Belarus IT Sector Hit by Exodus

Belarus' booming IT industry is facing deep uncertainty after thousands of its workers decide to leave the country. AFP
Belarus' booming IT industry is facing deep uncertainty after thousands of its workers decide to leave the country. AFP
TT

Belarus IT Sector Hit by Exodus

Belarus' booming IT industry is facing deep uncertainty after thousands of its workers decide to leave the country. AFP
Belarus' booming IT industry is facing deep uncertainty after thousands of its workers decide to leave the country. AFP

Like thousands of others in Belarus, IT specialist Aliaksandr Charnavoki took to the streets of Minsk last year for unprecedented protests against strongman Alexander Lukashenko's 26-year rule.

Arrested, struck by police and held in detention for four days, Charnavoki eventually fled to neighboring Ukraine -- joining an exodus of fellow tech workers that has left the future of a booming IT sector in doubt.

It was not the "violence and lawlessness" that made him leave, Charnavoki, 39, told AFP in an interview on messenger Telegram.

It was the sense that nothing would ever change.

"The fight against the regime has become meaningless," he said.

If ex-Soviet Belarus is known for producing anything, it is more likely to be tractors, fertilizer and oil products than software and tech services.

But in recent years its capital Minsk has become a regional high-tech hub, especially after 2017 when Lukashenko signed a decree allowing tech companies not to pay most taxes, including income tax.
The country's Hi-Tech Park (HTP) scheme has seen more than 1,000 tech companies register to operate in Belarus, with over 70,000 workers.

Gaming giant Wargaming -- maker of "World of Tanks" and its multiple spin-offs -- was founded in Minsk and maintains its central development studio in the city.

Calling app Viber was another success story from the HTP, with its early development done in offices in Belarus, until the company was bought by Japanese tech giant Rakuten in 2014 for $900 million.
Much of the work is less glamourous -- like outsourced custom software design for corporate clients -- but very profitable.

The HTP says the Belarusian tech sector's exports of products and services hit a record $2.7 billion in 2020, up 25 percent from the year before, and accounting for four percent of the country's gross domestic product.

But now the industry is facing deep uncertainty after thousands of its workers -- many of them liberal-minded opposition supporters like Charnavoki -- decided to leave.

Last year's wave of demonstrations over a disputed August 9 election was met with an intense crackdown. Thousands were jailed as reports of torture and ill-treatment at the hands of police circulated widely.

Backed by ally Moscow, Lukashenko has weathered the protest storm despite fierce Western condemnation and several rounds of new sanctions.

The sanctions have not targeted the IT sector, but Sergei Lavrinenko, a Minsk-based IT expert, said he expected its growth to stall because of the exodus.

He estimated that up to 15,000 IT workers have already fled Belarus because of the crackdown.

Some companies have shuttered their operations entirely.



Ministry of Communications Unveils Roadmap for Building Deep Tech Ecosystem in Saudi Arabia

Ministry of Communications Unveils Roadmap for Building Deep Tech Ecosystem in Saudi Arabia
TT

Ministry of Communications Unveils Roadmap for Building Deep Tech Ecosystem in Saudi Arabia

Ministry of Communications Unveils Roadmap for Building Deep Tech Ecosystem in Saudi Arabia

The Ministry of Communications and Information Technology (MCIT), in partnership with King Abdullah University of Science and Technology (KAUST) and in collaboration with "Hello Tomorrow," has launched the Deep Tech Report, highlighting the current state and future prospects of the deep tech ecosystem in Saudi Arabia and key initiatives supporting the goals of Saudi Vision 2030.

The report aims to shed light on the opportunities and potential in this vital sector, recognized as a cornerstone for advancing the digital economy and sustainable development, reported the Saudi Press Agency on Monday.

It focuses on five primary pillars of Saudi Arabia’s deep tech ecosystem: deep tech ecosystem, investment, infrastructure and ecosystem enablers, talent, and policies, regulations, and government incentives. It also emphasizes the role of research, development, and innovation in positioning Saudi Arabia as a global hub for advanced technologies.

The report reveals significant growth in the deep tech sector, with 50% of startups focusing on artificial intelligence (AI) and the Internet of Things (IoT). There are more than 43 high-growth startups driving innovation in the Kingdom, collectively securing over $987 million in funding in 2022, supported by 104 investors. Additionally, the number of researchers in Saudi Arabia has risen by 75% since 2015, reflecting the nation’s commitment to advancing research and development.

Vice Minister for Technology Mohammed Robayan stated that the report represents an important step in strengthening Saudi Arabia’s position as a global destination for advanced technologies. By prioritizing innovation and investing in talent and infrastructure, the Kingdom aims to build an integrated ecosystem that supports digital transformation and sustainable development.

He encouraged stakeholders in the public and private sectors, particularly academic institutions and investors, to leverage the report’s insights to create a roadmap that fosters innovation and contributes to achieving the goals of Saudi Vision 2030.