Monday, October 11, 2010

Emerging Nanotech in the Arab World

Arab nations are emerging as both suppliers of outsourced services and developers of new technologies.  From Tunisia’s bid to use nanotechnologies as a means to purify water in the Medjerda River, to the call for a greater focus on knowledge based processes at the recent Arab International Industrial Forum, the Arab world is seeking ways to take a leadership role in advanced technologies, particularly nanotech.

Germany has emerged as an important partner in Arab nanotech and green technology ventures, most recently in an alliance between Masdar PV GmbH and biomo GmbH.  This alliance is particularly significant as it demonstrates the growing depth and complexity of the relationships between German and Arab businesses.  Masdar PV GmbH is owned by Masdar Power Division, which in turn is owned by Mubadala, the national investment arm of Abu Dhabi.  Biomo GmbH, a developer of solar parks will be using thin-film solar modules from Masdar in a number of upcoming projects.  Though Masdar PV is an Abu Dhabi owned enterprise, it is able to produce solar modules with a “Made in Germany” stamp.

Other examples of German-Arab alliances include a partnership between Bayer MaterialScience and Masdar City, Abu Dhabi's renewable/green technology hub, and the International Storage Battery Company.  The International Storage Battery Company was started in 1994 to build high quality batteries locally in Jordan.

Egypt is another country to watch as an emerging player in nanotechnology.  In 2008, Egypt’s Information Technology Industry Development Agency (ITIDA) and IBM teamed up to create Egypt’s first national research lab.  The lab will focus on creating nanotechnology applications for a range of international and local clients, with renewable energy, water desalination and manufacturing being key areas of focus.  The lab is expected to be fully operational in 2011.  Egypt additionally obtained two loans to build solar power plants in Giza and Kom Ombo.  It would be reasonable to assume that Egypt’s national research lab will play a role in the construction of these plants.  One interesting side-note is that in 2008 the Saudis approached IBM to discuss nanotech based solutions for water desalination, solar energy and petrochemical processes.

In addition to meeting their own water and energy needs, developing nanomanufacturing capabilities will help Arab nations that are close to Europe become clean energy providers to the EU, one day providing as much of 15% of the region's electricity.  We should expect nanotechnology and associated renewable energy technologies to continue to emerge in the Arab world along with an increasingly deep and complex web of alliances with western partners.  The likely result is growing westernization in the Middle East and for the more conservative nations, a greater need to reconcile the cultural differences between Islamic and western ways of doing business.

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