ICT Production and Innovation is beginning to develop on a measured level in the UAE and will likely be much more significant in the next several years as operations of foreign and UAE companies continue to develop. At the moment however there are not significant levels of production to benchmark in either hardware of software production.
The World Bank Knowledge Assessment Methodology has the following data points which provide some detail on the level of production and innovation for ICT technology in the UAE. The values for Israel are also provided as a benchmark since Israel is generally the benchmark nation in this area in the Middle East. (4)
| Variable | United Arab Emirates |
Israel | ||
| actual | normalized | actual | normalized | |
| FDI Outflows as % of GDP, 2000-04 | 0.38 | 5.96 | 1.73 | 7.72 |
| FDI Inflows as % of GDP, 2000-04 | 0.86 | 1.21 | 2.73 | 4.55 |
| Royalty and License Fees Payments (US$ mil.), 2004 | n/a | n/a | 490.80 | 7.39 |
| Royalty and License Fees Payments (US$/pop.), 2004 | n/a | n/a | 72.18 | 8.38 |
| Royalty and License Fees Receipts (US$ mil.), 2004 | n/a | n/a | 506.00 | 8.69 |
| Royalty and License Fees Receipts (US$/pop.), 2004 | n/a | n/a | 74.41 | 8.97 |
| University-Company Research Collaboration (1-7), 2006 | 3.30 | 5.69 | 5.20 | 9.22 |
| Scientific and Technical Journal Articles, 2003 | 193.00 | 4.73 | 6941.00 | 8.55 |
| Scientific and Technical Journal Articles / Mil. People, 2003 | 48.25 | 5.95 | 1035.97 | 9.77 |
| Availability of Venture Capital (1-7), 2006 | 4.70 | 8.36 | 5.50 | 9.83 |
| Patents Granted by USPTO, avg 2001-05 | 4.60 | 5.61 | 1093.40 | 9.02 |
| Patents Granted by USPTO / Mil. People, avg 2001-05 | 1.17 | 6.82 | 163.81 | 9.47 |
| High-Tech Exports as % of Manuf. Exports, 2004 | 10.20 | 6.48 | 18.80 | 8.03 |
| Private Sector Spending on R&D (1-7), 2006 | 3.40 | 6.03 | 5.30 | 9.40 |
| Firm-Level Technology Absorption (1-7), 2006 | 5.60 | 8.19 | 6.10 | 9.48 |
In general there is very little hardware production in the UAE. The country is attempting to generate more foreign investment in this area with an investment of its own in the Dubai Silicon Oasis (DSO). The DSO is similar to other free trade zones established in Dubai, however its particular goal is to develop a technology park where electronic innovation, research and development come together. Still largely under development, when completed the project will span 7.2 million square meters.(17)
It doesn't appear as of yet, that many companies have signed on to join the DSO. Two recent news announcements heralded an IT manufacturing hub for microchips planned to be called Dubai Circuit Design which would "complement existing regional and global integrated circuit design companies already at DSO" and Europe's Optical Disc Group and Solar Technologies Group that will invest AED 112 million in the technology park to establish a research and development center, an optical media training and support facility. The Group will also manufacture next generation optical media products, solar cells, solar panels and tempered glass used in photovoltaic and the building industry. (18)
Numbers for software production are also hard to find for the UAE. Most software production in the country is originating from the Dubai Internet City. Major global software manufacturers have established operations here, but it is not clear what level of software development is actually occurring. Major companies include: Microsoft, Oracle, HP, IBM, Dell, Siemens, Canon, Logica, Sony Ericsson, Schlumberger and Cisco. A complete list of companies who have established operation in the city is available here: http://www.dubaiinternetcity.com/by_btype/.
