Education's vital development role (page 3 of 3)

The introduction of foreign real estate ownership in Dubai and the runaway success of the Emaar developments have further advertised the UAE's investor potential. And analysts view the creation of the Dubai International Financial Center as another example of Dubai's uncanny sense of business timing.

International investors, they claim, are rubbing their hands at the prospect of a genuine stock market hub between the bourses of Europe and Hong Kong.

Public institutions are also coming under the spotlight as moves towards greater financial transparency, legal protection and more effective arbitration gather pace. And, just as importantly, regional investment in human resources is starting to receive the priority it deserves.

Middle East business leaders signing the CEO Charter for Digital Development in September last year pledged 20 percent of budgets allocated to community or "corporate citizenship" projects to promoting greater computer literacy. Jordan has modeled itself as an IT education leader and recently announced a unique partnership, titled the "Jordan Education Initiative," between local authorities and business to reinforce information and communication technology learning in its schools.

Nearly 100 Jordanian schools have been identified as "test beds" for the scheme and 20 corporations, including the likes of Cisco and Microsoft, have pledged their support. Its patron, King Abdullah II, says that the program aims to nurture a culture of self-discovery and invention with the potential to transform the way in which Arab society harnesses the potential of its youth. Clearly, the implications for Jordanian and Arab entrepreneurship in general are profound.

There are an estimated 3.5 million Internet users in the region and the figure is expected to exceed 5 million by 2004. Twelve million people will be logged on by 2005. The UAE, in particular, is making its mark as an IT player and is ranked 19th for Internet penetration and 34th for PC usage in global ratings.

UAE business is capitalizing on this advantage. Dubai Internet City's Knowledge Village is tying up with local and international institutions to offer world-class vocational IT education as part of efforts to harness the economic potential of local IT literacy. Other GCC countries are adopting similar information technology education schemes.

Though proper education will sow the seeds of Arab entrepreneurial invention, adequate protection and representation is needed to ensure that fledging businesses grow. The creation of the Arab Business Council (ABC) at the World Economic Forum in June was a considerable step forward in improving the international profile and competitive edge of Arab industry. Grouping together more than 50 of the region's business leaders, the ABC will enhance cooperation and the sharing of ideas within the Arab corporate sector, and prepare the community for full integration within the global economy.

Road signs. Though there is a long way to go, the signs are encouraging. Investment flows within the Arab world increased by $2.4 billion in 2001, roughly half of all FDI into the region the year before. Though tragic, events in Iraq have served to focus the world's attention on the Middle East with a level of seriousness never seen before. This augurs well for investment, modernization and development, and the ultimate resolution of decades-old conflicts and injustices.

Cynics often describe Palestine as a country that never misses an opportunity to miss an opportunity, but the criticism arguably applies to much of the Arab world. When one considers the potential, resources and heritage of the region, it is tempting to ponder what might have been.
But as global leaders attending the World Economic Forum on the Dead Sea concluded, there is compelling evidence to show that the Middle East has begun a new and exciting chapter. Changing market conditions have made this progress imperative. There is no turning back.