Event Summary

Bringing E-Commerce to the Arab World

As information technology (IT) expands rapidly world-wide, the Harvard Information Infrastructure Project (HIIP) is studying the impact of Internet services, the World Wide Web, and e-commerce in areas of the world where IT is still relatively new and underutilized.
 

At an October conference in Jeddah, Saudi Arabia, which attracted government officials, academics, and business people from throughout the region, the HIIP examined the potential for IT usage in the Arab world.
 

The Saudi Arabian Minister of Commerce, Dr. Osama Faqih, said, "Holding this seminar [in Jeddah] is not an accident because the Kingdom is the largest Middle Eastern center in exploiting information technology and one of the largest growing markets in the world."
 

Among the several advantages it brings to the e-commerce endeavor, Saudi Arabia has an educated and savvy elite and English is widely spoken.
 

Half of the PCs sold in the country are manufactured locally, representing the only IT hardware industry among the Arab nations. The country also has significant financial resources and a long tradition of interest in international trade.
 

However, there are also many challenges. Outdated elements, such as an archaic delivery of services system and a traditional network of business relationships, need to evolve in order to meet the new challenges.
 

Saudi Arabia must also create an indigenous labor force and innovative capacity as well as improve science and technology training for its many young people (46 percent of the Kingdom''s people are under the age of fifteen).
 

In addition, dialogue between the government and the business community is under-developed and adoption of IT by the government has been slow. Internet service providers are very limited in number and their ability to provide reliable and affordable access is inadequate.
 

At the Jeddah IT Forum on E-Commerce, the Harvard team pointed out that IT development can contribute to public services by reducing costs, improving access to information for citizens, and enhancing the ability of government officials to make IT-related decisions.
 

As follow-up to the conference, the Jeddah Chamber of Commerce and Industry has requested the HIIP''s assistance in developing the city into a regional IT center. In addition, the HIIP is evaluating proposals to organize similar meetings in other nations.
 

The Harvard delegation to the Jeddah conference included HIIP members Lewis Branscomb, Jane Fountain, Deborah Hurley, Viktor Mayer-Schönberger, and Nora O''Neil, together with Professors Richard Falkenrath and F. M. Scherer.(www.ksg.harvard.edu/iip/jeddahecom)