Google and Egypt Signed a $10 Million Deal
UPDATE: More details of the deal at the end of the post.
WebProNews reports that Google and the Egyptian Ministry of Communications and Information Technology have signed a $10 million contract regarding business and workforce development in Egypt. According to the site the deal was signed in Washington D.C during the Egyptian Minister of ICT, Dr. Tarek Kamel, visit this week along with a representative for the Information Technology Industry Development Agency (ITIDA) .
WebProNews news says that The Google deal was made for the promotion of Egyptian products and services using Google’s advertising platforms. And under the agreement, Google will invest 25% of the money back into the Egyptian economy. “Over the medium to long term, Google’s USD $2.5 million investment agreement may include: growing digital media start-ups, incubation venture capital, angel funding of the ICT sector and potentially training students in online advertising.”
So this seems like Google is winning a major advertiser for its Adwords (and possibly DoubleClick) in the region, however giving back 25% of the deal to support entrepreneurship in Egypt is something great for Egypt’s IT sector and the Arab region in general, and something that we at ArabCrunch applaud Google for. I’ve never heard of any International tech company giving some money it makes from government deals in the region back to help the IT startup seen of that country (excluding AMD). I know Intel, Cisco, and Microsoft offering many initiatives to support in bridging the tech divide. (Sun Microsystems donated several servers to universities in Jordan during the last years.) But these were not cuts from a deals they made, if anyone knows otherwise please let us know.
I encouraged before here on AC and else where; Arab governments to ask International IT companies to open R&D centers when they consider buying their solutions with millions of dollars. We need R&D centers in the region because they transfer technology and skills that are very much needed to take the IT industry in the region to its next level. I’ve heard that the Emirate of Abu Dhabi has plans to open a chip factory for AMD in UAE soon, since it has acquired about 20% of AMD through its sovereign fund vehicle Mubadala Development.
Google has been moving strongly in the region with new products and initiatives, such as Google Online Business Plan Award with Queen Rania Center for Entrepreneurship. That’s why ArabCrunch has added a new Category titled “Google” which marks Google’s related posts in our Category list.
I’ll contact Google to get more details of this deal and update you here accordingly.
Update 1: According to Wael Ghonim, Google’s Product & Marketing Manager, Middle East & North Africa, Egypt will promote by using Google advertising technologies the following sectors: Tourism, IT and Industrial Business.
Campaigns will have a global nature and will target audience in US & Europe as well as the Arab countries. He added nothing has been decided yet in terms of the details, but the ad campaigns are expected to be combination of text / display ads. Sources say MCIT will be managing this for all the different Egyptian ministries, and there will be different landing pages created to brand Egypt and specific businesses. Egypt has been doing a nice job online with sites such as Egypt Memory and Eternal Egypt web sites.
As for the $2.5 million reinvestment, sources say it is part of MCIT policies (so it’s not specific to Google), this is what Microsoft also do in Egypt .
“We are really excited about this partnership as we are committed to add value to Egypt.” Said Wael.
An email will be sent to Egypt’s MCIT to get a better understanding about the reinvestment policy.