The partnership between Maktoob and Yahoo! was established in 2009 with the aim to strengthen and support Arabic content on the internet in the Middle East region. Further more, this partnership will involve adapting existing products to the Arabic language while also working with local developers to develop and offer new and compelling products. The current focus is to facilitate the growth of online Arabic content to accommodate the increasing number of internet users searching for information in the language.

Many spoke of this acquisition as the start of the golden age for the Arabic Web, and that it had given the region instant online credibility, as well as encouraged entrepreneurs in the region to succeed in creating new online business ventures. It was said to have fundamentally altered the technology landscape in the Middle East.

The agreement is a solid commitment from both parties to share mutual goals and create the best of both worlds: to provide the best online experience for consumers in the Arab world and to create the leading platform for digital advertisers in the region. The partnership will also enhance and adapt existing products to Arabic language as well as open a platform to work with existing local developers to create new compelling products.

It is less the case of a global company arriving and adapting to local needs, it is more a natural progression for Maktoob, which has seen an increase in the number of users from two million in 2002 to more than 18 million today. Maktoob’s regional expertise and significant Arab audience are key factors for Yahoo! in maintaining a successful acquisition. For Yahoo!, one of the key strategies for success in emerging markets has been the development of much localised content that’s tailored to the local community. When users go to Yahoo! India, for example, they’ll see the best cricket site that draws the most number of page views.

Maktoob has always been a leader in understanding its clients needs and this, combined with Yahoo!’s 15 years of providing locally generated content in different markets and territories around the world, will certainly revolutionise the future of online advertising in the region.

Arabic is now the fastest growing language on the internet where growth in Arabic speaking internet users increased by a mammoth 2064 percent from the years 2000-2008, according to The Arab Knowledge Report. Online Arabic content is set for a significant growth spurt in coming years too; as although there are more than 320 million Arabic speakers worldwide, less than one percent of all online content is in Arabic. The number of internet users in the Middle East has already jumped from 3.2 million users in 2000 to 41.9 million in 2008, according to the Internet World Statistics report.

We believe that within most parts of the Arab world we are just at the start of internet penetration. And Yahoo! Maktoob will create the products to bring the Arab world online, and then offer Middle East businesses the opportunity to talk to that audience.

With Middle East online advertising spending expected to grow by 35 - 40 percent this year (according to Madar Research), regional and even global advertisers are now likely to take notice. The online advertising market in the Gulf and Levant currently stands at US$50 million; out of a total ad spend of US$4-6 billion. The combined reach of Maktoob and Yahoo! (estimates of 30-35 million per month) provides the largest quality audience and platform in the region, creating a more appealing advertising experience for consumers, and sees the emergence of a giant player in the industry. A truly global traffic reach is now achievable with the best of both worlds.

The combination of Yahoo! and Maktoob means big advertisers will now have the reach and depth they need to better engage with the region’s online consumers, all backed by Yahoo’s ad targeted technology and Maktoob’s leading sales team. Maktoob has been the region’s leader in online display advertising and has consistently offered advertisers a wide array of targeted branding and engagement opportunities. This partnership will also help to educate users, clients and advertisers into new market insights by means of further investment in the industry.

Yahoo!’s acquisition of Maktoob.com is in line with the company’s strategy for emerging markets and belief that the Internet can positively transform lives, societies and economies in emerging markets. Entering into any emerging market can be a challenge, particularly in the Middle East where there is such a vast array of cultures from one country to the next, which is why Yahoo! will be working hand-in-hand with Maktoob to really understand the cultural and social factors of the Middle East that affect the online world.

As new platforms emerge and new opportunities for advertising are created in the Middle East as a result of this acquisition, regional advertisers will need to be one step ahead of the competition to be able to react to new technologies. Implementation of various new advertising platforms such as Yahoo! Messaging, Mail and Chat in the near future will set new boundaries for advertisers in the Middle East, particularly when experts say the region’s advertising spend will continue to grow at a higher pace than developed economies despite the global recession.

With this acquisition, we truly believe we are on the cusp of an Internet revolution in the Arab world, where we will start to see a dramatic increase in Arabic online content. This deal was the first large-scale acquisition of a Middle Eastern website by a foreign company, but it certainly won’t be the last, as the world wakes up to the massive potential of the Arabic online world.