TECOM Free Zones

Since the establishment of the first free zone in 1985, Dubai has given locals and foreigners alike the option of operating in “free zones,” a campus-like concept that allows all enterprises to reach the markets surrounding Dubai, one that covers 2 billion people and USD 1.3 trillion in GDP.

Tax-free, red-tape-free, government-free

Free zones also enable foreign companies to reduce costs by benefiting from UAE tax-free policies and circumventing the otherwise imposed procedures mandated by the UAE on non-national investment, as well as by enjoying an infrastructure conducive to efficiency and innovation. Dubai, intent on creating a knowledge-rich economy, has been establishing free zones at full throttle. At present, Dubai Internet City, Dubai Media City and the new Dubai Knowledge Village, collectively known as TECOM, are proving themselves as global free zone leaders and the most practical choice for technology, media and education companies and/or institutions looking to serve Dubai and the sizeable surrounding market.

The idea behind multiple business-specific free zones is that “clusters” of specified knowledge-sharing leads to increased competitive advantages. Thus, the free zones not only serve to facilitate foreign business establishment in Dubai; they also promote greater productivity, innovation and evolution.

Dubai Internet City

“DIC is the perfect platform for knowledge companies.”

American ICT companies looking to target the Middle East now have a new strategic platform to tap its fast-growing emerging markets.

Often referred to as the ICT hub of the region, Dubai Internet City, in fact, provides the ideal base to do business in a vast region extending from North Africa to India and South Africa to Central Asia – a region of 1.8 billion people with a combined GDP of 1.6 trillion.

Dubai Internet City was launched in October 2000 as a key lynchpin of Dubai’s vision to transform itself into a knowledge-based economy. The city had already achieved tremendous economic successes. The foresight and energy of the late Ruler of Dubai, His Highness Sheikh Rashid bin Saeed Al Maktoum, provided the impetus for transforming Dubai from a small trading outpost into one of the world’s busiest trade centers.

Sheikh Rashid’s business-friendly policies and strategic investments in an ultra-modern infrastructure created a high-quality business environment that made Dubai the center of the Middle East economy. Its diversified economy became a model of growth in a region heavily dependent on oil. Today less than 10 per cent of Dubai’s GDP is derived from oil revenues.

With its new knowledge economy vision, Dubai is now seeking to transfer the momentum of its growth into knowledge-based industries. At the vanguard of this effort is Dubai Internet City that seeks to provide an infrastructure, environment and attitude that will enable ICT companies to operate locally, regionally and globally out of Dubai with significant competitive advantage.

Dubai Internet City offers a host of commercial and infrastructure benefits and a pro-business environment. Foreign companies have 100 percent tax-free ownership and 100 percent repatriation on capital and profits. They can avail of simple and quick registration and licensing and 24-hour visa services. DIC’s communications infrastructure is built on IP telephony. In fact, it is the largest commercial implementation of this next-generation technology in the world. DIC also provides strong cyber regulations and stringent enforcement of intellectual property laws.

Dr. Omar Bin Sulaiman, CEO of Dubai Internet City says that DIC initially asked Fortune 500 companies to make “wish lists” of everything they would like to have in DIC. “The wish lists focused on infrastructure, which is why we deployed not just cutting-edge technology but ‘bleeding-edge technology’ that was ahead of its time.” The wish lists also mentioned business support services, so we created a one-stop shop of services. We deliver value for money,” says Dr. Bin Sulaiman.

Over 600 companies representing diverse sectors, ranging from software development to back-office operations, operate in DIC now. Together they employ around 11,000 people. Global giants such as Microsoft, Hewlett-Packard, Oracle, IBM, Dell, Siemens, Canon, Logica, Sony Ericsson and Cisco are part of the community. “We are proud of our success; we are today where we had projected to be in 2007,” says Dr. Bin Sulaiman.

Ahmad Bin Byat, Director General of Dubai Technology and Media Free Zone Authority, points out that DIC has been growing at exponential rates since its creation in 2000. “Apart from offering exceptional incentives the way we really add value to companies here is by providing a unique one-stop-shop of services designed to help reduce their operational hassles to focus on their core business,” he says. These services include hospitality, event management, hospitality and facility management services.

“We also provide an environment that offers high-quality business interaction and networking opportunities,” says Bin Byat. Another advantage of DIC is that it provides a wonderful ambience for work and leisure thanks to an exquisitely designed landscape complete with lakes, concert venues and close proximity to luxury resorts and retail facilities.

For companies making their first foray into the region, DIC provides a unique facility that helps ease their entry into the market. firststeps@DIC offers a temporary office for companies to scope the market without making a huge upfront investment. “If you are not sure whether DIC is right for you, you can come and take an office at firststeps, plug in your laptop and go to work. It’s as easy as it sounds, it’s your first steps into the region,” says Dr. Bin Sulaiman.

As for the future, DIC will pursue greater growth and plans to go global by assisting other countries to set up similar developments. DIC will also be launching a dedicated free zone for the Business Process Outsourcing (BPO) sector. To American investors, Dr. Bin Sulaiman says, “Not all of the Middle East is a war zone. There are great business opportunities emerging in this fast-growing market. We can help companies take advantage of these opportunities.”

Dubai Media City

Emerging as the Global Media Hub

Dubai Media City (DMC), part of Dubai Technology and Media Free Zone (TECOM), along with Dubai Internet City and Dubai Knowledge Village, is key to the government’s goal of creating and supporting a knowledge-based economy. DMC has thus two daunting tasks of
1) enabling Dubai to serve as the media and communications hub of a two-billion person market and
2) ensuring that this market, which includes Egypt, the Indian subcontinent, North Africa, South Africa, and the former Soviet Union countries, enjoys freedom of speech and the freedom to create.

As DMC CEO Abdulhamid Juma explains, “It is very important to note that Dubai does not do any project for itself, or for the UAE, or for the Arab world; all the projects serve a bigger market. If you look at this market on the map, there is no main hub. This is a USD 1.3 trillion GDP market consisting of two billion individuals, with no countries aligned to any major economic group and all within seven hours of Dubai. Dubai has decided to be this market’s hub.”

DMC is a driving force for Dubai in achieving its ambitious goals, and reflects the government’s commitment to openness and transparency. As Juma notes, throughout the Middle East, media traditionally existed primarily to deliver a government message. Then, with the development of satellite television and other easily accessible international media, people rejected traditional local media and many established media firms left to operate elsewhere. “What Dubai wanted was to bring Arab media back to its own origin and also to invite regional and international media companies to come to Dubai, to offer them the freedom of the press and to cover this region from a base where there is the right business mentality and infrastructure for them to be successful,” Juma explains.

“Inviting international media companies to set up operations and then to give them the freedom to deliver the messages they choose is a revolutionary concept for the region.” He continues, “That shows just how forward-thinking Dubai has become.”

A unique media-oriented community with value-added amenities that range from 24-hour visa processing and company setup to concierge service and a foot massage parlor, DMC has positioned itself as the ideal base for companies and individuals operating in all sorts of media, including print, television, radio, electronic publishing, film, video, music and new media. The lushly landscaped DMC campus, complete with a large lake and fountains, also contains companies offering graphic design, advertising, public relations and other media support. “There is no other knowledge-sharing campus or knowledge-economy infrastructure like the one in Dubai with TECOM,” Juma points out.

The proof of DMC’s success lies in its large, varied and almost full portfolio that ranges from talented freelancers to large networks. Some of its greatest success stories to date are CNN, Reuters, Associated Press, Al Arabia, MBC, Korean Broadcasting Systems, Showtime, Taj Television, Star TV, and CNBC Arabia, which was created and launched in DMC and is one of the first Arab business channels.

Having seen tremendous response in such a short period, DMC will begin operating phase two in October 2004, consisting of a 37 million square foot campus designated for all media-related production activities, including publishing, TV/film production and post-production and animation. The International Media Production Zone (IMPZ) already has 27 production and/or publishing companies ready to begin operation, which is scheduled to begin operation this autumn. Once construction is complete, the zone will ultimately be able to house 40,000 knowledge workers and associates. “The idea of the zone,” says IMPZ project Director Mohammed Binghalib, “is to look at the fields of publication and production and to consider the DMC logo, which says ‘The Freedom to Create.’ DMC with IMPZ is putting this logo in its proper perspective in the Gulf, by providing even greater freedom to create.” IMPZ will offer land on which companies can build as well as pre-built industrial units, production studios, concept offices surrounding a sizeable man-made lake and an outsourcing area for tasks such as translation or publication. To reduce traffic, walking paths connect residences to the office buildings. Those living on the campus can choose to live in family residences, executive residences, white-collar or blue-collar residences. IMPZ will also include a designer mall, a four star hotel and an events venue for up to 10,000 spectators.

With over 850 companies, DMC’s biggest challenge was to ensure that all campus members have a large pool of qualified media-related workers for job placement. The IBDAA program, started by Sheikh Mohammed, means “creativity” in Arabic and is a human resource solution for DMC companies hunting for talent. For IBDAA, students from all over the world submit proposals in one of ten categories, which are journalism, radio, digital photography, analogue photography, film/TV feature, TV documentary, graphic design, TV advertising, print advertising and animation. One student from each category is chosen for an award, which is an internship in a top company operating in DMC,” Juma explains and all IBDAA applicants’ resumes are then accessible only by DMC companies.

Though DMC has many well-planned initiatives, the project that promises to catapult Dubai into international limelight within the next six months is the Dubai International Film Festival; the inaugural festival is to be held December 6-11, 2004, with the theme “cultural understanding and international harmony.” To prepare for a world-class festival, DMC representatives have been scouring the globe for the past two years, taking notes and promoting at every prominent film festival. Recently back from Cannes, DMC reps are confident that with over 80 films and 24-hour red carpet treatment, DIFF, like everything else in DMC, will surpass the critics’ expectations, impress even the most learned audience and dazzle its guests.

Knowledge Village

“A Unique Campus and Learning Environment for All Seeking Knowledge.”

Part of the Dubai Technology and Media Free Zone along with Dubai Internet City and Dubai Media City, Knowledge Village, launched on 18 October 2003, is a vibrant, connected learning community that will develop the region’s talent pool and accelerate its move toward becoming a knowledge-based economy. Knowledge Village provides an infrastructure and environment for a variety of organizations and individuals to create and disseminate knowledge. As a “Leading Learning Hub”, it has attracted prominent international universities from India, United Kingdom, Pakistan, Australia and Iran, offering advanced programs in fields such as Science, Technology, Business Management and Media. Knowledge Village was set up to position the Dubai Technology and Media Free Zone as a global and regional center of excellence for learning and innovation. This new Education and Training hub also complements the Free Zone’s other two clusters: Dubai Internet City and Dubai Media City. Knowledge Village provides the infrastructure for developing, sharing and applying know-ledge. It seeks to facilitate, promote, and become the flagship for eLearning throughout the region. One of Knowledge Village’s key objectives is to create a culture and access to life long learning.

The key goals of Knowledge Village are to position the Middle East as a center of excellence for learning and innovation, to promote e-learning, to develop initiatives to bridge the talent gap throughout the region, and to link and develop professional skills. As Director General Ahmad bin Byat explains, “We bring together highly trained people and provide an opportunity for them to exchange ideas here in Dubai. Knowledge Village is creating wealth in itself for the economy of Dubai, and the people working here are creating new and innovative concepts.”

Knowledge Village has around 150 business partners: international academic institutions, programs, and service providers, including a fully accredited branch of university; support-services providers; professional training centers; management development centers; e-learning content, systems and service providers; research and development centers; testing centers; and highly qualified freelancers.

Around 2,500 students are currently enrolled in programs in Knowledge Village, a number that is expected to double by September 2004. For students, Knowledge Village provides an ideal opportunity to pursue advanced training and learning opportunities in a truly international setting and with access to state-of-the-art facilities.

For business partners, Knowledge Village provides the ultimate networking venue for those in the educational and training fields; more participation by American universities is actively being sought. Knowledge Village offers branch options for universities and foreign Training companies 100 percent ownership of their operations, freedom from all taxes, and a range of facilities that include meeting rooms and classrooms, conference space, computer labs, an auditorium, a guest house, a food court and commercial outlets.

The Business Center in Knowledge Village brings together business resources, freelancers and knowledge-focused professionals catering to all sectors of the knowledge-based economy, and can become a total office solution for Learning companies, particularly smaller start-ups that can save resources by sharing facilities.

Another feature of Knowledge Village is Tamkeen, a non-profit center, founded by H.H. Sheikh Mohammed bin Rashid Al Maktoum, which employs the latest technologies to assist in helping and training the visually impaired and in increasing awareness of the potential of employing the visually impaired. Tamkeen, inaugurated in May 2004, will provide information-technology training in Microsoft Office, English-language training, career development assistance and other types of training.

The location of Knowledge Village in the Dubai Technology and Media Free Zone offers opportunities for fruitful exchanges with those working in Internet City and Media City.

Featuring the state-of-the-art infrastructure that characterizes all new developments in Dubai, Knowledge Village is truly a unique campus and learning environment for all seeking knowledge.