- According to recent studies, the MENA ICT market is currently valued at $183.48 billion and is projected to reach $250.29 billion by 2029.
- This rapid growth and dynamic development has made the region an attractive destination for entrepreneurs around the globe, including Russia.
In an exclusive interview with Techitup Middle East, Olga Piven, Director of the International Conference “Digitalization of Industrial Russia” (CIPR), which facilitates investment deals and agreements between major corporations, shares insights on the evolving technological and digital economic relations between Middle East and Russia.
Techitup ME: How would you assess the cooperation between countries in the Middle East and Russia in the technological sphere?
Olga Piven: Currently, Middle Eastern states are becoming integral partners within Russia’s network. Countries in this region are driven by rapid economic growth and its promising future. Nations like Saudi Arabia, Qatar, and the UAE are actively diversifying their economies to reduce dependence on the oil and gas sector. Additionally, regional governments are promoting the development of the technology industry and digitalization, leading to a significant demand for IT equipment and developer services. This creates favorable conditions for Russian specialists and companies that are capable of providing high-tech solutions.
Techitup ME: What key IT initiatives and projects are being implemented between Russia and Middle East?
Olga Piven: Both Middle Eastern countries and Russia show a strong interest in cooperation, particularly in areas such as IT equipment distribution, robotics, medical and financial technologies, and cybersecurity enhancement. It is vital to strengthen partnerships and launch joint innovative programmes. For example, since 2021, the Chamber of Commerce and Industry of the Russian Federation has been operating in the UAE, assisting Russian IT companies in entering the Middle Eastern market. Moreover, in 2022, UAE authorities launched the national initiative NextGenFDI, aimed at attracting technology businesses and highly skilled professionals globally. This program provides companies with the necessary tools to penetrate the region’s market. Russia and the UAE are actively collaborating across various industrial sectors.
Techitup ME: What are the main trends in technology development in the Middle East that you have been observing?
Olga Piven: The Middle East is rapidly advancing in digitalization, driven by industrialization and subsequent urbanization leading to a transformation in cities and industries. Key trends include a focus on cybersecurity, cloud solutions, and artificial intelligence. For instance, the Dubai International Financial Center (DIFC) recently issued a specialized license for AI startups, simplifying market entry for companies in this field.
One notable trend is the strengthening of fintech and the creation of services that facilitate financial interactions between nations. Middle Eastern countries are also appealing and considered as “regulatory sandboxes”, offering special legal regimes for testing innovative projects, particularly in digital assets, crowdfunding, and crypto assets. The digitalization push in the Middle East has enhanced the demand for quality IT products that Russian companies can supply. To expedite processes and further develop cooperation, Russia and Middle Eastern countries will need to address barriers like regulatory restrictions, product certification, state support programs, bureaucratic hurdles, and tax related issues.
Techitup ME: What are the key differences between the technology markets in Russia and the UAE? Do these differences provide additional opportunities for collaboration?
Olga Piven: The United Arab Emirates is one of the most highly developed regions in the digital market. Here, large technology parks are being established and IT startups are flourishing. Unlike in Russia, cryptocurrency transactions are legal in the UAE, which simplifies transactions and encourages the creation of blockchain-based products. However, qualified personnel are essential for the full development of the industry. According to recent data, the region is projected to witness a surge in demand for IT professionals in 2024. Russian companies and individual developers, of whom there are many in the Russian Federation, can meet this need. There are more than 800,000 people ready to offer high-tech solutions in industrial production, architectural design, robotics, and cybersecurity.
Techitup ME: Can you provide examples of successful cooperation between Russia and the UAE in the technology space? How do these collaborative activities strengthen relationships?
Olga Piven: More than 4,000 Russian companies operate in the UAE market, including Rosneft, Lukoil Overseas Ltd, VTB Capital, and the Volga-Dnepr Group of Companies. For example, the country’s technology center Hub71 signed a cooperation agreement with Sberbank, and Russian company Softline opened a hub in Dubai. Additionally, more than 20 residents of Skolkovo are already operating in the UAE, collaborating with over 150 partners in the retail, IT, and oil and gas sectors.
Various conferences dedicated to information technology also facilitate collaboration. For instance, the Digitalization of Industrial Russia (CIPR) annually showcases leaders of the Russian IT market, who offer ready-made solutions and products for export. At the event, leading experts and key players discuss topical issues of digitalization, and major companies conclude investment deals. This year, Russian and foreign enterprises signed several contracts involving joint specialized cooperation in ICT, cybersecurity, and export support. The conference aims to expand international cooperation with BRICS countries.
It is worth noting that technology companies and large corporations with IT licenses and headquarters in Dubai and Abu Dhabi show increasing interest in CIPR every year. The platform offers them a wide range of opportunities to find and connect with reliable partners in the Russian market. The scope of the conference covers numerous priority areas of the economy, including fintech, ICT, industry, medicine, construction, agriculture, energy, and engineering. Hence, CIPR serves as a venue for meeting and concluding contracts, fostering a global digital business environment across various fields.
Techitup ME: Are there any plans for joint projects within the framework of CIPR between Russia and the UAE?
Olga Piven: Yes, we plan to expand cooperation with partner countries in the future. Our team will strive to realize joint projects with leading international congress and exhibition venues, including those in the UAE. Such collaborations will help achieve the economic goals of both states. It is important to note that CIPR is an investment-level business platform that opens a corridor of opportunities for the realization of investment projects, conclusion of deals, and signing of contracts. Middle Eastern countries and Russia have immense potential for technological development, so it is crucial to accumulate new experiences, develop promising areas, and encourage digitalization on both sides.
CIPR involves “digital attachés”, i.e., employees of Russian trade missions abroad. This positively impacts the increase in export volumes of domestic IT goods and services and expands their geographical presence. From our side, we will continue to strengthen the international bloc and foster business relations among partner countries.
Techitup ME: Are there already plans for the next CIPR season? What special events are planned?
Olga Piven: The international component of CIPR has already demonstrated its practical necessity this year. Several companies have secured foreign agreements, and representatives from 25 countries participated in the event. Additionally, international partners showcased their technical solutions at the exhibition.
Next year, we plan to strengthen our international agenda, expand the exhibition area, and dedicate a separate pavilion for international technological solutions. We will continue to organize business missions for Russian companies to participate in global technological events such as the China Hi-Tech Fair (CHTF) in China and the TIBO ICT Forum in the Republic of Belarus. In the fall, we intend to participate in the international conference on innovations and startups – GITEX Global 2024. CIPR is eager to collaborate with major global venues and seek partners in the UAE technology market.
