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

ISC East 2018 Mini-Show Final Report on Nov 16, 2018
This is our second (updated) and final show report from ISC East. ISC East, by its own admission, is not a national or international show, billed...
ASIS Offering Custom Research For Manufacturers on Nov 15, 2018
Manufacturers often want to know what industry people think about trends and, in particular, the segments and product they offer.  ASIS and its...
HID: Stop Selling Cracked 125 kHz Credentials on Nov 05, 2018
HID should stop selling cracked 125 kHz access control credentials, that have been long cracked and can easily be copied by cheap cloners sold on...
Directory of Access Control and Intrusion Startups on Oct 30, 2018
This directory catalogs access control and intrusion detection startups IPVM has found noteworthy. The directory is provided for your review to...
Huawei Admits AI "Bubble" on Oct 16, 2018
A fascinating article from the Chinese government's Global Times: Huawei’s AI ambition to reshape industries. While the Global Times talks about...
Anti-Tailgating Startup: Spyfloor on Oct 03, 2018
A Canadian startup, Spyfloor, is using a different approach to warn against tailgating, a common access control problem. By counting feet,...
ASIS GSX 2018 Mixed Manufacturer Reviews With Declining Overall Attendance on Oct 02, 2018
ASIS GSX 2018 show drew 9% fewer total registrants, however, it gained 15% more paid registrations, according to ASIS. In this note, we look...
ASIS GSX 2018 Show Report on Sep 25, 2018
In the first major US show since the US government ban of Dahua and Hikvision was passed into law, the mega Chinese companies were in retreat and...
ISS VMS / Video Analytics Company Profile on Aug 16, 2018
Who is ISS? In the past few months, they had one of the craziest ISC West promo items in years. Then, they hired industry veteran and ex-Dahua...
Dahua Ban Response: NOT Chinese Government Owned on Aug 08, 2018
Dahua has responded to the US Congress passing a US government ban on Dahua and Hikvision's products. While Dahua offered the now standard...

Most Recent Industry Reports

'Sticker' Surveillance Camera Developed (CSEM Witness) on Nov 16, 2018
The Swiss Center for Electronics and Microtechnology (CSEM) has announced what it calls the: world’s first fully autonomous camera that can be...
ISC East 2018 Mini-Show Final Report on Nov 16, 2018
This is our second (updated) and final show report from ISC East. ISC East, by its own admission, is not a national or international show, billed...
Facial Detection Tested on Nov 16, 2018
Facial detection and recognition are increasingly offered by video surveillance manufacturers. Facial detection detects faces in an image/video...
Throughtek P2P/Cloud Solution Profile on Nov 15, 2018
Many IoT manufacturers either do not have the capabilities or the interest to develop their own cloud management software for their devices....
ASIS Offering Custom Research For Manufacturers on Nov 15, 2018
Manufacturers often want to know what industry people think about trends and, in particular, the segments and product they offer.  ASIS and its...
Hikvision Silent on "Bad Architectural Practices" Cybersecurity Report on Nov 14, 2018
A 'significant vulnerability was found in Hikvision cameras' by VDOO, a startup cybersecurity specialist. Hikvision has fixed the specific...
French Government Threatens School with $1.7M Fine For “Excessive Video Surveillance” on Nov 14, 2018
The French government has notified a high-profile Paris coding academy that it risks a fine of up to 1.5 million euros (about $1.7m) if it...
Integrator Credit Card Alternative Divvy on Nov 13, 2018
Most security integrators are small businesses but large enough that they have various employees that need to be able to expense various charges as...
Directory of Video Intercoms on Nov 13, 2018
Video Intercoms, also known as Video Door-Phones or Video Entry Systems, have been growing in the past decade as more and more IP camera...
Beware Amazon Go Store Hype (Tested) on Nov 13, 2018
IPVM's trip to and testing of Amazon Go's San Francisco store shows a number of significant operational and economic issues that undermine the...

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