Year: 2014
Type: article
Abstract: Are there policies, education, reforms, incentives that GCC should provide to promote innovations?6) What is the social and cultural fabric of innovation?7) Can innovation be seeded and its outcomes harvested?Looking at the UAE, the Emirate's rulers selected a diversified development model for Dubai in an effort to ensure a unique regional position: focusing first on offering a regional transport hub and tourist destination, while only in the second phase was the focus adjusted to creating and strengthening needed infrastructure for knowledge-based industries. 2 The government's Vision 2010 plan (approved in 2002) drove the Emirate towards a knowledge-based economy, and the Dubai Strategic Plan 2015 (approved in 2009) aimed at achieving social, economic, and environmental sustainability.Under the framework of the Vision 2010 master development plan, a number of mega-projects, devoted mainly to knowledge-based activities and innovation, were introduced.During this period, knowledge-based industries and services such as tourism, financial services, manufacturing and transport, and storage and communication has accounted for a large share of GDP (4% in 1995, 11.3% in 2000, 14.2% in 2011, and 14%, in 2012).TECOM Investments, a member of Dubai Holding established in 2005, is now a global company dedicated to the development of knowledge industries and business growth.Some 4,500 businesses have taken part in these clusters and parks, not only because of the state-of-the-art infrastructure available, but also as a result of generous incentives provided by the government, including tax incentives (corporate, import and export, personal income) and the possibility of full repatriation of capital.Dubai has successfully attracted bright minds and investors from around the globe.Not less, the success can also point to an effective brain drain preventative: Dubai Internet City (sometimes referred as the "Middle Eastern Silicon Oasis") currently employs 25,000 knowledge workers with 182 different nationalities.Dubai has also emerged as a dynamic financial hub, hosting many financial, legal service and insurance firms in the Dubai International Financial Center (DIFC), a free trade zone regulated by its own independent commercial and civil laws and under the United Arab Emirate (UAE) constitution.DIFC provides a competitive operating environment and offers many advantages: the possibility of full foreign ownership, a 0% tax rate on income and profits (guaranteed for a period of 50 years from 2004), and no restrictions on the repatriation of income and profits.These regulations have opened the door for financial institutions to begin introducing financial innovations to the market and serve to make Dubai a model for its neighbors.Nevertheless, a sustainable high growth trajectory needs policies that also intensively explore new areas, notably in high-tech and R&D activities, and develop 2
Source: The Muslim World
DOI: 10.1111/muwo.12079
Author: Rabi H. Mohtar
Institution: Texas A&M University
Language: English
Subfield: Sociology and Political Science
Field: Social Sciences
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W1482372721