Dubai Internet City – Container House – china Roof System
Connectivity
On 13 April 2008, du (EITC) announced that all of its traffic would be routed via the UAE’s censorship proxy which blocks access to any content deemed ‘inappropriate’. du had been previously blocking VOIP services.
While Dubai Internet City sells itself as a business-friendly environment with excellent low cost connectivity, the reality is one of a heavily censored internet with prices that are 5-10 times the price of connectivity in Europe or the USA. In addition to webpage censorship, it is speculated that a variety of popular social networking services are blocked. VOIP systems such as Skype and SIPS are also blocked; the Telecoms Regulatory Authority says this is to protect consumers from ‘poor quality’ services, but the result is that many calls to abroad can only be made via the two state carriers’ telephone service, which is a significant source of revenue for the companies. Cheap calls to the UAE are not possible due to a termination charge of around 17p (UK, around 30 US cents) per minute imposed by the UAE phone networks. Internet connectivity in Dubai is expensive; a 0.5mbit home connection costs around 200 AED per month (about 45 USD). The minimum internet connectivity package available for businesses at DIC is a 2mbit connection with a 6GB monthly limit for around 800 AED (180 USD). Bandwidth beyond the 6GB limit is charged at a higher pro-rata rate than the first 6GB.
The UAE proxy can be bypassed by various methods including by setting up a VPN to connect securely to a server in another country to reduce the amount of Internet censorship, with the advantage that UAE authorities cannot ‘snoop’ on the traffic.[citation needed] While the UAE may block access to the web sites companies providing VPN services, it is possible[citation needed] to arrange overseas accounts. Such options significantly reduce costs as VOIP systems can be used; for companies who require access to services or content that is blocked, VPNs are a necessity.
Around 11.15 AM on January 30, 2008, a ship’s anchor apparently severed fibre optic cables between Palermo, Italy, and Alexandria, Egypt. Providers across the Middle East and as far as India and Pakistan were heavily affected with a significant slowdown of communications reported. The UAE telecommunications company and Dubai Internet City’s internet service provider du was one of the worst hit, having been completely inoperational for several hours. Since du has a monopoly in the Free Zones, customers had no alternative connectivity during the outage[citation needed].
History
Dubai Internet City, a member of Dubai Holding subsidiary TECOM Investments, opened its doors in October 2000.
Dubai Internet City (DIC) provides a knowledge economy ecosystem designed to facilitate the business development of Internet and Communications Technology (ICT) companies. It is the Middle East’s biggest ICT infrastructure, built inside a free trade zone.
DIC is a strategic base for companies targeting emerging markets in a vast region extending from the Middle East to the Indian subcontinent, and from Africa to the CIS countries, covering 2 billion people with a GDP of $6.7 trillion. Within a short span of time, a dynamic international community of ICT companies has established itself in Dubai Internet City.
The global ICT giants like Microsoft, Oracle Corporation, HP, IBM, Dell, Siemens, Canon, Logica, Sony Ericsson, Schlumberger[citation needed] and Cisco, as well as many small and medium enterprises and entrepreneurial ventures are based in DIC. The ICT cluster in Dubai Internet City comprises companies from sectors like software development, business services, e-commerce, consultancy and sales and marketing. Local bred technology companies like Ducont FZ LLC which was one of the earliest startups at DIC have showed that innovation is possible in the region and quite successful at that.
The cluster environment of DIC provides most elements of the value chain for an ICT business. In addition, it has developed programmes that can be leveraged by the ICT community to explore and expand channel and business development opportunities.
Economics
Dubai Internet City, like the whole of Dubai, has seen rapid growth, with the Emirate’s GDP rising at double digit rates. However, since 2003 inflation has climbed rapidly too, making real GDP growth significantly lower. The latest official government figures (2006) state inflation of 9.6%. By spring 2008, the level is somewhere over 10%, and approaching 20% according to the estimates of some international banks.[citation needed]
The government has implemented price controls on rent rises as well as fuel and basic commodities such as rice, but these cannot be viewed as effective long term anti-inflation measures in a market economy. The UAE has continued to reiterate the commitment to pegging its currency to a continually weakening dollar, which rules out significant interest rate rises – the accepted inflation-fighting tool in developed countries. Federal Reserve interest rate cuts of 1.25% in January 2008 have been mirrored by the UAE Central Bank, which is certain to fuel inflation further and weaken the currency.
In March 2008, DIC announced a rental increase to 180 AED per square foot – a 25% rise (the government’s rent cap on private landlords is 5% for 2008). The DIC statement accompanying the release said “operating costs have shot up recently due to economic growth in the region”. It made no mention of the decision by the UAE government in November 2007 to hike federal government employees salaries by 70%.[citation needed]. In late 2008, Dubai property prices began to crash heavily, falling by up to 50% over the next six months. Rents across the emirate fell heavily and many jobs were lost, particularly in real estate. Despite this, DIC rents have not been reduced as of December 2009. The present rent of 180 AED plus 20 AED service charge is roughly double the present rents available in the areas immediately outside DIC.
Location
Dubai Internet City is about 25 kilometers south of downtown Dubai city, on Sheikh Zayed Road between Dubai and Abu Dhabi. It is located adjacent to Dubai Marina, Jumeirah Beach Residence and the well-known Palm Jumeirah, areas which are rapidly becoming three of the most exclusive (and expensive) residential areas of Dubai. DIC is less than 1 km from the sea coast and is near several five star hotels.
See also
Dubai Media City
Dubai Studio City
Dubai Holding
SmartCity
Ras Al Khaimah IT Park
References
^ “du to filter web content”. Gulf News. 2008-04-14. http://archive.gulfnews.com/articles/08/04/14/10205529.html. Retrieved 2008-04-14.
External links
Dubai Internet City Official website
Dubai Internet City image gallery
Dubai Holding Official website
Dubai Internet City article
Dubai set to have the most expensive office rents in the world
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Coordinates: 250542 550936 / 25.095N 55.160E / 25.095; 55.160
Categories: 2000 establishments | Buildings and structures in Dubai | Economy of Dubai | Geography of Dubai | History of Dubai | Government-owned companies in the United Arab Emirates | Science and technology in the United Arab Emirates | Internet by country | Science parks | Special Economic ZonesHidden categories: Articles needing cleanup from October 2008 | All pages needing cleanup | Articles containing Arabic language text | All articles with unsourced statements | Articles with unsourced statements from October 2008 | Articles with unsourced statements from August 2008 | Articles with unsourced statements from August 2009
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