Monopoly Regulations In UAE Should Be Reformed To Allow IT Growth

Lorys Charambolous, Tax-news.com, Cyprus

19 March 2001

Last week we reported on the comments of Ahmed Binbyat, director general of the Dubai Department of Economic Development, who argued the case for urgent reforms in Dubai's business laws (and those of the UAE in general) at a conference hosted in Dubai last week.

On the final day of the conference, entitled Trade, Treasury and Cash Management in the Middle East, Binbyat continued his address and this time called for the abolition of monopolies particularly in relation to IT. The Economic Development head declared: 'We are hoping for as many multiple ISPs (Internet service providers) as possible, and are for liberalisation of this industry and privatisation of old forms of monopolies.'

Currently no official regulations governing individuals who wish to invest in venture capital projects exist but Binbyat said: 'The Dubai government is bold, blunt and quick in taking decisions, the DIC [Dubai Internet City] is also in close coordination with the Central Bank, and we have local government laws to allow such activity, as well as technology transfers, to take place in Dubai.'

Some delegates likened the DIC, which the Dubai government has paraded as jewel in its crown, to a real estate project prompting Binbyat to say: 'The response [to the DIC] to date has been extremely positive, and the idea of a business incubator has already spawned the Ideas Oasis, where start-ups with strong ideas can develop their businesses through the venture capital fund.'

In agreement was Eqbal Al Yousuf who spoke on the 'Future Role and the Impact of the e-Media in the Arab Business and Finance World.' Yousuf, president of www.B2B.co.ae, underlined the importance of traders in the Middle East reforming their business plans and activities so they are more in line with the digital era. He said: 'Emerging e-pressures also constitute an opportunity, and companies should also act as consultants for their customers. This is no longer an option, and local businesses will have to assume a proactive role in re-engineering their mode of operations, or they risk getting left behind in the global economy.'

Recommended