Dubai Internet City Commissions First-Ever Industry White Paper for Middle East and Africa Region
Major Research Report Identifies Gap in IT Service Market for Region's Small and Medium Businesses
(left to right) Malek Sultan Al Malek, Executive Director, Dubai Internet City and Dan Starta, Partner, AT Kearney announce the ICT industry first-ever white Paper for MENA
Dubai-UAE: 15 October, 2008 – Specific market opportunities for small and medium businesses (SMBs) in the IT sector have been identified, according to the region’s first ever ICT White Paper study, commissioned by Dubai Internet City, the world’s largest managed ICT cluster and a member of TECOM Investments.
Conducted by A.T. Kearney, one of the world’s leading management consultancies in the ICT industry across IT and telecom segments, the study analyses the immense opportunities that lie in the IT service market for SMBs in the region today, especially in the hardware and packaged software segments. 
Titled ‘The IT Market – A Middle East Perspective: An Overview of Business Opportunities for Innovative New Companies’, the White Paper identifies key success factors for SMBs operating in the region, providing an overview of the most common entry strategies and the general entrepreneurial environment. It also explores emerging market opportunities within the GCC market including Egypt, Jordan and some areas of Africa.
Leading a press conference on 15 October, Malek Al Malek, Executive Director of Dubai Internet City and Dan Starta, a Partner at A.T. Kearney, jointly highlighted the findings from the study.
Al Malek said:
Through pioneering major initiatives and projects over the past eight years, Dubai Internet City has continuously played a vital role in driving the growth of the region’s ICT industry. Dubai Internet City regards research and development as crucial to fostering continuing regional market growth.
“The industry White Paper is a milestone for the Middle East region. More than just headline numbers, this report identifies specific opportunities for small and medium businesses (SMBs) to capture part of the valuable IT Services market. By exploring the great number of unexplored opportunities that we believe exist in this market, our business partners will be able to grow and benefit from the financial strength of the region.”
Providing a number of key data findings, the White Paper throws light on the economic outlook and market growth in the region. It also charts dynamic market trends, while providing recommendations for market entry strategies to attract SMBs for supporting the commercial interest of multinational companies.
With regards to the UAE, the growth of the Internet, the expansion of private equity investment, and the emergence of entrepreneurs are cited as key factors driving the country’s economy that is no longer dependent on oil revenue. According to the A.T. Kearney Foreign Direct Investment (FDI) Index, the UAE has jumped from 23rd position globally to 8th position in FDI confidence ranking.
Dan Starta, Partner at A.T. Kearney, said:
The IT market in the Middle East region continues to experience tremendous growth, with Dubai leading the charge in economic development and diversification. The level of sustained growth across the region presents unique opportunities for new businesses and entrepreneurship. The region is moving toward a more dynamic, agile business environment in which cutting edge solutions and creativity are sought after.
“Opportunities are there for the taking for organizations that bring to the table the best the international market has to offer and have the ability to create solutions specifically tailored for the Middle East market. Key success factors for a new entrant are local relationships, industry expertise, local presence, market commitment and competitive pricing.”
Starta added IT users in the Middle East are looking for specialized providers —industry leaders that may not be the biggest but are the best. Pointing out that such companies are in short supply in the market, despite increasing demand for IT support services, he forecasted the telecommunications, finance and government sectors indicate the best opportunities for the next five years.
The White Paper study sets out how existing companies in the region have successfully established themselves, noting the increasing difficulty for companies without a local presence to win contracts today.
The study also discusses the unique cultural nuances in the business environment as an important element for companies to understand and succeed in the region. Research also illustrates a number of case studies revealing that certain business trends are reshaping the region’s economy.
The Dubai Internet City White Paper will be officially launched at a gala dinner on 22 October 2008 at the Westin Dubai Mina Seyahi Beach Resort & Marina.
Notes to Editors
About Dubai Internet City
Dubai Internet City (DIC), a member of TECOM Investments, was established in 2000. It is currently regarded the Middle East's largest information and communications technology (ICT) cluster. Built as a strategic base for companies targeting emerging markets in several neighbouring regions, DIC’s core focus area extends from the Middle East to the Indian Subcontinent, and from Africa to the Commonwealth of Independent States (CIS) countries, covering two billion people with a GDP of US$6.7 trillion. As a knowledge-oriented business model, DIC has created a dynamic international community of IT companies hosting business partners that include most of the Fortune 500 brands, as well as a number of small and medium enterprises and ventures. In 2007, DIC witnessed 33 per cent growth, drawing 112 new companies to the cluster, including British Telecom and Google. For more information, please visit: www.dubaiinternetcity.com
About A.T. Kearney
A.T. Kearney is a global strategic management consulting firm known for helping clients gain lasting results through a unique combination of strategic insight and collaborative working style. The firm was established in 1926 to provide management advice concerning issues on the CEO’s agenda. Today, we serve the largest global clients in all major industries. A.T. Kearney’s offices are located in major business centers in 33 countries. During our 80 year history, we have provided management consulting services to most major corporations and governments around the world. From our fast growing Middle East office in Dubai, A.T. Kearney actively contributes to the growth and the build-up of an industry and service economy in the region. For more information, visit www.atkearney.com
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Hammam Alyazji
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