How is the private sector important for an economy? And within the private sector, what is the role of SMEs?

The private sector plays a critical role in development and growth. It provides about 90% of jobs worldwide.

The role of SMEs in promoting economic growth and spurring job creation is becoming more prominent now than ever. Many countries are recognising the importance of this sector in the context of the current global economic slowdown and rising unemployment.
To give a few examples from across the globe, SMEs contribute to:
o        48% of GDP and 54% of employment in the United States
o        60% of GDP and 83% of employment in China
o        86% of GDP and 95% of employment in Chile
A recent study by the World Bank shows that SMEs are the biggest contributors to employment across 99 developing countries surveyed. This study also shows that SMEs account for over 80% of net job creation and 67% of employment in developing countries.

In the MENA region, SMEs represent between 80% to 95% of all local enterprises, and account for up to around 40% of all private sector employment. Supporting the SMEs, is hence, an integral part of the growth and jobs equation in the region.

What is the role of IFC, its investments and advisory services , in SME promotion?

Recent events have deepened the development challenges in the region and brought renewed attention to the consequences of youth unemployment. The public sector can no longer be the main provider of jobs in the region – promoting private sector-led growth is critical. IFC is helping SMEs through its investment and advisory services.

IFC investment services address market failures to finance SMEs through:

• Debt and equity investments in SME-focused banks
• Risk-sharing facilities to encourage SME lending
• Trade lines to finance capital equipment and inventory imports and exports
• Mobilisation of private funding, equity and debt guarantees
• Build leasing and franchising
• Equity investments through private equity funds

IFC advisory services provides training and tools to help SMEs improve strategy, products, marketing, sales culture and delivery channels, credit-risk management, information technology and governance.

IFC advisory works with governments to improve the business climate and remove the obstacles that prevent small firms from joining the formal sector where research shows grow more and hire more people.

The SME Toolkit, an innovation of IFC, helps over five million users a year across 32 countries, in 18 languages, to learn and implement sustainable business management practices and increase their capacity, access to finance and new markets.  Through a network of global partners and local distribution partners, localised SME Toolkit platforms provides SMEs with online and mobile phone access to key business management information (news, how to articles), interactive tools, business forms in accounting and finance, marketing and sales, legal and human resources, business directory and so forth.  A strategic partner since 2006, IBM strengthens and expands the Toolkit’s technical capabilities. IFC’s Business Edge classroom business training workshops have been delivered to more than 150,000 people across Asia, Africa, the Middle East and Latin America.

Tell us a bit more about IFC’s programme in the Middle East and North Africa.

IFC’s immediate focus has been to restore confidence in the private sector, which is the critical engine of economic growth and job creation. We have committed over USD 2.4 billion (including mobilisation) since January 2011, boosting investors’ confidence and demonstrating that the region has a long-term potential.

Assuming the political situation stabilises and new governments are supportive of private sector development, we expect to invest up to USD six billion, including USD two billion in mobilisation, in the Middle East and North Africa over the next three to four years.

IFC  has signed several significant transactions recently including a loan to support the construction sector in Iraq (Lafarge), a transaction to improve access to high-quality generic medicine (Hikma), and one to help increase access to finance for SMEs (BankMuscat).

Our advisory work is fully integrated into many of its investments and initiatives. Advisory services are helping companies improve their corporate governance, advice on public-private partnerships in infrastructure, help SMEs access credit, and improve the regulatory framework for private education.

IFC also works to make business more inclusive to women and the youth, especially through access to finance, education, MSME and Business Edge training programmes.

An integral part of IFC’s strategy over the last five years has also been to develop regional champion investors in the GCC and mobilise them to enter developing markets in the region and outside.

IFC, working with partners, has launched four initiatives to help the region:

• Small and Medium Enterprise Facility – joint with the International Bank for Reconstruction and Development (IBRD), and the European Investment Bank (EIB)

USD 550 million facility was created to help financial institutions increase access to finance SMEs through a combination of investments and advisory services

• Education for Employment (e4e) – a joint initiative with the Islamic Development Bank (IDB)

In April 2011, IFC and IDB launched the Education for Employment (e4e) initiative for Arab youth. It aims to bring public and private partners together to improve the quality and relevance of the skills students bring into the workforce, in order to increase their chances of employment. It is also helping demonstrate the viability of private sector investment in the employment-driven education sector. Jordan and Tunisia are the initial target countries.

• Arab Financing Facility for Infrastructure (AFFI) – joint initiative by IFC, IDB & IBRD

Its aim is to provide financing and advisory assistance for infrastructure Public Private Partnerships, cross-border infrastructure projects, and other innovative infrastructure plans with the potential for regional impact. The facility includes several components, including an investment vehicle and a technical assistance fund. The facility includes several components, including a private investment vehicle, a joint IBRD, IFC, IDB technical assistance facility (TAF), a public sector window for financing by IBRD, and a policy forum which supports policy work in the region.

• MENA Fund: It will initially channel USD 300 million to USD 500 million towards minority equity investments in diverse sectors in the Middle East and North Africa. The fund aims to restore investor confidence in the region, spur the return of foreign direct investment, and increase access to finance for SMEs, education and infrastructure sectors. The fund will be managed by the Asset Management Company. IFC will provide up to 20% of its total commitments.

What else does the SME Toolkit offer?

It offers business forms, how-to articles, community features and much more. The SME Toolkit (www.smetoolkit.org), helps entrepreneurs and SMEs in emerging markets learn and implement sustainable business management practices and increase their productivity, their capacity, as well as improve their access to finance and new markets. Through a network of global partners and local distribution partners, the Toolkit provides online and mobile phone access to key business management information, interactive tools, and educational resources.

Localised SME Toolkit sites include hundreds of free business forms, tools, and how-to articles, in addition to a global business directory, multilingual community forums and a host of other interactive features, as per the choice of the local distribution partner. Core content areas include: accounting and finance, human resources, international business, legal and insurance, marketing and sales, operations and technology.

How has the SME Toolkit fared so far?

In the MENA region, local distribution partners are financial institutions that have a vested interest in becoming the partner of growth of emerging entrepreneurs and SMEs, as they often develop SME banking departments or initiatives.

Current partners in MENA include Riyad Bank in KSA, AlexBank in Egypt, and Qatar Development Bank.

The Toolkit is also used by Dialog Telecom, the leading telecom operator in Sri Lanka, as well as one of the world’s largest SME bans, ICICI Bank in India.

About

Mouayed Makhlouf is the Director of the MENA region at IFC. He is responsible for the institution’s investments and advisory programs in over 20 countries, which aim to support economic development across the region through private sector development.

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries.

Established in 1956, IFC is owned by 182 member countries, a group that collectively determines the institution’s policies. IFC’s work in more than 100 developing countries allows companies and financial institutions in emerging markets to create jobs, generate tax revenues, improve corporate governance and environmental performance, and contribute to their local communities.

“Dubai being a hub, various categories of businesses choose to set up in the Emirate for faster growth and market access. The 120 days licence is part of DED’s efforts to enable businesses to make full use of the advantages of Dubai and improve the Emirate’s ranking in the Doing Business Report of the World Bank,” said Mohammed Shael, Chief Executive Officer of the Business Registration and Licencing (BRL) Division at DED.

The new initiative will allow investors to have their licences issued immediately from DED depending on the risk factors of the intended business activity.  Business activities in Dubai have been categorised as No-risk, Low-risk and High-risk for the sake of evaluating the risk component.

“The categorisation depends on four main risk factors, evaluated on the basis of whether the business activity is harmful to human beings, harmful to animal life, harmful to plants, or harmful to the environment. When a businessman approaches DED for a licence, a 120 days licence is issued immediately, on completion of the necessary procedures, if the specific business activity falls under the No-risk or Low-risk categories,” explained Shael.

The 120 days licence allows the entrepreneur to start his business immediately and complete the rest of the licencing requirements, such as approvals from other government authorities concerned within the next 120 days. Government authorities are entitled to ensure full compliance of the licence holder to the licence criteria on day 121.

More than 90% of businesses in Dubai are No-Risk or Low-Risk and therefore a vast majority of businesses stand to benefit from the 120 days licence. For High-risk business activities constituting the remaining 10%, e.g. restaurants and clinics,  all standards set by the government authorities concerned have to be fully met before DED issues the licence.

The Low-risk category includes chemical plants and similar industrial operations that require pre-approvals from various authorities including Dubai Municipality and Civil Defence. “These facilities have stringent standards often embedded in their design and they go through years of preparation and inspections. Hence, there is no risk in issuing them a licence. It will in fact allow them to complete procedures like testing and hiring before starting actual operations,” Shael said.

Referring to the 120 day hassle free licence as a new philosophy of business registration and licencing, Shael said the initiative along with significant reforms like the Law No.13 of 2011 will dramatically enhance ease of doing business in Dubai.

The Law No. 13 issued by H.H. Sheikh Mohammed Bin Rashid Al Maktoum in 2011 acknowledges the contributions of the Free Zone companies to Dubai’s economy and allows such companies to open branches in Dubai while maintaining their presence in the Free Zone. A Free Zone company can operate a branch in Dubai as long as it is active within the Free Zone but any termination of Free Zone activity will reflect in the Dubai licence as well.

The Law No. 13 also allows Free Zone companies that have no local partners to open branches in Dubai, provided such branch has a Local Service Agent on board. A Local Service Agent is a UAE national or UAE company who will sponsor employees for the Dubai branch of a Free Zone company at the Ministry of Labour. The Local Service agent will have no rights of voting or decision-making in the company.

Shael stated that non-UAE nationals are already allowed to hold 100% ownership in Dubai companies even without a Free Zone licence. Professionals such as doctors, technicians, carpenters, cooks etc can have 100% ownership unless the entity is a Limited Liability Company (LLC). Expatriates can only have 49% ownership in LLCs with UAE nationals holding 51%.

Six visionary entrepreneurs were shortlisted as finalists for the award. The winner will be announced on 28 March at a Gala dinner to be held at the Ritz Carlton Hotel in Doha under the Patronage of H.E. Sheikh Jassim Bin Abdulaziz Al-Thani, Minister of Business and Trade, with the honourable presence of high profile dignitaries.

The six finalists are Mr. Abdulaziz Al Dolaimi of National Petroleum Services, Mr. Zeyad Al Jaidah and Mr. Abdullah Alansari of Techno Q, Mr. Ashraf Abu Issa of Abu Issa Holding, Mr. Jassim Al-Mansoori of iHorizons, Mr. Mohammed Al Emadi of Al Emadi Enterprises and Mr. Omran Al-Kuwari of GreenGulf Inc.

Noora Al-Mannai, the Chief Executive Officer of Enterprise Qatar, said: “These nominations were considered by a joint committee between Enterprise Qatar and Ernst & Young after interviewing the potential entrepreneurs and analysing their businesses. All shortlisted entrepreneurs will be thoroughly evaluated by an independent judges committee of senior officials and policy makers in order to nominate the award winner in a strictly confidential evaluation.”

Firas Qoussous, Office Managing Partner at Ernst & Young, Qatar, added: “The six finalists are true examples of successful entrepreneurs. The past few years have been a difficult time for businesses around the world, but these entrepreneurs have weathered the obstacles they faced and emerged as the future that will drive Qatar’s buoyant economy. We are honored to be highlighting their accomplishments to the business community in Qatar and are committed to supporting startups and rewarding outstanding entrepreneurs.”

The winner of the Qatar Entrepreneur Of The Year award will represent the country at the Ernst & Young World Entrepreneur Of The Year award ceremony which takes place in June 2012 in Monte Carlo.

This year marks a quarter of a century since the very first Entrepreneur Of The Year Awards, which took place in a single US city in 1986. Today, the programme spans more than 140 cities in 50 countries, which together represent more than 90% of the global economy.

]]> http://www.smeadvisor.com/2012/03/ernst-young-entrepreneur-award-finalists-announced/feed/ 0 http://www.smeadvisor.com/2012/03/dubai-smes-entrepreneur-exhibition-kicks-off/ http://www.smeadvisor.com/2012/03/dubai-smes-entrepreneur-exhibition-kicks-off/#comments Mon, 26 Mar 2012 08:44:53 +0000 Joumana Saad http://www.smeadvisor.com/?p=11508 Dubai SME, the agency of the Department of Economic Development mandated to develop the small and medium enterprise (SME) sector, has issued conditions of participation and timelines for students in the eighth Young Entrepreneur Competition (YEC 2012) exhibition, taking place at WAFI from March 28 to March 31.

The exhibition is open from 10 am to 10 pm on all days except Friday, when the duration will be 4 pm to 10 pm. Participants will have two days, March 26 and 27 to arrange their displays in the pre-installed kiosks. Over 700 kiosks are being set up on the ground and first levels of WAFI for YEC contestants to display their business projects to visitors at the mall.

“The YEC team has made all arrangements to ensure that participants in the exhibition can showcase their ideas and skills in the best possible way. The exhibition has already grown to become the widest and most diverse showcase of budding entrepreneurial talent in the region,” said Nisrin Safar, General Co-ordinator of YEC.

Failure to operate the kiosks during the official timings, selling fake products, selling products outside the kiosk area, indecent attire and improper conduct are among violations that can lead to disqualification of the contestants. Participants are neither allowed to change or remove any of their team members nor to change their activities or business name during the competition.

A participant pack including a receipt book, price tags, calculator and stationary will be given to each contestant to facilitate the process of buying and selling and create a competitive spirit and enthusiasm among the students.

The exhibition will feature a range of projects spanning fashion, fine arts, handicrafts, traditional or heritage products, health products excluding medicines, environmental awareness products (recycling, renewable energy), educational material (games, tools, modern teaching aids), interior design, cultural activities, and information technology.

du, a major promoter of entrepreneurial development initiatives in the UAE and sponsor of the Young Entrepreneur Competition for the third year in a row, will be a major presence at the exhibition. The telecom operator will set up its own kiosks to allow university students to have a first-hand experience of telecom retailing.

Held under the patronage of His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai, the annual Young Entrepreneur Competition aims to instill and nurture entrepreneurial spirit among the younger generations in the UAE. The exhibition is part of enabling contestants to test their skills in a real world of competitive business.

]]> http://www.smeadvisor.com/2012/03/dubai-smes-entrepreneur-exhibition-kicks-off/feed/ 0 http://www.smeadvisor.com/2012/03/business-innovation-look-to-the-east/ http://www.smeadvisor.com/2012/03/business-innovation-look-to-the-east/#comments Tue, 13 Mar 2012 09:34:33 +0000 Michael Byrne http://www.smeadvisor.com/?p=11245 As China positions itself at the forefront of the economic world stage, MENA public and private entities should draw inspiration from the innovative and efficient manner in which this climb was achieved, says Winter Nie, Professor of Operations and Service Management, IMD.

The rapid increase in China’s competitiveness in the high-speed rail, ship-building and even aviation and automotive industries caught some Western observers by surprise. Less than a decade ago, for example, China’s rail system was woefully inadequate. Today it boasts more kilometres of high-speed rail lines than Europe, as well as the world’s fastest trains (350 km/hour) in regular commercial service.

However, despite the considerable increase in its R&D output in some sectors, Chinese industry still lacks basic research and radical innovation. Nonetheless, there is still a strong desire among Chinese people to experience the benefits of innovative technologies created in the West; the “me-too” phenomenon is a strong driver in the pursuit of new product development.

The Chinese are innovating in a uniquely Chinese manner and consequently rising as formidable challengers to traditional multinational companies, as seen in the transport industry. Up against the tough competition and volatile conditions in emerging economies, any company doing business in China might do well to take a leaf or two from the local champions’ book.

In my research, I have found four interesting features regarding the manner in which the Chinese innovate: innovation on-site, innovation to reduce costs, tailored innovation and rapid product innovation.

Innovation on-site, not in the lab

Due to the customised nature of its equipment used among many other applications to personalise buttons, cut patterns in leather, mark computer keyboards or engrave glass, Han’s Laser could not test its products in-house extensively. In the early days, the company would send a technician on-site for several months and file a machine performance report every day.

When problems arose, the field technician worked closely with the R&D team at headquarters to find solutions to rectify them immediately. These improvements were systematically incorporated in the next new version. Between 1996 and 1999, the company made over 3,000 improvements to its machines.

Testing on-site made the client’s factory a research lab, reduced the time to market, and helped with the company’s cash flows. When the new model was finally released, it incorporated the client’s precise needs. No more, no less.

Innovation with a focus on costs

When China International Marine Containers (CIMC) imported a production line fromGermanyin the early 1990s, it had a capacity of about 10,000 containers a year. Over the next five years, CIMC technicians fundamentally reengineered the manufacturing process four times, applying technology borrowed from the auto industry.

By 1996, production had risen twenty-fold and CIMC was the global leader by volume, manufacturing almost one in every five new containers worldwide. The following year, it was able to set up its own R&D centre, where it managed to find a way to replace the expensive aluminium used in refrigerated containers with much cheaper treated steel. It licensed steel-treatment technology from German manufacturers and improved performance to the point where treated steel could match the performance of aluminium. As a result, it increased its equipment capacity and capability to become more cost efficient.

Similarly, the fixed costs for the production of solar panels are considerable. However, one Chinese company I interviewed focused on process innovation to lower the capital expenditure. While solar panel equipment suppliers normally provide “turn-key” solutions which can be extremely costly, this company identified the key components and subassemblies that it could not make in-house and bought them from Western suppliers.

It then streamlined the non-critical parts by either developing its own equipment and technology, or working with local suppliers. As a result, its capital expenditure was reduced by two-thirds. This is perhaps one of the most common innovations Chinese companies use to reduce costs.

Product features and functions tailored to local requirements

Chinese consumers use their mobile phones for many purposes, including playing music in public places and watching television. With this in mind, mobile phone producers inChinacater to these needs by offering features such as handsets that contain six to eight speakers for playing audio or talking in noisy spaces. Not only are phones available at half the price of those offered by traditional market players, but they also provide features to address the unique needs of local consumers.

Another example of local customisation comes from the Chinese home appliance manufacturer Haier. When a rural customer in China’s Sichuan province complained that their Haier washing machine kept breaking down, service technicians found the plumbing clogged with mud. It turned out that many rural Chinese customers were using the Haier machines (meant to wash clothing) to clean sweet potatoes and peanuts. Instead of warning customers about what should not be washed in the company’s machines, Haier engineers modified the washer design to accommodate their needs. From then on, Haier washing machines sold in Sichuan were labelled, “Mainly for washing clothes, sweet potatoes and peanuts.”

Haier’s strategy of meeting localised market demand at home and abroad with innovative models resulted in about 96 product categories and 15,100 specifications. Haier executives maintained that these kinds of feature innovations were inexpensive to produce, but highly valued by customers.

The most important quality characterising Chinese innovation is the sheer speed with which companies introduce new products to the market.

For example, before the 2008 Olympics in Beijing, Chinese mobile phone companies rushed to produce new models reminiscent of the country’s iconic “Bird’s Nest” stadium and “Water Cube” National Aquatics Center. In 2007 alone, Chinese mobile phone company, Tianyu,  produced over 100 new models.

Innovating for the future

So why do Chinese companies take these unconventional approaches to innovation? Quite simply, it was out of necessity. Without anything like the research budgets of their more established competitors, they must operate with lean and ultra-dynamic strategies; likewise, without a brand identity to protect, they have nothing to fear by allowing the customer to test the product. They win some, they lose some. And in the ever-changing market environment inChina, this nimble method is very effective and, most importantly, cost efficient.

However, there is a downside to this purely entrepreneurial approach. As Chinese companies mature, they will want to begin thinking about developing globally recognised and successful brands. In order to innovate like Apple, Google and other highly creative Western companies,Chinamust proactively invest more in R&D, which consequently requires the strict protection of intellectual property rights.

Winter Nie

In the meantime, MENA and multinational competitors would be wise to take note of domestic Chinese companies’ innovation techniques for mass markets because, as many have already discovered, Chinese companies are learning fast. As recently as 2001, China lagged behind in the world of supercomputing.

Of the sites that qualified for the prestigious Top 500 list, a ranking of the world’s fastest supercomputers, not a single one was Chinese. However, fast forward a mere decade and 61 of those top 500 are located withinChina, two of which are in the top five!

About

Winter Nie is Professor of Operations and Service Management at IMD. Her areas of research interest are service management and supply chain management. She has provided training programmes for, and consulted with, companies in pharmaceutical, telecommunications, automotive, food and beverage, machinery, and electronics industries, as well as financial and professional services.

Winter has taught programmes in the US, Britain, France, Brazil, Malaysia, Singapore, Taiwan, Japan, Korea, and China and has also won several teaching and research awards. Professor Nie holds a PhD in Operations Management from the University of Utah (USA).

Basic elements of a business idea

A good business idea is market driven and it comes from the needs and demands of the end users who could be individual consumers (B2C) or businesses (B2B). Secondly, the market should be of sufficient size to satisfy the vision of the new startup. There may be a niche in the market but is there a business in the niche. Entrepreneurs also need to know if they can develop the business idea alone or if they need to bring a team together.

Importance of personality traits

The perennial question is whether entrepreneurs are born or nurtured. Increasingly there is a viewpoint that many people want to be entrepreneurs and that the talent can be nurtured. Some recent examples include the entrepreneurship postgraduate certificate at Carnegie Mellon University at Education City in Qatar and the Technology Innovation and Entrepreneurship Programme run by Qatar Science & Technology Park. These are very practical programmes that take the participant through the complete business planning stage to securing the equity funding and launching the business.

Lots of buzzwords are mentioned on the personality traits of successful entrepreneurs. A sample includes hard working, risk-taker, able to multi-task, customer-focused, attention to detail, team builder, able to plan, takes the long term view and so on. Most entrepreneurs only have some of the characteristics often mentioned but fill in the gaps with the team they put together.

Passion vs. profitability

Passion is a great motivator provided it is founded on logic. If the idea is feasible the entrepreneurs should follow their passion; it will carry them through the many tough times. However, if the market is telling you that the idea is bad and no profit can be made it may be time to listen and change direction.

Risk assessment

The market is the great unforgiving arbitrator. The business idea must satisfy the needs of a customer. Many products failed to satisfy the market. Some reasons for failures include:

-          No market research on the product or the market has been done.

-          Most of the budget was used to create the product; little is left for launching, marketing, and selling it.

-          The product is interesting but lacks a precise market.

-          The product’s key differentiators and advantages are not easily articulated. The product defines a new category, so consumers or customers will need considerable education before it can be sold.

-          The sales force doesn’t believe in the product and isn’t committed to selling it.

-          Because the target audience is unclear, the marketing campaign is unfocused.

-          Distribution takes longer than expected and lags behind the launch.

-          Sales channels are not educated about the product and thus slow to put it on shelves.

-          The product lacks formal independent testing to support claims.

-          The marketing campaign is developed in-house by the manufacturer and lacks objectivity.

-          The product is untested by consumers; only the company can assert its benefits.

-          The website is the primary place to order, but the product description is unclear and the site isn’t fully functional.

However, entrepreneurs should not be afraid of failure. If you study the biographies of many of the today’s most successful business heroes, you will find a personal story of failure and recovery. It is not important that you failed but what matters is how you pick yourself up and learn from the experience

Do’s and don’ts

Dos

-          Put the customer first at all times

-          Listen to your customers

-          Conduct quality market research

-          Test the market before you fully launch

-          Involve potential customers at the early design phase

-          Provide maximum value which is consistent with the sales price.

Don’t

-          Believe your own marketing PR

-          Underestimate your customer

-          Assume “because I can make a better mouse trap, the market will agree”

-          Build your dream-team with friends; you need people with specific talents to complement the team.

About

The Bedaya Center is a partnership between Silatech and Qatar Development Bank. With the tag line “for entrepreneurship and career development” it has a prime focus to encourage young Arabs to set up their own business and look to the many

Dr. Mohammed Al Zarooni, Chairman of the Dubai Free Zones Council, and Aref Obaid Al Muhairi, CEO of Dubai Statistics Center, signed the MoU that will also aim to facilitate institutional integration between government authorities in Dubai.

Dr. Mohammed Al Zarooni said: “Dubai Free Zones Council recognises the importance of research for planning growth-oriented projects. Research will offer an added advantage to the free zone destinations that are marking significant progress in business. The data and information collected will help nurture the investment climate for international companies seeking to establish a presence in this region. We look forward to a symbiotic and long lasting relationship with the Dubai Statistics Center.”

A team led by the Dubai Statistics Center and comprising representatives of the Free Zones Council will be instituted. The team will be responsible for the standardisation of methodologies and mechanisms for statistical work on par with the current standards that Dubai endorses. The team will also be tasked to supervise, extract results and adopt the surveys of the statistical research conducted in areas under the Dubai Free Zones Council.

Dr. Zaroni and Al Muhairi signing the MOU

Aref Al Muhairi said: “Providing the necessary statistics that support the development of Dubai is a core mandate of the Dubai Statistics Center. The signing of this MoU comes in line with our efforts to establish stronger ties with various government agencies and facilitate knowledge exchange. We strive to offer the best electronic services in disseminating databases and statistics in Dubai. Our tie up with the Dubai Free Zones Council will expand our scope of work and offer a wider base for conducting our surveys and sample studies. This agreement will also help the Council set a roadmap for future strategic planning.”

The Dubai Free Zones Council recently drew up a general framework for the registration and licensing of companies within the free zones. Aligned with the indicators and standards of the World Bank for establishing companies, the new regulations aim to make the registration process more efficient and enhance ease of doing business.

“The strong economic performance in Dubai, as demonstrated by the high number of business licenses issued, was led by the visionary policies of the government. It also shows the high level of investor confidence in Dubai, chiefly on account of its leading economic role in the region and the world. One of DED’s strategic objectives is to create a suitable environment that retains Dubai as a destination of choice for investors,” said His Excellency Sami Al Qamzi, Director General of DED.

“We always seek to attract investment and boost economic activity in Dubai by providing value-added services to investors and the business community,” added Al Qamzi.

The top ten business activities in Dubai accounted for 12,527 – 24.8% – of the 50,589 activities for which licenses were issued in 2011, compared to a share of 11,733 in a total of 46,287 licensed activities in 2010. General trade led the list of the top 10 licensed activities in the commercial category with 1,799 licences issued in 2011, compared to 1,543 licenses in 2010. Dyes & paints; carpentry and flooring & tiling were the other business activities that showed significant growth last year.

The total number of amended licenses in 2011 was 58,129, an 18% increase over 2010, while the total number of renewed licences grew four per cent to reach 97,355. The total number of transactions rose 25% to 503,792 in 2011, from 402,081 in 2010.

His Excellency Sami Al Qamzi, Director General, DED

The total number of commercial permits issued in 2011 was 39,898, while the total number of trade names reserved reached 52,136, a 15% increase. DED also conducted 82,916 random and organised inspection visits in 2011, 3% more compared to 2010. The number of trademarks protected by DED was 132 in 2011, a 30% increase compared to 2010. Meanwhile, the number of commercial agencies that has been protected was 22 in 2011, an increase of 45% over 2010.

The number of licenses issued to companies according to legal status and for investing in Dubai reached 14,361 in 2011. Limited liability companies topped the list of companies at 8,787 and a growth rate of 17%. There was also a 33% increase in simple partnership firms and 300% increase in government liaison offices.

The total number of licenses issued to the top ten foreign nationalities among investors in Dubai was 58, or 73% of the total licenses issued (80) in this category during 2011, compared to 51 in 2010. British nationals topped the list with 14 licences in 2011, followed by Saudi Arabians, Indians and Bahrainis in that order.

The first workshop of its kind to be held in Umm Al Quwain, the event focused on technology-based education, including Twitter-based learning and iPad integration. Education and technology experts were on hand to demonstrate how mobile applications can be integrated into the curriculum, specifically in math and science to promote student learning.

Participants at the event observed how popular social media platform, Twitter can be integrated into classroom teaching to facilitate student engagement.  Twenty-eight 13 and 14 year-old Grade 8 students have already participated in the programme since it launched last 2010.

The event was the first workshop of its kind to be held in Umm Al Quwain. HE Fawzia Gharib, Assistant Undersecretary for Educational Operations at the Ministry of Education commented: “If a school of 400 students can successfully implement a programme of this scale, here in Umm Al Quwain, there’s no reason why it can’t happen in larger schools across the country, and indeed across the entire region.

“Technology has become a vital part of the learning process and this programme is one of many ways that the UAE is leading the way in technological applications in education.”

Manal Abd Elnaby, Classroom Teacher at the school explained: “Traditionally, Twitter has been used primarily as a way for friends to connect and share experiences through short online updates. We saw this as an opportunity to tap into our students’ existing relationships with social media platforms and apply this within a classroom setting. So far, the results have been extraordinary.”

Guided by Elnaby, workshop attendees were given the opportunity to participate in the programme themselves, composing sample Tweets and responding to their peers throughout the session.

Of the success of the mobile learning programme, Rhona Greenhill, Conference Director, GESS commented: “This programme is unique – it invites our participants to expand their knowledge on a topic that is considered the future of education while learning how to integrate mobile learning into classrooms and curricula across the region.”

During the second half of the workshop Patrick Beyrouti, Business Development Manager Education at Arab Business Machine- authorised Apple distributor, illustrated how the iPad can act as an effective learning tool, and introduced a number of teacher and student friendly device applications, including Explain Everything, and additional educational apps.

Beyrouti explained: “This technology resonates with our students in a way that textbooks and chalkboards can’t always do. These students have been born into a digital age, and it’s to be expected that many of them will learn best through digital tools and applications. It is in the best interest of both teachers and students to embrace these innovative tools, which is why this mobile learning programme is so valuable.”

More insights and case histories on mobile learning will continue at GESS and the Global Education Forum, which will take place at the Dubai World Trade Centre from 28^th February to 1^st March, 2012. For more information on the exhibition, please visit http://www.gesseducation.com

The agreement was signed by H.E. Ahmed Bin Humaidan, Director General of Dubai eGovernment, and H.E. Dr. Eng. Ali Mohamed Al Khouri, Emirates ID Director General, at the Dubai eGovernment headquarters at HH Dubai Ruler’s Court. Under the terms of the agreement, Dubai eGovernment commits itself to introducing the required central applications for integrating with the infrastructure of the digital identity applications so as to optimise usage of the Population Register and complete the electronic linkage between EIDA and all Dubai government entities.

For its part, EIDA will provide the necessary technological applications to read the data stored in the ID card together with the infrastructure for the digital identity applications and unified identity management in order to verify the identity of clients. EIDA also plans to partner with Dubai eGovernment in developing the concept and general framework for the digital ID project at the Dubai Government level.

The two parties have agreed to employ all available resources to achieve the common strategic goals, particularly the improvement of operational performance, simplification of government procedures, development of services provided to customers, and the creation of effective communication channels to support government integration.

Ahmed Bin Humaidan was positive about the agreement signed with EIDA, and said: “The signing of this agreement is in line with our commitment to actively contribute to the objectives of government integration and the electronic transformation of government systems across Dubai. These aim to realise the vision and directives of H.H. Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. We support the digital identity project in view of its positive impact on Dubai’s electronic transformation. We are committed, in the framework of our partnership with EIDA, to implement a series of relevant initiatives and joint ventures, including integrating infrastructure for the verification of the identity card and handling this system.”

Meanwhile, Al Khouri affirmed that signing this agreement coincides with the gradual conversion towards making the ID card a key identification instrument for transactions and services provided by the government and private sector organizations. “This strategic partnership reflects our belief in the use of advanced technologies in improving government performance, considering that the population register and ID card project is part of the UAE’s strategy to become one of the five best governments in the world.”

Commending Dubai eGovernment’s role in easing government transactions and leading the eGovernance process in Dubai, Al Khouri said that the agreement would be beneficial in implementing the strategic objectives of government entities and unifying their efforts at upgrading customer service.

The two parties affirmed their full commitment to pursuing joint ventures and research, including an assessment of the optimum use of the identity system, its data potential for use by Dubai government services and its application for integration with government eServices in Dubai.