UNITED ARAB EMIRATES: Internet city designed to lure international and regional technology firms

Record ID: 231076

  • Title: UNITED ARAB EMIRATES: Internet city designed to lure international and regional technology firms
  • Date: 18th August 2001
  • Summary: (L!1)DUBAI, UNITED ARAB EMIRATES (RECENT) (REUTERS) HIGH SHOT OF DUBAI INTERNET CITY; SLV ENTRANCE TO DUBAI INTERNNET CITY; SLV DUBAI INTERNET CITY LOGO (4 SHOTS) MV SET UP SHOT DUBAI INTERNET CITY CHIEF EXECUTIVE OFFICER, AHMED BIN BAYAT, SEATED (SOUNDBITE(English) AHMED BIN BAYAT SAYING "We hope to create a base, a cluster of these companies here where many of our people in the region, instead of migrating westwards which was the trend, can come in here and get jobs and settle in this country and produce something innovative. There are others who might not want to take jobs, but who might actually want to start their own companies. The environment in their countries, whether it is legal or technical infrastructure, is not ready or does not allow these sort of innovative ideas to come up, so they can actually come here instead of moving into Silicon Valley, or other places." (L!1)DUBAI, UNITED ARAB EMIRATES (AUGUST 13, 2001 ) (REUTERS) LV /LAS /SLV / SCU CONSTRUCTION WORKERS AT SITE (5 SHOTS) MV SET UP SHOT BAHRAM MOHAZZEBI, GENERAL MANGER FOR MICROSOFT GULF AND EASTERN MEDITERRANEAN WORKING ON COMPUTER SOUNDBITE (English) BAHRAM MOHAZZEBI SAYING "If the companies would find that they could be more productive at a lesser cost if they move to the Dubai Internet City, then of course that is an obvious choice for anybody. And I think that is the goal of the DIC to provide that kind of infrastructure for companies. And I am looking forward, again, to going and taking advantage of the opportunities that can come to us at a later stage." MV/SCU PROGRAMMERS AT MICROSOFT'S ARABIC SOFTWARE TESTING LAB (3 SHOTS) (L!1)JEBEL ALI FREE ZONE, DUBAI, UNITED ARAB EMIRATES (RECENT) (REUTERS) SLV EXTERIOR COMPAQ HEADQUARTERS (2 SHOTS) MV SET UP SHOT COMPAQ'S MIDDLE EAST MANAGING DIRECTOR, JOSEPH HANANIA, WORKING ON PALM HELD COMPUTER SOUNDBITE (English) JOSEPH HANANIA SAYING "I think the challenges facing the Dubai Internet City are not unique to the Dubai Internet City. Actually, they are challenges that would face any kind of economy, or any kind of organisation that is moving to a digital world. It has to start somewhere. You have to create the mind share and the environment for you to be able to move forward in that journey. So, I think the creation of the DIC was an excellent first step in that regard. But, obviously, the real test is that the DIC should be able to produce from the talent that it uses, and the manpower that it uses, the kind of applications and solutions that would benefit the region." (L!1)DUBAI, UNITED ARAB EMIRATES (AUGUST 13, 2001) (REUTERS) LV WORKERS STANDING ON SCAFFOLD; SCU SIGNS READING DUBAI INTERNET CITY PHASE TWO, PHASE THREE; SLV WORKERS PLANTING TREES (7 SHOTS) MV SET UP SHOT CISCO REGIONAL DIRECTOR ROWLAND GRIFFITHS WORKING ON COMPUTER SOUNDBITE (English) GRIFFITHS SAYING "Having been there several times visiting partners and customers, I think it has a very nice feel. It feels like a campus environment which I enjoyed from my previous life in the UK. When you're looking out the window and seeing green grass and lakes, it gives you a nice feel to just come into work in this environment." SLV NEW BUILDING AT DUBAI INTERNET CITY SITE; SLV DUBAI INTERNET CITY LOGO; HIGH SHOT OF DUBAI INTERNET CITY WITH LAKE IN FOREGROUND (4 SHOTS)
  • Embargoed: 2nd September 2001 13:00
  • Keywords:
  • Location: DUBAI, UNITED ARAB EMIRATES
  • Country: United Arab Emirates
  • Topics: Technology
  • Reuters ID: LVA7MMJIQLK08TODC3VK1X1EK5RG
  • Story Text: Rising from the desert sand of the Gulf lies the Middle East's answer to Silicon Valley. The United Arab Emirates, striving to become the Information Technology hub for the area, has created the Dubai Internet City (DIC) a free zone specifically designed to lure international and regional technology firms to the Gulf state.
    The $250 million project is the latest brainchild of Dubai's Deputy Ruler Sheikh Mohammad bin Rashid al-Maktoum, an experienced businessman who, to make up for the United Arab Emirates' dwindling oil reserves, has transformed it into a prime regional trade and tourist destination. He now wants to put it on the IT industry's map.
    It took the Dubai government less than a year to build the DIC, a cluster of modern, glass and concrete buildings set amid lush gardens along one of the Emirates' main highways.
    Ahmed bin Bayat, DIC's chief executive officer, says that one of the project's main aims is to turn Dubai into a magnet for creative minds and IT firms in the area.
    "We hope to create a base, a cluster of these companies here where many of our people in the region, instead of migrating westwards which was the trend, can come in here and get jobs and settle in this country and produce something innovative. There are others who might not want to take jobs, but who might actually want to start their own companies. The environment in their countries, whether it is legal or technical infrastructure is not ready or does not allow these sort of innovative ideas to come up, so they can actually come here instead of moving into Silicon Valley or other places,"
    he said.
    According to the International Data Corporation, the Middle East is one of the world's fastest growing markets for IT products, with an annual average growth rate of around 20 per cent.
    Most of the demand comes from governments keen to update their archaic systems and small and medium businesses looking to improve productivity.
    Although the DIC is not the only purpose-build IT centre in the area, it is certainly the most successful. Investors are given many perks that include discounts on telecommunication services, sponsorship and hassle-free procedures. So far, the project has managed to attract IT giants such as Microsoft, Oracle, IBM, Cisco and Compaq and it is currently expanding its base to meet growing demand from small and medium firms.
    Many companies partially attribute DICs success to its location in one of the areas most business-friendly, stable and cosmopolitan cities.
    But U.S. software major Microsoft, which based its Gulf and East Mediterranean operations in Dubai several years ago, has invested millions of dollars into moving into the DIC because of the competitive environment it offers.
    Bahram Mohazzebi, general manager for Microsoft's Gulf and Eastern Mediterranean operations, says "If the companies would find that they could be more productive at a lesser cost if they move to the Dubai Internet City, then of course that is an obvious choice for anybody. And I think that is the goal of the DIC to provide that kind of infrastructure for companies.
    And I am looking forward, again, to go and take advantage of the opportunities that can come to us at a later stage," he told Reuters.
    Microsoft is one of the biggest investors in the Dubai Internet City and the move will enable it to expand its Arabic software testing unit, as well as facilitate a possible transfer of its U.S.-based Arabic software creation department to Dubai.
    Not everyone, however, has high hopes for the DIC. Some businessmen have dismissed the project as a whim of the Dubai government, while others have described it as a real estate, rather than IT, scheme.
    DIC officials admit to some teething problems, the result of speedy construction, but they brush aside detractors and maintain a positive outlook for the future. Compaq, which is not based at the DIC but in the nearby Jebel Ali free zone, says for the DIC to become a real success, it must provide the solutions and applications that the region would need.
    Compaq's Middle East Managing Director Joseph Hanania says, "I think the challenges facing the Dubai Internet City are not unique to the Dubai Internet City. Actually, they are challenges that would face any kind of economy or any kind of organisation that is moving to a digital world. It has to start somewhere. You have to create the mind share and the environment for you to be able to move forward in that journey. So, I think the creation of the DIC was an excellent first step in that regard. But, obviously, the real test is that the DIC should be able to produce from the talent that it uses, and the manpower that it uses, the kind of applications and solutions that would benefit the region."
    Braving criticism, and the scorching summer heat, construction work on the project continues around the clock, to make up for initial delays and to enable tenants to move in as quickly as possible. Buildings are put up at lightning speed, while workers plant and tend gardens intended to soften the harsh desert surroundings.
    Some IT investors, such as U.S. firm Cisco, say the DIC's ability to group so many IT firms under one roof attracted them to the project in the first place. The landscape also adds to DICs charm, even if its totally artificial.
    Cisco Regional Director Rowland Griffiths says, "Having been there several times visiting partners and customers, I think it has a very nice feel. It feels like a campus environment which I enjoyed from my previous life in the UK.
    When youre looking out the window and seeing green grass and lakes, it gives you a nice feel to just come into work in this environment."
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