JEDDAH: The global economic crisis has caused companies to change the way they conduct their business and created great opportunities for those organizations that have invested prudently over previous years, Mohammad Omran, Chairman of Etisalat Emirates Telecommunications Corporation, said at The Financial Times Oliver Wyman conference in Abu Dhabi. “The global economic crisis has created many opportunities for us as the value of other operators has fallen to a level where a prudent investment may be possible,” he said. Discussing the latest trends in the industry, and how the global crisis has impacted the telecoms sector at large, he said “our sector is moving very rapidly and it is now crucial for telecoms companies to adopt diversified business models to serve customers better and provide the latest in technologies and innovations. We have seen unprecedented and sustainable growth in terms of shifting the value chain and value creation to our customers, shareholders which makes the prospects to the Middle East, Africa and Asia particularly bright.” He further said “there have been many new business opportunities born out of the recession,” noting that financial liquidity is always the fuel for growth and lessons have been learned in the last two years. Now the world is brimming with opportunity and the basis for the next growth phase is being laid.” Omran said 2010 witnessed the beginning of the recovery from the global financial crisis and the UAE in particular has seen five positive recovery indicators such as renewed investor confidence in the robust economy, the continuation of government support and spending on infrastructure projects, the increase in oil prices, the decline in inflation, besides the stable business environment as a result of the government actions to minimize the adverse impact of the financial crisis on UAE economy. “There are set of imperatives to be taken into account by operators in leveraging growth and seizing new opportunities for change. The operators have to adopt new business models and strategies that are more diverse than ever before. The old guaranteed recipe for growth is no longer workable now,” he noted. He forecast that the telecom companies will continue to grow in the coming years, especially after the general economic slowdown that has been witnessed during the financial crisis. Merger and acquisition will be the leading vehicles to facilitate the new growth model, he said. “The coming three to four years will see cross-border consolidation, shifting the geographical scale and scope are expected to become increasingly common in the Middle East, Africa and Asian regions,” Omran said.
