KOM's Digital Nation & Hi-tech Cluster

Sponsored by Ericsson; Microsoft; Hewlett Packard; SAP Arabia; Nawras; Infoline; RealityCG; Omania e-Commerce; Times of Oman; Al Watan; and Oman Economic Review - the first seminar in the Digital Nation series - Your Mobile: the Next Frontier - was held 4 March and attracted over 180 delegates.

"The session was a huge success," said Susie Houh of Ericsson, "We're very excited about being part of this important initiative. I don't know of any similar ICT seminar program running in the Gulf - this is certainly unique to Oman."

The second seminar in the Digital Nation series is entitled: How to Ramp up Internet Usage. KOM's Director General, Mohammed Al Maskari is of the opinion that: "the quarterly seminars are helping raise awareness of ICT and KOM right across the country. We're tackling the important technology issues head on and we're attracting a great audience."

Since its opening in September 2003, KOM management have been working towards creating a hi-tech cluster on the Rusayl-based tech park. "With over 60 tenants we've the beginnings of a critical mass," said Al Maskari. But when you talk hi-tech clusters one immediately thinks of California's Silicon Valley. How can Oman replicate that kind of success?

First of all, it's important to define exactly what a hi-tech cluster is. "If we consider the US there's a lot of high-tech production, but they aren't necessarily tech clusters," claims Al Maskari. What differentiates a tech cluster is its ability to move to a second phase of economic development where entrepreneurs mobilize local labour talent and capital to start new firms. Many of these firms are formed as spin-offs by employees of existing companies or educational institutions in the area. "Silicon Valley has been doing this for years," says Al Maskari.

Oman doesn't have to be at the leading edge, however, to be successful in hi-tech. In recent years, the logistical needs of US-based hi-tech service industries have led to tech growth in smaller cities like Tulsa, Oklahoma, which has become a resource for existing tech clusters. Known as the Blue Collar Internet, local government encourages tech growth by developing transportation infrastructure such as roads and airports, higher education programs and building fibre optic networks.

"This is how we've approached the development of KOM - we've built Class A office accommodation, initiated a business incubator program, installed a fibre optic backbone throughout the Park and with Ernst & Young promoted entrepreneurship and innovation through our annual TKM - Ernst & Young Big Business Idea Competition."

But with rapid growth in hi-tech clusters outside the US how do firms determine in what cluster to locate? "We've found that our tenants are looking for an area that they believe will experience significant economic development 10-15 years into the future. Access to an educated labour pool and real estate prices are also a concern,' comments the KOM Director General.

A recent trend which excites Al Maskari is the return of experienced and highly-educated Omani entrepreneurs from overseas. 'We're seeing young Omanis with education and work experience investing in KOM and starting new firms. This is a very important development,' said Al Maskari.