The ICT sector in the region, particularly in the UAE, has demonstrated resilience to weather the current economic storm thanks to strong government backing, public sector investment, and higher oil prices, according to Malek Al Malek, Executive Director, Dubai Internet City.
Al Malek’s comments came as part of his keynote address at the IDC’s IT Managers Forum and Expo 2009. Titled ‘Making IT Matter: Finding Opportunities and Defining Values’. The event at Atlantis – The Palm in Dubai witnessed the region’s most influential industry experts showcasing ways on becoming a smart IT buyer under current economic conditions.
Al Malek said: “In spite of budget cuts, organizations in the region have been impacted by the global economic downturn in some measure. While the region has also become a destination for global ICT business consolidation and expansion, decision makers also need to fully realize the integral component that the role of the CIO and the IT team play in the overall business strategy model.”
In his speech, Al Malek noted even though the UAE’s ICT sector fared relatively well, the global recession still increased the risk of IT projects failing. He mentioned that according to the Standish Group report, nearly one in four IT projects had either been cancelled before completion or had been delivered but never used. Al Malek also highlighted the challenges IT projects are currently experiencing in the difficult period namely delayed completion dates, cost overrun and implementation of fewer features and functions than planned.
He added: “The downturn has made organizations significantly more cautious in IT spending and implementation to the point where their vigilance has to some extent, adversely affected project success rates.
“Having said this, I am pleased to see the milestone progress in the UAE’s readiness to facilitate and promote business. As marked by the Economist Intelligence Unit (EIU) report, the country’s infrastructure, connectivity and government support, the UAE continues to improve its global rankings as still the top scoring country for e-readiness in the Middle East and African region.”
Al Malek also noted the EIU report commending the UAE government for its sound ICT strategies as initiatives and programmes are launched and ready for implementation. At the same time, he expressed his confidence with the report’s conclusion that there will be continual development in the ICT sector amidst the global recession.
As the region’s leading managed ICT cluster, Dubai Internet City has to date registered more business partners into the free zone than in the first and second quarter of the previous year. As a pioneering destination that continues to propel the region’s sustained growth drive for the ICT sector, Dubai Internet City was awarded the prestigious fDi (Foreign Direct Investment) ‘Best Hi-tech Free Zone 2008-2009’ Award, firmly reiterating its status as a leading global destination for technology companies.
Malek Al Malek, Executive Director, Dubai Internet City also cautions that there are risks of IT projects being delayed due to effects of global recession
