

Insurance

Consumer Products

Nonprofits

Business & Professional Services

Education

Healthcare

Asset Management

Industrial

Executives who anticipate their industries will be massively disrupted on a global level by technology in the next 12 months (%)

Source: Harvard Business Review: "Digital Pulse 2015“. Russell Reynolds Associates.

Fear of disruption is palpable

150,000captains

Millions of active users

Hundreds of thousands daily

trips

$1 B companyRakuten Ventures & STC to invest $300m

Uber took 4 years to become a unicorn

Middle East’s Uber took (also) 4 years

1.2 M ORDERS in

one weekend

$120 M in sales

November alone

37% purchases were on

Credit Card

80% of orders

delivered within 4

days

Company growth

40% YOY

Over 70% on

Smart Phone

In one day

Where’s THE OPPORTUNITY?

< 20%Of adults in MENA holds a bank account 50%

MENA SME lending stands at 50% of global average

4XEcommerce is set to quadruple in 2020 to $20 billion

33%Of bank customers want to switch his bank and looking for a digital banking experience

88%Of fintech startups seek corporate partnerships to overcome their largest barriers

Sources: State of Fintech Report in MENA – Unbundling the financial services industry by Wamda and Payfort, Wamda Research Lab, 2016

5 market drivers

for Fintech in MENA

105Number of fintech startups in the region doubled from 46 to 105 in the last 3 years

$100mMENA’s fintechstartups raised $100 millions over the last decade

73%Of all MENA fintech startups are based in four out of the 12 countries

50%Of all fintech startups launched after 2012

84% Of all fintech startups are payment and lending companies


Fintech key highlights



Total fintech investments (in MENA, in USDm, 2007-2016)








Four emerging fintech hubs (share of fintech startups by country, 2015)







Fintech startup creation

Payments take the lead







Asia Pacific

North America

Europe

Latin America

MENA

E-commerce sales Total retail sales

2.97%

2.2%

8.4%

7.0%

10.2%

MENA e-commerce sales: less than 3% Global e-commerce average: 7.5%

Source: AT Kearney: Getting in on the GCC E-Commerce Game, eMarketer worldwide Retail Ecommerce sales

E-commerce to Retail Share:

The Lowest Globally in MENA!

0.0

5.0

10.0

15.0

20.0

2015 2020

$ B

illio

ns

UAE KSA Other GCC countries

4X market size

23%

33%

44%

20%

42%

38%

$ 5.3b

$ 19.8b

30% CAGR

Source: AT Kearney: Getting in on the GCC E-Commerce Game

E-commerce Market $5.3 Billion Today,

Growing at 30% Annually

$50m

$1bn

$100m

53% of $100m+ companies

are marketplaces or e-tailers

Source: How Young Arabs are Fueling the MENA Media Market, November 2014 Abu Dhabi Media Summit, Strategy&

Digital Media

Still hasn’t caught up with eyeballs

Digital Media

But fastest growing

Arabic is the 4th most popular language on the internet,

and outpaces other major languages in growth

Source: Internet World Stats

Digital Media


Digital Contribution

to GDP in Mena is 50% of the US

$70bnMENA Travel Market in 2015 with majority going through UAE & KSA

23%5-year CAGR growth in the MENA online travel market between 2012 and 2017

3.4bnNumber of global internet users in 2015; the primary growth driver for online travel platforms

16%

50%

14%

20%

KSA UAE Qatar Rest of MENA

0 50 100 150

Asia Pacific

USA

Europe

Middle East

$bn

2017 2015 2012

23%

13%

6%

3%

CAGR

Online Travel is growing rapidly and Emerging Market growth is expected to outpace that of the Developed Market

51%

45%

39%36%

0%

10%

20%

30%

40%

50%

60%

Europe USA APAC MiddleEast

Internet penetration

Sources: Phocuswright US Online Travel Overview, European Online Travel Overview, Middle East Online Travel Overview and APAC Online Travel Overview

Travel space highlights

The leading OTAs and metasearch platforms have all established presence in MENA, but none has dominated the market

Players focusing on a niche product

Players in the travel space

1. 65%+ Smartphone Penetration (MENA)

2. Usage of internet from smartphone is 90%

3. Over 36% of MENA users access the internet through mobile

4. 57% of online shoppers have purchased items via mobile

5. Mobile commerce accounts for 10-15% of online sales

Shifting trends to mobile online shopping

Proven online grocery models worldwide

Sources: “How Young Arabs are fuelling the MENA media market”, internetworldstats.com

Online grocery opportunity

Big e-commerce players across industries, but grocery is the last untapped frontier

The beginning of a competitive wave

entering MENA

Pure Play Hyperlocal

Brick and Mortar

E-commerce store

Pure Play: Online enabled grocery play which holds complete control over logistics and the entire grocery value chain from farm to fork, connecting vendor and consumer

Hyperlocal: Online marketplace model which fulfills consumer orders based on partnerships with local convenience stores and hyper-local markets through a take-rate model

The Main Market &

Home for New Startups

KSA

16X41%

The Business Hub

Dubai

Global Offerings, SaaS

Cloud, B2B

Turkey

Cloud Traffic Growth Rate –

The Highestin the World

by 2019

Growthfor Mobile Data Traffic (2015-2021)

Smartphone Adoption by

2020

60%

Of All Advertising will

be Digital by 2020

20%

The Talent back office

Jordan/EgyptLebanon/Morocco

The 2020 MENA

The future

Then Gave Birth To This 2017

With lots of this

And Jeff Comes To Town

Which Got the Attention Of

Mohammad Al Abbar’s $1B noon

ST Ventures $500 Million

Oman Launches$129m VC fund

$400 Million Lebanon

Circular 331

Dubai $270m “Future

Accelerators”

And Lots of Technology Funds

Jordan Central

Bank $100 Million

Kuwait SME $7 Billion

Fund

SO WHAT’S HAPPENING IN MENA?

Young. Urban. Empowered.

Levant$325 billion

GCC$1.4 trillion

North Africa$700 billion

71 million

54 million

180 million

Population

70%

82%

55%

Urban

50%

40%

45%

Under 25GDP

Source: International Monetary Fund

Source: Global Internet Geography, TeleGeography, McKinsey Global Institute analysis

And Connected..

In the past 10 years, data flow between MENA and the world increased by 150 –fold

Source: http://www.internetworldstats.com/stats5.htm , June 2016

Today..

Internet Penetration in MENA

8% Higher Than World Average

Source: GSMAi

Kuwait 156% UAE

144%

KSA 157%

Average 126 %

With more than

one smartphone per person in the GCC

% Internet users that have used the service 2015 “MENA region is the fastest growing consumer of videos on Facebook”, Dubai PR Network, 2015

KSA ranked in #1 in YouTube per capita consumption per month

Region highest ranked in twitter usage globally

Region fastest growing consumer of embedded videos:

Twice the global average

And the highest in the world

Social media consumption

$50M

$1B

$100M

In 2009, tech companies worth $100m+

ONLY ONE

$50M

$1B

$100M

Today...

Mohammad Bin SalmanVisits Silicon Valley

PIF Invests $3.5b in Uber

Softbank and PIF Announce$100b Fund

Careem Raises $500m Led by Rakuten, STC and an investment by DIDI

Governments, Traditional Players and

Global Giants are now Responding

“We will celebrate the export of the last barrel of oil”

Sheikh Mohammed bin Zayed’s

inspirational vision for a post-oil UAE

Dubai 10X

Saudi national transformation plan 2030

72%

64%

61%

57%

57%

53%

52%

52%

51%

50%

47%

43%

39%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Media

Telecom

Consumer Finance

Retail

Technology

Insurance

Consumer Products

Nonprofits

Business & Professional Services

Education

Healthcare

Asset Management

Industrial

Executives who anticipate their industries will be massively disrupted on a global level by technology in the next 12 months (%)

Source: Harvard Business Review: "Digital Pulse 2015“. Russell Reynolds Associates.

Fear of disruption is palpable

150,000captains

Millions of active users

Hundreds of thousands daily

trips

$1 B companyRakuten Ventures & STC to invest $300m

Uber took 4 years to become a unicorn

Middle East’s Uber took (also) 4 years

1.2 M ORDERS in

one weekend

$120 M in sales

November alone

37% purchases were on

Credit Card

80% of orders

delivered within 4

days

Company growth

40% YOY

Over 70% on

Smart Phone

In one day

Where’s THE OPPORTUNITY?

< 20%Of adults in MENA holds a bank account 50%

MENA SME lending stands at 50% of global average

4XEcommerce is set to quadruple in 2020 to $20 billion

33%Of bank customers want to switch his bank and looking for a digital banking experience

88%Of fintech startups seek corporate partnerships to overcome their largest barriers


5 market drivers

for Fintech in MENA



Total fintech investments (in MENA, in USDm, 2007-2016)








Four emerging fintech hubs (share of fintech startups by country, 2015)







Fintech startup creation

Payments take the lead







Asia Pacific

North America

Europe

Latin America

MENA

E-commerce sales Total retail sales

2.97%

2.2%

8.4%

7.0%

10.2%

MENA e-commerce sales: less than 3% Global e-commerce average: 7.5%


E-commerce to Retail Share:

The Lowest Globally in MENA!

0.0

5.0

10.0

15.0

20.0

2015 2020

$ B

illio

ns

UAE KSA Other GCC countries

4X market size

23%

33%

44%

20%

42%

38%

$ 5.3b

$ 19.8b

30% CAGR

Source: AT Kearney: Getting in on the GCC E-Commerce Game

E-commerce Market $5.3 Billion Today,

Growing at 30% Annually

$50m

$1bn

$100m

53% of $100m+ companies

are marketplaces or e-tailers

Source: How Young Arabs are Fueling the MENA Media Market, November 2014 Abu Dhabi Media Summit, Strategy&

Digital Media

Still hasn’t caught up with eyeballs

Digital Media

But fastest growing

Arabic is the 4th most popular language on the internet,

and outpaces other major languages in growth

Source: Internet World Stats

Digital Media


Digital Contribution

to GDP in Mena is 50% of the US

$70bnMENA Travel Market in 2015 with majority going through UAE & KSA

23%5-year CAGR growth in the MENA online travel market between 2012 and 2017

3.4bnNumber of global internet users in 2015; the primary growth driver for online travel platforms

16%

50%

14%

20%

KSA UAE Qatar Rest of MENA

0 50 100 150

Asia Pacific

USA

Europe

Middle East

$bn

2017 2015 2012

23%

13%

6%

3%

CAGR

Online Travel is growing rapidly and Emerging Market growth is expected to outpace that of the Developed Market

51%

45%

39%36%

0%

10%

20%

30%

40%

50%

60%

Europe USA APAC MiddleEast

Internet penetration

Sources: Phocuswright US Online Travel Overview, European Online Travel Overview, Middle East Online Travel Overview and APAC Online Travel Overview

Travel space highlights

The leading OTAs and metasearch platforms have all established presence in MENA, but none has dominated the market

Players focusing on a niche product

Players in the travel space

1. 65%+ Smartphone Penetration (MENA)

2. Usage of internet from smartphone is 90%

3. Over 36% of MENA users access the internet through mobile

4. 57% of online shoppers have purchased items via mobile

5. Mobile commerce accounts for 10-15% of online sales

Shifting trends to mobile online shopping

Proven online grocery models worldwide

Sources: “How Young Arabs are fuelling the MENA media market”, internetworldstats.com

Online grocery opportunity

Big e-commerce players across industries, but grocery is the last untapped frontier

The beginning of a competitive wave

entering MENA

Pure Play Hyperlocal

Brick and Mortar

E-commerce store

Pure Play: Online enabled grocery play which holds complete control over logistics and the entire grocery value chain from farm to fork, connecting vendor and consumer

Hyperlocal: Online marketplace model which fulfills consumer orders based on partnerships with local convenience stores and hyper-local markets through a take-rate model

The Main Market &

Home for New Startups

KSA

16X41%

The Business Hub

Dubai

Global Offerings, SaaS

Cloud, B2B

Turkey

Cloud Traffic Growth Rate –

The Highestin the World

by 2019

Growthfor Mobile Data Traffic (2015-2021)

Smartphone Adoption by

2020

60%

Of All Advertising will

be Digital by 2020

20%

The Talent back office

Jordan/EgyptLebanon/Morocco

The 2020 MENA

The future

let us start at the beginning 2009 - gsma mobile 360 series · “mena region is the fastest...

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