| The New York Times conducted an interview with | | | | product sectors, like in Jordan, Palestine, Iraq, Egypt, |
| Ms. Janine Jaouni, Director of Business Solutions, an | | | | Syria and Morocco. The platform has significantly |
| entrepreneurial e-commerce figure in the Middle East; | | | | contributed to exports of pharmaceuticals, cosmetics, |
| the interview was part of a research and | | | | marble and stone, leather products, textiles and |
| collaborative efforts by Microsoft, Google and eBay | | | | furniture. |
| to explore markets in the Middle East and North | | | | Based on the success of EXPO, the company |
| Africa (MENA) for introduction of new product lines | | | | launched the Arab Travel Network (ATN) in 2005. |
| and services. According to Ms. Jaouni, the | | | | ATN is a site totally administered by travel agents, |
| e-commerce environment in the Middle East and | | | | tour operators and companies which provide related |
| North Africa faces several obstacles which deprived | | | | travel and tourism services. For businesses, it |
| consumers in the region from commodities which | | | | functions as a B2B platform creating a travel and |
| [surprisingly] they can afford. | | | | tourism marketplace in an area long ignored by |
| "The major issue is lack of a free market economy, | | | | Expedia, Travelocity and Orbitz. Tour operators are |
| companies are encouraged to export, yet customs | | | | now capable of organizing tours and selling packages |
| and red-tape are a trade mark of most Arab | | | | to travel agents world-wide. Travel agents in turn |
| economies, perhaps with the exception of the | | | | offer travel packages to customers, also online, a |
| Emirates." Ms. Jaouni continues: "the population of | | | | very successful B2B2C model. The major tourism |
| MENA stands at approximately a quarter-billion people, | | | | sectors benefited by this package are in Egypt, |
| yet the economic boundaries have defeated the | | | | Morocco, Tunisia, Lebanon, Palestine and Jordan. Ms. |
| purpose when it comes to creating economies of | | | | Jaouni states that Business Solutions has also |
| scale." | | | | experimented with hotel reservations and other |
| Microsoft, Google and eBay realize that MENA is an | | | | services related to Hajj and Omra in Saudi Arabia, |
| untapped consumer environment, yet the challenge | | | | and is currently looking for local partnership and |
| remains on how to make such fragmented demands | | | | representation. The Emirates market also has great |
| make economic sense, after all, the American | | | | potential, but requires a unique model which Business |
| business model is based on centralized operations of | | | | Solutions is looking into. |
| scale, particularly when it comes to the services | | | | The latest release by Business Solutions is which is a |
| sector, the challenge is the many borders, each with | | | | super-portal targeting the Arab Community in North |
| its own set and often contradictory rules of doing | | | | America. The planned release of was postponed by |
| business. | | | | six months in order to re-design the site to make full |
| Ms. Jaouni points out that her company Business | | | | use of the latest AJAX technology. This technology |
| Solutions has identified three challenges. The first | | | | enables vendors and users alike to get results |
| challenge is lack of infrastructure for transportation | | | | effectively without having to "mine" for information. |
| and speedy delivery and reliable mail services; the | | | | The site is focused on travel services with airfares |
| second is lack of credit (less than 2% of the | | | | and packed offers, and online airfare quotes system |
| population of MENA has credit cards, 5% of those in | | | | to many airports in Arab countries and world-wide |
| her estimates have PayPal accounts), and the third is | | | | destinations. The portal has a comprehensive list of |
| lack of trust - this is due to the fact that prosecuting | | | | restaurants offering Middle Eastern and traditional |
| someone in a different country is very difficult, | | | | Arabic (particularly Lebanese and Moroccan) cuisine, |
| particularly for consumer size transactions. Ms. Jaouni | | | | where each restaurant self publishes specialties and |
| discounts the challenge of the centralized business | | | | menus which appear in a compiled easy to browse |
| model; "the web and e-commerce in particular lend | | | | pages. The site also offers a comprehensive business |
| themselves to a decentralized model," she adds. | | | | directory with categorized listings and online catalogs |
| Then, how do you do e-business in the Middle East | | | | for products and services. In addition to AJAX, the |
| and North Africa, isn't that what you do?, we asked. | | | | site utilizes US zip codes to calculate distance to such |
| Many young Arab entrepreneurs have realized that | | | | businesses and sorts results by distance. The site has |
| they can setup simple e-commerce | | | | a social platform which offers a meeting place similar |
| (business-to-customer, B2C) sites catering to | | | | to MySpace.com; among the innovative features is |
| European and American customers. The nature of | | | | online status for members and statistics about who is |
| the products ranges from souvenirs to specialty or | | | | online using IP-to-Country detection technology. Ms. |
| traditional items. These businesses, while profitable, | | | | Jaouni adds that the target Arab communities in the |
| require extensive marketing and dedication, | | | | US are primarily in Paterson and Jersey City in New |
| something which is not easy to do for a part-time | | | | Jersey, New York City, Boston, Baltimore, |
| entrepreneur. Ms. Jaouni states: "Our approach and | | | | Washington DC, Houston, Dearborn, Chicago, Detroit, |
| company philosophy is different; we help these and | | | | Los Angeles and San Francisco. All services offered |
| others setup a network of Business-to-Business | | | | through are free, except for the advertisements, |
| (B2B), and from there B2C, thus creating a web of | | | | preferred and featured listings. |
| tiered network referred to as B2B2C." | | | | The future of e-business in the MENA region remains |
| Business Solutions realized the potential of B2B | | | | promising, evident by the high number of internet |
| marketing and produced its first EXPO package in | | | | users. "Somehow we need to turn browsing time into |
| 2003. This B2B package is designed for export | | | | a shopping experience", Ms. Jaouni comments, "I see |
| oriented markets and includes categorized listings of | | | | people taking shopping trips to London, Paris and |
| businesses, each business with online catalogs, inquiry | | | | New York; we need to make the same products |
| baskets, PDF brochures and utilities to export | | | | available here for the middle-class, it is all products |
| spreadsheets for large scale marketing campaigns. | | | | they can afford. |
| EXPO is most suitable for markets with specialized | | | | |