Dubai Internet City (DIC) could create a zone for research and development (R&D) facilities in Dubai , in a bid to encourage companies to develop new products in the UAE.

Jamal Abdul Salam, executive director of DIC, told IT Weekly that the organisation is currently carrying out a feasibility study into the possibility of setting up a cluster of R&D companies in Dubai; either within DIC or on another site.

DIC expects to come to a decision on the feasibility of such a concept by the end of this year or the first quarter of next year.

Salam said that a number of issues need to be addressed before Dubai can offer such a zone.

“We need to make sure that the funding is available, we need to make sure that the talent is available, we need to make sure that the business partners or the customers that are here to do R&D, are comfortable enough to come and do their R&D here,” he explained.

“We don't want them to question that as an issue,” he said.

Two of the elements that Salam stressed must be present in order to encourage a thriving R&D industry are funding and regulations regarding intellectual property (IP) rights.

The funding issue is close to being resolved however following the announcement last September of the Middle East's first ICT (Information and Communication Technology) Development Fund by the Telecoms Regulatory Authority (TRA).

This fund will be financed through the levying of a 1% charge on the annual revenues of both Etisalat and Du and will be partly used to invest in R&D in the region.

Salam went on to explain that regulations are currently being developed surrounding IP law in the UAE, which would also help to support the growth of the R&D industry.

“R&D is not like when you decide to have a sales and marketing office,” said Salam.

“It requires talent, it requires regulations, it requires funding, and these elements have to be there. We see that these elemets are going to take place.”

Salam said he was optimistic of success for the R&D zone, given the fact that 850 IT companies already operate from DIC.

“You see some of the elemets are already here, some of them are almost there,” he said. “850 companies are already available; most of them are in the Fortune 500 companies.” He added.

“Funding is also coming and Dubai has always been attractive so the elements are almost complete,” Salam added.

Publication: It weekly ME
Publication date: August 19, 2006