DUBAI INTERNET CITY


This way to the future

This article are brought from Khaleej Times Weekend, October 26, 2000.

If a challenging deadline is met head-on, Dubai will have built the world’s first e-government, one of the first business-to-business portals, and an Internet city on a scale the sets a global benchmark.

E-VISION

General Shaikh Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Defence Minister of UAE answers questions after announcing the setting up of free trade zone for Internet business on October 29, 1999 in Dubai. He said the world’s first tax free site would offer 100 per cent foreign ownership. 

Dubai is thinking fast and it’s thinking big. Twenty-five square kilometers of cutting edge development, $272 million committed to the project, 180 companies that have rented the space they need, collected their licences and are raring to go.

            This is the topography of what is arguably the Middle East’s boldest information technology venture yet: Dubai Internet City (DIC). On October 29, 2000 the newest Big Project in an emirate that has a proud legacy of big projects – one that began when Jebel Ali was a blueprint in the late Shaikh Rashid’s mind – will be declared officially open.

            The man who has been steering this venture from its birth is General Shaikh Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Defence Minister of UAE. The pace, as it usually is with General Shaikh Mohammed, has been breakneck. An Internet City has sprung out of bare desert in 12 months. It has the infrastructure grids in place, a core group of people, the commitments and the beginnings of a formidable reputation.       

            Twelve more months later, by October 2001, an e-government will have taken shape in Dubai. These are deadlines that might daunt the most bull headed project manager, but for Dubai, this is a race against time.

            It’s also a venture that the big boys of the global infotech industry have bought into with gusto. Around the second quarter of 2001, Microsoft (Gulf and Eastern Mediterranean) will move into its new regional headquarters at Dubai Internet City.

            “Dubai Internet City is leading Dubai’s move towards electronic commerce and the vision of Dubai’s future as a regional hub for the Internet economy,” said Mohammed Al Gergawi, Director-General of the Dubai Technology, Electronic Commerce and Media Free Zone, at the ground-breaking ceremony. “The Net City will have a positive impact on all economic, business tourism and media sectors.

            “Microsoft and the Dubai Government have long worked together on a number of very key initiatives, and we are pleased to have this company participating in Dubai Internet City with the very clear and real commitment it is making today,” he said.

            Oracle, Compaq, Commerce One and Mastercard are already in the neighborhood, and with the buildings in the Dubai Internet City fully rented and with some the lights blazing, Mohammed Al Gergawi is delighted. It’s the best advertising for the soundness of the venture, which has Siemens, Sun Microsystems and Cisco Systems building DIC’s state-of-the-art information and communications infrastructure.

NET RESULT: “Dubai Internet City is leading Dubai’s move towards electronic commerce and the vision of Dubai’s future as a regional hub for the Internet economy,” says Mohammed Al Gergawi, Director-General of the Dubai Technology, Electronic Commerce and Media Free Zone. 

These were the first major contracts to be awarded by the DIC which, Al Gergawi said, “will be able to provide us with a world class technical infrastructure”.

            The three companies will design, build and operate advanced systems in four key areas of DIC’s operational structure, including a data center, telecommunications and network infrastructure, Internet connectivity and ISP infrastructure and billing solutions.

            The IT division of Siemens UAE has been working at Net speed to design, install and test the structure. Cisco is bringing its ‘New World’ networking solutions to the project, which combines data and voice communication, while Sun will provide the computing platform and software applications.

            The bricks may be in place, but ever since the project’s conception, its leaders have been closely listening to what the marketplace, and the global info-tech players with a presence in Dubai have been saying. Skilled manpower is a scarce resource in the United Arab Emirates. It is a scarcity that could be the biggest potential obstacle to the success of DIC.

            Again, as Shaikh Rashid did in early years of the growing emirate, Dubai is looking abroad to source skilled Information Technology personnel. The regions of choice include South-East Asia and Northern Africa. It is a strategy that will give the city-state access to an untapped resource of skilled IT manpower.

            “We are particularly interested in attracting IT talents fron the Arab world,” General Shaikh Mohammed had said in an interview earlier this year. “We put high hopes on them, and Dubai Internet City will offer work opportunities for them as well as for talents among Arab expatriates abroad who could come back home and enjoy an atmosphere of financial prosperity and social, political and economic stability.”  

            How firm is the business model?

            After all, analysts within the region and outside have long spoken of Internet penetration in the regional markets being too weak to sustain e-commerce based operations. Does Dubai Internet City then rely mainly on the potential for widespread Internet use in the year to come?  

            And what about the medium-term?

            What General Shaikh Mohammed wants, is “an end to frustrating red tape, public queues and long, inefficient processes in government offices”. This is key, for an e-government will by default be an e-business driver. If successful, Dubai will be the first in the world to have a government that makes public services available on a 24x7 basis via the Internet.

            It’s a proposition that has already gained the support of several IT and telephony companies, world-class players like Oracle, IBM, Cisco, Nokia, Ericsson, Hewlett-Packard and Nortel. It’s a proposition that sets out the relationships between government and these companies to be win-win. And the Authority has taken pains to inform industry that the DIC is about all IT related companies – whether e-finance, e-marketing, e-design, multimedia or boring old government tenders. 

BREAKNECK SPEED: Phase Zero of Dubai Net City’s initial development area covers three square kilometers between the city and the Jebel Ali Free Trade Zone and its doors are open to all computer and Internet companies, big or small. 

            Yet while the eyes of Dubai and the UAE keep straying to the zone near the Golf Club, other governments in the Middle East have been reviving up too.

            Qatar actually announced an e-government strategy first, and is planning to migrate to e-government in the next two and a half years to reduce administrative costs and decrease bureaucracy.

            Egypt has its own answer to Dubai’s Internet City and is planning to build a media city as well as three ‘smart villages’ before the end of the year. The project envisions numerous ‘smart villages’, all linked together to create IT communities across Egypt. It is part of a government drive that aims at turning the country into an advanced technology hub.

            Jordan – whose programmers have for years been one of the country’s key resources – too wants in on the act. Info-tech is already the country’s third largest source of revenue after phosphate/potassium exports and tourism. The country has set itself the goal of $550 million in IT exports and inward investment of $150 million from overseas sources.

            Syria – still the most expensive place to connect to the Internet the Middle East – is in the process of rapidly upgrading its telecommunications infrastructure, while the Kingdom of Saudi Arabia wants to establish an IT hub and science park in Jeddah, and has relaxed both its laws and taxation of foreign business to encourage greater international trade.

            So far, Dubai is ahead of the pack, and General Shaikh Mohammed aims to keep in that way. If his challenging deadline is met head-on, Dubai will have built the world’s first e-government, one of the first business-to-business portals, and an Internet city on a scale that sets a global benchmark.  

SNAPSHOT

  •       General Shaikh Mohammed bin Rashid Al Maktoum is the Chairman of Dubai Internet City.

  •       Mohammed Gergawi is the Director-General.

  •       The free zone is open to all kinds of legal products from local and foreign sources (barring those which violate intellectual property rights).

  •      Products bought, manufactured, produced, developed or stored in the free zone will not be subject to customs duties or any other fees when exported.

  •       The authority will advise the Dubai government on data protection, protection of intellectual property rights and control of crimes associated with e-commerce.

  •       A university and a research center will be established.

  •       In addition to regulatory services, the Authority will provide telecommunication and Internet services.

  •      The free zone establishments and employees will be exempt from all taxes including income tax and will be excluded from any restriction on repatriation and transfer of capital, profits and wages for a period of 50 years.

  •       Employee hiring is free and unrestricted unless they are from countries being boycotted politically or economically by the UAE.

 

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Copyright September 2000 -DTEC & MFZA preperad by Lars Olof Kanngard -LOK
2003-04-26 21:08:38