CLPS Incorporation Announces Establishment of Dubai Subsidiary, Marking Strategic Expansion into the Middle East Market

Rhea-AI Summary

CLPS Incorporation (Nasdaq: CLPS) has announced the establishment of Ridik Technology in Dubai, UAE, on July 31, 2024. This strategic move aims to expand CLPS's presence in the Middle East market, capitalizing on the region's rapid digital transformation and growing IT spending. According to Gartner, IT spending in the Middle East is projected to grow by 5.2% in 2024, reaching USD 193.7 billion.

CLPS has appointed Ms. Maddoju Hymavathi as General Manager of Ridik Dubai to lead business development and operational management in the region. The company sees Dubai as a strategic launchpad to extend its services across the Middle East and explore new market opportunities.

Positive

• Establishment of Ridik Technology in Dubai, expanding CLPS's global presence
• Middle East IT spending projected to grow 5.2% in 2024, reaching USD 193.7 billion
• 25.4% increase in revenue generated outside mainland China in H1 FY2024
• Strategic positioning to tap into growing demand for IT services in the Middle East

Negative

• None.

News Market Reaction – CLPS

-3.63%

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-3.63% News Effect

On the day this news was published, CLPS declined 3.63%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

HONG KONG, Aug. 7, 2024 /PRNewswire/ -- CLPS Incorporation (the "Company" or "CLPS") (Nasdaq: CLPS) today announced that, through its wholly-owned subsidiary, CLPS Investment Management Ltd., it established Ridik Technology Ltd. ("Ridik Dubai"), in Dubai, United Arab Emirates, on July 31, 2024. This strategic move aims to deepen the Company's global expansion strategy and tap into the thriving Middle East market by providing advanced IT services and solutions to local and international business.

The Middle East region is undergoing rapid digital transformation, driving substantial growth in IT spending. According to Gartner^[1], IT spending in the Middle East is projected to grow by 5.2% in 2024, reaching USD 193.7 billion. The IT services segment is a key growth driver fueled by increasing demand for professional and consulting services to prepare their businesses for cloud migration, AI, generative AI (GenAI), and IoT implementations. Additionally, companies are capitalizing on data monetization opportunities created by the convergence of these technologies.

Since initiating its global expansion strategy, CLPS has achieved consistent growth in revenue generated outside of mainland China, with a 25.4% increase in the first half of the fiscal year 2024. The UAE's proactive stance in fostering a technology-driven economy, coupled with its strategic geographic location, makes it an ideal platform for CLPS to serve the broader Middle East market.

CLPS has appointed Ms. Maddoju Hymavathi as General Manager of Ridik Dubai, tasked with spearheading the Company's business development and operational management in the region.

Mr. Raymond Lin, Chief Executive Officer of CLPS, said, "The establishment of Ridik Dubai is a pivotal milestone in our global expansion journey. Dubai's position as a commercial and technological hub in the Middle East, coupled with its abundant resources and vast market potential, makes it an ideal location for us to expand our footprint. By establishing a local subsidiary, we can better serve both existing and prospective clients, while accelerating their digital transformation initiatives." He added, "We view Dubai as a strategic launchpad to extend our services across the entire Middle East region and explore new market opportunities."

^[1] Source: Gartner Forecasts MENA IT Spending to Grow 5% in 2024

About CLPS Incorporation

Headquartered in Hong Kong, CLPS Incorporation is a global leading information technology ("IT") consulting and solutions service provider focused on delivering services primarily to global institutions on the banking, wealth management, e-commerce, and automotive sectors. The Company serves as an IT service provider to a growing network of clients in the global financial service industry, including large financial institutions in the U.S., Europe, Australia, Asia, and their PRC-based IT centers. The Company maintains 20 delivery and/or research & development centers to serve different customers in various geographic locations. Mainland China centers are located in Shanghai, Beijing, Dalian, Tianjin, Xi'an, Chengdu, Guangzhou, Shenzhen, Hangzhou, and Hainan. The remaining 10 global centers are located in Hong Kong SAR, USA, Japan, Singapore, Australia, Malaysia, India, Philippines, Canada, and Dubai. For further information regarding the Company, please visit: https://ir.clpsglobal.com/, or follow CLPS on Facebook, Instagram, LinkedIn, X (formerly Twitter), and YouTube.

Forward-Looking Statements

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance. Known and unknown risks, uncertainties and other factors, which may be beyond the Company's control, may cause the actual results and performance of the Company to be materially different from such forward-looking statements. All such statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties related to the Company's expectations of the Company's future growth, performance and results of operations, the Company's ability to capitalize on various commercial, M&A, technology and other related opportunities and initiatives, as well as the risks and uncertainties described in the Company's most recently filed SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

Contact:

CLPS Incorporation
Rhon Galicha
Investor Relations Office
Phone: +86-182-2192-5378
Email: ir@clpsglobal.com

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SOURCE CLPS

FAQ

What is the name of CLPS Incorporation's new subsidiary in Dubai?

CLPS Incorporation's new subsidiary in Dubai is called Ridik Technology (Ridik Dubai).

When was Ridik Technology established in Dubai?

Ridik Technology was established in Dubai, United Arab Emirates, on July 31, 2024.

What is the projected growth rate for IT spending in the Middle East in 2024?

According to Gartner, IT spending in the Middle East is projected to grow by 5.2% in 2024, reaching USD 193.7 billion.

Who has been appointed as the General Manager of Ridik Dubai?

Ms. Maddoju Hymavathi has been appointed as the General Manager of Ridik Dubai.

What was CLPS's revenue growth outside mainland China in the first half of fiscal year 2024?

CLPS achieved a 25.4% increase in revenue generated outside of mainland China in the first half of fiscal year 2024.