Information Technology in the UAE


 
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Impacts on Business
 The United Arab Emirates is one of the most attractive, growing business centers with ideal access to the Mediterranean, Middle East and the Far East.  This provides a direct trade link to regions encompassing almost 2 billion people.   Abu Dhabi, Dubai, and Sharjah have developed into regional and global trading centers during recent years.  Although most of the growth of the UAE economy can be tied to the massive oil reserves found in Abu Dhabi, Dubai, and to a lesser extent, Sharjah the strong IT infrastructure has encouraged growth in the non-IT sectors. 

The free trade zones offer any globally competing firm numerous advantages.  Sectors that have traditionally boomed in these special areas include petroleum-related industries, commodities, such as sugar and flour, and many of the lighter industries.  The perks offered by the free trade zones make the UAE an ideal location from which to launch expansion into the growing Middle Eastern and Asian marketplaces.   A talented IT labor supply, a strong telecommunications infrastructure, combined with government policies aimed encouraging foreign investment have drawn companies from around the world. 

It would be advisable for an international manager to locate a non-IT firm in the United Arab Emirates, as opposed to other areas in the Middle East.  The UAE has been leading the way for the rest of the areas in the region in terms of liberalization and deregulation.  Privatization efforts are continuing and the UAE has recognized the need to dismantle the telecommunications giant ETISALAT.  Once this occurs, there will be numerous investment opportunities as well as decreased prices for related services.

The UAE’s strong telecommunications infrastructure has also encouraged the growth of the Internet and e-commerce.  Many non-IT businesses, both foreign and domestic have used the Internet as a means of doing business.  The number of Internet subscribers in the UAE is growing dramatically every month.  This is a prime target for any industry willing to go on-line.  Furthermore, the UAE is in an ideal location to market products and services to the Middle East and Asia. This is a huge segment of the world’s population. 

Furthermore, the current U.S. imposed sanctions against Iran makes the UAE a potentially more inviting marketplace.  Exports to Iran from the United Arab Emirates will most likely increase until U.S. sanctions are lifted.  The UAE is one of the only countries in the region with relatively strong ties to Iran. Which presents a prime opportunity for any industry offering goods. 
 

Executive
Summary
Telecomm 
Infrastructure
Liberalization
& Deregulation
Internet
Diffusion
Electronic
Commerce
Hardware
Manufacturing
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IT Users
IT
Labor Market
IT 
Geographics
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Financing
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Environment
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IT Strengths
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IT Impacts
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Sources
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About the
Author
CIA World
Fact Book
United Arab Emirates

Impacts of National Information Technology Environments on Business
Kogod School of Business
The American University