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UAE Freezones Biz News Updates
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Start-ups in MENA region grow eight fold since 2005 with UAE attracting
17% of new enterprises
The number of start-ups in the MENA region increased eight times in 2011 as
compared to 2005. Jordan, Lebanon, Egypt and the UAE attracted most early
stage investments in the same period. More specifically, the UAE attracted
17% of these start-ups during 2011, according to a report released by Dubai
Internet City (DIC) in collaboration with global business research and
consulting firm Frost & Sullivan.
The report indicates that government-backed initiatives to encourage
entrepreneurship, as well as the development of universities offering
programmes for entrepreneurs and investors, technology parks, and incubation
centres are some of the reasons behind the surge in the small and
medium-sized enterprise (SME) sector.
Titled 'The Role of Entrepreneurship and Small and Medium Enterprises (SME)
in the Development of the ICT Industry', the report highlights the UAE
government's firm conviction that the SME sector serves as an effective
enabler for economic growth. Consequently, the UAE allows 100% ownership for
start-up companies along with other support services across its free zones.
Malek Al Malek, Managing Director, Dubai Internet City and Dubai Outsource
Zone, said The report generated in collaboration with Frost & Sullivan
identifies the UAE and Dubai as a leading destination for ease of doing
business for SMEs. It additionally points out that free zones such as Dubai
Internet City have played a key role in contributing to the UAE's status as
a favoured business hub. In line with the UAE's vision to support SMEs, DIC
will continue to offer state-of-the-art infrastructure, business assistance
as well as incubation services to attract new tech start-ups to the region.
Ranked fifth globally in the freedom to trade internationally, higher than
the US, the UAE is regarded a lucrative location for Foreign Direct
Investment (FDI). Long-term political stability augments the UAE's position
as a favoured destination for business, validates the report.
The study also revealed that many governments in the MENA region are seeking
to drive economic growth through implementing business friendly policies and
regulations.Among the GCC countries,UAE tops the list with its governmental
initiatives to promote international partnerships and foster innovation. For
instance, the UAE government has reviewed its laws on intellectual property
and copyright and streamlined themwith international standards.
Jonas Zelba, Senior Research Analyst, Frost & Sullivan, said The report
through its comparative analysis has identified the UAE to have a compelling
value proposition that should see it emerge as a leading international
destination for entrepreneurship and incubation in the next decade.
Leveraging key strengths such as high numbers of foreign language speakers,
stable operating conditions and favourable taxation provisions, the UAE is
expected to gain traction with IT start-ups servicing industries such as
financial services, retail, and IT among others.
The report showed thatonly few MENA countries such as Egypt, Jordan, the UAE
and Saudi Arabia are investing in innovation through various incubation
programmes and funding tie-ups with international governments and private
equity (PE) firms.On this front, the UAE stands as the largest investor in
innovation as far as the PE transactions are concerned. With efforts such as
the ICT fund to promote the sectorin the region and multiple levels of
networking, the UAE is committed to innovation and the progress of R&D
through entrepreneurship.
According to the report, the level of ICT skills amongst the population of
the UAE is high compared to most Middle East countries with 99% of
educational establishments featuring computer labs,95% of teachers with
professional ICT qualifications and 84% of students using internet at
schools.
Additionally, the report points out that the working population has easy
access to computers, with 94% of government employees and 95% of
non-government employees using a computer at work in 2011.
On the business side, 16% of online sales account for ICT businesses and 85%
of other organisations has reported receiving orders from people accessing
their website, clearly indicative of a technologically savvy and aware
population.
The UAE has invested in state-of-the-art infrastructure to support its
growing population. With a 45% increase in public spending for
infrastructure and development, Dubai is keen to ensure it has the necessary
infrastructure to enable economic development. With the IT spend predicted
to reach US$1.8billion by 2013, the UAE will continue to top the MENA charts
in terms of mobile penetration and a growing information technology market.
Ranked number one among Arab states in network readiness, the availability
of internet services has enabled the growth of a knowledge-based society in
the UAE. With broadband penetration levels expected to hit 100% by 2012 and
cables connecting the nation to Europe and the US, the country has the
necessary technology to back its internet driven stature. Notably, 72% of
the population between the ages of 15-74 use the internet, indicating that
the UAE society is headed to becoming one of the most internet driven
societies in the MENA region.
Meanwhile, the UAE continues to be highly ranked for education in the MENA
region, which is showing vast improvement in the last decade. Tie ups with
companies such as Intel through the Intel Teach initiative, the Microsoft
initiative and the CISCO initiative distinguish the UAE universities from
the perspective of innovation, industry and entrepreneurship. Such
collaborations not only increase the ICT skills of the population but also
provide students with an exposure to industry.
At the forefront of the region's ICT industry, Dubai Internet City remains
committed to supporting emerging technology trends in the region and
continues to play an instrumental role in developing the industry while
contributing to Dubai's drive for creating a knowledge-based economy. |
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Courtesy AME Info FZ LLC
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