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

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...
Chinese 'Attacking Us From Every Direction', Says US FBI on Apr 25, 2017
"Chinese eating our lunch. Attacking us from every direction" said the US FBI's Deputy Director Andrew McCabe at the ASIS 2017 CSO Summit. .@FBI...
Manufacturers Cheer ISC West 2017 Performance on Apr 11, 2017
ISC West 2017 showed strong satisfaction results from manufacturers, similar to 2016's ISC West. 100 manufacturers rated their impressions of ISC...
Top Trade Shows For Security Integrators on Mar 16, 2017
100+ North American security integrators told us what trade shows they attend and why. The most well known shows are ISC West and ASIS but there...
ASIS Misrepresents Show Numbers on Feb 01, 2017
With years of struggling attendance and exhibitors increasingly frustrated, ASIS is gearing up for their 2017 show. Unfortunately, their 2017...
Axis Touts Positive IPVM Coverage and Canon 'Reverse Takeover' on Sep 19, 2016
Axis NA sales leader Larry Newman rallied his troops on the ASIS show floor, touting positive IPVM coverage and bragging about Axis 'reverse...
Weak ASIS 2016 Upsets Manufacturers, ASIS Working On Improvements on Sep 19, 2016
Manufacturer dissatisfaction with ASIS intensified this year. With survey results from 80+ manufacturers, the trend of diminishing returns from...
Hikvision Enterprise Expansion ASIS 2016 Review on Sep 13, 2016
Hikvision is treating ASIS 2106 like an ISC West-level show, showing lots of new and upcoming products, as well as hosting large customer...
ASIS 2016 Day 2 Review on Sep 13, 2016
ASIS day 2 is done. We are at the show and have coverage of the show floor, and highlights from manufacturers in this report that we will update...
ASIS Hurting, Fills Empty Space Pushing Attendees to Show Floor on Sep 08, 2016
ASIS depends on manufacturer exhibitors to make most of their revenue ($15+ million) but manufacturers are upset with ASIS poor performance over...

Most Recent Industry Reports

Importance of Sales To Integrators - Statistics on Jun 23, 2017
One of the top trends in the industry over the past few years has been the rise of across-the-board sales (e.g.: Hikvision Sales, Dahua Sale,...
Deep Learning Surveillance Startups Deep Problem on Jun 23, 2017
The undeniably good news for the video surveillance market is that we are seeing the rise of more startups than in many years. The cause of this...
Avigilon Announces RADAR-Based Presence Detector on Jun 22, 2017
RADAR is gaining momentum within physical security. Two months after Axis announced a network radar detector, Avigilon has announced a RADAR-Based...
Covert Cloud Camera Service Launching (KJB) on Jun 22, 2017
Cloud IP cameras, for consumers, has become increasingly commonplace. However, covert cameras, lag there, with few options. Now, North America's...
Manufacturers Shipping Unlicensed H.265 Products on Jun 22, 2017
While H.265 support in video surveillance is growing, IPVM's research shows that most surveillance manufacturers are shipping H.265 products with...
Uniview Low-Cost Bullet PTZ Tested on Jun 21, 2017
Uniview is offering a HD zoom bullet camera, the IPC742SR9-PZ30-32G, with an integrated pan / tilt positioner, for the price of a low-cost...
QSR Video Surveillance Best Practices on Jun 21, 2017
Fast food restaurants or QSRs (quick service restaurants), are frequent victims of crime and fraud. Because they are open late, deal with cash, and...
45 Drives 'Lowest Cost' Enterprise Storage Company Profile on Jun 21, 2017
45 Drives claims the "lowest cost per Hard Drive Slot in the industry." But who or what is '45 Drives'? What started as a product design to...
No Hack, Still Liable, Court Finds ADT on Jun 20, 2017
Recently, ADT has been in the news for a $16 million settlement for a cyber security vulnerability class action suit. One of the most important...
Resolver / PPM 2000 Incident Management Platform Profile on Jun 20, 2017
You might have seen the company whose employees wear hockey jerseys at trade shows and wondered "what do they do?" PPM 2000 has been active in...

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