Volume V, Issue Two – October 2007
eMARKET TRENDS
The percentage of ICT expenditures on communications in GCC countries for 2006 exceeds the global average, while spending on software, hardware and services during the same period is only moderate. In its ICT spending forecast, Madar Research estimates that this trend will continue and that communications spending will grow 15.00% per annum to 2009, while IT growth will lag slightly at 13.03%.
eSTAT WATCH
Digital Opportunity: Four GCC countries, Bahrain, the UAE, Qatar and Kuwait, lead the MENA region in the World Information Society’s 2006 Digital Opportunity Index, but fifth-place Morocco is the real winner, jumping 36 places since 2004 to be the globe’s top gainer over two years, while Palestine puts in the best Arab performance since 2005. High-DOI economies like the four Arab leaders show strong rises in utilization figures that are indicative of broad internet usage and rapid transitions to broadband connectivity; in a surprising development, however, Morocco demonstrates greater progress in utilization than infrastructure – an instance of technological ‘leapfrogging’.
Knowledge Economy: According to the World Bank, the UAE’s knowledge economy experienced overall negative growth in the 18 months following January 2006, largely due to declines in the ‘pillars’ of education and economic incentive/governmental regime. By contrast, Qatar achieved growth of 19.92% and 8.73% in these same areas, as well as even more impressive gains (107.20%) in innovation, almost closing the gap with the new Arab world leader, Kuwait. Other ENA economies made only marginal gains, with ten of them, including GCC states Saudi Arabia and Oman, scoring below the Arab average.
‘Booming’ Abu Dhabi lures investors into key non-oil sectors including industry, tourism and construction
The UAE’s largest emirate, which, in recent years, has derived enormous revenues from its dominant oil industry, is creating a diversification blueprint to increase the economic participation of important vertical sectors. While the strategy is open to criticism (“Abu Dhabi is merely copying Dubai”), it has enormous potential for success and may ultimately serve as a template for other emirates and GCC states.
Oman’s ambitious plans to develop and diversify economy includes boosting ICT skills and use
Faced with the realities of low oil reserves and flagging production, Oman is taking advantage of today’s high oil prices to chart a rational course toward economic diversification. The latest in a series of five-year plans envisions new public-private sector investment of US$34 billion or 24% of GDP by 2010. Almost half of this amount will be spent on ongoing infrastructural initiatives and to target tourism, industry and education sectors, with the latter benefiting from over US$1.3 billion alone. Investment in education is vital if Oman is to enhance ICT skills and usage as it builds on its remarkable progress to make the transition to a knowledge economy.