Yahoo! makes a big move in the Middle East – buys Maktoob.
In a major expansion move in the region, Yahoo! has signed an agreement to buy Jordanian Internet company Maktoob. Whilst Google launched an Arabic version of its search engine in 2006 and has since launched local versions of its other services, including Gmail, the Google Toolbar, Google Earth and Adsense, Arabic versions of Yahoo! services are not yet available. This move by Yahoo! shows a commitment to development in the growth market of the Middle East with more tailor-made content. Services will be co-branded as ‘Yahoo! Maktoob’ and Arabic versions of Yahoo! Messenger and Yahoo! Mail will be available early in 2010.
Maktoob Group comprises a network of online companies and websites. It was founded in 2000 as the first Arabic and English web-based email service. It claims to be the most-visited audited website in the Arab world. Maktoob is headquartered in Amman, with offices in Dubai, Saudi Arabia, Egypt and Kuwait.
In addition to the Arab portal, Maktoob.com, the Maktoob Group network includes electronic payment solution cashU and auctions and marketplace Souq.com, plus Bentelhalal, the largest Arabic matrimonial site, ArabSport, an Arab online sports community, and AdabWaFan, an online store for Arabic books and music. Maktoob’s Araby.com was launched in September 2006, claiming to be the first search engine with advanced Arabic language capabilities. Araby.com can detect different grammatical forms of Arabic, rather than simply searching for an exact word match. The engine also recognises stop words, prefixes and other features unique to Arabic. Maktoob extended into online gaming in late-2008, claiming to be the first to bring Arabic-language online gaming to a mass Arab audience with the launch of ‘Khan Wars’, a free, strategy-based online game.
On completion of the deal, these other group companies will operate under a new identity, the Jabbar Internet Group, managed by one of the founders of Maktoob.
Although levels of Internet use in the UAE or Qatar are nearing those in Europe or the USA, Internet use generally in the region is low as yet with penetration rates averaging around 25%. However, the population in the region is young with great potential and Internet and broadband subscribers and users are growing strongly across the region. With Internet use limited, a large proportion of users are English speakers and a recent survey found that 70-80% of Internet users in Jordan use international providers for their email accounts. Lack of Internet content in Arabic has been one reason for the low Internet and Broadband penetration in the region but content would grow with more users.
Whilst the Middle East advertising market as a whole is small and, in addition, online advertising is not popular with local companies, constituting less than 1% of what companies spend off-line, it is showing significant growth even in the difficult environment of the financial crisis.
For more information see: Jordan – Telecoms, Mobile & Broadband.
