First private Arab satellite

SmartSat, a private company specialized in the satellite industry, has set up in Dubai Studio City. SmartSat was created through a joint venture between the Jordanian satellite services provider Smartlink and the Kuwaiti investment holding firm, Al-Jawhara Holding. The company will offer a comprehensive range of value-added services to companies in the Middle East and North Africa (MENA). SmartSat will primarily target the region’s Internet Service Providers (ISPs), GSM providers, broadband technology solutions providers, television stations, ministries of communication, military agencies and companies dealing with data systems, among others.

SmartSat plans to send into orbit the Arab World’s first private satellite, a key initiative that will help broadband and broadcast service providers add more value to their satellite-enabled services and ultimately ensure better quality offerings for end-users in the region. The satellite is now in the design stage and two satellite manufacturers have already been short listed for the project, keeping the satellite firmly on schedule for its anticipated launch in 2011.

Commenting on the economic impact of SmartSat’s satellite project, Faisal Al-Anjari, chairman of Al-Jawhara Holding said, “The $500 million SmartSat project, specifically the launch of a new satellite into orbit, is a testament to our commitment to actively participate in the economic transformation of the region. With the growing number of satellite users, studies have shown that the MENA’s commercial satellite-lease revenues have been growing 17 percent annually since 2003, indicating a remarkable growth potential that we believe will be further enhanced with the launch of the Arab World’s first private satellite into orbit.”

IDC forecast gloomy

The continued erosion of the global economy, including the prospect of negative GDP growth in many major countries, has led IDC to update its forecast for worldwide IT spending in 2009. This is similar to an update made last month by Gartner.

The IDC Black Book now forecasts worldwide IT spending will grow by just 0.5 percent year over year in 2009 in constant currency, down from a November 2008 forecast of 2.6 percent growth. If recent exchange rate trends continue, this will translate into a significant decline in revenues for US-based IT suppliers.

The greatest impact will be felt in global hardware markets, where overall spending growth will be minus 3.6 percent this year, led by a steep decline in outlays for servers, PCs, and printers/MFPs. In contrast, worldwide spending on software and IT services are each expected to grow 3.4 percent in 2009, down from 4.6 percent and 3.7 percent growth respectively in the previous forecast. Worldwide IT spending in 2009 will be $1.44 trillion. Unlike the massive downturns in other geographies, the Middle East & Africa is still expected to continue on a growth trajectory of almost 8 percent in 2009, down slightly from the IDC’s November forecast of 8.5 percent growth.