Intel buys minority share in Dubai software company

Dubai: Intel, the world's largest semiconductor company, on Wednesday announced its first major investment into a software company based in the Middle East.

The company, called Sphere Networks, which is located in Dubai Silicon Oasis, currently has a staff of 26 people and provides network management software.

Current clients include municipalities in Saudi Arabia and Jordan and the Abu Dhabi Chamber of Commerce, according to the company's CEO and founder Mohammad Hamedi.

Terms of the deal were not released, but Feroz Sanaulla, Intel's director of capital for the region, said the investment represents a minority share. Intel will not be taking a managerial role with the company.

"The money we bring to the table is just to move the company forward," Sanaulla said.

The announcement was made in Dubai by Christian Morales, Intel's general manager for Europe, Middle East and Africa. The deal was completed in cooperation with the Dubai Silicon Oasis Authority, which has a mandate from the government to build a technology park, according to Juma Al Matroushi, a senior official with DSOA.

Sanaulla said he was impressed with Hamedi's entrepreneurial skills in coming to the region and starting a business from scratch.

"I don't believe he is just a regional player," he said. "He can be a global player."

Hamedi said the company has no immediate plans for expansion outside of the region. "We're focused on the GCC for now."

"We want to grow slowly and make the right moves."

Hamedi, who started his career in California with Cisco Systems and eventually moved to HP, started Sphere Networks in 2006 after deciding he wanted to get away from working for large multinationals and start his own business.

Hamedi said there were two reasons his company was interested in an investment from Intel. The first was the recognition that partnering with the technology giant would bring, and the second was the chip maker's technology itself. He said the long-distance wireless technology called WiMax, which Intel is currently developing, would be important for his company in the future.

Justin Doo, vice president for sales and marketing for Sphere Networks, said the company is offering what he calls "next-generation network solutions".

Unlike larger networking companies such as Cisco, Doo said Sphere offers software that is designed to tie together multiple systems from different vendors in an easy to use format.

While no other deals were announced, Sanaulla hinted Intel was looking for additional companies in the region to invest in.

"We see this region becoming more important and more critical for technology."