Press Release

Palestinian IT Sector Set To Take Off

On October 14-18^th the Palestinian IT sector will make it’s debut with a national pavilion at the GITEX 2001 international IT exhibition in Dubai.

04 October 2001

Seven Palestinian IT companies, together with representatives of PITA the Palestinian IT Association of companies, Paltrade the Palestinian Trade Center, and a public relations team will take part in the GITEX 2001 exhibition, which is the largest and most successful event of its kind in the Middle East, attracting tens of thousands of visitors from around 100 countries. GITEX 2001 is the first time that Palestine has had a country Pavilion at such an exhibition, and marks an exciting step forward for the Palestinian IT sector, as it looks toward regional and international markets and partners.

Industry sources note that the IT sector in Palestine has been growing at a rate of 25-30% annually from 1998. Dr. Samir Abdullah, General Director of Paltrade says that “despite the restrictions facing the development of the Palestinian economy, the IT sector has attracted significant investment, and this momentum has been maintained during the last year of intifada as companies continue to invest, train staff and grow”. With the delegation to this year’s GITEX, Palestinian IT companies are now looking to expand their presence regionally and internationally.

“As a result of international involvement in Palestine, diaspora connections and the many Palestinians who complete higher education overseas, as well as Palestine’s geographical location, we are uniquely placed to be an IT bridge between east and west” points out Dr. Mashhour Abudaka, Executive Director of PITA. With a recent study from Killen & Associates indicating IT spending in the Middle East growing at twice the world average and expected to top US$46 billion in 2002, there couldn’t be a better time to start building that bridge.

Information Technology in Palestine represents not only a viable business opportunity but is also a prime example of Palestinian creativity and determination in the face of restrictions and limitations imposed by Israel’s ongoing occupation. Palestine offers many stories of IT conquering physical and political barriers: internet cafes overcoming isolation for Palestinian young people; the ‘Across Borders’ project linking refugees scattered around the world; and the use of video conferencing allowing families locked in by closure to participate in the university graduation ceremonies of their sons and daughters, and the Palestinian Authority to hold Legislative Council meetings despite Members being unable to travel between West Bank and Gaza. The increasingly widespread and creative use of IT in Palestine both indicates the growing importance of the sector and strengthens its continuing development.

Andersen (previously Arthur Andersen) is the main sponsor of the Palestinian delegation to GITEX 2001, with the Islamic Development Bank the main supporter, through the Al-Aqsa Fund for Palestine. The delegation is also supported by Dubai Internet City and the Dubai World Trade Center, as evidence of Arab support and interest in the Palestinian IT sector.

The seven companies set to exhibit at GITEX include Palestine’s largest software house and its only Oracle VAD & Education Partner, and offer a range of innovative software and services. The exhibitors will be seeking resellers and distributors for custom-designed software, as well as looking to make contacts for future outsourcing work. Some of the exhibitors are already serving international clients from the Middle East and Europe, while for others the exhibition is their first move into these markets.

The organized private sector, in concert with governmental commitment to and donor support for IT sector development, indicate that the IT sector is likely to continue its impressive rate of growth in the coming years. Palestine led the Arab world in privatizing it’s telecommunications network, leading to the $65 million investment that has resulted in a new, state-of-the-art, 100% digital infrastructure. Governmental commitment has been manifested in a large-scale overhaul of the educational curricula at all levels of schooling to include a greater IT and English-language component, new investment-friendly laws and the formation this week of a committee bringing together ministerial and private sector representatives to investigate strategies for IT-related human resources development. IT has also been identified as a focus for development support by several of the major donors providing aid to Palestine, ensuring the future capital and technical resources for development.

In light of the shock waves sent out around the world by the recent events in America, GITEX 2001 is a particularly important event for the Palestinian delegation, demonstrating not only the level of development reached by the industry, but also the reality of the educated, internationally conversant Palestinian population, working for and investing in the future despite the odds. The sector is looking forward to an exciting exhibition.

For more information on GITEX exhibitors, and IT sector facts and figures contact:

Amanda Scothern, Consultant, Ellam Tam for Communications & Public Relations

Ph: +970/2 2 2409105/7, mobile: +97/2 59 789 781, in Dubai (10-19 Oct): +971 50 585 9942

e-mail: amanda@ellamtam.com

GITEX website: www.gitex.com

Contact for comment:

Dr. Mashhour Abudaka (Executive Director, PITA)

Ph: +970/2 59 695883, at GITEX, Dubai: +971 50 585 9788

e-mail: abudaka@pita-palestine.org

Dr. Samir Abdullah (General Director, Paltrade)

Ph: +970/2 2 59 580 789,

e-mail: sabdullah@paltrade.org