JEDDAH – The number of start-ups in the MENA region increased eight times in 2011 as compared to 2005. Jordan, Lebanon, Egypt and the UAE attracted most early stage investments in the same period. More specifically, the UAE attracted 17 percent of these start-ups during 2011, according to a report released by Dubai Internet City (DIC) in collaboration with global business research and consulting firm Frost & Sullivan. The report indicates that government-backed initiatives to encourage entrepreneurship, as well as the development of universities offering programs for entrepreneurs and investors, technology parks, and incubation centers are some of the reasons behind the surge in the small and medium-sized enterprise (SME) sector. Titled “The Role of Entrepreneurship and Small and Medium Enterprises (SME) in the Development of the ICT Industry”, the report highlights the UAE government's firm conviction that the SME sector serves as an effective enabler for economic growth. Consequently, the UAE allows100 percent ownership for start-up companies along with other support services across its free zones. The report showed that only few MENA countries such as Egypt, Jordan, the UAE and Saudi Arabia are investing in innovation through various incubation programs and funding tie-ups with international governments and private equity (PE) firms. On this front, the UAE stands as the largest investor in innovation as far as the PE transactions are concerned. With efforts such as the ICT fund to promote the sector in the region and multiple levels of networking, the UAE is committed to innovation and the progress of R&D through entrepreneurship. According to the report, the level of ICT skills among the population of the UAE is high compared to most Middle East countries with 99 percent of educational establishments featuring computer labs, 95 percent of teachers with professional ICT qualifications and 84 percent of students using Internet at schools. Additionally, the report points out that the working population has easy access to computers, with 94 percent of government employees and 95 percent of non-government employees using a computer at work in 2011. On the business side, 16 percent of online sales account for ICT businesses and 85 percent of other organizations has reported receiving orders from people accessing their website, clearly indicative of a technologically savvy and aware population. The UAE has invested in state-of-the-art infrastructure to support its growing population. With a 45 percent increase in public spending for infrastructure and development, Dubai is keen to ensure it has the necessary infrastructure to enable economic development. With the IT spend predicted to reach $1.8 billion by 2013, the UAE will continue to top the MENA charts in terms of mobile penetration and a growing information technology market. – SG
