Through Perseverance and Frugality, a Path to Leadership in Egypt’s High-Tech Industry

She started out as a computer science major fascinated with technology. Today, Hanan Abdel Meguid oversees one of Cairo’s better-known online and mobile technology companies. Noting that the company now has offices around the world, Meguid tells Arabic Knowledge@Wharton how she bounced back from failure, how she approaches management, and what advice she would offer to would-be entrepreneurs. “Focus on what you really need to build,” she says.

Regimes Will Not Control Egypt Again: Journalist Randa Fouad

An entire generation of Egyptians grew up under strongman Hosni Mubarak, and few could ever see an alternative to his rule, often quietly joking he was the ‘pharaoh for life.’ Journalist Randa Fouad says she was among the skeptics when protestors first gathered at Tahrir Square.

But the swift end to Mubarak’s military regime, she says, emboldened her countrymen to rethink Egypt’s future. Despite the country’s ongoing political and social turmoil, Fouad is optimistic, telling Arabic Knowledge@Wharton that whatever develops, “Egypt belongs to the Egyptians now. It does not belong to any regime.”

Read the full interview here: http://t.co/kusukHKz

Watch What You Type: Social Media a Tool for Revolutionaries, and Increasingly, for Security Agencies

Most likely your social media accounts are already under scrutiny, even in the United States. The news is replete with headlines of just how closely authorities are monitoring social media sites. Security agencies say data analysis of social media is important, providing them with another tool to identify potential terror threats and criminal activity. But advocacy groups are concerned such surveillance goes far beyond that scope, and that often social media is monitored in countries to abuse human rights and thwart political opposition with the assistance of Western-developed technology.

“If protests are seen as a crime by some governments, and they are considered as solidarity or free expression by the public, it is a difference between public and strictly legal analyses,” says  Andrea M. Matwyshyn, assistant professor of legal studies and business ethics at the Wharton Business School.

Read the full story here: http://bit.ly/z0DauW

Internet-in-a-Suitcase Developer: Egypt Never Had an Internet Kill Switch

When the Arab Spring took hold, fearful regimes in some countries cut off Internet access to prevent protestors from organizing and getting information out to the world. One group, the Open Technology Initiative, is developing a project aimed at making the Internet available anywhere, even in the event of an official shutdown of web access. Josh King, the group’s lead technologist, speaks to Arabic Knowledge@Wharton about how ‘Internet-in-a-Suitcase’ works, and how his group is working to protect Internet freedom for people in the Middle East and domestically.

“We actually determined that in Egypt there wasn’t a technology issue,” King says. “They didn’t have an Internet kill switch. The Internet is essentially made up of these autonomous systems. The government basically called up 37 or so providers so the Internet basically stopped routing traffic to and from Egypt. It was basically a series of phone calls to network providers that happened over the course of an hour.”

Read the full story here: http://bit.ly/xsk6dc

A Beautiful Mind’s Sylvia Nasar Analyzes the Arab Spring, and Why Oil-funded Handouts Don’t Work

Most know Sylvia Nasar from her book, A Beautiful Mind, which narrates the life story of John Forbes Nash, Jr., a mathematician who suffered from schizophrenia for three decades only to recover and win the Nobel Prize in Economics. Nasar follows up with a second book called Grand Pursuit: The Story of Economic Genius, in which she examines the work and lives of important economists whose ideas helped humanity gain control over its material circumstances. Speaking to Arabic Knowledge@Wharton, Nasar analyzes the Arab Spring, and discusses the harm of oil-funded handouts.

“I was interested in some of the interviews in Tahrir Square,” she says. “The first time around, the protestors were saying, “What we really want is economic opportunity.” I think it’s very comparable to the former Soviet Union. These regimes and how they’ve organized themselves, they can’t deliver. In today’s world, the political repression, economic backwardness, and heavy-handed state interference don’t work.”

Read the full story here: http://bit.ly/AmGjQR

Arab Spring Provides Arab Film New Audiences and New Economic Opportunities

A new direction for Middle Eastern cinema has evolved with the Arab Spring. The revolutions have provided filmmakers with fresh narratives and wider global interest in Arab film, which has dovetailed with an appetite in the Arab Gulf to invest in culture and become a new hub for the industry, one long dominated by Egypt. Interest in filmmaking in the Arab world is also driven by newfound economic potential, both in domestic production and financing international films. Hajer Ben Nasr, a Tunisian documentarian, speaks to Arabic Knowledge@Wharton about the opportunities and challenges for Arab filmmakers. “It’s not yet an industry (but) some people now see an opportunity to make money,” she says.

Read the full article here: http://bit.ly/xJphPg

A Year Later, Egypt’s Wael Ghonim Talks About ‘Revolution 2.0’

Wael Ghonim almost sounds apologetic about his central role in helping plot Egypt’s future. But a year after helping topple the government of President Hosni Mubarak his words continue to resonate beyond the Tahrir Square protests.

Ghonim, 31, was the moderator of the Facebook page, Kullena Khaled Said (“We Are All Khaled Said”), which some credit for providing the spark for the Egyptian revolution. Ghonim was imprisoned and became the revolution’s public face after his release. He might be better suited to help inspire a budding entrepreneur community throughout Egypt, but circumstances have thrust him into the political forefront where messaging and branding can carry the day. In some ways he’s an Egyptian Forest Gump, an accidental leader who never aspired to command such attention.

But it’s clear Ghonim is an important figure domestically and internationally as Egyptians navigate the maze of democracy. The former Google marketing executive has utilized his enterprising spirit in the political realm to bring factions together for a common cause.

“The revolution is a process and not an event,” he said at Stanford University on the first anniversary of his release from jail for his role in sparking the protests. “I personally (took) to the streets not to replace a dictator with another one. I took to the streets because I believe Egyptians have been denied the right to choose whoever governs them.”

Ghonim realized during the celebrations after Mubarak’s departure that Egypt was at the beginning of a long struggle. A majority of the Egyptians know nothing other than dictatorship and military rule, leading to confusion and chaos during the embryonic stages of democracy. “The fact is we kind of opened a can of worms,” he said. “It’s not going to happen in a few months.”

Ghonim regrets the lack of foresight in those intoxicating days after Mubarak abandoned power Feb. 11 last year and the Supreme Council of the Armed Forces filled the void as the interim government. But it seems as if the self-criticism is too harsh. Egyptians such as Ghonim now have a sense of urgency about creating a new democratically elected government to benefit everyone.

Egypt, after all, has reached a tipping point: Its citizens must quickly figure out how to move away from military rule that controlled society for the past 60 years. “We need to have one goal, as we had for the 18 days,” Ghonim said of the protests that began Jan 25, 2011. “At the current stage we don’t discuss anything but the transition of power. This is our only priority.”

Ghonim recently visited the United States on a whirlwind book tour that included a panel discussion at Stanford sponsored by the Muslim Student Awareness Network and Islamic Society of Stanford University, and TechWadi, a Silicon Valley non-profit that promotes entrepreneurship and cross-border partnerships with the Arab world.

The tour was highlighted by an interview with Terry Gross, host of WHYY’s popular show “Fresh Air.”  The bulk of the radio interview focused on Ghonim’s memoir Revolution 2.0: The Power of the People Is Greater Than the People in Power. Proceeds from the book will go to a technology-based NGO the author is starting in Egypt to fight poverty and provide education.

At Stanford, Ghonim focused mostly on Egypt’s future instead of his 11 days of incarceration during the battles in Tahrir Square. (TechWadi chairman Ossama Hassanein, a prominent Silicon Valley venture capitalist, and Joel Beinin, a Stanford professor of Middle East history, joined Ghonim as featured speakers).

“It’s not a Facebook Revolution,” Ghonim said. “It was the people’s revolution.”

He continued: “If this revolution did anything it brought dignity back to the Egyptians. It’s very hard to think that in a few months people are going to go back home and accept the dictatorship again. It’s not going to work.”

Ghonim described himself and his colleagues as politically naïve but he showed incredible prescience when explaining how citizens emerged from the shadows to protest because they thought change would help solve their problems. “The more they are feeling that it is creating additional problems the more they will be reluctant to continue to support it,” Ghonim said.

It’s a lesson almost all politicians understand. The citizenry becomes anxious during times of economic downturns. In Egypt, the economy is stagnating at the worst possible moment but there’s little Egyptians can do about it until creating a civilian government.

“Any elected government that comes into power and starts solving problems other than this problem will be solving the wrong problems and people will go after them,” Ghonim said. “It is very critical at the moment to bring trust back into the country. There are lots of opportunities ahead of us. The challenge now is how can we make sure the next few months Egypt is going to survive its economical problems?”

Egyptians such as Ghonim are struggling to strike a balance between getting the political situation right while stopping the economy from collapsing.

“Yet is very hard to assume the economy is going to rise during the transitional period because most of the foreign investments are not going to come in a country where people don’t know what is going to happen in the next few months.” he said. “We want to see the new Egypt, which is going through a transition that probably will last for years. We’re not going to see democracy tomorrow. It’s going to take time. It’s going to be hard. We have to be patient.”

The difficulties were underscored during Ghonim’s visit when 74 Egyptians died in soccer riots in Port Said. Some in the West also fear a government dominated by the Muslim Brotherhood, which is a possibility. Ghonim said he would respect whomever Egyptians decide should lead them. “Now everyone is in the field, everyone is included,” he added. “It is time to solve the real problems of this country and stop the idealistic views.”

Ghonim said Egyptians can no longer sit on the sideline and complain about corruption and economic woes without participating in solutions. The country cannot expect a singular leader to rise from the rubble to save it. “We’re not in need of another Abdel Nasser and we don’t need any more faces,” Ghonim said. “People have managed to collaborate and work together without having a single leader or group of leaders who would say what should happen now. I call on every Egyptian to do something, to think of something.”

Troubled by Syria’s Violence, Lakhdar Brahimi Critiques the Arab Spring Movement

With daily reports of bloodshed, veteran international negotiator Lakhdar Brahimi wonders aloud what will happen in Syria. Speaking to Arabic Knowledge@Wharton, Brahimi says the country is headed towards a broader internal conflict.

“In Syria, we are moving dangerously in the direction of a civil war,” he says. “I hope people will stop just short of that. That’s why we need a lot of creativity from the Arab League. What does it mean to observe things and people are not protected? Whether we like it or not, we have to work on solutions. If not, there will be violence.”

He does not spare the Arab Spring movement either. Despite the elections that have transpired in Tunisia and Egypt, Brahimi says voting will not solve the problems that led to the movement in the first place.

“What will sustain the movement is building a definite democracy,” he says. “You need to maintain a stable situation where progress is being made. People need to feel better off materially, and also respected. They need the development of citizenship, equality, justice, and the rule of law. As far as I’m concerned, those things are more important than an election. It’s not just about elections. The Egyptians had elections. What you need is dignity and respect for human life.”

Read the full interview here: http://bit.ly/zQycIx

An Arab Spring Boost for the Islamic Finance Industry?

With Islamist parties dominating recent elections in Arab Spring countries, the Islamic finance industry will likely find opportunities to capture large volumes of new customers and emerging infrastructure projects, according to a report by global law firm Simmons & Simmons.
 
Intent on maintaining a secular financial system, regimes in Egypt, Tunisia and Libya were not supporters of Islamic finance, notes Tariq Hameed, a Dubai-based managing associate with the firm, and author of the report, ‘Blue Print for Islamic Finance following the Arab Spring.’
 
But in elections that have seen Islamist parties come to power, such as the Muslim Brotherhood in Egypt, Shariah-compliant banking has been endorsed as part of a larger social and financial reform campaign. “All of the parties have gone on record saying they support Islamic finance,” Hameed says. “It reflects their beliefs.”
 
Hameed says at the consumer product level, there is huge potential for growth. Partly because many people in these countries do not have bank accounts — approximately 25% of Moroccans and 33% of Tunisians with bank accounts, and only 10% of Egyptians, according to his findings. “There was a lack of offerings,” he says. “Many didn’t engage with the conventional banking system.”
 
While expected customer growth would be in volume, Hameed notes that the majority of such accounts would likely be low-income savers. Compared to Arab Gulf countries, GDP per capita among the Arab Spring countries is low: Libya is the wealthiest, but GDP per capita is estimated at just $14,000.
 
In addition to creating savings products, one opportunity could come from the further development in Islamic microfinance offerings, Hameed notes. Currently there is very little being offered to grassroots Muslims, he says, but institutions will have to serve demand from rural communities and micro-enterprises. The state can act as sponsor of such an initiative, he suggests.
 
Separately, Islamic finance will become an option for these governments as they seek foreign investment. According to Reuters, a number of Islamic financial institutions are opening branches in Libya, for instance, as it explores the industry. Successful Islamic financing of infrastructure projects already exist in Bahrain, Saudi Arabia and Bangladesh, Hameed says, so there are models states can study for implementation.
 
There remain challenges for the Islamic finance industry before they can reap the potential of these markets, Hameed adds. There are several issues that need to be addressed to ensure growth, his report notes, including the strengthening of consumer protection laws, clarifying governance, and establishing central Shariah boards for finance. 
 
For Western financial firms and businesses seeking to be in the region, they will have to have a capability to engage in Islamic finance, Hameed notes. “If the customer wants Islamic finance, competitors will provide it if they don’t,” he says.

How Arab American Tech Entrepreneurs Can Help Arab Spring Countries

Arab-American technology entrepreneurs have a special role to play in helping Arab Spring nations find their way back to stability and development, according to David Hamod, CEO of the National U.S.-Arab Chamber of Commerce.

Addressing an audience at the Plug-and-Play Tech Center, a well-known Silicon Valley incubator run by Iranian-born Saeed Amidi, Hamod said such members of the Arab Diaspora could provide the experience and skills needed to jump start innovation in Arab economies.

“For the Arab world to make the transition from hydrocarbon-based economies to knowledge-based economies, the next big thing in a sense is innovation,” Hamod said. “Innovation, hand-in-hand with entrepreneurship, will create those productive jobs that are so vital to growth in the Arab world.”

“There is a special role to be played in this process by Diaspora Arabs, who have made it in Silicon Valley, who have learned the lessons of Silicon Valley and who are uniquely situated to share those lessons with the Arab world,” he added.

Hamod spoke at a global forum examining ways to harness the economic potential of the Middle East and North Africa (MENA) region in the aftermath of the Arab Spring revolution. At a time of uncertainty as well as promise, Arab-Americans are looking inward to discover their role in helping usher in democracy and economic stability in their traditional homelands.

He told the forum attendees that technology alone is only part of the equation. “If the Arab Spring at its heart is about dignity, respect, having a voice, reducing economic disparities and being able to put bread on the table for one’s family, then there’s no time to lose in promoting innovation through entrepreneurial ecosystems,” he said.

Throughout the day some of Silicon Valley’s leading Arab-American technologists reiterated Hamod’s applause-inducing speech by creating an atmosphere that resembled a high school pep rally. There were discussions about cultivating the start-up ecosystem in MENA and perhaps most important, getting access to venture capital.

It is that final hurdle that deserves a watchful eye in the coming months as the grassroots revolutions turn to the formation of new governance. Political resolution might encourage the citizenry to return its attention to the daily duty of work. Hamod said there will be no return to the status quo, but where that leads the region to is anyone’s guess.

The forum was held on Martin Luther King Jr. Day, honoring the great civil rights leader. Hamod found a parallel between King’s fight for freedom in the 1960s and the protests in the Arab world that have broken the stranglehold of entrenched regimes.

He quoted from a portion of King’s famous 1957 speech delivered at the Prayer Pilgrimage for Freedom in Washington D.C.:

“Sometimes it gets hard, but it always difficult to get out of Egypt. The Red Sea always stands before you in discouraging dimensions. And even after you cross the Red Sea you have to move through a wilderness with prodigious hilltops of evil, gigantic mountains of opposition. But I say to you, keep moving. Let nothing slow you up. Move on with dignity and honor and respectability.”

King’s speech was meant for an African-American constituency. But it sounds less ethereal to modern Arabs, especially those who risked their lives in Tahrir Square protests one year ago, and for those who continue to grapple with how to move forward after creating unprecedented change.

See also:

From Iran to Silicon Valley, a Serial Entrepreneur Leaves His Mark

Aramex’s Fadi Ghandour: Unrest Demonstrates Why It Is Important for Arab Entrepreneurs to Build New Ventures