1. Growing ICT Sector Employment Dr. Tony Murphy Vice President Gartner Information And Communications Technology for Sustainable Development Dec. 12/13 2004, Abu Dhabi

2. $40 billion ICT exports 2003 World’s second largest software exporter World ranking #3 per capita GDP World’s most globalised country last 3 years Foreign Policy Journal World’s most desirable place to live and work Economist Journal Ireland’s Achievements World’s #1foreign affiliates conducting R&D National Science Foundation Washington Population 3.5 million

3. Legislative Support High Value RD&C Managerial Skills Basic Requirements Competitive Differentiators Comms Infrastructure Cost Effectiveness World-class FDI and/or VC Funding Cultural Compatibility Basic Skills Comprehensive Co-ordination World-Class ICT Achievement International gaps widening

4. Developing Indigenous Software Enterprises VC Stock Listing Local Sales Services Low Margins International Sales Products Value Time

5. Success stories Cheaper labor Inhibitors Accelerators Geopolitical risk Process quality Need for speed Unknown countries Lack of infrastructure 3-shift work day — follow the sun Xenophobia Skills shortage Lose control Spread risk across geographies Offshore/FDI Accelerators and Inhibitors

6. Specific Challenges for the Arab Region “Mr. 10% syndrome” Undermines risk-taking and innovation Slow and bureaucratic approval processes Weak teamwork ethic Bad policies and decisions implemented by default Undermines competitiveness, deters external investors Team synergies not realised Authority figures unquestioned Symptom Impact

7. Specific Opportunities for the Arab Region Arab IT activities have a national rather than regional focus Economies of scale and feasibility of new forms of ICT initiatives Contact and support centres for Arab customers located externally Local/regional centres which can support other ICT opportunities Arabisation of software packages undertaken largely in Europe Special requirements for Islamic banking inadequately addressed Development/conversion of Arabic/Islamic content Establish localisation skills and reputation Move to modular and services- oriented international packages Tiny proportion of Web content is Arabic/Islamic DriversOpportunity

8. Closing Thoughts The ICT sector remains among the faster growing sectors globally “Bust a gut” to get a flagship project (major MNC) A policy of low wages and high financial inducements will not succeed long-term Success calls for planning, co-ordination between many stakeholders, and a target of continually rising up the value chain Other countries have shown what can be achieved in a short time - be positive and proactive