Intersec and Middle East Growth Observations

Author: John Honovich, Published on Jan 22, 2009

Intersec, the largest Middle East security conference, was held this week in Dubai. This report shares my observations and learning as a speaker and attendee of the conference. 

My two central observations:

  • Intersec is very large and well executed (compared to other international conferences).
  • The Middle East's growth prospects in security are significantly better than the US/UK, however, the region is beginning to feel the impact of global economic meltdown.

Intersec

I would compare Intersec favorably to the ASIS International conference. Intersec is a very large and broad conference covering the entire gamut of security and safety technology. It attracts a heavy amount of regional end users including military, police and government.  I found the traffic on the floor to be comparable or better to levels at this year's ASIS conference. Intersec reported over 700 exhibitors and 17,000 visitors to this year's conference.

A very large number of European and Asian manufacturers attended. North America and Israel were the exceptions. The absence of Israel manufactures is a political issue. As for North American manufacturers, this may be a function of geographical distance. Nonetheless, this seems like an untapped opportunity for North American companies.

Middle East Growth Prospects

As is frequently commented, the Middle East looks to be in better shape than the US and Europe. The impact is clearly not as direct and from the few dozen regional industry leaders I talked to, the issues are not as severe. [Note: I am a novice about the Middle East industry so discount my recommendations and analysis appropriately]

However, it does seem that the Middle East is beginning to be indirectly impacted by the global issues. While it seems that ultimate impact will be significantly less severe than that of the US, a number of signs indicated that the Middle East will have challenges:

  • A number of senior sales people in the region told me that they are already seeing projects being slowed down, delayed or canceled.  A frequent claim was (1) the drop in oil prices and (2) reduced investment from foreign corporations.
  • The longer low gas prices last, the more the Middle East will be impacted. The most common local argument is similar to the US one - that deficit spending will be used to hold the economy up. I am skeptical about well that can maintain the region's historical high growth rates.
  • Dubai, specifically, is very sensitive to changes in tourism and foreign consumer spending. I found Dubai to essentially be Las Vegas without the gambling. Huge number of new construction projects with the main economic driver being lavish consumer spending. It appears that Dubai's tourism is heavily driven by Europeans and Russians - two groups that are unlikely to continue to fuel spending. 
  • It seems very possible to me that the huge growth in new construction could come to an end in the next year, just like in Las Vegas and Miami.
  • Even the local press is discussing and acknowledging the impact of the recession. This is interesting given the control that the government has over the press and the strong pressure to keep all press positive.

This said, I do think the Middle East is relatively more promising for video surveillance manufacturers compared to the current and deteriorating situation in the US/UK. I just think that the Middle East will get impacted significantly by the overall global economic drivers.

Related Reports on ASIS

Top ISC West 2018 Booth Moves on Jan 23, 2018
ISC West spending frequently signals market expansion and trend shifts. In 2016, the surge of Chinese exhibitors underscored the race to the...
ASIS Dumps 'ASIS' For Show on Dec 06, 2017
After 60+ years, ASIS is dumping its eponymous show name and replacing it with 'GSX'. This is a classic marketing mistake. For a show struggling...
The Race To The Bottom Is Over on Nov 28, 2017
The race to the bottom in video surveillance is over. After 3 years of aggressive price cuts and heavy sales and marketing expenditures, the...
Panasonic Unified Surveillance Strategy Analyzed on Nov 17, 2017
Panasonic is now a "Unified Surveillance" offering, as their ASIS 2017 booth proclaimed: Looking to make a comeback in the security industry,...
Deceptive ASIS Attendance on Oct 06, 2017
ASIS is being deceptive with its conference reporting, effectively inflating the event's real actual attendance. What they try, but struggle to...
ASIS 2017 Stronger, Says Manufacturers on Sep 29, 2017
ASIS has reversed a trend of declining satisfaction from manufacturers, based on results of our survey of 80 manufacturers. However, exhibitors...
ASIS Show 2017 Final Report on Sep 27, 2017
ASIS is in Dallas for 2017 and this is our final show report (compare to our 2016 ASIS show report). When walking in, one is greeted with Dahua's...
UTC / Lenel Joins FLIR Dropping ASIS on Sep 07, 2017
Weeks before a show, vendors are typically gearing up for their booths. But UTC / Lenel / Interlogix is joining FLIR in a last minute dumping of...
FLIR Security Business Struggling on Aug 02, 2017
FLIR's security division is an ambitious mix of FLIR's core thermal business plus multiple acquisitions, including of retail / consumer offering...
ASIS 2017 Cuts Day 3 Exhibits to 3 Hours on Jun 14, 2017
The 3rd day of major trade shows are always the worst attended. And with shows with poor traffic, like ASIS over the past few years, day 3 has...

Most Recent Industry Reports

Hacked Hikvision IP Camera Map USA And Europe on Jan 22, 2018
The interactive map below shows a sample of hacked and vulnerable Hikvision IP cameras across the USA and Europe. Hover over a marker to see an...
Hanwha Wave VMS Tested on Jan 22, 2018
Hanwha has released their first open platform VMS, Wisenet Wave, an Network Optix OEM (see test results) enhanced with integrations and...
Resolution Usage Statistics 2018 - Moving Up From 1080p on Jan 22, 2018
In 2016, IPVM statistics showed the most common camera resolution used was 1080p, rising from 2014's 720p. Now, new IPVM statistics of 200+...
PoE Powered Access Control Tutorial on Jan 19, 2018
Powering access control with Power over Ethernet is becoming increasingly common.  However, access requires more power than cameras, and the...
If You Have 4 Cameras, You Can Throw Them Away, If You Have 400, They Throw You Away on Jan 19, 2018
Do users care about anything but price? Do user care about cybersecurity? Do users care about trusting their supplier? These have become...
Chinese Government Hikvision Surveillance System On US Government Network on Jan 18, 2018
Hikvision, the Chinese government-owned manufacturer, has publicly claimed that their products are running on a US government network. Moreover,...
Winter 2018 Camera Course on Jan 18, 2018
Learn video surveillance and get certified. Register now. Save $50 on the course, ending this Thursday the 18th, plus get access to 2 class times...
VSaaS Usage Statistics 2018 on Jan 18, 2018
VSaaS has been a 'next big thing' for more than a decade. The prospect of managing, storing and streaming video from the cloud rather than...
Vivint Streety Video Strengthens Door Knocking on Jan 17, 2018
Vivint is famous (or infamous depending on your perspective) for mastering large scale door to door selling. The company has skyrocketed from a...
Axis: "It’s A Question Of Trust And Who You Want To Be Associated With" on Jan 17, 2018
Who do you trust? Who do you want to be associated with? Axis is raising hard questions to start 2018. In this note, we examine these questions,...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact