Icetana AI Secures A$1.7 Million Contract, Tapping into Middle East Growth Opportunity

Baghdad Safe City Project Drives Major Milestone for Australian AI Company

The Middle East continues to show strong demand for advanced security technology, and Australian AI video analytics firm icetana Limited (ASX:ICE) has seized the moment. The company has secured its largest contract to date — an A$1.7 million purchase order for its AI-powered video surveillance software, to be deployed in Iraq.

CEO Hails Milestone Achievement

“We are delighted to welcome High Tech as a new partner in the Iraq market,” icetana AI CEO Kevin Brown told us. “This initial sale is the largest value contract in icetana AI’s listed history and represents a significant milestone for our company.”

The order follows rigorous proof-of-concept testing in Iraq, where the software successfully demonstrated advanced features such as facial recognition, license plate detection for Arabic plates, fire and smoke detection, and unusual movement alerts.

Iraq Opens Up New Market Potential

The end user of the technology is the Baghdad Safe City project — part of a broader program that could see additional national rollouts. While icetana AI already holds a strong presence across the Middle East, this deal marks its first sale in Iraq, a country that now presents a significant opportunity for further expansion.

“It’s an exciting time for icetana AI as our investments in the business bear fruit,” Brown added.

Contract Structure Supports Ongoing Revenue

The A$1.7 million deal is structured as a perpetual software licence valued at US$874,815, with an additional first-year maintenance agreement worth US$218,660. If the latter maintenance agreement is renewed each year, it could add around A$344,000 to the company’s annual recurring revenue.

Deployment of the system is expected in Q4 FY25, with licensing to commence following implementation, anticipated around May 2025.

Large-Scale Features Meet Real-Time Security Needs

The contract covers a range of advanced features designed to improve large-scale surveillance:

• Facial recognition
• License plate detection (Arabic plates)
• Fire and smoke alerts
• Detection of left luggage and loitering
• People and vehicle counting
• Alerts for irregular movements and unusual direction

Proof-of-concept trials confirmed the system’s capability in all these areas, helping to secure the significant contract win.

Strategic Partnership Positions Icetana for Broader Middle East Expansion

The deal was struck with HTE Electronics Trading LLC, the Dubai-based arm of High Tech, one of Iraq’s most experienced network security providers.

“We are confident this partnership will open doors to further deployments,” Brown said.

The commercial terms include a 20 per cent down payment due by April 30, 2025, 60 per cent payment upon acceptance of key functionality, and the final 20 per cent within 60 days of full acceptance.

No Trading History, but Large Upside

Icetana noted that while this is their first commercial relationship with High Tech, the successful proof-of-concept and structured payment terms mitigate initial credit risk concerns.

Importantly, ongoing revenue from this client beyond the first year will depend on maintenance agreement renewals, which remain at the customer’s discretion.

Strategic Win With Room for Growth

The Baghdad Safe City contract represents not only the largest single order for icetana AI’s new-generation product but also the gateway to additional growth in the Middle East.

“This is a strong validation of our technology and our strategy in expanding into high-potential regions,” Brown concluded.