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SECTOR PERSPECTIVES - INDUSTRY
Information technology, electronics, telecoms
A competitive economy henceforth requires the development of the society of information. The Mediterranean countries have all committed themselves to this phenomenon. Their weak point is the lack of infrastructure, except for Israel, Cyprus, Malta and Turkey. The penetration of the telephone, whether fixed or mobile, remains low compared to EU standards. The development potential in this sector is consequently great.
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The rural areas are not affected by this deficit. The mobile networks, object of a strong demand, are experiencing very rapid growth (150 % in Algeria, 60 % in Jordan and 40 % in Egypt). Other objectives of the operators, an increase in the range of services offered and an improvement in the quality of those services. Internet presence is still limited, its development potential is therefore very strong.

Israel stands apart in this domain. The Hebrew State has managed to make use of its experience to develop research in terms of NGI (next generation internet). Its companies also excel in domains such as data transmission, wireless technology, image processing, etc.
Certain large foreign groups have opened R&D centres in the country (Motorola, Siemens), or have taken over local businesses (Lucent, Cisco).

With the exception of the Egyptian Orascom Telecom (the only regional operator) which is undergoing a process to reduce its indebtedness, the regional operators present a fairly healthy situation. For number of years, they have been attempting to make up their backwardness compared with the European Union. European know-how is particularly sought after. There exist a good number of possibilities of partnership especially with the privatisation of operators present in several countries: Turkey, Malta, Cyprus, Israel and Morocco.
 
Country focus

In Palestinian Authority, the mobile telephone sector opened to new operators in November 2001. The company Paltel, still in a majority, is to call upon foreign entrepreneurs for projects where local production is non-existent, especially in the sectors of technical assistance and advice
The smart card market has exploded in Israel. The public sector has as many requirement as the private sector. Several reasons explain this phenomenon. The new Israeli identity card is to be a smart card. And the chip is envisaged as a means of payment in future urban projects in the country (particularly the new toll motorway and the new train in Jerusalem).

Tunisia can rely upon a qualified labour force. The creation of the Ariana Technopark which brings together research and development teams and service companies represents an important centre of development. Regional technoparks will follow soon.
If certain Cypriot administrative services computerised very early, others on the other hand suffer from a certain lack of computerisation. A number of calls for tender have been launched. The banks are also a choice target for foreign investors for they would like to improve the computerised transaction processing.

In 1999, the Egyptian authorities created a Ministry of Telecommunications and Information Technology. Its mission: develop the segment. Little by little, the sector has been liberalised and investments encouraged thanks to fiscal reductions. The demand for the construction of telecommunications infrastructures for fixed and mobile telephones continues to grow.

Give more weight to the private sector in the telecommunications field, such is the objective of the Algerian authorities. The strong growth in demand, both for fixed lines as well as mobiles, requires the modernisation of the infrastructure. The Ministry has recently launched a call for tenders to remedy this situation. Foreign investors specialised in the Net have recently gained the authorisation to set up in Algeria. Unique condition: create a company under Algerian law.

The objective of Morocco is to jump from 300,000 internauts, today, to five million in 2005 and ten million in 2010. In this perspective, the authorities have created a State secretariat dedicated to the technologies of telecommunications and information. The association agreement between Morocco and the European Union provides for the free circulation of capital and the gradual elimination of customs duties.
Jordan would like to become a regional centre for the production of programmes and content in the multimedia sector. Its objective: develop links with the other countries of the Near and Middle East.

The Turkish mobile telephone sector is growing rapidly. Foreign businesses wishing to move into the Turkish market are strongly advised to establish an alliance with a local partner.

In 2001, the Maltese authorities created a regulatory authority in the sector of the new information and communication technologies. Its name: the Malta Communications Authority. It brings the necessary stability for the future development of telecommunications infrastructures.
 
Teledensity in the MEDA region, 2001 (Source ITU, estimation for Palestinian Authority)

Country Pop. millions Fixed lines Tel.
subscribers
per 100 inhabitants
Subscribers mobile tel. Subscribers mobile tel.
per 100 inhabitants
Users of Internet milliers Number of PCs milliers
Algeria 30,9 1 983 780 6,4 98 880 0,3 60 220
Cyprus 0,8 869 440 108,7 364 720 45,6 150 170
Egypt 65,2 9 577 880 14,7 2 823 160 4,3 600 1 000
Israel 6,4 8 221 440 128,5 5 172 480 80,8 1 800 1 600
Jordan 5 1 472 500 29,5 835 500 16,7 212 170
Malta 4,4 1 792 560 40,7 935 000 21,3 300 200
Lebanon 0,4 353 600 88,4 141 600 35,4 99 90
Morocco 29,2 5 723 200 19,6 4 578 560 15,7 400 400
Palest. A. 3,1 292 000 9,4 260 000 8,4 20 30
Syria 16,6 1 326 340   8,0 199 200 1,2 60 270
Tunisia 9,7 1 445 300   14,9 388 970 4,0 400 230
Turkey 66,2 38 859 400    58,7 19 979 160 30,2 2 500 2 700
MEDA 12 237,9 71 917 440   30,2 35 777 230 15,0 6 601 7 080
 
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