Zoho's Plans In Israel Face Uncertainty Amidst Conflict, Says CEO Sridhar Vembu
Zoho had been making inroads in the Middle East region and had established partnerships there, intending to strengthen its presence further. However, the CEO's optimism was tempered by the current situation in Israel
Zoho CEO Sridhar Vembu expressed his concerns regarding the ongoing Israel-Palestine conflict and its potential impact on the company's operations in the Middle East region.
Speaking with BW Businessworld, Vembu acknowledged Israel's technological advancements and its unique position as a nation with both sophisticated technology capabilities and strong demographics for growth.
He said, "Israel is one of the rare countries where they have very sophisticated technologies, very good globally competitive companies, but also favourable demographics, which means growth."
Zoho had been making inroads in the Middle East region and had established partnerships there, intending to strengthen its presence further. However, the CEO's optimism was tempered by the current situation in Israel. Vembu voiced deep concern about the unfolding events and their potential consequences, particularly in the context of Zoho's global economic outlook.
The CEO added, "The current situation is very deeply concerning. And we at this point cannot make projections. Because we don't know, it’s (Israel) too new for us. We don't know what’s ahead in the long term, but I'm very optimistic about Israel."
Vembu indicated that the conflict could have an adverse impact on the global economy, potentially affecting the company's growth trajectory. He noted a pronounced slowdown in growth in September across various countries and products, suggesting that the global economic landscape might be taking a turn for the worse.
Zoho's recent collaboration with the Israel-Asia Chamber of Commerce, which included an economic cooperation agreement, had demonstrated the company's commitment to the Israeli market. The partnership aimed to provide complimentary access to a range of Zoho's cloud-based business applications to partner companies in Israel.
The Vembu-led company had experienced remarkable growth in the Middle East region, with the area being the second fastest-growing region after India, which achieved a 37-fold revenue increase in 2022. However, the CEO's cautionary remarks underscored the uncertainty created by the ongoing conflict and its potential ramifications on the company's operations and the global economy.