I. The
Market Potential in the Gulf
and the Dubai Internet City (DIC)
PITA delegation visited Gitex 2000 Dubai in a trade mission in Oct 2000, on return the delegation recommended that Palestine should participate as an exhibitor in the following year event. The recommendation was based on the foreseen opportunities for the Palestinian IT companies to penetrate the Gulf & Arab market through their products & services that address the market needs in the region.
In the event, seven companies exhibited and 60 visitors joint the mission to Dubai and nearly 28 software products were exhibited. The Palestinian pavilion has drawn the attention of sizable numbers or traders and VIPs. The exhibiting companies were satisfied with the quality of visitors and prospects and signed a number of deals and partnership agreements.
For the Palestinian IT sector, it was a successful exposure to the regional and international market. The Palestinian IT businesses verified that they are capable and ready to enter new markets that are developed and sophisticated such as the Gulf market and in particular UAE and Dubai.
It was apparent that for PITA to better serve its members to expand their market share in the Gulf and the Arab markets, and to facilitate the follow-up activities in those markets, a regional services office for PITA is needed to be established in the heart of the IT Hub of the Gulf, which is Dubai, and in particular at the Dubai Internet City.
This office would be an anchor for PITA operations in the Gulf, such as trade missions, exhibitions, market studies, etc. PITA members can also use the office as a temporary base on their trips to the region or even as an incubator for their establishing presence in the gulf.
Dubai Internet City is the first complete Information Technology and Telecommunications centre in the world to have been built inside a free trade zone.
Dubai Internet City offers modern, ready-to-operate, fully serviced office space catering to the specific needs of today’s new economy companies. These offices offer cutting edge technology and provide both wired and wireless networks. Dubai Internet City allows 100% foreign ownership of companies, and laws relating to partnerships with local sponsors have been relaxed.
Annex (1) has more details on DIC services.
II. Palestine@DIC: Mission and Services
During Gitex 2001- Dubai exhibition, the Palestinian delegation has visited the DIC management and several international tenants to closely assess the services and facilities potential of the DIC, which can be offered to the Palestinian IT businesses. It has been transpired that the services below are better served form the Palestine@DIC office.
The mission of this office includes:
· Market Research
· Promotion of the Palestinian IT sector
· Promotion of the Palestinian IT products and services
· Facilitation service for the Palestinian IT businesses
The office modern set-up will offer all the business center services that include among other things videoconference facilities to link PITA other offices in Ramallah and Gaza with Dubai. The services offered should generate income stream to help cover the core cost of the office operations.
Set of Services offered to cover the various needs of companies:
1- Marketing & Networking events including preparation of exhibitions (Gitex in UAE & KSA, Comdex –KSA, others) and trade missions.
2- Promotion of IT sector and attracting of investment to Palestine
3- Direct services, office space (first come first serve), logistics and coordination
4- Transfer of know how including info on new initiatives, E-government and E-learning
5- Alert service, tenders, contracts and new products, dealerships….etc. (member’s only service)
6- Trading Company – legal warehouse for contracting by Gold Service PITA members.
The cost of establishing individual legal entities for PITA members who wish to partner in the UAE on ICT projects (public /private) may not be practical in the short-run. The establishment of an ICT Trading Company by Gold Service PITA members should be considered wherein the common legal and technical financial requirements to legally engage in UAE-based projects are undertaken through shared services. In the first instance the group promotion and marketing efforts of the DIC office should remain clearly separate from the legal/financial contracting services of the Gold Service Trading Company.
7- Clearing House – for outsourced IT personnel
The DIC office of PITA possibly through a separate legal subsidiary of the Trading Company could provide a general “clearing house” service for outsourced ICT personnel for all PITA members who may have personnel assigned to projects in the UAE/Gulf region. Essentially this subsidiary would perform common HR processing services for a fee or limited wage-based percentage such as: visas; tax payments; security clearance in cooperation with UAE and Palestinian public agencies.
Categories of Beneficiaries:
1- PITA member’s services
2- Individual companies’ services by special subscription (Gold Service). The gold service is to include all arrangements of logistics, air tickets, hotels, booking of premises, registrations and obtaining visas and clearances..etc.
3- Other entities services (public sector or non-member private sector, other sectors)
PITA will be the sole owner of the office, the office will be registered locally as Palestine@DIC owned by Palestinian IT Association of companies, HQ Ramallah, Palestine. PITA board will have total authority over the office operation; Daily operation will be managed through the Executive Director of PITA.
HR Structure:
Manager, the office manager will be responsible of all the day to day operation of the office and the main contact person of PITA at the DIC and Dubai and accountable to PITA executive director
Program Assistant, manage all the daily office routine and assist the manger executing the programs, accountable to the manager.
For more information about the office, please contact Mr.Mohammed Karim m.karim@pita-palestine.org (Regional Business Development Manager)