23 December 2003
The entry of private banks into Syria for the first time in over three decades next year and promises of further economic liberalization are pushing Syrian technology companies to seek help next door in Lebanon.
With only 400,000 personal computers in the country and an internet penetration rate of less than 1 percent of the population, the Syrian information technology market is attracting Lebanese firms eager to expand their reach beyond the small and competitive domestic market.
“We want to penetrate the Syrian market,” said Selim Jamaty, general manager of Lebanese software company New Information Technology, which has sold its pharmaceutical software, Softpharm, to over 800 pharmacies in Lebanon.
“We are already seriously discussing the possibility of setting up a Syrian-Lebanese company with a Syrian partner, a company that can serve all the market, because we are not just interested in selling our product.”
New Information Technology was one of several Lebanese IT companies that attended this weekend the first workshop in the Syrian capital, Damascus, jointly organized by the Syrian Computer Society (SCS) and Lebanon’s Professional Computer Association.
The Syrian Computer Society, formerly headed by Bashar Assad before he became president in 2000, is eager to push Syrian IT companies to tap Lebanon’s greater experience in the field.
“The purpose behind this workshop is to open new markets to both sides and share expertise,” said SCS vice-president Abdel-Kader Imad. “Our IT market has grown over the last three years and we have begun thinking of exporting.”
Lebanon’s fledgling IT market is estimated to be worth over $150 million in software sales annually, but its business is increasing as more companies sell their products in Arab and foreign markets to increase their profitability.
“Syria has the know how, but cooperation with Lebanon will help us apply solutions that have already been used in Lebanon and speed up the process of bringing technology to Syria,” said Rashid Farra, general manager of Syrian Data Systems, a company that runs one of two internet service providers in Syria.
“Banks, educational institutions and the government are all in need of software infrastructure,” he said.
But the unregulated Syrian market poses problems for local and potential Lebanese IT companies.
“We face some customs hurdles as tariff fees on PCs can reach up to 15 percent,” said Imad, compared with 5 percent in Lebanon.
“We also have all kinds of fake products, but we are currently studying a copyright law,” he added. Lebanese IT companies have their own worries.
“The market is interesting and could be promising, but the biggest threat is from local labor,” said Fadi Sabbagh, general manager of Born Interactive, a company that designs websites.
“Our products could be viewed as expensive … (so) we might outsource our work to Syrian companies.”
The entry of private banks into Syria for the first time in over three decades next year and promises of further economic liberalization are pushing Syrian technology companies to seek help next door in Lebanon.
With only 400,000 personal computers in the country and an internet penetration rate of less than 1 percent of the population, the Syrian information technology market is attracting Lebanese firms eager to expand their reach beyond the small and competitive domestic market.
“We want to penetrate the Syrian market,” said Selim Jamaty, general manager of Lebanese software company New Information Technology, which has sold its pharmaceutical software, Softpharm, to over 800 pharmacies in Lebanon.
“We are already seriously discussing the possibility of setting up a Syrian-Lebanese company with a Syrian partner, a company that can serve all the market, because we are not just interested in selling our product.”
New Information Technology was one of several Lebanese IT companies that attended this weekend the first workshop in the Syrian capital, Damascus, jointly organized by the Syrian Computer Society (SCS) and Lebanon’s Professional Computer Association.
The Syrian Computer Society, formerly headed by Bashar Assad before he became president in 2000, is eager to push Syrian IT companies to tap Lebanon’s greater experience in the field.
“The purpose behind this workshop is to open new markets to both sides and share expertise,” said SCS vice-president Abdel-Kader Imad. “Our IT market has grown over the last three years and we have begun thinking of exporting.”
Lebanon’s fledgling IT market is estimated to be worth over $150 million in software sales annually, but its business is increasing as more companies sell their products in Arab and foreign markets to increase their profitability.
“Syria has the know how, but cooperation with Lebanon will help us apply solutions that have already been used in Lebanon and speed up the process of bringing technology to Syria,” said Rashid Farra, general manager of Syrian Data Systems, a company that runs one of two internet service providers in Syria.
“Banks, educational institutions and the government are all in need of software infrastructure,” he said.
But the unregulated Syrian market poses problems for local and potential Lebanese IT companies.
“We face some customs hurdles as tariff fees on PCs can reach up to 15 percent,” said Imad, compared with 5 percent in Lebanon.
“We also have all kinds of fake products, but we are currently studying a copyright law,” he added. Lebanese IT companies have their own worries.
“The market is interesting and could be promising, but the biggest threat is from local labor,” said Fadi Sabbagh, general manager of Born Interactive, a company that designs websites.
“Our products could be viewed as expensive … (so) we might outsource our work to Syrian companies.”
Dania Saadi
© The Daily Star 2003
