1 June 09

2  Overview of the Project  Definition  Achievements  Survey Preparation  Survey Execution  Key Findings for Sectors  Households  Private Sector  Educational Sector (Educational & Higher Educational Establishments)  Public Sector  ICT Business Sector  Public Internet Access Centers (PIACs)

Information and Communications Technology (ICT) ICT is an umbrella term that includes all technologies for the manipulation and communication of information. It encompasses: Any medium to record information such as magnetic disk/tapes, CDs, DVDs, and flash memory Technology for broadcasting information such as radio and television Technology for communicating through voice and sound or images such as microphones, cameras, loudspeakers, and telephones 3

 The key objective of ICT Survey 2008 was to measure the status of access to and use of ICT in the UAE The surveys:  Allow for a more detailed picture to emerge of the status of ICT in the UAE  Allow the TRA to measure the status of the UAE in terms of the 48 ICT “core indicators” which were developed and endorsed by ITU, OECD, UNCTAD, UNESCO Institute for Statistics, the World Bank, and a range of UN Regional Commissions. Of the 48 core indicators, 33 rely on survey data and this survey has collected information on all 33 of these indicators  Enable the TRA to benchmark the UAE against any country that also has collected these indicators 4

 The most comprehensive ICT survey undertaken in region  Project consisted of 7 different surveys conducted over 6 months, covering the following sectors:  Households  Private Sector (which also includes businesses in the ICT sector)  Educational Establishments  Higher Educational Establishments  Public Sector  ICT Business Sector  Public Internet Access Centers (PIACs)  In all surveys, a sufficient sample size was taken to achieve statistical robustness 5

 BREADTH:  1,350 Households  1,510 Private Establishments  194 Educational Establishments  44 Higher Educational Establishments  154 Public Establishments  403 ICT Establishments  144 Public Internet Access Centers  DEPTH: The survey data can be disaggregated according to a large number of factors. To date, analysis has been undertaken at the following levels of disaggregation:  Private Establishments – small, medium and large businesses  ICT Businesses - small, medium and large businesses  Educational / Higher Educational Establishments – public and private institutions  Public Establishments – federal and non- federal establishments Wide range of analysis can be made Emirates, Rural/ Urban, Nationality, Age, Gender, Employee Size Core Indicators Other data points The survey results provides a rich and detailed set of information which can be analyzed at a highly disaggregated level (e.g. gender, emirate, age, etc) 6

Households Sample size: 1350 No. of Interviews: 2 1 Head of Household 1 Household Member

ICT in Households 74% of households have at least one computer 66% of households are connected to the Internet - This rate increases to 83% among Nationals 87% of household Internet connections are broadband - This increases to 95% among National households 72% of individuals accessed the Internet in the last 12 months, although not necessarily from the home 8

ICT Devices at Home  Based on TRA statistics, mobile penetration rate had reached 196% by the end of Penetration is measured by dividing active mobile subscriptions by the UAE total population  99 percent of households have at least one mobile phone in the household  Average of 4.3 mobiles for all UAE households  74 percent have at least 1 computer at home  60 percent have a desktop computer  52 percent have laptops  Average of 1.7 computers for all UAE households  57 percent have a fixed line telephone at home  94 percent have at least 1 TV that belongs to the household  Average of 1.7 TVs for all UAE households 9

Technology Used to Access the Internet At Home  66 percent of households have Internet connections at home  87 percent of these Internet households use broadband to access the Internet, while 13 percent use dial-up modem 10

11 Use of ICT Among Individuals Within the Household  96 percent had access to a mobile phone  72 percent had used the Internet in the last 12 months  74 percent (aged between 15 and 74) used a computer in their home in the last 12 months

Frequency of Internet Use  Of those who use the Internet, 78 percent use the Internet on a daily basis while 18 percent use it at least once a week 12 Frequency of Individuals’ Internet Use

Location of Internet Use  Of those who use the Internet, 87 percent accessed the Internet from home 13 Location of Individuals’ Internet Use

Satisfaction with the Telecommunications Service Operators IndicatorsPercentage Have noticed improvements in the telecommunication service operators’ prices over the past year or two 65% Have noticed increases in the availability of more services and offers over the past year or two 71% Satisfied with the quality of telecommunications and internet services in the UAE89% Satisfied with the telecommunication service operators’ current prices 91% Satisfied with the telecommunication services’ current service offerings96% Satisfied with telecommunications service operators’ customer service levels 92% 14

Key Findings Private Sector Sample size: 1510 No. of Interviews: 5 1 Company Representative 4 Employees

16 Business Size Categories Businesses have been categorized according to their number of employees. For the purpose of this analysis, the category sizes selected by the group that developed the 48 core ITU indicators were adopted:  Small: employees (36 percent of all businesses)  Medium: employees (28 percent of all businesses)  Large: 250 or more employees (36 percent of all businesses)

Businesses with a website  83 percent have their own website, with a “.ae” domain being the most popular choice 17 Businesses with a computer  97 percent of business have at least 1 computer Type of Website

Businesses with a website 18 Businesses with at least one computer  Small – 92 percent  Medium – 100 percent  Large – 100 percent Type of Website

Businesses with a network  50 percent of businesses make use of Local Area Network (LAN) 19

Businesses with a network 20

Businesses Using the Internet by Type of Connection  92 percent have some form of Internet connection. Of the different types of connections, Digital Subscriber Line (DSL) is the most popular (48 percent) 21

Businesses Using the Internet by Type of Connection 22

Internet Use by Type of Activity  and Search activities ranked at the top of list of activities that were undertaken by private sector establishments on the Internet 23

Internet Use by Type of Activity 24

Online Purchases  29 percent have made online purchases  Of these businesses, 79 percent have conducted transaction via web-sites Businesses were able to select multiple methods of receiving and placing orders via internet EDI - Electronic Data Interchange. Online Sales  26 percent have made online sales  Of these businesses, 81 percent received their sales orders using their own web-sites 25 Online Transactions

Businesses were able to select multiple methods of receiving and placing orders via internet EDI - Electronic Data Interchange. Online Sales 26 Online Transactions

Online Purchases Businesses were able to select multiple methods of receiving and placing orders via internet EDI - Electronic Data Interchange. 27 Online Transactions

Educational & Higher Educational Establishments Sample size: 194 & 44 No. of Interviews: 7 1 Administrator 2 Teachers 4 Students

29 Educational Sector Categories For the purpose of this analysis, data for the educational sector is presented according to the following breakdowns:  Educational Establishments: Primary and Secondary Schools  Public (63% of educational establishments)  Private (37% of educational establishments)  Higher Educational Establishments  Public (9% of higher educational establishments)  Private (91% of higher educational establishments)

ICT In Educational and Higher Educational Establishments  Most Educational and Higher Educational Establishments are well-endowed with ICT 30

ICT In Educational Establishments – Public/Private 31

ICT In Higher Educational Establishments – Public/Private 32

Computers In Educational and Higher Educational Establishments Educational Higher Educational Average Number Of Laboratory Computers38280 Students To Laboratory Computers Ratio17:13:1 33 Educational Higher Educational Students with at least 1 mobile phone 67%100% Teachers with at least 1 mobile phone98 %92% Mobile Phones

Computers In Educational Establishments – Public/Private PublicPrivate Average Number Of Laboratory Computers4036 Students To Laboratory Computers Ratio12: 128: 1 34 PublicPrivate Students with at least 1 mobile phone66%67% Teachers with at least 1 mobile phone99%96% Mobile Phones in Educational Establishments – Public/Private

Computers Higher Educational Establishments – Public/Private PublicPrivate Average Number Of Laboratory Computers1, Students To Laboratory Computers Ratio4: 35: 1 35 PublicPrivate Students with at least 1 mobile phone100% Teachers with at least 1 mobile phone100%91% Mobile Phones in Higher Educational Establishment – Public/Private

Use of Internet by Students and Teachers in Educational Establishments Educational Higher Educational Students who use the Internet at school83%86% Students who use the Internet at home86%98% Students who use the Internet from any location 98%100% Students’ most common Internet activityEntertainment Teachers who use the Internet at school71%94% 36

Use of Internet by Students and Teachers in Educational Establishments – Public/Private PublicPrivate Students who use the Internet at school87%80% Students who use the Internet at home87%86% Students who use the Internet from any location 97%99% Students’ most common Internet activity Entertainment (88 percent) Entertainment (84 percent) Teachers who use the Internet at school80%55% 37

Use of Internet by Students and Teachers in Higher Educational Establishments – Public/Private PublicPrivate Students who use the Internet at school75%100% Students who use the Internet at home100%95% Students who use the Internet from any location 100% Students’ most common Internet activity Entertainment and (both 100%) Information Search (87%) Teachers who use the Internet at school88%95% 38

Top 4 Activities Undertaken by Students on the Internet 39 Top 4 Activities EducationalHigher Educational 1 st 86% Entertainment (e.g. games, music) 94% Sending & receiving s 2 nd 79% Information search 86% Entertainment 3 rd 59% Sending & receiving s 84% Information search 4 th 26% Getting information on products & services 68% Getting information on products & services

Top 4 Activities Undertaken by Educational Students on the Internet – Public/Private 40 Top 4 Activities PublicPrivate 1 st 88% Entertainment (e.g. games, music) 84% Entertainment (e.g. games, music) 2 nd 72% Information search 85% Information search 3 rd 52% Sending & receiving s 66% Sending & receiving s 4 th 28% Getting information on products & services 24% Getting information on products & services

Top 4 Activities Undertaken by Higher Educational Students on the Internet – Public/Private 41 Top 4 Activities PublicPrivate 1 st 100% Entertainment (e.g. games, music) 87% Information search 2 nd 100% Sending & receiving s 86% Sending & receiving s 3 rd 81% Information search 69% Entertainment (e.g. games, music) 4 th 81% Getting information on products & services 52% Getting information on products & services

Students with Technology 42

Educational Students with Technology – Public/Private 43

Higher Educational Students with Technology – Public/Private 44

Students’ Use of Technology 45

Educational Students’ Use of Technology – Public/Private 46

Higher Educational Students’ Use of Technology – Public/Private 47

Educational Higher Educational Teachers with specialized training in ICT for instructional purposes 90%98% Teachers using ICT Tools during instructions 89%98% Teachers using computers for administrative purposes 92%99% Teachers’ Training in ICT  The vast majority of teachers are trained to use ICT for instructional purposes 48

PublicPrivate Teachers with specialized training in ICT for instructional purposes 95%81% Teachers using ICT Tools during instructions 96%78% Teachers using computers for administrative purposes 93%90% Educational Establishments Teachers’ Training in ICT – Public Private 49

PublicPrivate Teachers with specialized training in ICT for instructional purposes 100%98% Teachers using ICT Tools during instructions 100%98% Teachers using computers for administrative purposes 100%99% Higher Educational Establishments Teachers’ Training in ICT – Public Private 50

Internet Connections in Educational Establishments  93 percent of Educational Establishments have some form of Internet connection  Digital Subscriber Line (DSL) is the most commonly used technology for accessing the Internet 51

Internet Connections in Educational Establishments – Public/Private 52

Internet Connections in Higher Education – Public/Private 53

Public Sector Establishments Size: 154 No. of Interviews: 7 1 Administrator 6 Employees

55 Public Sector Categories Public Sector establishments have been categorized as follows:  Federal (28% of all Public Sector establishments)  Non-Federal (72% of all Public Sector establishments)

Summary of Results Percentage With an Internet Connection97% Collecting statistics on Customer Satisfaction of their Online Services66% Staff to Computer Ratio3:2 Staff Using computer within last year at work93% Staff working in ICT related jobs41% Staff with ICT skills63% Employees routinely using the Internet at work 86% 56

Summary of Results FederalNon Federal With an Internet Connection98%97% Collecting statistics on Customer Satisfaction of their Online Services 74%62% Staff to Computer Ratio1: 13: 2 Staff Using computer within last year at work93%94% Staff working in ICT related jobs22%44% Staff with ICT skills59%64% Employees routinely using the Internet at work 88%86% 57

Websites  84 percent of Public Establishments have a website with a.ae domain  5 percent of Public Establishments have a website in another domain 58

Websites – Federal/ Non Federal 59

Type of Online Services  46 percent of Public Establishments offer online Information  14 percent offer online Transactions Type of Internet Connections Used  97 percent of Public Establishments reported having an Internet connection  DSL is the most commonly used (62 percent) Type of Internet Connections

ICT Business Sector Sample size: 403 No. of Interviews: 5 1 Company Representative 4 Employees

63 ICT Business Size Categories  Small: employees (73 percent of all ICT)  Medium: employees (21 percent of all ICT)  Large: 250 or more employees (6 percent of all ICT)

ICT Business Sector Organization Level Have a computer99% With Internet access99% Have a website92% Have made online purchases25% Have made online sales16% Employee Level Staff Using computer within last year at work 95% Use Internet routinely at work97% 64

SmallMediumLarge Organization Level Have a computer99% 100% With an Internet connection98%100% Have a website91%100%92% Have made online purchases23%37%20% Have made online sales16%19%12% Employee Level Staff Using computer within last year at work 94% 98% Use Internet routinely at work97% 98% 65

ICT Businesses with a website 92 percent have their own website, compared to 83 percent in total Private Sector 66 ICT Businesses with a computer  99 percent of ICT businesses have at least 1 computer, as compared to 97 percent in the Private Sector Type of Website

ICT Businesses with a website 67 ICT Businesses with a computer  Small – 99 percent  Medium – 99 percent  Large – 100 percent Type of Website

ICT Businesses with a Network  55 percent of businesses make use of Local Area Network (LAN) 68

ICT Businesses with a Network 69

Businesses Using the Internet by Type of Connection  99 percent have some form of Internet connection, with Digital Subscriber Line (DSL) being the most popular (70 percent) 70

Businesses Using the Internet by Type of Connection 71

Internet Use by Type of Activity  and Search activities ranked at the top of list of activities that were undertaken by ICT Businesses on the Internet 72

Internet Use by Type of Activity 73

Online Purchases  25 percent of ICT businesses have made online purchases (compared to 29 percent in the total Private Sector) Businesses were able to select multiple methods for receiving and placing orders via the Internet EDI - Electronic Data Interchange Online Sales  16 percent of ICT businesses have made online sales (compared to 26 percent in the total Private Sector) 74

Businesses were able to select multiple methods for receiving and placing orders via the Internet EDI - Electronic Data Interchange Online Sales 75

Online Purchases Businesses were able to select multiple methods for receiving and placing orders via the Internet EDI - Electronic Data Interchange 76

Public Internet Access Center Sample size: 144 No. of Interviews: 3 1 Company Representative 2 Employees

Types of PIACs  There were over 1,400 PIACs in the UAE in 2008  86 percent of PIACs are Internet Cafés  On average, 57 customers per day visited each PIAC  On average, each visit lasts 1.7 hours 78

INTERNATIONAL BENCHMARKS

International Benchmarks  The ICT survey data, combined with other data the TRA has collected from the industry in the UAE, has been benchmarked against a range of countries and used as basis for analyzing the relative position of the UAE in the ICT sector  The following slides provide an illustration of how the UAE compares with other countries throughout the region and the world in relation to various ICT indicators  Comparisons were made using 2007 data as this was the most up to date data available for majority of the benchmarked countries 80

International Benchmarks – 2007 Data 81

International Benchmarks – 2007 Data 82

International Benchmarks – 2007 Data 83

International Benchmarks – 2007 Data 84

International Benchmarks – 2007 Data 85

International Benchmarks – 2007 Data 86

International Benchmarks – 2007 Data 87

International Benchmarks – 2007 Data 88

International Benchmarks – 2007 Data 89

International Benchmarks – 2007 Data 90

International Benchmarks – 2008 Data 91 Internet penetration rates in the UAE are similar to that of Europe World RegionPopulation (2008 Est.) Internet Penetration (% Population) UAE4,621, % Africa975,330,8995.6% Asia3,780,819, % Europe803,903, % Middle East196,767, % North America337,572, % Latin America/ Caribbean 581,249, % Oceania/ Australia34,384, % Source: Internet usage information was obtained from data published by Nielsen Online, the ITU, GfK, local regulators and other reliable sources. Population figures are based on data from the US Census Bureauwww.internetworldstats.com

International Benchmarks – 2008 Data 92 Overall Internet penetration rates (dial-up plus broadband) in the UAE are the highest in the region CountryPopulation (2008 Est.)Internet Penetration (% Population) UAE4,621, % Bahrain718, % Iraq28,221,1811.0% Jordan6,198, % Kuwait2,596, % Lebanon3,971, % Oman3,311, % Palestine (West Bk.)2,407, % Qatar824, % Saudi Arabia28,146, % Yemen23,013,3761.4% Source: Internet usage information was obtained from data published by Nielsen Online, the ITU, GfK, local regulators and other reliable sources. Population figures are based on data from the US Census Bureauwww.internetworldstats.com

International Benchmarks – 2008 Data 93 The UK conducted a household survey in 2008 comparable to the one undertaken in the UAE. Assessment of the results reveals that many similarities exist in terms of levels of access to and use of the Internet within the two countries UAEUK Households with Internet66%65% Households with Broadband57%56% Frequency of Internet Use: Everyday 78%69% Frequency of Internet Use: Once a week (but not every day) 18%22%

International Benchmarks 94 A number of other recently published international studies emphasize the UAE’s favorable performance from an international perspective across various ICT indicators. A summary of the results of various studies are set out below Networked Readiness Index (NRI) study, World Economic Forum  The UAE ranked the first of all the Arab states in the Networked Readiness Index (NRI) study, and 29th among all 127 countries assessed. The NRI measures the capacity of an economy to fully leverage ICT for increased competitiveness and development  The UAE ranked first among the Arab states in terms of: internet user rates, international internet bandwidth capacity, the importance of ICT to government vision of the future, personal computers rates, ICT use and government efficiency, e-government readiness index, government prioritization of ICT, laws relating to ICT, and the number of telephone lines.  Internationally, the UAE was found to have the lowest residential monthly fixed telephone subscription charges and the lowest cost of mobile telephone calls (along with Egypt, Italy and Hong Kong).

International Benchmarks 95 Measuring the Information Economy, ITU In this study, the ITU developed an ICT Development Index (IDI) which combines 11 indicators into a single measure to assess the level of ICT development within a country. Key findings from this study include the following:  The UAE has the highest mobile penetration rates in the world  The UAE ranked the highest of all the GCC and Arab states in the ICT Development Index, the IDI Infrastructure and Access sub-index, and the IDI Use sub-index  The UAE recorded the fourth highest growth in ICT between 2002 and 2007 of all 154 countries examined in the report  The UAE ranked 6th in the world in the ICT Price Basket measure. The ICT Price Basket measures the sum of the 2008 prices of fixed telephony, mobile and fixed broadband Internet as a percentage of a country’s monthly Gross National Income (GNI) per capita  The UAE ranked 3rd in the world in the fixed-telephony sub-basket, which measures the 2008 prices of fixed telephony as a percentage of GNI per capita, and 6th in the world for the mobile sub-basket

International Benchmarks 96 United Nations e-Government Survey 2008 Results from this study showed that that UAE is:  The top ranking Arab state in terms of e-readiness  The top Arab state in the web-measure index which assesses the extent to which governments are providing e-government policies, applications and tools, and the 12th in the world  The fifth highest ranking country in the world in terms of transactional services

End of Brief 97