TH I S I S W H E RE T H E W I L D ON E S L I VE f o u r- l e g g e d , b l a c k - s p o t t e d , tall-necked and untamed, you meet them under acacia trees and over cups of coffee in your private villa. A s y o u e m b a r k o n s a f a r is i n t h i s c o n s e r v a t i o n re s e r v e a n d e x p l o re t h e r u i n s o f w o r l d s l o n g f o rg o t t e n , you will come face-to-face w i t h y o u r c h i l d h o o d d re a m s .
YOUR E X T RAORDI NA RY STORY
S i r B a n i Ya s I s l a n d . v i s i t a b u d h a b i . a e
Strategic Partnerships for Better Health Dubai Healthcare City celebrates a decade of integral collaboration with its partners to deliver high quality integrated healthcare & wellness.
dhcc.ae | 800 Health
06
Building a Knowledge Economy - UAE VISION 2021
CONTENTS 12 Foreword Ambassador of the United Arab Emirates to the Court of St. James, HE Sulaiman Hamid Almazroui.
Building a Knowledge Economy How the Vision 2021 strategy will transform the UAE into a knowledge-based economy.
30
34
Emiratisation: Generation Next UAE authorities are intent on increasing the number of nationals working in the private sector.
A Solar Energy Powerhouse The UAE is positioning itself as a global leader in the development of affordable solar capacity.
Delivering World Expo 2020 Expo 2020 Dubai will play a key role in delivering the main tenets of Vision 2021.
Aviation: Dubai Dubai has rapidly evolved into a global aviation powerhouse, driving economic growth in the UAE.
46 Aviation: Abu Dhabi Abu Dhabi’s massive investments in aviation infrastructure is putting the capital on the map.
Transport: Metro & Rail The UAE has earmarked metro and rail projects as vital infrastructure developments.
UAE VISION 2021 - Building a Knowledge Economy
07
CONTENTS 56
66
Transport: Ports & Shipping In Jebel Ali Port and Khalifa Port, the UAE boasts two of the world’s most advanced ports facilities.
Technology: R&D Investments The UAE is investing heavily in the research and development of cutting-edge technologies.
Telecommunications: 5G services UAE telecom giants Etisalat and du are racing to develop the region’s first 5G mobile services.
70
76
78
Special Report: Dubai Smart City How Dubai plans to establish itself as the world’s most technologically advanced city by 2021.
Visa and Dubai Smart City How Visa is playing a role in Dubai’s emergence as the world’s smartest city.
UAE: Stepping into the Future How the UAE is working to position itself as a global hub for the knowledge-based economy.
82
86
Education: Knowledge is Power How the UAE is striving to establish an innovative, world-class education system.
In Focus: KHDA Dr Abdullah Al Karam, director general of the Knowledge and Human Development Authority.
UAE VISION 2021 - Building a Knowledge Economy
09
Published by: GT MEDIA ME Publisher: Khaled Algaay Editor: Aaron Greenwood Art Director: Steven Castelluccia Designer: Sara Al Yahya Business Development: Tom Kennedy Contributors: Tom Kenning Matthew Martin Gemma Greenwood
CONTENTS
94 Healthcare Innovations The UAE is a world leader in the provision of advanced healthcare treatments and therapies.
010
In Focus: Dubai Healthcare City How this healthcare free zone is playing a key role in the UAE’s economic development.
An official publication of the Embassy of the United Arab Emirates in London Published by
100
104
20-22 Wenlock Road, London N1 7GU, United Kingdom Telephone: +44 207 608 5137 www.gtmediame.com
Water Resource Management The UAE is leading the development of clean-energy desalination processes worldwide.
Financing Innovation How the UAE is identifying and funding new ideas that will change the way we live and work.
110
114
Space: The Next Frontier An interview with HE Dr. Khalifa Al-Romathi, chairman of the UAE Space Agency.
Cultural Capital The UAE is fast gaining a reputation as the Middle East region’s cultural hub.
Copyright 2016. The entire contents of this publication are protected by copyright. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means: electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher. The views and opinions expressed by independent authors and contributors in this publication are provided in the writers’ personal capacities and are their sole responsibility. Their publication does not imply that they represent the views or opinions of the Government of the United Arab Emirates or GT Media ME and must not be regarded as constituting advice on any matter whatsoever, nor be interpreted as such. The reproduction of advertisements in this publication does not in any way imply endorsement by the Government of the United Arab Emirates or GT Media ME of products and services referred to therein.
Building a Knowledge Economy - UAE VISION 2021
LETTER FROM THE AMBASSADOR
BUILDING A KNOWLEDGE ECONOMY
T
he United Arab Emirates is committed to forging a unique and innovative path towards long-term economic diversification. Central to its ambition is UAE Vision 2021, an ambitious economic and social strategy that aims to transform the country into one of the world’s advanced economies by 2021. UAE authorities have committed to one of the world’s most ambitious investment strategies to realise this vision. More than AED300 billion (£65 billion) is being spent developing key growth sectors including education, technology, transportation, healthcare, renewable & clean energy, water and space exploration. Our collective aim is to accelerate development in each sector by 2021 – the year we celebrate our Golden Jubilee as a nation. This will mark a fitting tribute to the UAE’s founding fathers who came together to forge the country’s union in 1971. Through these landmark investments, the UAE aims to not only become the region’s most innovative economy, but also position itself as a pioneer in the development of cutting-edge social, economic and technological advancements that will benefit all mankind. Importantly, the private sector has a crucial role to play in the country’s transformation into an innovative, knowledge-based economy. This publication provides comprehensive insight into National Innovation Strategy priority sectors and opportunities for foreign investors – from SMEs to multinational corporations – to embrace Vision 2021 and play an important role in the UAE’s most ambitious project to date. We welcome their involvement and look towards the future with pride in the knowledge our nation is forging a unique path that will benefit many generations to come. Sulaiman Hamid Almazroui Ambassador of the United Arab Emirates to the United Kingdom
UAE VISION 2021 - Building a Knowledge Economy
011
BUILDING A KNOWLEDGE ECONOMY
UAE VISION 2021 BUILDING A KNOWLEDGE ECONOMY Despite accounting for around eight percent of the world’s known oil reserves, the UAE already ranks as one of the Middle East’s most diversified economies, and is widely recognised as an emerging global hub for investment, trade, tourism and transport. UAE Vision 2021 aims to further promote these sectors and others to create a truly diversified, advanced economy that places innovation at its core
012
Building a Knowledge Economy - UAE VISION 2021
“This Vision charts the next stage of our journey leading up until the year 2021, when we will celebrate the golden jubilee of our beloved union … As we look to the future and embark on a journey of empowerment at all levels, we must steer a course among challenges on many fronts with confidence, optimism and determination. We are determined to respond proactively to all challenges in a way that will bequeath to the future generations a legacy worthy of the pioneers who founded our great nation, a legacy defined by prosperity, security, stability and a life filled with dignity and respect” HH SHEIKH MOHAMMED BIN RASHID AL MAKTOUM, VICE-PRESIDENT AND PRIME MINISTER OF THE UAE AND RULER OF DUBAI, OUTLINING UAE VISION 2021
UAE
Vision 2021 was officially launched in 2010 with the aim of accelerating the UAE’s rise to becoming one of the world’s most advanced nations by promoting innovation through all of its social and economic endeavours. The Vision places emphasis on six core national priorities: social cohesion, the economy, education, justice, healthcare, and the environment. The UAE aims to meet its strategic goals in each sector by 2021 – the year it celebrates its Golden Jubilee – marking a fitting tribute to the UAE’s founding fathers who came together to forge the country’s union in 1971. The country is investing more than AED300 billion ($81 billion) in a bid to realise its ambitions; a figure that represents one of the largest investment programmes ever committed by
a national government to promoting economic diversification. Central to the UAE’s plans is the National Agenda — a comprehensive roadmap for development that was created in consultation with more than 300 officials from 90 federal and local government entities. At the core of the National Agenda lies one of the most comprehensive performance benchmarking regimes ever initiated by a government anywhere in the world. All government authorities have been charged with meeting the ambitious goals of the National Agenda, which are designed to raise standards across every sector of the economy, drive innovation, and improve the well-being and happiness of UAE citizens and residents. With the implementation of the National Agenda and its subset, the National Innovation Strategy, the country has set forth its long-term ambitions for the creation of an advanced, knowledge-based economy.
UAE VISION 2021 - Building a Knowledge Economy
013
BUILDING A KNOWLEDGE ECONOMY / DRIVING INNOVATION
UAE NATIONAL INNOVATION STRATEGY
“The National Innovation Strategy is a national priority, a primary tool to achieve our 2021 Vision and an engine for the growth of distinctive skills and capabilities across the nation. We have always called for creativity in every field, this strategy is a concrete step to implement that vision. These initiatives around innovation will enhance quality of life in the UAE and take our economy to new horizons”
“These next seven years will be very important years in the UAE’s march of progress and development, during which we will work hard and dedicatedly to achieve the goals that we set in an ever-changing world. Development will be rapid, projects and initiatives will be launched, and great achievements and challenges lie ahead” HH SHEIKH MOHAMMED BIN RASHID AL MAKTOUM, VICE PRESIDENT AND PRIME MINISTER OF THE UAE AND RULER OF DUBAI, OUTLINING UAE VISION 2021
014
Building a Knowledge Economy - UAE VISION 2021
>INNOVATION PRIORITY SECTORS UAE authorities are committed to promoting innovation across six key economic growth sectors
RENEWABLE & CLEAN ENERGY The UAE is investing heavily in renewable and clean energy production to meet its environmental sustainability goals. From solar power to nuclear energy capacity, the country is positioning itself as a global leader in the development of safe, clean and affordable energy. DID YOU KNOW? Abu Dhabi is constructing the world’s largest concentrated solar thermal power plant in the Middle East at Madinat Zayed, about 120km south-west of Abu Dhabi City. The 100MW plant, known as Shams, features 258,000 parabollic solar mirrors.
“Abu Dhabi is investing and incubating a new energy industry, domestically and internationally … From precious hydrocarbon exports to sophisticated renewable energy systems, we are balancing the energy mix and diversifying our economy — moving toward a more sustainable future. Today, the UAE is the only OPEC nation delivering both hydrocarbons and renewable energy to the international market” DR. SULTAN AHMED AL JABER, CEO OF MASDAR
TRANSPORTATION The UAE is home to two of the world’s fastest growing international airlines (Emirates, Etihad Airways), the world’s largest airport by international passenger capacity (Dubai International) and world-class ground-handling, cargo and logistics centres. It is also home to two of the region’s largest seaports, and is the Middle East and North African region’s most important re-export hub. UAE authorities have committed to further large-scale infrastructure investments that will aid the growth of the country’s transport and logistics sector and spur broader economic development. DID YOU KNOW? Dubai International Airport (DXB) welcomed 78 million passengers in 2015, making it the world’s largest air hub by international passenger traffic.
“By 2023 we believe 118 million passengers will pass through DXB, the highest throughput of any airport in the world in terms of square metres” DUBAI AIRPORTS CEO PAUL GRIFFITHS
UAE VISION 2021 - Building a Knowledge Economy
015
BUILDING A KNOWLEDGE ECONOMY / DRIVING INNOVATION
“Our interest in the education sector and making it a top priority stems from our belief that the progress and welfare of any nation starts with the development of its educational systems” HH SHEIKH MOHAMMED BIN RASHID AL MAKTOUM, VICE PRESIDENT AND PRIME MINISTER OF THE UAE AND RULER OF DUBAI
TECHNOLOGY From cutting-edge telecommunications networks to advanced technology research centres, the UAE already boasts the region’s most advanced knowledge-based infrastructure. It now wants to become a global leader in the development of next-generation innovations, from semiconductors and nanotechnology to artificial intelligence and 3D printing applications. DID YOU KNOW? The UAE officially opened the world’s first 3D-printed building in Dubai in May, 2016. Housing the Museum of the Future, the building was constructed using a massive 3D printer in just 17 days.
“This project reflects the vision of our leadership here in Dubai. We are keen to use the latest technologies to simplify people’s lives and to serve them better. [It] is part of our overall innovation strategy to create new designs and new solutions in education, healthcare and cities. Our goal is to increase the happiness and well-being of our residents and to pioneer new solutions for the world” HE MOHAMMED AL GERGAWI, CHAIRMAN OF THE UAE NATIONAL INNOVATION COMMITTEE, HAILING THE OPENING OF THE WORLD’S FIRST 3D PRINTED BUILDING IN DUBAI
016
Building a Knowledge Economy - UAE VISION 2021
EDUCATION The UAE education sector is already recognised as the best-performing in the Arab World. Massive government investment and a rigorously enforced international benchmarking regime has seen standards improve dramatically in the past decade. However, as part of Vision 2021, the government has set ambitious targets for further improvement, which if realised, will see the country’s education sector rank among the world’s best. Central to these ambitions is the implementation of innovative curricula aided by the latest technologies, providing students with the necessary skills to thrive in the 21st century. DID YOU KNOW? The UAE government is investing huge sums to position the country as a world-leader in education provision. According to Alpen Capital’s GCC Education Industry Report for 2016, the UAE allocated 21.2 percent of its federal budget to education in the current calendar year, compared to an average 15.6 percent across the GCC and a paltry 4.2 percent in the United States.
HEALTHCARE The UAE is striving to become a world-leader in the provision of advanced healthcare services and the development of cutting-edge medical treatments. The National Innovation Strategy will focus on the development of ground-breaking medical technologies that will revolutionise patient treatments. From telemedicine services to smart healthcare applications and biomedical innovations, the UAE is pioneering the next-generation of healthcare. DID YOU KNOW? Industry regulator Dubai Health Authority estimates that the value of 3D-printed medical products in Dubai will reach AED1.3 billion ($350 million) by 2025. It recently announced a range of ambitious goals in the sector, including the stated aim of producing prosthetic limbs based on 3D printing technologies for less than AED400 ($108) by 2025. “We [will] produce ceramic teeth in less than 20 minutes, use 3D printing in orthopaedic surgeries and create 3D-printed casts, which will speed the healing process of patients by 40 to 80 percent,” Humaid Al Qatami, chairman of the board and director general of DHA told reporters earlier this year.
“Dubai has emerged as one of the top healthcare destinations globally. The Emirate has an advanced healthcare system with numerous hospitals and primary healthcare centres offering state-of-theart medical technologies and services that match international standards. The city has also developed two healthcare free zones, Dubai Healthcare City and Dubai Biotechnology and Research Park, to meet the demand for high-quality care” ALPEN CAPITAL’S GCC HEALTHCARE INDUSTRY 2016 REPORT
WATER Water is one of the UAE’s most precious – and scarce – commodities. The National Innovation Strategy aims to find new solutions to securing water supplies in the UAE and addressing the global water scarcity challenge through the development of new, efficient and environmentally sustainable water desalination and purification processes. Through a series of Public-Private Partnership (PPP) initiatives, the UAE aims to commercialise the most promising technologies for local and regional implementation. DID YOU KNOW? Abu Dhabi’s Masdar Institute is viewed as a world leader in the field of clean energy-based, desalinated water production. In 2013, the scientific organisation launched a pilot programme that saw the development of four desalination plants that are currently trialling a range of innovative approaches to clean-energy desalination. Masdar says at least half the technologies being trialed have not been commercialised or used on a utility scale anywhere in the world.
“Our aim is to improve energy efficiency for desalination plants and have all of them 100 per cent-powered by renewable energy in the long run” MOHAMMED EL RAMAHI, ASSOCIATE DIRECTOR OF MASDAR
UAE VISION 2021 - Building a Knowledge Economy
017
BUILDING A KNOWLEDGE ECONOMY / DRIVING INNOVATION
INNOVATION CHAMPIONS
Creating a culture of innovation at a grassroots level
T SPACE To date, the UAE has invested more than AED20 billion ($5.5 billion) in the creation of a viable space industry. In addition to successfully launching and operating a network of advanced communications satellites, the UAE is currently developing the largest national space centre in the Middle East and North African region in Abu Dhabi, which will include a rocket launch site for space exploration. Under the guidance of the UAE Space Agency, the country is striving to create history by becoming the first in the Islamic world to send an unmanned probe to Mars by 2021. DID YOU KNOW? More than 70 Emirati engineers and scientists are currently working on the development of the UAE’s Mars exploration project. This figure is expected to swell to 150 by 2020.
“With any interplanetary mission, there are significant technical challenges surrounding a successful launch, which is preceded by long periods of testing and calibrating all aspects of the probe … Having generated significant scientific and engineering specialisation in this manner, we are confident that all the teams involved with the launch stand the best chances of success” HE DR. KHALIFA AL-ROMAITHI, CHAIRMAN OF UAE SPACE AGENCY
018
Building a Knowledge Economy - UAE VISION 2021
he UAE aims to promote innovation by nurturing the next generation of entrepreneurs, institutions and corporations through the creation of an ecosystem that provides funding, training and mentoring services to the most talented candidates. Through the National Innovation Strategy, the UAE aims to create a ‘culture of innovation’, which will transform the very nature of the country’s economy and society. With the creation of specialised high-tech freezones, incentives will be offered for international organisations to establish a foothold in the UAE and help promote this new era of innovation. The public sector will also be encouraged to embrace the strategy by focusing on creating efficiencies across every government department and developing innovative services. Public sector employees will be encouraged to generate innovative ideas. In 2014, HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, launched the Mohammed bin Rashid Centre for Government Innovation. The centre aims to encourage innovation in the public sector and oversee the development of innovation labs in conjunction with government entities. “Winning the competitiveness race and delivering strong government do not depend on money or resources. It is ideas that make the difference,” HH Sheikh Mohammed said during the opening of the centre. The facility recently welcomed its first international technology incubator in the form of the Washington D.C.-headquartered 1776. The new campus, known as 1776 Dubai, is the first of its kind to be established in the Middle East and North African region. 1776 Dubai, as well as the Dubai Future Foundation’s Dubai Future Accelerators (DFA) programme, were both inaugurated by HH Sheikh Mohammed in October.
DUBAI FUTURE ACCELERATORS
Putting technological innovation to the test
T
he AED1 billion ($270 million) Future Accelerators Programme is designed to transform Dubai into a global innovation hub by using the city as a test bed for world-first technologies and applications. The scheme pairs Dubai government departments with private enterprises in a bid to research and develop innovative solutions to 21st century challenges. “Our goal is to redefine the government’s role, whereby government entities are no longer mere operational units, but rather centres for planning the future and catalysing global innovation,” says HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. More than 30 of the world’s most advanced technology companies have been selected in the initial programme. Participants include Hypeloop One, which is developing a new supersonic mode of ground transportation; Next, a modular mass transportation initiative; ConsenSys — the world’s largest Ethereum blockchain software company; Construction Robotics, which is innovating new construction processes; and Honeywell, which is developing at-home, e-healthcare solutions. Commenting on the initiative, HE Mohammed Al Gergawi, vice chairman of the Dubai Future Foundation, said: “The UAE government has invited the world to help transform the future. We believe together we can co-create solutions to global challenges and then share them with the world. We are proud to have some of the world’s most-advanced companies participating in our inaugural programme.”
DID YOU KNOW?
The initial phase of the Future Accelerators Programme attracted more than 2,000 applications from 73 countries across seven continents.
“The UAE embarks on a new era, one where we establish a government that proactively plans for the future, and sets a future-focused economic example for the world, setting both the plans and the tools to achieve them in the process” HH SHEIKH MOHAMMED BIN RASHID AL MAKTOUM, VICE PRESIDENT AND PRIME MINISTER OF THE UAE AND RULER OF DUBAI, SPEAKING AT THE LAUNCH OF THE FUTURE ACCELERATORS PROGRAMME
UAE NATIONAL AGENDA TARGETS • Promote an inclusive environment that integrates all segments of society while preserving the UAE’s unique culture, heritage and traditions • Position the UAE as the safest country in the world by establishing world-leading security, emergency response and road safety measures • Reinforce the importance of a fair and active legal system that guarantees the rights of citizens and is among the world’s most efficient • Develop a competitive, knowledge-based economy that places innovation at its core • Lead the world in entrepreneurship, business innovation and research & development • Promote an ambitious Emiratisation policy of job creation for nationals in the private sector • Transform the UAE’s education system through the adoption of smart learning technologies and curriculums and raise standards across the board • Create a world-class healthcare sector that focuses on preventative medicine through the development of cutting-edge healthcare technologies and applications • Commit to a programme of sustainable development that focuses on improving air quality, preserving water resources, and adopting renewable energy programmes to reduce the country’s carbon footprint • Develop an advanced communications infrastructure that enables the creation and wholesale adoption of smart services for the benefit of all citizens UAE VISION 2021 - Building a Knowledge Economy
019
BUILDING A KNOWLEDGE ECONOMY / DRIVING INNOVATION
NATIONAL PERFORMANCE INDICATORS In a bid to quantify the goals outlined by the Vision 2021 National Agenda, UAE authorities plan to benchmark the country’s progress in meeting its ambitions against key international criteria HAPPINESS INDEX
Published by the UN, this composite indicator measures the overall happiness of a given society based on standards of living and life satisfaction. • UAE 2016 global ranking: 28 • 2021 target: Top 5
UN HUMAN DEVELOPMENT INDEX
Published by the United Nations Development Programme, this index provides a composite ranking of the well-being of nations worldwide by analysing standards of living, education and life expectancy. • UAE 2015 global ranking: 41 • 2021 target: Top 10
NON-OIL REAL GDP GROWTH A key performance indicator in the UAE’s drive for economic diversification. 2015: 3.2% 2021 target: 5%
GLOBAL COMPETITIVENESS INDEX
Compiled by the World Economic Forum, this index ranks countries based on their overall competitiveness by analysing key criteria including infrastructure, macroeconomic environment, innovation and technological readiness. • UAE 2016-17 ranking: 16 • 2021 target: Top 10 020
Building a Knowledge Economy - UAE VISION 2021
EMIRATISATION
The UAE is striving to increase the number of nationals in full-time employment. • 2015 proportion of total workforce: 0.61% • 2021 target: 8%
GLOBAL INNOVATION INDEX
Compiled by INSEAD, this index measures the degree of innovation across all facets of a country’s economy. • 2016 ranking: 41 • 2021 target: Top 10
ONLINE SERVICES INDEX
A United Nations survey measuring the availability and quality of e-government services. • 2016 ranking: 8 • 2021 target: 1
QUALITY OF PORTS INFRASTRUCTURE
A World Economic Forum global ranking of ports & shipping infrastructure. • 2016-17 ranking: 3 • 2021 target: 1
EASE OF DOING BUSINESS INDEX
This World Bank study ranks countries by the ease in which private enterprises operate in their respective markets and by government measures supporting business activity. • 2016 ranking: 31 • 2021 target: 1
NETWORKED READINESS INDEX
A composite indicator prepared by the World Economic Forum that measures a country’s readiness to capitalise on the latest innovations in IT and communications technologies. • 2016 ranking: 26 • 2021 target: Top 10
QUALITY OF AIR TRANSPORT INFRASTRUCTURE A World Economic Forum global ranking of aviation infrastructure. • 2016-17 ranking: 2 • 2021 target: 1
QUALITY OF OVERALL
INFRASTRUCTURE
A World Economic Forum global ranking of all infrastructure, including transportation, telecommunication and power. • 2016-17 ranking: 4 • 2021 target: 1
HEALTHCARE QUALITY INDEX A Legatum Prosperity indicator that measures the quality of healthcare across all sectors. • 2015 ranking: 34 • 2021 target: 20
UAE VISION 2021 - Building a Knowledge Economy
021
BUILDING A KNOWLEDGE ECONOMY / DRIVING INNOVATION
I
BEYOND 2021 UAE STRATEGY FOR THE FUTURE
n September 2016, HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, launched UAE Strategy for the Future, a roadmap that will direct the nation through its next phase of development. Launched under the directives of President HH Sheikh Khalifa bin Zayed Al Nahyan, the long-term strategy will steer the nation’s transformational growth by identifying the needs and challenges of the future, addressing them through impactful long-term plans, and successfully leveraging new opportunities for all-round development. Ratified by the Ministry of Cabinet Affairs and The Future, the UAE Strategy for the Future will be implemented in three phases – short, medium and long-term – each with clear benchmarks and performance indicators. As part of the strategy, future prototypes for sectors including healthcare, education, social development and the environment will be developed. These will form the basis for governmental policymaking. The strategy also focuses on building national human competencies in key sectors, strengthening international partnerships, and developing
022
specialised R&D labs that will evaluate future challenges and opportunities. In line with the strategy, planning for the future will become a mandatory element of the operations of government departments. Future scenario reports on key sectors will be published, which will serve as a benchmark for developing governmental plans and policies. A number of innovative initiatives will be rolled out as part of the new strategy. Every government department will have a ‘Director of the UAE Strategy for the Future’, who will be responsible for driving future planning. This makes the UAE the first government in the world to have such a position within all its departments. A dedicated educational institution will be established for driving predictive analysis and future development models, with UAE delegations to visit leading international universities to learn about the best practices in future planning. The UAE Cabinet will issue regular reports on the future developmental needs, trends and models, which will aid strategic planning. “As a nation, we have always been forward-looking and planning for the future, which has been a key driver of our success. The UAE Strategy for
Building a Knowledge Economy - UAE VISION 2021
the Future is our new approach to planning for the future by predicting, analysing and implementing highly effective action plans that accelerate development,” said HH Sheikh Mohammed. HE Mohammed Al Gergawi, Minister of Cabinet Affairs and The Future, asserts that the new strategy reflects the vision of HH Sheikh Mohammed to form a unique model for the Government of the Future in the UAE, with clear and strategic short-, medium-, and long-term goals. “The short term is the future we’re living today as part of the UAE Vision 2021 and the course of the next five years,” he explains. “The medium-term strategy will focus on planning for the period between 2021 and 2026; by then, led by the success of the short-term future planning, the government would be even more responsive and adaptable to future changes. The longterm strategy goes beyond 2026, and we will commence work now to both foresee and build the future of the nation. “The UAE Strategy for the Future will serve the government in addressing any shifts in global trends efficiently, and in identifying the challenges and opportunities. This will be followed up with scientific planning to evaluate the future scenarios, and implementing appropriate policies and action plans,” he adds. The Ministers in charge of the different departments will lead the charge in implementing future-focused plans. The Ministry of Cabinet Affairs and The Future will play a supporting and coordinating role, strengthening efforts, initiatives, projects, and policies for individual government departments, and monitoring their progress. As part of the third pillar of setting strategic priorities for the future, Ministers will work to turn their ministries into a prototype of the ministries of the future, and represent the country as ‘Ambassadors of the Future’, reflecting the UAE’s pioneering approach to ‘future building’. Source: Emirates News Agency (WAM)
BUILDING A COMPETITIVE KNOWLEDGE ECONOMY
CONNECTING MINDS, CREATING THE FUTURE Expo 2020 Dubai will play a pivotal role in delivering the main tenets of Vision 2021, by developing innovative solutions designed to create a sustainable future for the UAE, and ultimately, the world
F Najeb Mohammed Al-Ali
024
rom October 2020 to April 2021, Dubai aims to welcome 25 million visitors, international and domestic, to its World Expo. Marking the first time this global exposition has been staged in the Middle East, the event will be hosted at a 4.38-square-kilometre site, close to three of the world’s leading international airports: Dubai International, Dubai World Central and Abu Dhabi International. Expo 2020 Dubai organisers aim to wow visitors with spectacular architecture, thought-provoking exhibitions, and cutting-edge innovations and technologies.
Building a Knowledge Economy - UAE VISION 2021
The goal is to stage a unique and unforgettable global event that draws people to the UAE so that they can be a part of the ‘I was there’ moment of the 21st century. More than 180 countries are anticipated to be involved in the event and 70% of visitors will travel from outside of the UAE – the largest proportion of international visitors in Expo history. In another Expo first, the event will feature an Innovation Pavilion and Innovation Labs and introduce the concept of Expo Live – a new platform for the development of solutions to challenges that confront humanity. Expo 2020 Dubai’s over-arching
The World Expo 2020 site
theme is ‘Connecting Minds, Creating the Future’, recognising that generating sustainable solutions to global problems demands collaboration across cultures, nations and regions. Najeeb Mohammed Al-Ali, executive director, Bureau Expo 2020 Dubai, says World Expos are “celebrations of human ingenuity and milestones along our collective journey to a better future”. In this respect, Expo 2020 Dubai represents an “incredible opportunity for the UAE to showcase and celebrate the dramatic transformation the nation has experienced in the last five decades”, he stresses.
“It will celebrate our achievements in creating a diversified and competitive economy,” continues Al-Ali. “Key to this is the encouragement of collaboration and partnership. Given Expo 2020 Dubai’s theme is ‘Connecting Minds, Creating the Future’, we hope to build new partnerships that contribute towards securing a diversified economic future for the UAE as part of a long lasting and wide-reaching legacy.” Here, Al-Ali discusses in detail Expo’s legacy and the crucial role it will play in developing the UAE’s knowledge economy, to the benefit of the country, the region, and the wider global community.
“We hope that involvement and participation in Expo 2020 Dubai will spur businesses to invest in Dubai, harnessing our competitive knowledge economy and innovative mindset”
UAE VISION 2021 - Building a Knowledge Economy
025
BUILDING A COMPETITIVE KNOWLEDGE ECONOMY
HOW DOES EXPO 2020 DUBAI COMPLEMENT THE UAE’S VISION 2021 STRATEGY? investing, designing, building and collaborating with a range of The goal of UAE Vision 2021 is for the UAE to be one of the organisations to bring this legacy to life. world’s leading countries by the time it celebrates its Golden JubiExpo 2020 Dubai’s physical legacy will be the site itself, which lee in 2021. To achieve this, there are two key objectives: creating is being developed to ensure its life extends far beyond 2021, a competitive knowledge economy and promoting a sustainable designed as a cradle for emerging technologies and an ecosystem approach to the environment and infrastructure. Expo 2020 for SMEs and entrepreneurs. The designs for the theme pavilions, Dubai’s sub-themes (Opportunity, Mobility, Sustainability) closely which were announced in May 2016, take into consideration the complement these objectives. For us, Opportunity means unlockplanned uses of these structures after Expo 2020 Dubai ends. ing the potential of individuals and communities to shape a better Ultimately, we anticipate that 80% of the material used on site will future. Mobility is the bridge to opportunity, enabling smarter be reused or repurposed in the legacy phase. and more productive movement of people, goods and ideas, while Our legacy plans are wide ranging and ambitious. We hope to Sustainability champions living in balance with our planet. contribute to the development of a knowledge economy here in Developing a competitive knowledge economy requires three Dubai, anchored on the Expo 2020 Dubai site itself. This also key elements: nurturing innovation, encouraging entrepreneurship, means that the site’s surrounding area, the Dubai South district, and supporting small and medium enterprises (SMEs). Expo 2020 will be transformed into a modern and vibrant business and Dubai delivers on all fronts, with key programmes promoting residential hub, teeming with new innovations and ‘smart city’ diversification and education, stimulating local businesses, and technology. creating jobs. For example, we have made The wider UAE region is set to also benefit. a particular effort to get smaller businessExpo 2020 Dubai will create investment and “Developing a comes and start-ups involved in Expo 2020 employment opportunities across a wide range petitive knowledge Dubai. We have joined forces with a regional of sectors including real estate, construction, entrepreneurship accelerator to launch the hospitality, transportation and more. economy requires Collaborative Entrepreneurship initiative. This People will benefit from the expected signifthree key elements: partnership has a singular mission: to mobilise icant infrastructure upgrades that Expo 2020 nurturing innovaand organise private sector efforts in building Dubai will bring in the form of new roads, tion, encouraging region-wide entrepreneurial ecosystems. It a metro line extension, bridges, and logistics aims to bring together corporations, SMEs, hubs. Overall, Expo 2020 Dubai is expected entrepreneurship, start-ups, and investors to form mutually to add more than 250,000 jobs and more and supporting beneficial business partnerships that cultivate than €17 billion to the UAE’s economy. Taken small and medium and encourage entrepreneurship. The next together, these will be vital components to creenterprises” phase of this initiative is to link start-ups with ating a diversified economy and a sustainable government agencies and entities. legacy for the UAE. Expo 2020 Dubai is also dedicated to susExpo 2020 Dubai aims to have a lasting tainability – in our words and in our actions. social and educational legacy in a number of UAE Vision 2021 calls for 24% of the nation’s ways. Firstly, the event will give rise to a diffuenergy to be derived from clean energy sourcsion of knowledge and new ways of thinking es by 2021. Similarly, Expo 2020 Dubai has around its sub-themes of Opportunity, Mobilcommitted to producing half of the energy required for the event ity, and Sustainability. Secondly, because of its universally unifying from renewable sources. nature, Expo 2020 Dubai hopes to encourage national pride and Sustainability is a core theme for our Expo. We are focusing on social cohesion. the global community – creating a platform for public education as A legacy for today’s youth: Hosting this mega-event also well as continuing to engage with government and private sector presents us with an immense opportunity to motivate and inspire participants in our drive to build a sustainable future. youth. We are excited about engaging with young people, and giving them the skills, ambition and opportunity to thrive. The HOW WILL EXPO 2020 DUBAI CREATE A LASTING LEGACY FOR THE UAE? Apprenticeship Programme and YouthConnect are two of Expo’s Expo 2020 Dubai hopes to deliver an exceptional six-month event, cornerstone initiatives that encourage young people in the MENA but just as important is the creation of a meaningful legacy. Our region to play a central role in creating a better future. Both initivision is to cultivate a legacy that sustains a range of long-lasting atives aim to empower young people by giving them a chance to positive impacts, ensuring that every aspect of this Expo impacts meet and share ideas, as well as equipping them with the skills that the nation, wider region, and participants in a significant way. will allow them to collaborate on new solutions that benefit the Establishing a legacy requires both tangible and intangible compoUAE and the world. nents – the former includes the physical site, the economic impact, A cultural legacy: Diversity defines us in the UAE, and Expo and the commercial opportunities that flow from it; the latter in2020 Dubai will celebrate inclusivity, cultural understanding and cludes ideas, knowledge creation, global perceptions and attitudes. ties between nations. The cultural programmes and initiatives that These are all part of our plan for Expo 2020 Dubai, and we are we will launch before and after Expo will present the UAE in a
026
Building a Knowledge Economy - UAE VISION 2021
A rendering of Dubai World Expo 2020’s Performance Park
new light. This country is home to people from over 200 nationalities and cultures; we have an ambitious Volunteer Programme that aims to attract more than 30,000 volunteers from a wide range of ages, nationalities and backgrounds that will reflect this diversity and also embed a culture of volunteerism within the UAE. Expo 2020 Dubai is an ideal vehicle to promote further global cultural understanding between the UAE and the rest of the world as well as strengthen the UAE’s international reputation as an ideal destination to visit, work, and invest. This is our chance to show the world what the UAE can do. It is our opportunity to demonstrate our capabilities in hosting a global event that leaves a positive impact and legacy, and challenges preconceptions about this region. HOW WILL EXPO 2020 DUBAI’S PARTICIPANTS BENEFIT FROM THE MEGA EVENT? Our theme – ‘Connecting Minds, Creating the Future’ – is based on a simple yet important insight: generating sustainable solutions to global problems demands collaboration across cultures, nations and regions. Expos are unique opportunities for countries to display the best their nation has to offer, for companies to showcase their technologies and innovations, and for participants to build lasting partnerships with each other. We want countries to benefit from the unique, unparalleled platform that World Expos offer. It is our sincere wish that they
proudly display their vibrant cultural, business, commercial, educational and scientific offerings, and share and collaborate with each other in innovative ways. Commercial gains: We hope that involvement and participation in Expo 2020 Dubai will spur businesses to invest in Dubai, harnessing our competitive knowledge economy and innovative mindset. In the run up to and during Expo 2020 Dubai, companies will have the opportunity to demonstrate their commitment to playing a positive role in society and the future through showcasing their products, research and development, and new innovations. As part of our preparations for the global mega-event, we are in the process of developing a number of commercial partnerships with leading global companies in key areas including aviation, technology, finance, shipping and logistics, telecommunications and travel and tourism. Our partner companies will support us in the journey to Expo 2020 Dubai, creating a collaborative and inclusive global platform during the mega-event itself, and help us shape a long lasting legacy. They will also benefit from global brand exposure, access to regional markets, and the chance to connect with 25 million visitors. Expo 2020 Dubai is a forum to mark progress, share knowledge, forge relationships, and engage an audience in the MEASA region and across the globe – and we hope that companies make the most of the opportunity. Knowledge gains: As part of our efforts to host an inclusive World Expo with the widest range and number of participants, we are very excited to welcome international organisations, NGOs, foundations, and other not-for-profit entities to Expo 2020 Dubai. Expo 2020 Dubai will be a useful platform for these organisations to connect to countries and communities around the world, allowing them to share their thinking and advocate for the action needed to make strong progress in the areas of Opportunity, Mobility and Sustainability. These organisations will be able to contextualise our sub-themes in the real world, and provide greater insight as to which specific challenges in the areas of Opportunity, Mobility and
UAE VISION 2021 - Building a Knowledge Economy
027
BUILDING A COMPETITIVE KNOWLEDGE ECONOMY
$900bn
Dubai is investing more than $900 billion in developing the infrastructure that will support the successful staging of Expo 2020. Highlights include Al-Maktoum International and Dubai World Central, the extension of the Dubai Metro and the 438-hectare expo site
25M
The UAE expects to welcome more than 25 visitors to the expo in 2020
70%
70 percent of all visitors are expected to travel to the UAE from abroad, making the event the most international in expo’s history
200
More than 200 countries, corporations and institutions will exhibit at Expo 2020
30K
More than 30,000 volunteers are expected to be involved in staging Expo 2020
028
Building a Knowledge Economy - UAE VISION 2021
Sustainability need new thinking and fresh solutions. Innovation gains: Finally, we hope that Expo 2020 Dubai visitors will marvel at the technological innovations and solutions showcased at the event, and have a thought-provoking and enjoyable experience. For those wanting to contribute directly to the delivery of the event, we have in place a Volunteer Programme open to all UAE residents – expatriates and nationals alike. Our estimated 30,000 volunteers will be the public face of the event, providing assistance in operations, information and communications. Volunteers will benefit from training across different disciplines and the opportunity to learn from highly qualified, seasoned professionals who have worked on some of the largest global events. WHAT PROGRESS HAS BEEN MADE THIS YEAR IN REGARD TO EXPO PREPARATIONS? Work is progressing well on the Expo 2020 Dubai site and our plans are well on track. In September 2015, we began the physical preparations of the 4.38-square-kilometre Expo 2020 Dubai site. Around 4.6 million cubic metres of earth has been moved as we prepare the site for the next phases of construction. The first package of infrastructure works, which includes electrical and data cabling, and drainage, commences in the second half of 2016. •
Earlier this year, we unveiled the site Master Plan which is the physical embodiment of Expo 2020 Dubai’s theme of ‘Connecting Minds, Creating the Future’, with pavilions dedicated to our sub-themes of Opportunity, Mobility, and Sustainability. These subthemes will be integrated seamlessly into the urban design, infrastructure, delivery, operations, and legacy of the mega event.
•
We have sent official invitations to potential participant countries and were very pleased to have received the first confirmation, from Switzerland, in April 2016.
•
We also held the inaugural International Planning Meeting in May 2016, when 132 countries gathered to learn about the benefits of participating in Expo 2020 Dubai. The twoday meeting was an ideal opportunity for senior diplomatic and business delegations from around the world to interact with political and business leaders from the UAE, and to learn about the scale and ambition of Expo 2020 Dubai.
•
In parallel to all of these activities, we launched our Partnership Programme in May 2016. So far we have secured our first three Official Premier Partners: Emirates Airline, Etisalat and DP World, with many more to follow. Emirates’ comprehensive network and connectivity will help bring millions of international visitors to Dubai to share their culture and ideas. Etisalat, as the Telecommunications and Digital Services Premier Partner, will enable the Expo 2020 Dubai site to be one of the fastest, smartest, and most well-connected places in the world by providing Wi-Fi connectivity for up to 300,000 visitors per day. DP World, as our Premier Trade Partner, will play a vital role in ensuring productive, efficient and safe trade solutions.
Al Wasl Plaza
WHAT ARE EXPO 2020 DUBAI’S SHORT-TERM PLANS? There is much work to do in the run up to 20 October 2020, and our priorities are to develop the site, sign up participants, secure partners, and deepen our engagement with young people and the wider MEASA community. Over the next few months, we are focusing on a number of key initiatives to inspire, engage with and prepare young people in the region. September 2016 will see our first cohort begin the Apprenticeship Programme, a nine-month scheme that provides young people with career development and training, and includes a six-month job placement with Expo 2020 Dubai. In November 2016, we will host our second YouthConnect event. This is an interactive conference whose agenda, structure, and design was shaped by the input and opinions of young people. YouthConnect will engage GCC residents between the ages of 16-25 through speeches, hands-on workshops, and discussions led by experts and leaders from a variety of industries and disciplines. Topics covered in last year’s YouthConnect included business and leadership, start-ups and entrepreneurship, science and engineering, technology, coding and gaming, innovation, and employability, and featured high-profile speakers from Facebook, Google and LinkedIn. WHAT IS EXPO LIVE AND WHAT DOES IT HOPE TO ACHIEVE? World Expos have always been about showcasing the newest ideas and technologies with the potential to benefit humanity. Today, we believe that the three drivers of development are in the areas of Opportunity, Mobility and Sustainability – Expo 2020 Dubai’s three sub-themes. With this in mind, we have launched the Expo Live programme to encourage people around the world to address these challenges to benefit our interconnected world. Expo Live is a €100 million innovation and partnership programme launched by Expo 2020 Dubai. Through financial incentives and knowledge sharing events, the programme aims to accelerate the development and deployment of solutions in the areas of Opportunity, Mobility and Sustainability. We are seeking innovators and organisations with great ideas to develop and share; these could include new uses of existing ideas and technology. Successful projects will have the potential to create significant
benefits for communities, and the potential to be replicated and scaled up globally. The Innovation Impact Grants are a key aspect of the Expo Live programme. They call on the world’s problem solvers to apply for grant funding in order to develop innovations and solutions that address challenges related to the fields of Opportunity, Mobility and Sustainability. This may include supporting projects that provide electricity to people who live away from power stations and an electrical grid; innovations that improve access to clean water; or the provision of education in remote areas. Our grants range from €50,000 to €2 million per project to be awarded over the next four years. Successful grant recipients could also qualify for additional funding that will enable their solutions to be showcased during Expo 2020 Dubai. WHAT WILL BE EXPO 2020 DUBAI’S GLOBAL LEGACY? World Expos are a unique opportunity to showcase fresh thinking on a global stage. Expo 2020 Dubai is no exception – and has the additional goal of leveraging the UAE’s historical location as crossroads of global trade and commerce in the present day. Expo 2020 Dubai will be a platform to foster creativity, innovation and partnerships globally. During Expo 2020 Dubai, we want to inspire, to capture the imagination, and to spark creativity and collaboration amongst the world’s solution seekers. We want everyone involved to be imbued with a sense of wonder, hope, and optimism – not just during the event itself, but through the journey to 2020 and after the event ends in 2021. Our global legacy will be the creation of new ways of thinking and working that reflect our connected, digital age – from unlocking development opportunities for the next generation, to reimagining how people move and connect, to finding sustainable environmental solutions around energy and water. We live in a digitally-connected age, which means the benefits of Expo 2020 Dubai will continue long after the event ends. The ongoing cross-pollination of ideas and innovations by our diverse range of participants will be our gift to the world. When the doors close in April 2021, this sense of purpose and passion will continue as we leave a lasting legacy of trade, commerce, partnerships, knowledge and co-creation.
UAE VISION 2021 - Building a Knowledge Economy
029
BUILDING A COMPETITIVE KNOWLEDGE ECONOMY
EMIRATISATION:
GENERATION
NEXT UAE authorities aim to increase the number of Emiratis working in the country’s private sector by a factor of 10 by 2021
030
Building a Knowledge Economy - UAE VISION 2021
A
s UAE government officials emerged from a weekend-long retreat in early 2016 focused on developing ways to prepare the country for a post-oil future, one objective quickly became clear. Boosting private sector employment levels among Emiratis would be a clear tenet of the Vision 2021 National Agenda. The retreat, organised by UAE Vice President, Prime Minister and Ruler of Dubai HH Sheikh Mohammed bin Rashid Al Maktoum, was part of efforts by the country to follow through on Abu Dhabi Crown Prince HH Sheikh Mohammed Bin Zayed Al Nayhan’s stated ambition that the UAE invest in education now so that in 50 years it would celebrate when the last barrel of
The UAE’s Emiratisation strategy aims for nationals to account for 5 percent of the country’s private sector workforce by 2021.
oil was exported. The UAE is focused on promoting its people as its greatest natural resource, not its hydrocarbon reserves. Sheikh Mohammed Bin Zayed’s comments, and the ministerial retreat which it inspired, gave fresh impetus to efforts under UAE Vision 2021 to increase the rate of emiratisation — the portion of UAE nationals employed in proportion to the total size of the workforce. The Vision 2021 National Agenda includes ambitious targets aimed at increasing emiratisation in the private sector to 5 percent, from 1 percent in 2014. Soon after returning from the retreat, HH Sheikh Mohammed announced a raft of changes to UAE government bodies, including changing the name of the Ministry of Labour to the Ministry of Human Resources and Emiratisation, to sharpen the focus on boosting the number of nationals employed in the private sector. The move reflected the extent of the government’s ambition aimed at encouraging more Emiratis into the workforce and also the fresh impetus designed to encourage private sector employers to support the government’s Emiratisation strategies. Long-term success will require comprehensive changes in the way the private sector seeks to attract and retain Emiratis in the workforce. While the public sector has long been the main employer of Emirati nationals, a main tenet of Vision 2021 is encouraging government entities to streamline their
“This new decree aims to provide job opportunities for our citizens, something which aids the ongoing private-sector Emiratisation process” Saqr Ghobash, Minister of Human Resources and Emiratisation
operations through the implementation of cutting-edge technologies. Part of this strategy also includes rethinking their long-term approach to human resources in a bid to drive greater efficiencies while still providing world-class services. As it stands, the private sector currently employs a few tens of thousands Emirati nationals, with most in the government sector, or working for government-related entities. Entrepreneurship is another important facet that is actively being encouraged by the Vision 2021 National Agenda. The number of small- to medium-enterprises
UAE VISION 2021 - Building a Knowledge Economy
031
BUILDING A COMPETITIVE KNOWLEDGE ECONOMY
A record 280 Emiratis graduated from Etihad Airways’ award-winning Future Leaders programme in 2015.
(SMEs) established by Emirati nationals has risen sharply in the past decade, aided by government support initiatives such as the SME law of 2014 and overseen by the Small and Medium Enterprises Council, which guaranteed 10 percent of all government contracts to local enterprises. Private sector opportunities are also being actively promoted to the nation’s graduates and future workforce. Around 16 percent of the UAE’s population is aged under 15, meaning that huge numbers of jobs need to be created over the next decade to absorb this population boom. A late-2015 report by Oxford Strategic Consulting found that 54 percent of Emiratis favoured working in the public sector, followed by other industries often closely controlled by the state, including defence and security, banking and finance, and oil and gas. A similar trend is reflected in the top 10 organisations Emiratis want to work for, with the study showing the General Command of Police, Abu Dhabi National Oil Company, Roads and Transport Authority, Etisalat, and Emirates are among the most desired employers. While encouraging private sector involvement remains a priority, in the wake of the 2016 government retreat, several government ministries have also taken important steps to boost how many nationals they employ. The Ministry of Infrastructure Development committed to having a 100 percent Emirati workforce by 2017. In a bid to combat the small number of citizens working in the health sector, the Dubai Health Authority announced plans to sponsor higher education for 130 nationals
032
a year in the areas of nursing, medicine and paramedics. In July 2016 the Ministry of Human Resources and Emiratisation announced that any company that employs more than 1,000 people and is registered with its online services centre, Tasheel, must hire Emiratis for data entry positions from 2017. More than 375 companies meet those requirements, Saqr Ghobash, Minister of Human Resources and Emiratisation, says. “This new decree aims to provide job opportunities for our citizens, something which aids the ongoing private-sector Emiratisation process,” he said. The Ministry would also provide a list of qualified Emiratis who could fill the positions to private sector firms, Ghobash adds. While these measures will help boost overall employment among UAE nationals,
Building a Knowledge Economy - UAE VISION 2021
20,000
New jobs to be created specifically for UAE nationals by 2021 under the government’s Absher initiative.
Etihad Airways’ Al Ain customer support centre employs a large number of Emirati staff.
the impetus on greater private sector involvement in providing employment opportunities remains a key priority. A recent survey of UAE private sector employers by international human resources consultancy Mercer found that while Emiratis currently accounted for less than 10 percent of the total workforce in half of the companies that responded, 56 percent said they had specific policies or programmes in place to promote Emiratisation, and 46 percent said they were on track with Emiratisation targets. “From the perspective of UAE nationals seeking employment, competitive pay, benefits, learning and development, and career progression are what drives their decision to stay with an employer or leave. This is extremely important for employers when building their Emiratisation programmes to attract and retain top talent,” explains Mercer Middle East’s head of market development, Tom O’Byrne. The report also found that educated nationals with extensive professional experience are in very high demand among private sector employers. In fact, six in 10 UAE nationals surveyed by Mercer say they plan to swap jobs or companies in the next five years to take advantage of the opportunities on offer. Companies that have started to formulate policies in order to attract UAE nationals to their workforces are seeing positive results. For example, Etihad Airways’ vice president of learning and development, Wissam Hachem, said at the Emiratisation Forum in late 2015 that the airline had trouble filling positions at its call centre until it noticed the bulk of the applicants were Emirati women living in Al Ain. After changing the working hours and moving the call centre to Al Ain, it managed to hire a large number of Emiratis. Etihad now employs more than 3,000 Emirati staff, with 40 percent of them being hired in about 12 months. By 2020 the airline aims to extend that number to 5,000. International firms, like British bank HSBC, have also had success in creating schemes to develop the skills of Emirati employees. The HSBC Leadership Programme, launched in 2015 and developed in association with the Executive Education division of Cambridge Judge Business School, takes mid-level Emirati managers from the public and private sectors and teaches them everything from leadership skills to innovation. The bank, which already has an Emirati chief executive officer for its UAE business, says it also benefits from better access to government decision-makers from employing UAE nationals in senior roles. Meanwhile, consultancy firm PwC has created Watani, a threeyear programme that gives talented UAE nationals the opportunity to work, travel and study with the firm in the UAE and UK. It also aims to give them exposure to some of the firm’s top clients, including public and private companies, governments and charities. The success of these initiatives demonstrates the bright future of Emiratisation programmes designed and implemented by private sector employers. The government has also introduced the ‘Absher’ initiative, which addresses four key issues: the creation of job opportunities; vocational guidance and counselling; training and development services for UAE nationals; and ultimately, creating pathways for Emiratis to enter private sector employment. The ultimate goal of
“From the perspective of UAE Nationals seeking employment, competitive pay, benefits, learning and development, and career progression are what drives their decision to stay with an employer or leave. This is extremely important for employers when building their Emiratisation programmes to attract and retain top talent” Mercer Middle East head of market development Tom O’Byrne
the initiative is to create 20,000 new jobs for Emiratis by 2021. The next step is ensuring that local graduates have the skills to match the demands of the private sector, and also in encouraging innovation and entrepreneurship. That will help create new small businesses, which are the engine of private sector job creation in any economy. The UAE is taking steps to lay the framework for this to happen, including new rules to help small- and medium-sized enterprises gain access to capital, and protect entrepreneurs in the event of a business failure. Non-profit organisations like INJAZ Al Arab already have some success in partnering with the public and private sector to teach things like financial literacy and entrepreneurship, and studies have shown that participants in its programmes are more likely to be employed. Ultimately, these initiatives all feed into one of the broader themes of UAE Vision 2021 — creating a competitive, knowledge-based economy. Doing this will help to create a more competitive private sector and it will create the market forces that encourage citizens to seek out in-demand skills. This will fuel the economy and create more jobs, a virtuous circle that will make employing UAE nationals the best option, not an obligation.
UAE VISION 2021 - Building a Knowledge Economy
033
RENEWABLE & CLEAN ENERGY
UAE An emerging solar energy powerhouse THE UAE IS POSITIONING ITSELF AS A GLOBAL LEADER IN THE DEVELOPMENT OF AFFORDABLE SOLAR ENERGY CAPACITY
I
n a world of volatile fuel prices, renewables have become the primary means for nations to increase their energy independence. The UAE’s rapid pace of economic development has seen demand for electricity soar. As part of its energy sustainability goals and in line with the Vision 2021 National Agenda, the UAE recently raised its clean energy target to 27 percent of total energy production, from a previous mark of 24 percent. An expansion of solar energy capacity will be key to meeting this ambitious target.
Xxyyxyxyxyxyxyxyxy
034
Building a Knowledge Economy - UAE VISION 2021
The principal strategy of the UAE government to advance the country’s solar ambitions has been major tender programmes for developers to set up PV capacity in enormous solar parks. Abu Dhabi has already commissioned a giant Concentrated Solar Power (CSP) plant, known as Shams 1, which stands at 100MW capacity and has been hailed as the largest ever renewable energy project in the Middle East. State-run utility Dubai Electricity and Water Authority (DEWA) is investing AED50 billion (US$13.6 billion) in the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, for which it recently carried out an 800MW tender. This latest tender saw DEWA receive five submissions from international firms and a winning bid of US$0.029/kWh, almost halving the lowest bid in the previous 200MW round and smashing the record for the lowest-ever
“[The UAE has] put out a very solid international tender programme for solar, similar to any international standard required for conventional power and competitive bidding� Ahmed Nada, vice president of the Middle East division of renewables firm First Solar
UAE VISION 2021 - Building a Knowledge Economy
035
RENEWABLE & CLEAN ENERGY
solar tariff in the world. The winning bid came from a consortium for conventional power and competitive bidding,” says Ahmed involving Abu Dhabi-based renewable energy firm Masdar and Nada, vice president of the Middle East division of renewables developer FRV, which was acquired by Saudi-owned, Dubai-based firm, First Solar. “There is no feed-in-tariff (FiT) programme, company, Abdul Latif Jameel Energy and Environmental Services, which I think helps the competitiveness of the solar energy.” in April 2015. Eyeing the massive tenders that have been At the solar park a 13MW first phase has on offer, local lenders are now viewing solar as already been commissioned and work on a a viable proposition, adds Nada. The DEWA “[The UAE] has second round of 200MW is underway, having 800MW tender attracted a significant number set the benchmark been won by a consortium of Spanish engiof local banks, which is good news for develneering firm Grupo TSK and Saudi Arabian opers keen to get involved in the sector. for how to successpower engineering firm ACWA Power, with a To build the solar parks, huge spans of fully structure and bid of US$0.0585/kWh back in 2015. desert space are granted by the government at execute a solar Meanwhile, Abu Dhabi Water and Eleca nominal rate. Almost free of charge for solar procurement tricity Authority (ADWEA) is tendering for developers, these parks are extremely attracdevelopers to take part in a 350MW solar tive, because many other countries want to programme” PV project located at Sweihan, Abu Dhabi. In take 1-2 percent of the energy value as a makeVahid Fotuhi, founder, Middle September, it created history when it received shift land lease each year, says Nada, whereas East Solar Industry Association (MESIA), and managing director a record low bid for the plant, which undercut return on investment for developers in the UAE of Access Power the previous world-record bid reported in is neither impacted by taxes nor land lease. Chile by a massive 16 percent.The bid, which Moreover, having the land secured by the was made by a consortium led by China’s government alleviates both the development JinkoSolar and Japanese developer Marubeni, risks and administration efforts associated with equated to a remarkable $0.0242/kWh. land acquisition. Similarly, the government handles the transmission infrastructure and ensures the off-takers ATTRACTIVE POLICY are state-run utilities so there is no need to worry about their credit “[The UAE has] put out a very solid international tender prorating, says Nada. All this means that the cycle of development gramme for solar, similar to any international standard required in the UAE is no more than six to nine months, which is very fast
036
Building a Knowledge Economy - UAE VISION 2021
A solar panel array located on the outskirts of Dubai
Xxyyxyxyxyxyxyxyxy
compared to other markets. Finally, both DEWA and ADWEA are ahead of building the infrastructure to evacuate the solar energy, an area that has often been overlooked in other markets causing delays and curtailment of solar generation. “By the time the plant is ready to produce energy, the infrastructure to evacuate the energy on the grid is already available or is being built ahead of the plant,” says Nada. ROOFTOP SOLAR APPLICATIONS As another part of its ambitious renewable energy strategy, Dubai has decided to make rooftop solar installations mandatory by 2030. While this is some way off, the confirmation certainly sets the tone for a diversification into a variety of solar segments. Significant deployments have already been made including a 1.5MW rooftop PV system at the site of a new DEWA power and desalination plant in the city. The array takes part in the ‘Shams Dubai initiative’, which is effectively a form of net metering with excess power exported back on to the grid. In the case of DEWA’s project, the excess will be exported to an internal circuit at the Jebel Ali Power Station. “Through Shams Dubai, DEWA has put in place a very structured programme where homeowners and business owners can apply for a licence to install a solar rooftop system and generate electricity that goes towards their utility bills,” adds Fotuhi. “Essentially it offsets DEWA [tariffs] through the energy production.” Similarly, under the Shams scheme, Emirates Airline has installed a 1MW rooftop array on a carpark roof at the airline’s engine
$13.6BN
Cost to construct Mohammed bin Rashid Al Maktoum Solar Park in Dubai
25%
Renewables share of total power capacity in Dubai by 2030
20,000
Abu Dhabi homes to be powered by the 100MW Shams 1 solar plant
UAE VISION 2021 - Building a Knowledge Economy
037
RENEWABLE & CLEAN ENERGY
A solar-powered speed camera located in Abu Dhabi, United Arab Emirates
maintenance centre in Dubai. The Dubai Clean Energy Strategy 2050 also sets a renewables target of 75%, with intermediate goals of 7% by 2020 and 25% by 2030. Jenny Chase, manager, solar insight at Bloomberg New Energy Finance, forecasts that the net metering programme will result in 50-100MW of mostly rooftop solar capacity over the next few years. PV TECHNOLOGY OPPORTUNITIES Globally, the biggest trend in solar has been photovoltaic (PV) technology. The intention of the UAE to embrace the opportunities presented by PV has been endorsed by several industry commentators, who describe the UAE as having the most attractive, efficient and secure tender processes for solar PV anywhere worldwide. Such praise holds much promise, but it should be noted that as a nascent market, just 26MW of solar PV capacity has been installed in the region to date, according to Bloomberg New Energy Finance. “You have initiatives to diversify the energy mix not just to be green but also economically with the volatility in gas prices,” says Nada. “[The] UAE is a net importer of gas. Having clean energy in the mix is becoming more and more critical.” Indeed, having solar energy capacity can help shield against such fuel price volatility and irregular fuel supply. “Solar projects are awarded on a long-term off-take agreement — typically for 20 or 25 years,” says Vahid
038
Building a Knowledge Economy - UAE VISION 2021
Fotuhi, founder, Middle East Solar Industry Association (MESIA) and managing director of Access Power. “As such, markets that provide regulatory stability and certainty often become very attractive and competitive for solar projects. That’s exactly what the UAE has done through very well thought through procurement procedures.” CSP In June, Saeed Mohammed Al Tayer, managing director and chief executive of DEWA, announced that the utility planned to procure up to 1GW of Concentrated Solar Power (CSP) by 2030. Such an ambitious strategy could change the landscape for CSP in terms of cost-competitiveness in the future, while still benefitting from a few hours of extra energy storage compared to PV, says Nada. However, the technology will soon be competing headon with utility-scale energy storage as it continues to develop over the next three to five years. Nevertheless, the opportunities presented by all forms of solar technology are real and taking shape in the UAE. “To be a solar developer you have both utility-scale opportunities and residential opportunities so there’s plenty here,” says Fotuhi. “In a way the UAE has spoiled investors with options compared to other Middle Eastern countries. In my opinion, it has really set the benchmark for how to successfully structure and execute a solar procurement programme.”
AVIATION
HUB TACTICS Dubai has rapidly evolved into a global aviation powerhouse, driving economic growth and productivity in the UAE to unparalleled levels, says Dubai Airports CEO Paul Griffiths 040
Building a Knowledge Economy - UAE VISION 2021
“By 2023 we believe 118 million passengers will pass through Dubai International, the highest throughput of any airport in the world in terms of square metres. What we are trying to do is maximise utilisation of every single aspect of the airport and we are working with all of the airlines to introduce new techniques that haven’t been used before to get aircraft away on time” PAUL GRIFFITHS, CEO DUBAI AIRPORTS
D
ubai International, or DXB as it is more commonly referred to today, boasts a success story like no other. Having sustained an average annual growth rate of 13 percent since it opened its doors in 1960, the facility, which has leveraged Dubai’s enviable geographical position – at the crossroads of Asia, the Middle East and Europe – is now the world’s number one hub for international passengers. In 2015, DXB registered annual passenger traffic of just over 78 million, boosted by the growth of some 100 airlines that connect the airport to more than 240 destinations around the world, most notably Emirates and flydubai. This represented a 10.7 percent hike on the 70.47 million passengers DXB reported in 2014, and the fast pace of growth shows no sign of abating. “We’re on track for a passenger throughput of 83 million passengers during the course of this year, so we’re in pretty good shape,” says Paul Griffiths, CEO of Dubai Airports, who is spearheading Dubai’s ambitious campaign to become the aviation Paul Griffiths, CEO of Dubai Airports industry’s global epicentre.
UAE VISION 2021 - Building a Knowledge Economy
041
AVIATION
IN NUMBERS DXB
DWC million passengers 200
million passengers 120
when complete
100 150 80 100
60
when phase 2 completed
40 50 20
0
2015
2016
The sector is a crucial economic pillar, already representing more than 27 percent of Dubai’s GDP, or US$26.7 billion, according to the most recent Oxford Economics study (2013), while 21 percent of Dubai’s employment is directly or indirectly dependent on the aviation sector. “We remain quite unique in the world as the dominant sector that supports the entire economy and every time we have calculated the aviation industry’s contribution, it has increased,” says Griffiths. “We believe that our contribution to GDP will increase from 27 percent in 2013 to 37.5 percent by 2020 with a total annualised impact of $53.1 billion. In addition, the employment generated by the aviation sector will increase from 416,500 in 2013 to 754,500 in 2020, or 29.9 percent of total employment in Dubai.” Fast forward to 2030 and Griffiths reveals the forecast is an $88.1 billion contribution to GDP or 44.4 percent of the total, while the job count will rise to 1.194 million or 35.1 percent of Dubai’s total workforce. “I think you will find that today and most definitely in the future, the relationship between the city and the aviation industry productivity of Dubai is unparalleled,” says Griffiths. A QUANTUM LEAP With passenger throughput at DXB exceeding forecasts and Dubai’s second hub, Dubai World Central (DWC) open for
042
0
2017
business, but not due for full completion until the mid 2020s, the race is on to find extra capacity. The opening of the $1.2 billion Concourse D at DXB’s Terminal 1 in February this year made a dramatic improvement in this respect, boosting capacity from 75 to 90 million annually. The facility, which caters to 60-plus international airlines operating out of Dubai International, also introduced a number of concepts designed to enhance the passenger experience, from shorter walking distances, more comfortable seating and improved signage, to new F&B concepts such as The Kitchen by renowned celebrity chef Wolfgang Puck and the first Pret a Manger in a Middle Eastern airport. Griffiths describes Concourse D as a “quantum leap” in terms of the experience it offers passengers. “There are many major differences compared to our original terminals here. It has, for example, an envelope that is bright and airy and lots of natural daylight, plus there’s a sustainability element – thousands of solar panels that move and generate electricity through sunlight,” he explains. “The biggest passenger difference is the layout including open gate routes, which is a big change from the sheep pen idea. You can wander from gate to gate and if you want to get a drink or grab a coffee at the last minute, you can. Passenger feedback to date reveals we have created
Building a Knowledge Economy - UAE VISION 2021
2016
2017
“We are playing a very big part in the development of the international aviation industry because Dubai is a very logical and well located hub… The logistics and communications Dubai is providing for the world makes it the city of choice, supported by world-class infrastructure, services and facilities” PAUL GRIFFITHS, CEO, DUBAI AIRPORTS
an environment they strongly prefer.” Another unique feature, he says, is the way in which passengers travel to Concourse D – an elevated automated people mover system provides a “unique view of the airfield”. The bigger picture is that DXB is gearing up for “unprecedented passenger throughput”, says Griffiths. “By 2023 we believe 118 million passengers will pass through DXB, the highest throughput of any airport in the world in terms of square metres,” he explains. “What we are trying to do is maximise utilisation of every single aspect of the airport and we are working with all of the airlines to introduce new techniques that haven’t been used before to get aircraft away on time.” Dubai Airports is also working with the ATC to minimise arrival delays and by the end of 2017, the GCAA will adopt a method of optimising the use of airspace. “There is a huge amount of coordination active across the sector designed to bring initiatives together to
achieve significant uplift in our throughput,” Griffiths confirms. THE MASTERPLAN Given the anticipated growth in passenger demand over the next decade, Dubai Airports has a masterplan in place that aims to maximise capacity at DXB until the next phase of DWC is ready for completion. It includes an initiative dubbed ‘DXB Plus’, designed to meet airline demand and ensure a worldclass customer experience from ‘cloud to curb’ – both of which are vital for delivering unconstrained sector growth. The primary goal of DXB Plus is to provide capacity for 118 million passengers in 2023 without adding any additional infra-
Below: DXB is now the world’s busiest air hub by international passenger numbers. Bottom: Dubai’s new Al Maktoum International Airport
UAE VISION 2021 - Building a Knowledge Economy
043
AVIATION
Dubai Airport’s DXB Plus strategy is designed to provide capacity for 118 million passengers in 2023 without the requirement of new infrastructure
044
structure, but still delivering an “exceptional customer experience”. “We are short of space [at DXB] so it’s a good economic proposition to reinvent our processes and push for efficient measures to improve capacity and customer service,” says Griffiths. The secret, he continues, is to “maximise the growth capacity by maximising the flow rate through the airport”. This calls for investment in technology across a number of key processes including check-in, immigration and customs. “We need to increase the capacity of those functions and make sure we get customers through those processes with as little disruption to their journey as possi-
Building a Knowledge Economy - UAE VISION 2021
ble and without any invasive procedures,” Griffiths says. “There are also industrial engineering efforts in place to ensure space is maximised. If you improve the rate at which passengers move through the airport you can create greater capacity without building anything.” To ensure capacity enhancement measures are as effective as possible, Dubai Airports is looking to other industries that are “getting it right” in terms of the deployment of technology, measurement of data and managing large facilities – warehousing, oil and gas, logistics and even online retailers like Amazon. Legacy systems will be evolved to
achieve a higher degree of automation, too. “We are getting to a point where we are handling more than 100,000 departing bags per day so our systems have to be up to scratch,” says Griffiths. “But we have great partners helping us – we are working very closely with Emirates, dnata, the police and immigration, for example. This is a mega hub and we have to work together to keep the whole thing moving.” THE MOVE TO DWC As DXB Plus begins to make an impact, so expansion work at Dubai’s new hub, DWC, gets underway. When completed in the 2020s it will be the biggest airport in the world, capable of handling more than 120 million passengers annually initially and up to 240 million at full capacity. “By the end of next year when the first phase of expansion is handed over, DWC will be capable of accommodating 26 mil-
lion passengers, which will facilitate the transfer of flydubai by the end of 2017,” reveals Griffiths. With flydubai currently flying around 10 million passengers annually, this will give other carriers at DXB more breathing space, he adds. The next major development at DWC will boost its capacity to a massive 120 million passengers annually and comprises a new airport constructed to the north of the existing airport and a further two runways. “We expect to transfer Emirates to DWC in 2025 given we will have three runways, a major terminal, and three or four concourses capable of supporting the airline’s entire operation,” says Griffiths, adding that DXB Plus will facilitate a smooth transition to Phase 2 of DWC. “We have a platform at DXB to trial and test every new initiative we are work-
IN NUMBERS DUBAI’S AVIATION INDUSTRY BY 2020
37% $53.1 b 754,500 29.9% of GDP or
jobs
of total employment in Dubai
BY 2030
44.% $88.1 b 1.194m 35.1% of GDP or
jobs
of Dubai’s total workforce
ing on and it’s an ideal test bed for DWC phase 2,” he says. “So all the new check-in, immigration and security measures tested at DXB will be rolled out at DWC.” DWC’s design will ensure the customer experience comes first and in this respect, Griffiths believes minimising walking distances is a must. “We will also speed up connection times so passengers can effortlessly make connections without changing terminals and place concentrated retail and F&B options in a central node on every single concourse,” he says. “When the airport is fully developed there will be 12 self-contained concourses, almost like 12 small airports in one big one.” Other areas of focus are “intelligent and intuitive wayfinding” as well as better passenger profiling to enhance customer service. Dubai Airports is also making a weighty investment in its Wi-Fi capacity with a view to offering passengers at both airports unlimited free Wi-Fi – a service that has been welcomed by passengers at Concourse D where it is being trialed. “It’s about creating a circle between customers, their needs and our service design and delivery,” says Griffiths. CONNECTIVITY COUNTS Dubai Airports, through the expansion and enhancement of DXB and DWC, is establishing the emirate as a “global hub for connectivity”, according to Griffiths. “We are playing a very big part in the development of the international aviation industry because Dubai is a very logical and well-located hub,” he says. “By introducing more than 240 different destinations served directly from Dubai we are creating one of the most accessible cities in the world and companies are therefore basing their operations here because of the close proximity to so many markets. For instance, we offer connections to 18 points in Africa and as well as the biggest international coverage from the Indian Subcontinent. “The logistics and communications Dubai is providing for the world makes it the city of choice, supported by world-class infrastructure, services and facilities.”
UAE VISION 2021 - Building a Knowledge Economy
045
AVIATION
TERMINAL VELOCITY How the construction of a cutting-edge mega airport terminal will play a crucial role in boosting Abu Dhabi’s aviation industry, while creating employment opportunities and economic prosperity in the UAE
046
Building a Knowledge Economy - UAE VISION 2021
“The Midfield Terminal Building’s ultra-modern design and systems will make the passenger experience one of the best in the world” HE ALI MAJED AL MANSOORI, ABU DHABI AIRPORTS CHAIRMAN
HE Ali Majed Al Mansoori
A
viation and aerospace are two of the key sectors identified as major economic growth contributors in UAE Vision 2021. As the UAE capital’s airports operator, Abu Dhabi Airports is playing a pivotal role in making the government’s aspirations for long-term infrastructure development become a reality. The entity has entered an era of “unparalleled transformation”, according to its chairman, H.E. Ali Majed Al Mansoori, with the iconic Midfield Terminal Building (MTB) currently under construction at Abu Dhabi International Airport (AUH) – a project he says is putting the emirate on the map as a “leading international aviation and business hub”. “Events such as the first ever Abu Dhabi Aviation and Aerospace Week, which saw global industry leaders converge on the UAE capital, serve to further establish the Abu Dhabi’s position as a major centre for aviation and aerospace,” he notes. His argument is supported by the strong growth in passenger and cargo traffic AUH has witnessed over the past few years, with 2015 ranking as the airport’s busiest year to date. Passenger numbers hit a record 23 million, up 17.2 percent year-on-year, with a large proportion of the traffic increase attributed to the robust performance of the UAE’s national carrier, Etihad Airways, which serves more than 116 passenger and cargo destinations around the world and carried 17.4 million passengers in 2015, up 18.4 percent on 2014. AUH also handled 827,456 metric tonnes of cargo last year, up 3.8% on the 797,069 tonnes recorded in 2014. The upward trend has continued in 2016 with H1 figures revealing total traffic (January to June) of 11,848,359, up
6.6% on the 11,111,577 reported in the first half of 2015. The number of people passing through Terminal 1 saw the largest increase, reaching 4,790,469 up 22 percent from 3,918,322 in 2015. With annual passenger growth at AUH ranging from eight to 10 percent, Abu Dhabi Airports anticipates passenger traffic to reach more than 45 million within the next decade. Consistent passenger and cargo growth at AUH has also triggered the development of Abu Dhabi Airport Business City (ADABC), an ‘aerotropolis’ featuring a Logistics Park, Business Park and Business Centre. “It is set to become one of the key commercial hubs in the region for businesses looking to take advantage of its economic benefits and unparalleled global connectivity,” Al Mansoori says. “ADABC aims to encourage foreign direct investment and will include recreational and retail districts. It supports the drive to position the emirate as an international hub for aviation, logistics, and technology, by capitalising on its economic strength and strategic location — only eight hours’ flying time from 80
UAE VISION 2021 - Building a Knowledge Economy
047
AVIATION
percent of the world’s population,” he says. “Furthermore, with the aviation sector doing its part to bring tourists to Abu Dhabi, it is also supporting the initiatives of Abu Dhabi Tourism and Culture Authority (TCA) and the Tourism Development and Investment Company (TDIC), and their world-class developments around the emirate.” Meanwhile, Al Bateen Executive Airport, another Abu Dhabi Airports venture, is spearheading the growth of the emirate’s private aviation sector, with 9,454 passengers passing through its terminals in November 2015. The facility recorded a 9 percent year-on-year growth in traffic in 2015, continuing the upward trend. MTB – A NEW GATEWAY The construction of MTB at AUH is a crucial facet of Abu Dhabi’s Economic Vision 2030, with Abu Dhabi Airports charged with the task of ensuring the airport is
capable of providing world-class services to meet burgeoning passenger and freight traffic growth. Part of the Midfield Terminal Complex (MTC), MTB will be one of the largest singular buildings in the emirate of Abu Dhabi and one of the region’s most architecturally impressive structures. The 700,000-square-metre terminal will increase the overall capacity at AUH to 45 million passengers annually. “The MTB will be the primary gateway for the national carrier, Etihad Airways, and its partners, and will include cargo and catering facilities, utilities, and related infrastructure. Upon completion it will be able to accommodate more than 30 million passengers a year — around 8,300 passengers per hour at peak times,” says Al Mansoori. He is quick to stress the big-picture significance of the terminal, describing the new facility as an “enabler of the diversification of the emirate’s economy”. “It will foster growth in other industries through increased connectivity and further develop tourism by increasing the overall capacity of the airport, allowing more airlines and more passengers to use our facilities,” he says. “The MTB’s ultra-modern design and systems will make the passenger experience one of the best in the world. “Operating such an outstanding facility will be a step further for Abu Dhabi Airports towards its vision of being the world’s
Abu Dhabi International’s new Midfield Terminal Complex will increase the airport’s overall capacity to 45 million passengers annually
THE GROWTH OF ABU DHABI INTERNATIONAL AIRPORT
23 m
passengers in 2015 048
17.4 m
passengers carried by Etihad Airways in 2015
827,456 mt of cargo handled in 2015
Building a Knowledge Economy - UAE VISION 2021
11.85 m
passengers in H1, 2016
30 m
passenger capacity at MTB
45 m
passengers anticipated within next decade
leading airports group, and will support Abu Dhabi’s vision to become a global transportation hub.” Al Mansoori is confident the MTB will be an “airport terminal like no other”. “Alongside its outstanding design will be a sensational passenger experience. We want our guests to enjoy a smooth and hassle-free journey through our airport, and will be applying the most modern and cutting-edge technology available,” he explains. “It will be a ‘Smart Airport’, so there are lots of innovative ideas currently in development that we will be able to reveal in detail at a later stage. “Our current ‘Smart Travel’ system will be in place in the new terminal in its latest version, and the state-of-the-art tote based baggage system will be capable of processing over 19,000 bags/ hour – the first tote based system of its kind in the region. Each bag will have its own tray and barcode, reducing the risk of it getting lost.” The duty free and F&B offering at the MTB will capture the “essence of Arabian hospitality”, according to Al Mansoori. The facility promises innovative retail executions that will “raise the customer offer and experience at AUH to a new level”. “The MTB will also constitute a number of world-first exclusives in terms of its F&B offering, including celebrity chef-inspired outlets, unique to Abu Dhabi International Airport,” he reveals. A SUSTAINABLE MODEL But it’s not a case of style over substance. MTB has been designed to achieve a considerable reduction in annual energy consumption, boasting a climate-responsive building form and façade featuring high-performance low-e double glazing to reduce solar gain, and low U-values specified for the walls and roof to minimise heat gain. Substantial energy demand reductions will also be achieved through the use of a highly efficient lighting system and an adaptive and effectively controlled HVAC system. A sophisticated Building Management System and an Advanced Energy Measurement and Targeting System will also be in place to allow the energy performance of the building to be recorded and monitored, which will enable clear monitoring and understanding of energy use and potential improvements. This information is planned to be used to assist sustainable communication practices for both passengers and operators alike. Limiting the use of potable water was a priority in the MTB design. Water demand was specifically studied and water fixtures were selected based on their ability to maximise reductions. In doing so, the MTB can achieve and maintain a reduction in water consumption of 45 percent over a comparative baseline case. Furthermore, there is a commitment to divert a minimum of 75 percent of construction waste from landfills during the construction phase. In addition to using recycled materials where practical, regional materials have been selected for the construction of the MTB to reduce the demand for fossil fuels for transportation purposes.
“The growth of the aviation sector has already led to the creation of more jobs for UAE nationals, and specialised training institutes such as the Gulf Centre for Aviation Studies (GCAS), have facilitated the development of their skills. These contribute towards Vision 2021’s National Key Performance Indicators of human development and Emiratisation, which in turn support the establishment of a competitive knowledge-based economy” HE ALI MAJED AL MANSOORI, ABU DHABI AIRPORTS CHAIRMAN
PROGRESS REPORT In June 2016 the final de-propping of the last arch in the roof of the MTB was completed, which means the structure is now completely self-supporting. During the next few months, Abu Dhabi Airports will begin building the stand-alone retail units in the duty free area of the building. “Other recent milestones include the opening of one of the country’s biggest district cooling plants that will serve the MTB,” says Al Mansoori. “With a total capacity of 55,000 metric tonnes of refrigerant, the district cooling plant will provide air conditioning for the new terminal through 18 chillers and two thermal energy storage tanks.” In addition, 39 of the 106 passenger boarding bridges have also been successfully installed and the building is now more than 75 percent complete overall. The exterior enveloping and glass glazing of the new terminal is fast advancing, with the plan to complete all four piers within the coming months. Al Mansoori says the MTB will take the UAE another step closer to achieving its economic targets set out in Vision 2021. “For instance, the growth of the avia-
UAE VISION 2021 - Building a Knowledge Economy
049
AVIATION
AUH’s Midfield Terminal Building at a glance Capacity 30 million passengers per year, or around 8,500 peak-hour passengers per hour each way Gates Up to 65 contact stands for variable sized aircrafts including eight Code-F aircraft (A380) with additional 14 remote stands
Lounges Provision for up to eight airline lounges, totalling approximately 30,000 square metres Retail and Food & Beverage 28,000 square metres Transfer time objective 45-minute minimum connection time, including baggage transfers Parking facilities 3,400 cars in short-term covered parking 1,500 cars long-term parking
Security More than 4,300 CCTV cameras Baggage Handling System More than 22 kilometres in length, with capacity for 19,000 bags per hour Travelators 46 Lifts 145 Hotel facilities One transit hotel inside terminal complex (163 rooms & spa)
Architectural and construction data Developer Abu Dhabi Airports Architects and engineers Kohn Pedersen Fox Associates (KPF) with Ove Arup, NACO and BNP Associates Floor area 700,000 square metres (terminal building)
3.5 million square metres (MTC site area) Central terminal space can easily fit three football fields
180m, 52m high, weighing around 1000 metric tonnes Arch span World’s largest indoor arch —
Roof spans MTB roof rests on 18 steel arches. The roof grillage weighs 20,000 metric tonnes. The roof spans 319m at widest point.
Ceiling height 52m at highest point External cladding and glazing 275,000 square metres of aluminium cladding 115,000 square metres of external glazing
Concrete required More than 600,000 cubic metres Foundation piles 7,425 Structural steel Approximately 69,000 tonnes
050
Building a Knowledge Economy - UAE VISION 2021
tion sector has already led to the creation of more jobs for UAE nationals, and specialised training institutes such as the Gulf Centre for Aviation Studies (GCAS), have facilitated the development of their skills,” he notes. “These contribute towards Vision 2021’s National Key Performance Indicators of human development and Emiratisation, which in turn support the establishment of a competitive knowledge-based economy.” Al Mansoori says that in order to build this knowledge-based economy, Emiratis must play a central role in steering the growth and development of Abu Dhabi’s aviation industry. “At Abu Dhabi Airports we believe that we must invest in our employees and ensure that UAE nationals continue to play leadership roles within the organisation,” he says. To achieve this, the company has implemented a comprehensive Emiratisation programme that extends to a wide spectrum of roles across our portfolio of airports and subsidiaries. At present, 50% of the workforce is Emirati, with that figure reaching 82% amongst higher management. Abu Dhabi Airports has also established the National Development Programme (NDP) for employing and training UAE graduates. Delivered over an 18- to 24-month period, it focuses on enabling candidates to obtain practical experience and skills. This is achieved by placing them in various departments and monitoring their progress through a structured assessment system. “Furthermore, our internationally accredited Gulf Centre for Aviation Studies (GCAS), a centre of excellence for airport and aviation training, is focused largely on developing talent in the aviation sector,” says Al Mansoori. “It is one of the few such training centres in the region to offer programmes accredited by key international organisations such as IATA, ICAO and ACI.”
stregisdubai.com
wdubaialhabtoorcity.com
westindubaialhabtoorcity.com
RAILWAYS
FULL STEAM AHEAD In Etihad Rail, the UAE is developing one of the world’s most advanced national rail networks — one that will revolutionise passenger and freight transportation between the seven emirates
052
F
ormed with a mandate to manage the development, construction and operation of the UAE’s national railway, Etihad Rail is currently overseeing one of the largest infrastructure projects in the UAE, which will complement the existing world-class transport infrastructure and further enhance transportation links for the movement of people and goods across the country. The Etihad Rail network is being developed and implemented in three stages, with the 264km first stage route now complete and transporting granulated sulphur from sources at Shah and Habshan to an export point at Ruwais. Stage Two – which will stretch 628km – will connect the Saudi border at Ghweifat and the Omani border at Al Ain, as well as Khalifa Port in Abu Dhabi and Jebel Ali Port in Dubai. Stage Three, which will run for 279km,
Building a Knowledge Economy - UAE VISION 2021
will extend the network into Dubai and on to the Northern Emirates of Sharjah, Fujairah and Ras Al Khaimah. Etihad Rail commenced commercial operations on Stage One of the rail network in December 2015. To date, more than 6.6 million tonnes of granulated sulphur have been transported via the route. Despite the organisation temporarily halting the tendering process for Stage Two earlier this year, Etihad Rail chief executive officer Eng. Faris Saif Al Mazrouei says the development of the national rail project remains on schedule.
“We are in ongoing discussions with stakeholders concerning the construction of Stage Two and the completion of the GCC rail network, with our organisation reviewing the most appropriate options for timing and delivery,” he says. “We remain committed to working with government and other relevant parties to ensure that the project will be successfully completed.” Al Mazrouei says that the development of the national rail network is “in alignment” with UAE Vision 2021, and will provide significant socioeconomic bene-
“[We are] creating an entirely new means of transport for the UAE that will capitalise on the country’s strategic geographical position” ETIHAD RAIL CEO ENG. FARIS SAIF AL MAZROUEI
Eng. Faris Saif Al Mazrouei
UAE VISION 2021 - Building a Knowledge Economy
053
RAILWAYS
ETIHAD RAIL Connecting the UAE’s seven emirates Total length: 1200kms Construction: Planned for construction in three phases: Stage ① Linking Shah and Habshan to Ruwais, Stage One commenced operations in December 2015. The 264km line is transporting freight (mainly granulated Sulphur) between the three centres but in the long-term will also accommodate passenger services. Stage ② The 628km Stage Two extension will connect Ghweifat near the Saudi Arabian border and Al Ain, with Khalifa Port in Abu Dhabi and Jebel Ali Port in Dubai. Stage ③ The 279km Stage Three project will extend the network into Dubai and on to the Northern Emirates of Sharjah, Fujairah and Ras Al Khaimah. When completed, Etihad Rail will rank among the world’s most modern and technically advanced railway networks.
054
fits for the country in the years to come. “UAE Vision 2021 calls for progressive socioeconomic development of the UAE as well as the nation’s economic diversification, with emphasis on the need to shift to a diversified and knowledge-based economy,” he says. “Etihad Rail [will] promote increased trade and investment by further enhancing the connections between key commercial and industrial centres, and the country’s major ports. “The introduction of passenger services will enhance connections between major cities and smaller towns and rural areas, improving social mobility and increasing the size of labour catchment areas for many businesses.” Built to international standards, Al Mazrouei says Etihad Rail is “creating an entirely new means of transport for the UAE that will capitalise on the country’s strategic geographical position and revolutionise the UAE’s economic landscape”. “It will lower transportation costs and promote growth in various business sectors; facilitate the expansion of the UAE’s ports and enhance international trade;
Building a Knowledge Economy - UAE VISION 2021
provide a fast, efficient and affordable transport alternative for passengers; provide jobs for the local workforce; expand the UAE’s logistics capabilities; and ultimately contribute to the national vision of diversifying the economy away from reliance on oil and petrochemicals.” When completed, the 1,200km rail network will enable the transportation of large volumes of goods and materials safely and efficiently. In the case of its freight capacity, it will also remove significant volumes of cargo from UAE highways, alleviating congestion and ultimately helping to reduce the country’s carbon emissions. In fact, Etihad Rail estimates that based on forecast traffic volumes, the rail network will reduce total emissions by more than 2.2 million tonnes annually when fully operational. “The Etihad Rail project is part of the government’s plans to continue investing in world-class transport infrastructure that will leverage the UAE’s strategic geographical position,” says Al Mazrouei. “The railway will further strengthen
the UAE’s standing as a logistics hub, ensuring that it is well-connected to trading partners in the region and beyond through integration with key ports [located on] the Gulf and Arabian seas.” In developing a national rail network from scratch, Al Mazrouei says Etihad Rail is partnering with an extensive network of “world-class planners, rail network designers and engineers as the organisation designs, builds and operates the rail network”. During the design phase, special consideration was given to topographic and climatic challenges such as protecting equipment from wind-blown sand, extreme temperatures and humidity. Al Mazrouei says Etihad Rail learned from best practice and sought insight and expertise from countries that have faced similar environmental issues, such as Saudi Arabia, China and Mauritania. “Since our inception, we have adopted innovative solutions and modern technologies and practices to ensure the delivery of a safe and sustainable passenger and freight railway network in the UAE,” Al
HYPERLOOP UAE A (very) rapid transportation system • A new transportation system capable of ferrying passengers between Dubai and Fujairah in just 10 minutes has been mooted for development in the UAE. • Envisaged by the Dubai Future Foundation, the 1,200km/h Hyperloop system is backed by US entrepreneur and SpaceX CEO Elon Musk. • The technology utilises sealed concrete or steel pipes, installed either above or below ground, which are continuously pumped to remove air and, thus, resistance to the trains, while electric motors create a strong magnetic field that allows carriages to coast in a frictionless environment. • SpaceX is also studying the viability of an aquatic version that can be used to transport cargo from ships to newly created offshore ports. • “If the UAE wants it, it could be operational before 2020,” tech entrepreneur Peter Diamandis commented during a 2015 visit to Dubai. “Hyperloop is about reinventing transportation. This is about the future. Similar to how the mobile phone reinvented the world many times over.”
Mazrouei explains. “For instance, our in-cab signalling system will be based on the latest European systems (ETCS level 2), which ensures safe spacing between trains, and that excess speed and conflicting movements that can potentially cause collisions are avoided. “We also appointed Electro-Motive Diesel to design and build our locomotives, which are being specially modified to cope with the region’s climatic characteristics and desert conditions. “During the construction phase, we have also had to adopt innovative methods of dealing with topographic and climate issues. “To deal with different terrains from flat land to high frequency dunes, loose sand and dune surface crust, we have had to undertake various geomorphologic studies and use a range of special consolidation techniques,” he continues. “We have also had to develop a dewatered management plan to protect groundwater in coastal areas and the protection of desert wildlife. “This means avoiding work at night, which is an active time for desert wildlife and relocating species outside construction zones.” While Etihad Rail’s development will help facilitate inter-emirate travel, in the long-term it will also play a crucial role in the realisation of the much-vaunted 2,200km pan-GCC rail network, which will extend from Kuwait’s border with Iraq in the West to Salalah in southern Oman. Al Mazrouei says that each GCC member state is currently reviewing the schedule for completion of their respective section of the GCC Mainline rail network, and “these will be integrated to provide an overall updated schedule in due course”. In the meantime, Etihad Rail continues to play an active role with the UAE Federal Transport Authority, working in close collaboration with other GCC member states and the GCC Secretariat General, “to develop further the technical, operational and institutional interoperability requirements that will ensure safe, fast, and efficient GCC regional train services,” he says.
DUBAI & ABU DHABI Building the world’s most advanced Metro systems Dubai made history when it launched its Metro system in 2009. The region’s first mass transit system is also the world’s longest fully automated metro network, spanning 75km. An expansion of the network is now underway, consisting of the AED10.6bn ($2.88bn), 15km Route 2020 line, which will serve the World Expo site and a residential population of “around 270,000 people”, according to Mattar Al Tayer, director general and chairman of Dubai’s Roads and Transport Authority. “It will also serve Al Maktoum International Airport in future,” he told media in June. Fifty new trains supplied by Alstom will be added to the expanded network, with 15 providing dedicated services to the expo site and the remainder adding capacity to existing lines. Route 2020 will be capable of accommodating 46,000 passengers an hour in both directions at full capacity, according to Abdul Ibrahim Younes, chief executive of Dubai RTA’s Rail Agency. Meanwhile, in Abu Dhabi, transport authorities are planning the development of a metro network spanning 131km, which will be constructed at a cost of AED7 billion (£1.32bn). Supported by tram and bus feeder services, the Abu Dhabi Metro will help alleviate traffic congestion on the capital’s roads and highways and connect Abu Dhabi Island with the capital’s newly built precincts including Yas Island, Saadiyat Island and Al Raha Beach.
UAE VISION 2021 - Building a Knowledge Economy
055
PORTS & SHIPPING
SHIP TO SHORE 056
Building a Knowledge Economy - UAE VISION 2021
In Jebel Ali Port and Khalifa Port, the UAE boasts two of the region’s most advanced ports facilities. In line with Vision 2021, this infrastructure will be further developed into world-beating assets that set new benchmarks for quality and efficiency
D
ubai’s Jebel Ali Port and Abu Dhabi’s Khalifa Port rank among the world’s biggest and most technologically advanced shipping ports. Both facilities are crucial to the economic development plans of the UAE’s two biggest emirates and are vital re-export hubs for regional markets. The UAE ranks first regionally and third globally in terms of quality of its seaports infrastructure, according to the Global Competitiveness Index 2014-2015. Surrounded by massive integrated industrial freezones, the scope and scale of both developments are testament to the vision of the country’s leaders. ABU DHABI LEADING THE WAY A 2015 study conducted by Oxford Economics found that Abu Dhabi Ports’ operations contributed more than AED14 billion ($3.8 billion) to Abu Dhabi’s GDP and generated in excess of 39,500 new direct and indirect job opportunities in 2014. One in every 50 jobs in Abu Dhabi’s non-oil sector could be attributed to Abu Dhabi Ports’ commercial operations in the same year. The study also revealed the organisation’s total operational output accounted for 2.9 per cent of Abu Dhabi’s non-oil GDP. Abu Dhabi’s Khalifa Port ranks as the fastest growing port in the Middle East and the third-fastest growing container port in the world. It is home to the region’s only semi-automated container terminal and features six of the world’s largest ship-to-shore cranes. Container volumes increased by 11 percent in the first half of 2016, bolstered by rapid growth in polymer exports and transhipment activity across the Gulf. Almost 700,000 TEUs were handled in the first six months of 2016, up from 629,941 TEUs during the same interval last year. This year has proven a watershed period for Abu Dhabi Ports, the master developer, operator and manager of the ports and adjacent logistics and business hub, Khalifa Industrial Zone (KIZAD). Highlights include the successful implemen-
tation of the much-vaunted Terminal Operating System (TOS) in Zayed and Musaffah Ports, which is essentially a complex database providing bookings, detailed tracking for containers and Gate Transaction tracking. Increasing the attractiveness of the ports to both sea- and land-based users, TOS acts as an integrated business platform with physical and technological infrastructure and processes. Earlier this year, Abu Dhabi Ports also successfully completed the first cruise season from its new state-of-the-art cruise passenger terminal. The 184,815 passengers who disembarked at the new facility in the first half of 2016 represented an increase of 49 percent year-on-year, resulting in a 16 percent year-on-year growth from the 2015 season. Abu Dhabi’s emergence as a popular cruise destination is another example of the success of the emirate’s economic diversification programme.
“We continue to invest and upgrade our offerings and facilities to support fast, inter-connected and efficient supply chains while also reaffirming Abu Dhabi’s position as a centre of excellence in maritime trade” CAPT. MOHAMED JUMA AL SHAMISI, ABU DHABI PORTS CEO Capt. Mohamed Juma Al Shamisi
UAE VISION 2021 - Building a Knowledge Economy
057
PORTS & SHIPPING
Meanwhile, the vast trade and logistics zone, KIZAD, increased in size by some 50 percent in the first half of 2016 compared to 2015, with its total land area now exceeding 1.5 million sq metres. The precinct also reported a 17 percent year-on-year increase in the number of investors from 2011, with a value exceeding AED 22 billion ($6 billion). Ten facilities in logistics, warehousing, food, printing and packaging, aluminium, workshops, repairs and mixed-use are already operational at KIZAD, while 13 more will be operational by the end of 2016, Abu Dhabi Ports confirmed. By 2030, the vast trade and logistics hub will cover an area two-thirds the size of Singapore, making it one of the world’s largest industrial zones. Commenting on the achievements of 2016, Abu Dhabi Ports CEO Capt. Mohamed Juma Al Shamisi, says: “These results demonstrate the crucial role that Abu Dhabi Ports plays as a regional and increasingly global maritime trading hub, especially for those seeking to access the $7.8 trillion Middle East, Africa and South Asian region. “We continue to invest and upgrade our offerings and facilities to support fast, inter-connected and efficient supply chains while also reaffirming Abu Dhabi’s position as a centre of excellence in maritime trade. The positive role played by Abu Dhabi Ports’ suppliers, partners and employees is
at the heart of this growth, in line with the wise vision of the UAE leadership, the Abu Dhabi Plan and Economic Vision 2030.” Abu Dhabi Ports’ industrial operations also strive to meet the goals of UAE Vision 2021 in regards to developing environmentally sustainable infrastructure that contributes to the growth of the country’s non-oil economy. An award-winning, eight-kilometre Environmental Protection Breakwater constructed at Khalifa Port is a major contributor to safeguarding the local marine environment. The $240 million breakwater protects Ras Ghanada Reef, the Gulf’s largest coral reef at around 35 square kilometres. Across KIZAD, Abu Dhabi Ports has also established solid waste and wastewater recycling programmes, and installed stateof-the-art monitoring equipment for conducting both water- and air-quality surveys. The organisation was among the first in the UAE to monitor PM2.5, one of the most dangerous dust particles for human health. Abu Dhabi Ports implemented standards ensuring all buildings constructed within its domain are environmentally friendly. The ports operator has also invested heavily in intelligent IT systems across its operations. The highlight of this investment is Maqta Gateway, which is a revolutionary trade and logistics management system that will bring together all stakeholders in Abu Dhabi’s import and export trade business
“We continue to support the transformation of Dubai into the world’s smartest city as envisioned by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai”
HE Sultan Ahmed Bin Sulayem
058
HE SULTAN AHMED BIN SULAYEM, GROUP CHAIRMAN AND CEO OF JEBEL ALI PORT OPERATOR, DP WORLD
Building a Knowledge Economy - UAE VISION 2021
to manage the flow of cargo into and out of the emirate. Stage 1 of the project went live in January, 2016. “Maqta Gateway will streamline [Abu Dhabi’s] import and export trade activities through a single window, delivering secure, real-time information and transparent efficiencies that will enhance the processing times of goods and improve communications between all parties involved,” says Al Shamini. JEBEL ALI PORT Dubai’s Jebel Ali Port, which boasts the world’s biggest man-made harbour, is the largest marine terminal in the Middle East and one of the busiest, with more than 90 weekly services connecting more than 140 ports worldwide. It currently ranks among
Main: Abu Dhabi Ports’ operations contributed more than $3.8bn to Abi Dhabi’s GDP in 2014. Below: A container ship docks at Jebel Ali Port in Dubai.
the world’s top 10 ports in terms of traffic, and its enviable geographical location provides market access to an estimated population of 2 billion people. Jebel Ali Port is also renowned as the world’s most efficient marine terminal. According to JOC Port Productivity data, which is compiled by industry analyst Journal of Commerce, Jebel Ali recorded a world-leading 131 moves per ship per hour in 2014, up 10 percent from 119 in 2013. The ranking is based on JOC’s analysis of more than 125,000 port calls in 2014, where productivity is defined as the average of the gross moves made by Ship-To-Shore (STS) cranes for each vessel call recorded. “The productivity achievement is [a] reflection of our unshakeable belief that investing in our people and technology is the best way to deliver service excellence to our customers and support Dubai and the UAE’s development,” says HE Sultan Ahmed Bin Sulayem, group chairman and CEO of Jebel Ali Port operator, DP World. Jebel Ali Port’s container terminals are equipped with a total of 23 berths and 78 cranes, ensuring the port can accommodate the world’s largest container vessels. The port is currently being expanded with the addition of Terminal 4, which will see crane capacity increase to at least 110 units with a total quay length
of around 11,000 metres. The expansion project, which is valued at $1.6 billion, will enable it to handle a total of 22.1 million TEUs annually by 2018, up fron 15.2 million TEUs in 2014. “We are excited to see construction work going ahead as planned for Container Terminal 4 in the run up to Expo 2020,” says Bin Sulayem. “We continue to support the transformation of Dubai into the world’s smartest city as envisioned by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. “This terminal is the big idea that will change the way ports work in the future. We will deploy the latest technology in equipping our quays and yards, and run them with the most sophisticated terminal operation systems. We have a long track record of investing proactively to expand capacity at our operations to meet changing customer needs. We are building Terminal 4 from the ground up, which enables us to future-proof it for smart container ships emerging in the future.” DP World will further expand Terminal 4’s capacity to a total of 7.8 million TEUs in line with market demand under Phase 2, with an additional operational yard with a quay length of 1,000 metres. Terminal 4 will be equipped with semi-automated quay cranes, providing operational efficiencies for customers, and environmental benefits through the reduction of its carbon footprint. Phase 1 will feature 13 of the world’s largest and most advanced quay cranes, remotely operated from a sophisticated control room located adjacent to the quayside. Some 35 Automated Rail Mounted Gantry cranes (ARMG) will operate in the yard. “With our 4 million capacity TEU Container Terminal 3 fully operational this year, Jebel Ali will have the capability to accommodate 10 mega-container ships simultaneously and the new Terminal 4 will increase that handling capability,” says Bin Sulayem. “It will be ready in time to meet the expected increase in trade over the next five years and to ensure Jebel Ali Port reinforces its position as the top commercial gateway to this region.”
JAFZA MOVES FROM STRENGTH TO STRENGTH Jebel Ali Free Zone (JAFZA), the tax-free business hub that lies adjacent to Jebel Ali Port, ranks among the world’s largest free-trade zones. Established in 1985 with just 19 companies, the precinct has grown to house more than 7,000 companies from 100+ countries, and employs more than 144,000 personnel. Remarkably, the freezone accounts for more than 32 percent of the UAE’s foreign direct investment, 50 percent of its exports and $87.6 billion worth of trade. JAFZA is one of the jewels in the crown of Dubai’s ambitious trade and logistics strategy, alongside Dubai Airport, Jebel Ali Port and the upcoming Al Maktoum International – Dubai World Central. “Dubai is today considered one of the top aviation hubs in the world with Dubai International Airport ranked the busiest airport,” Ibrahim Mohamed Aljanahi, deputy CEO of Jafza, told a Chinese trade delegation in 2015. “More than 140 airlines serve Dubai and Al Maktoum International Airports providing the fastest air connection to reach any destination in the world at the shortest possible time. Jebel Ali Port, on the other hand, is today one of the top 10 container ports in the world and the largest in the region. More than 170 main shipping lines call the port providing efficient sea connections to all major trading corridors across the world. “Jafza was created in 1985 and in the last 30 years, leveraging Dubai’s outstanding multimodal facilities grew into one of the world’s finest logistics hubs. The Free Zone attracted practically all big multinationals into the Free Zone who were interested in the wider Middle East’s rapidly growing economies. Thousands of the world’s top multinationals today have established their regional headquarters in Jafza and serve all key markets in the entire region efficiently.”
UAE VISION 2021 - Building a Knowledge Economy
059
TECHNOLOGY
TECHNOLOGY FOR ALL MANKIND THE UAE IS INVESTING HEAVILY IN THE RESEARCH AND DEVELOPMENT OF CUTTING-EDGE TECHNOLOGIES THAT WILL CHANGE THE WAY WE LIVE, WORK AND PLAY
060
Building a Knowledge Economy - UAE VISION 2021
The development of advanced technologies that will transform the world as we know it is one of the driving ambitions of UAE Vision 2021. From nanotechnology applications to artificial intelligence and 3D printing, the UAE is investing heavily in emerging technological sectors that will offer unprecedented economic and social benefits for all mankind
NANOTECHNOLOGY Nanotechnology is being heralded as a quantum leap for science and technology. From computing to healthcare and even renewable energy, these microscopic technologies – up to one hundred thousand times thinner than a human hair – will revolutionise future scientific and economic endeavours. Abu Dhabi’s Masdar Institute of Science and Technology is positioning itself as a regional leader in the development of nanotechnology, particularly in the sphere of renewable energy. It is partnering with the US National Science Foundation (NSF) – which recently pledged $500 million on R&D initiatives – and other international bodies on a number of programmes, primarily focused on clean energy, water and food security and public health. “Masdar Institute’s role in fostering research in nanotechnology innovation reflects our vision of further diversifying the UAE’s economy,” says Dr. Fred Moavenzadeh, president of Masdar Institute. One of the most exciting projects is Masdar’s ongoing development of thin-film solar cells that employ nanoparticles to harvest sunlight, leading to an increase in the potential amount of electricity which can be generated from solar cells. Masdar, which is partnering with the US-based Massachu-
UAE VISION 2021 - Building a Knowledge Economy
061
TECHNOLOGY
setts Institute of Technology (MIT) on the project, says the new solar cell will not only be more efficient but cheaper to produce and operate than traditional solar cells. In another exciting development, scientists from Masdar and MIT have developed a low-cost solar thermal energy conversion system that generates steam from sunlight. The technology promises to make current industrial processes that rely on steam, such as desalination, wastewater treatment and power generation, more affordable. “The system we have developed enables us to generate steam with solar energy without having to rely on direct sunlight,” says Dr. TieJun Zhang, Masdar Institute assistant professor of Mechanical and Materials Engineering. “The technology is particularly suited to the UAE’s dusty climate, as it fully uses the entire spectrum of sunlight for thermal applications rather than just the direct portion, which can be hindered by aerosols.” In a world-first, Masdar is also developing nanotechnology to clean desalination membranes in real-time, without the need for shutting down plants. The technology produces fresh water utilising carbon nanotubes and employs a remote sensing system that uses graphene. 3D PRINTING In April, 2016, HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, launched the Dubai 3D Printing Strategy, which aims to position the UAE as global hub for 3D printing technology. 3D printing looms as one of the great economic opportunities of the future. Market analyst IDC estimates that the sector is expanding globally at an annual rate of 27 percent, rising in value from $11 billion in 2015 to $26.7 billion in 2019. A key goal of the Dubai 3D Printing Strategy is for 25 percent of new buildings constructed in Dubai by 2030 to utilise techniques based on 3D printing technologies. According to government estimates, the 3D printing technology-based construction sector in Dubai alone will be worth around AED3 billion ($816 million) by 2025, with this figure to grow significantly as the technology becomes increasingly ubiquitous. “The UAE is presenting to the world today the first integrated and comprehensive strategy to exploit 3D technology to serve humanity,” HH Sheikh Mohammed said at the launch of the Strategy. “We have also framed practical plans and precise goals to turn the strategy into reality, the reality that will contribute to the progress and prosperity of the world and help preserve our human heritage. “The future will depend on 3D printing technologies in all aspects of our life, starting from houses we live in, the streets we use, the cars we drive, the clothes we wear and the food we eat. “This technology will create added economic value and
062
Building a Knowledge Economy - UAE VISION 2021
UAE AI & ROBOTICS AWARD FOR GOOD NATIONAL SEMI-FINALISTS The UAE is proving a hotbed of artificial intelligence development, as witnessed by the innovative projects named as semi-finalists in this groundbreaking international competition Smart Guidance System for the blind The Smart Guidance System for the Blind helps those without sight by guiding them around obstacles in their path using a combination of sonar and five physical vibrators. Healthy Robotics surgical tool manipulator This technology has the ability to accurately manipulate and to firmly “lock” in place special purpose surgical tools necessary for minimally invasive therapy. CoiCAM diagnosis of colon cancer The CoiCAM team has developed the Spherical Capsule for Endoscopic Applications, which has the ability to overcome the limitations of existing endoscopic capsules. Mozo learning robot assists children with Autism Spectrum Disorder The Mozo team has developed a learning robot specially designed for children with Autism Spectrum Disorder (ASD). Mozo, a one-metre tall teddy bear, helps autistic children practice their social skills. RE-ACT ROBOT for patients with neural diseases This haptic robotic system is capable of helping patients suffering from neurological disorders to regain their motor control function. AI for aspiring athletes This technology is designed to enhance motor skills’ training for aspiring athletes. The process studies the muscle activation patterns of professional athletes using Electromyography (EMG). Data is collected and then applied to the muscles of aspiring athletes using a network of muscle stimulators. CVD Helper for people with colour vision deficiency The CVD Helper team has developed a solution for people affected by colour vision deficiency. Brain-Controlled Electric Wheelchair This wheelchair employs a non-invasive brain-computer interface based on electroencephalography (EEG) to detect user’s thoughts, feelings, and expressions and accordingly issue appropriate commands to the electric wheelchair motor controller. Intelligent bore well system WaterLoop monitors the quality and level of water bore wells and gathers useful data for water planning and consumption.
benefits worth billions of dollars during the coming period. We should have a share in this growing global market. This technology will restructure economies and labour markets as the use of unskilled labour will come down compared to the current situation, especially in the construction sector. “It will also redefine productivity because the time needed for 3D printing of buildings and products will be 10 percent of the time taken in traditional techniques.” Demonstrating the capabilities of the technology, Dubai took the wraps off the world’s first 3D-printed office building in May. Fittingly, the Museum of the Future was constructed using 3D printing technologies in just 17 days. The building utilised a 3D printer measuring 120ft in length, 20ft high and 40ft wide, and was equipped with an automated robotic arm. Speaking at the opening of the building, HE Mohammed Al Gergawi, chairman of the UAE National Innovation Committee, said: “This project reflects the vision of our leadership here in Dubai. We are keen to use the latest technologies to simplify people’s lives and to serve them better. This project is part of our overall innovation strategy to create new designs and new solutions in education, healthcare and cities. Our goal is to increase the happiness and well-being of our residents and to pioneer new solutions for the world.” According to HH Sheikh Mohammed, the UAE’s efforts to develop 3D printing technologies will ultimately benefit the global economy. “Our methodology for development is based on the launch of initiatives that can be applied anywhere in the world and creating a global model for not only our economy but also for the global economy,” HH said in April. “The future does not wait for those who hesitate and slow down. The next stage requires us to act fast and utilise the opportunities.” In addition to construction, the 3D Printing Strategy will focus on the development of applications in the medical and consumer sectors. In the medical arena, the UAE will focus its efforts on the development of artificial bones, organs, and medical and surgical devices, as well as hearing aids. According to government estimates, the 3D-printed medical technology sector in Dubai will be worth AED1.7 billion ($460 million) by 2025. Meanwhile, developments in the consumer sector will focus on 3D-printed household items, optics, fashion jewellery, children’s games and fast food. This sector is expected to be worth about AED2.8 billion ($760 million) by 2025. “Through the 3D Printing Strategy, we aim to make Dubai a global hub for the development of this technology and a base for research and development in this area. We aim to provide the best opportunities for innovation and optimal application of this technology worldwide. Our goal is raise the level of services provided to the people and harness 3D printing for the benefit of the entire community,” commented HH Sheikh Mohammed at the launch of the 3D Printing Strategy.
“Our methodology for development is based on the launch of initiatives that can be applied anywhere in the world and creating a global model for not only our economy but also for the global economy. The future does not wait for those who hesitate and slow down. The next stage requires us to act fast and utilise the opportunities” HH SHEIKH MOHAMMED BIN RASHID AL MAKTOUM, UAE VICE PRESIDENT AND PRIME MINISTER AND RULER OF DUBAI
UAE VISION 2021 - Building a Knowledge Economy
063
TECHNOLOGY
“Our goal is to increase the happiness and well-being of our residents and to pioneer new solutions for the world” HE MOHAMMED AL GERGAWI, CHAIRMAN OF THE UAE NATIONAL INNOVATION COMMITTEE ARTIFICIAL INTELLIGENCE Another area of intense development in the UAE is artificial intelligence (AI) and robotics. The UAE is supporting the development of AI applications through its landmark UAE AI & Robotics Award for Good, which is offering AI developers the chance to win AED3.67 million ($1 million) in funding. The 2016 awards programme, which is the first edition, attracted 664 entries from 121 countries worldwide. Healthcare innovations dominated the list of entrants, with 34.84 percent of the total number, followed by Education (15.48 percent), Social Services (8.39 percent), Environment (5.81 percent), Civil Defence (5.16 percent), Construction (3.23 percent), Humanitarian Aid (3.87 percent), Tourism (1.94 percent), Transport (1.94 percent), Logistics (1.29 percent), Economy (0.56 percent), and others (17.42 percent). “The UAE government launched the UAE AI & Robotics Award for Good during the Government Summit last February to achieve the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum […] to enhance the status of the UAE as a global leader in the field of science and technology by adopting the culture of innovation and taking advantage of available technologies to improve human life in several key areas,” says HE Mohammed Abdullah Al Gergawi, who is chairperson of the Organising Committee of the UAE AI & Robotics Award for Good. Twenty semi-finalists in the awards programme were announced in February, hailing from countries as far-flung as Australia, the United States, the United Kingdom and the UAE. National semi-finalists from the UAE range from intelligent water bore systems to a brain-controlled electric wheelchair and intelligent teaching and social aids for children diagnosed with Autism Spectrum Disorder (ASD). The ICT Fund – the financing tool of the UAE’s Telecommunications Regulatory Authority (TRA) which is overseeing the awards – recently revealed that the winner will be announced in February 2017. In conjunction with the UAE AI & Robotics Award for Good, the ICT Fund is also overseeing the UAE Drones for Good Awards programme, which is offering drone developers the chance to win $1 million in prize money. HE Hamad Obaid Al Mansoori, director general, TRA said: “It is our honour that the ICT Fund was entrusted to organise these awards which were launched by HH Sheikh Mohammed Bin Rashid Al Maktoum […] which shape the ideal employment of technology to serve humanity.”
064
Building a Knowledge Economy - UAE VISION 2021
HE Mohammed Al Gergawi
TELECOMMUNICATIONS
FULL SPEED AHEAD The UAE, which already boasts world-class ICT infrastructure, is aiming to become the first country in the world to launch fifthgeneration (5G) mobile services
066
T
he UAE boasts some of the world’s most advanced telecommunications infrastructure and one of its highest mobile penetration rates. According to the latest data from the UAE Telecommunications Regulatory Authority (TRA), the country has more than 19 million mobile subscribers, equating to a remarkable penetration rate of 222 percent, up from 180 percent in 2013. Public Wi-Fi networks covering the country’s major population centres have already been developed by UAE telecommunications incumbents Etisalat and du, while the country is also a world-leader in the provision of high-speed, fibre optic-based internet services. The latest TRA data shows there are more than 1.26 million broadband internet subscriptions in the UAE, up from just over 1 million in 2013. Indeed, the UAE’s exceptional performance in telecommunications provision sees it rank first in the Middle East and 12th worldwide in the Information and Communications Technology (ICT) index, one of the key indicators featured in the 2016 Global Innovation Index (GII). The ICT index is the first main indicator under the Infrastructure index — one of the seven major indexes stated in the GII report, which is used to evaluate a country’s degree of innovation. The Infrastructure index covers several sub-indicators, including ICT access, where the UAE currently ranks 26th worldwide, up from 31st in 2015. In terms of ICT use, the UAE ranks 20th in the world overall (up from 21st in 2015), 13th in terms of e-Government services and 12th in regards to participation.
Building a Knowledge Economy - UAE VISION 2021
The UAE harbours three main goals for its ICT sector as part of Vision 2021: to be ranked first worldwide in terms of the quality of its ICT infrastructure, online services and network readiness. “The UAE is progressing steadily to achieve global leadership in innovation through building our human capital which comprise young ones with skills and highly innovative spirits,” says HE Hamad Obaid Al Mansoori, TRA Director General. “Our nation’s leaders are working to develop and encourage national talents and capabilities to become successful in innovation, following the national strategy launched by HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, which aims to make the UAE one of the most innovative countries in the world by 2021. “The TRA is committed to continue rating high on ICT-related indexes included in the Global Innovation Index. These indicators are already in line with the TRA’s vision and strategic goals which include adopting a culture of innovation and creativity and developing the country as an ICT hub. “The TRA’s efforts are leading to the achievement of our leaders’ directives as embodied in UAE Vision 2021. We are on a journey towards attaining a sustainable knowledge-based economy. Strengthening the infrastructure to meet all sectors’ needs and developments is one of the TRA’s priorities,” Al Mansoori added. While the UAE’s telecommunications infrastructure is the most modern and advanced in the Arab World, ranking first in the Network Readiness Index, the country is now looking to position itself as a global leader in the establishment and provision of fifth-generation (5G) mobile services. The UAE already boasts one of the world’s highest mobile broadband penetration rates at more than 90 percent, up from just 45 percent in 2013. The TRA is currently discussing plans to allocate bandwidth frequencies compatible with 5G services, while UAE telecommunications provider Etisalat has boldly stated its intent to launch one of the world’s first 5G services in time for Dubai Expo 2020. Etisalat is a founding partner in EBTIC, the joint industry and academia international centre for telecommunications research and innovation in the UAE. “Etisalat is going to be one of the first telecommunication companies in the Middle East to provide users with 5G [services] as will be done to its UAE network,” says Etisalat CEO Saleh Al Abdooli. “Currently, work on the infrastructure necessary to make this introduction possible
“Etisalat is going to be one of the first telecommunication companies in the Middle East to provide users with 5G [services] as will be done to its UAE network” SALEH AL ABDOOLI, ETISALAT CEO
Saleh Al Abdooli
UAE VISION 2021 - Building a Knowledge Economy
067
TELECOMMUNICATIONS
UAE GROWTH OF TELECOMMUNICATIONS SERVICES, 2013-16 Fixed Lines Number of Fixed Lines[i] Fixed lines per 100 inhabitants Mobile
Jun-13
Jun-14
Jun-15
Jun-16
2,044,498
2,101,137
2,153,304
2,284,134
24.7
25.1
25.3
26.5
Jun-13
Jun-14
Jun-15
Jun-16
Active Mobile Subscriptions[ii]
14,949,937
16,838,060
17,186,727
19,133,341
Mobile Subscriptions per 100
180.7
200.8
202.3
222.3
Post paid
1,891,624
2,341,002
2,674,254
2,986,713
Pre-paid
13,058,313
14,497,058
14,512,473
16,146,628
Internet
Jun-13
Jun-14
Jun-15
Jun-16
inhabitants
Internet Subscriptions
1,007,774
1,060,004
1,156,291
1,261,532
Dial-up Subscriptions [iii]
2,195
863
1,306
473
Broadband Subscriptions
1,005,579
1,059,141
1,154,985
1,261,059
12.2
12.6
13.6
14.7
Broadband Internet Subscriptions per 100 inhabitants
Source: UAE Telecommunications Regulatory Authority (2013-16)
is under way. By the end of 2017, Etisalat will roll out 4.5G technology by 40 to 50 percent while work on 5G is being done so that the project is 100 percent complete by 2019.” Rival telecommunications provider du is also boldly pursuing the establishment of 5G services, having recently launched the UAE 5G Innovation Gate (U5GIG) in Dubai. The U5GIG is a consortium of technical and academic organisations working together to define and develop a global 5G network standard as well as 5G and Internet of Things ( IoT) devices and services. “[This] initiative will allow the UAE to effectively compete with the advanced markets and bring the UAE’s voice to the technology development debate,” says Ibrahim Nassir, chief human capital and administration officer at du. “The UAE will be a major industry “The inauguration of development leader and we can only do this U5GIG adds further through collaboration between industry and impetus to the initiative academia. We plan to work closely with of HH Sheikh Mohammed suppliers and SMEs and eventually train Bin Rashid Al Maktoum, future UAE academic and industry leaders. Vice President and Prime The programme will be open for all UAE Minister of the UAE and universities and industrial organisations that Ruler of Dubai, in estabneed to be part of the state-of-the-art 5G lishing the UAE as a global ecosystem development. leader in all aspects and “The inauguration of U5GIG adds further as an innovator in impetus to the initiative of HH Sheikh technology in the Middle Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE East region” and Ruler of Dubai, in establishing the UAE IBRAHIM NASSIR, as a global leader in all aspects and as an CHIEF HUMAN CAPITAL innovator in technology in the Middle East AND ADMINISTRATION region,” he adds. OFFICER, DU
068
Building a Knowledge Economy - UAE VISION 2021
FLYING HIGH
The UAE TRA is spearheading the development of a technical standard that will enable airlines to deliver high-speed broadband Internet connection during flights at lower costs. The initiative was revealed during a recent International Telecommunications Union (ITU) meeting held in Geneva. Eng. Khaled Al Awadhi, manager for International Organisations, Corporate Development Department and TRA spokesperson said after the conclusion of the meeting: “The TRA has proposed various technical aspects which require close collaboration between the telecoms and space sectors, especially in terms of enhancing the quality of telecommunications services. “The TRA has discussed the importance of using space services and providing new frequencies that can accommodate 5G mobile devices, which will require expanding broadband services or improving the efficiency of current capabilities. The TRA has discussed broadband application using satellites to serve the aviation sector, which will allow airlines to easily provide high-speed internet [access] in-flight. At present, there are some technical challenges to [providing in-flight high-speed internet access] because of lack of capabilities and high cost.” The UAE TRA is also working with international organisations on the development of the Global Maritime Distress and Safety System, which will track ships navigating across oceans to protect them from pirates and safeguard against other potential emergencies. “Emirati engineers are very much capable of contributing significant innovation in the space sector as we have seen them launch many projects under the sponsorship of technology firms and service providers. The TRA is continuously working to meet the requirements of those projects which may need to be tested and applied internationally. This is where we come in — to facilitate their implementation through coordination with [the] ITU,” Al Awadhi added.
DUBAI SMART CITY
GET SMART
070
Building a Knowledge Economy - UAE VISION 2021
Dubai has embarked on an ambitious strategy to transform itself into the world’s smartest city by 2021
I
n a bid to realise its grand ambition of becoming the world’s smartest city by 2021, Dubai is pursuing more than 100 initiatives that aim to encourage collaboration between public and private sectors, covering six key focus areas: transportation, society, lifestyle, economy, government, and environment. Technology, advanced infrastructure and connectivity will play crucial roles in helping the city realise its ambitions in each industry sector. Dubai’s smart city strategy is the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. Fittingly, after the official launch of the project in 2014, Sheikh Mohammed tweeted to his 6.74 million followers: “Today we launched our strategy for transforming Dubai into the smartest city in the world in the upcoming three years. It [the strategy] includes 100 initiatives, and transforming 1,000 government services to smart services. “Our ambition is for this project to touch every individual in our country — every mother in her home, every employee at his work or investor in his project or child in his school or doctor in his clinic. Our goal is a happier life for all and we ask God to help us achieve this.” Dubai’s smart city strategy hinges on three main principles: communication, integration and cooperation. At the core of this strategy lies Dubai’s advanced telecommunications backbone and ultra-fast broadband wireless access network, which is being rolled out across the city. “The Smart Dubai Platform will become the digital backbone for our smart city, uniting city infrastructure, open and shared data, enabling services, and citywide smart applications,” says HE Dr Aisha Bin Bishr, director general of Smart Dubai Office. “The Platform will become the central ‘operating system’ for Dubai, improving efficiency, decision-making and experiences. “The Smart Dubai Platform will be unlike any other smart city platform operating in the world today. Fully architected through
UAE VISION 2021 - Building a Knowledge Economy
071
DUBAI SMART CITY
BIG NUMBERS
$ 1,000
The number of government services to be ‘smartenabled’ by 2021
“Our ambition is for this project to touch every individual in our country — every mother in her home, every employee at his work or investor in his project or child in his school or doctor in his clinic. Our goal is a happier life for all and we ask God to help us achieve this” HH SHEIKH MOHAMMED BIN RASHID AL MAKTOUM, VICE PRESIDENT AND PRIME MINISTER OF THE UAE AND RULER OF DUBAI
072
250,000
The number of smart energy meters DEWA plans to install across Dubai
2,000
The number of Wi-Fi hotspots to be installed across the city
an iterative and collaborative process, the platform has been designed with the citizen, resident, visitor, investor and government at the centre.” UAE telecommunications provider du, which is the lead strategic partner in the Smart Dubai project, is installing more than 2,000 broadband hotspots across the city to provide free Wi-Fi access to the city’s residents and visitors. Ultimately, the Smart Dubai plan calls for free and ubiquitous Wi-Fi access across the entire emirate. Providing ‘always-on’ access will enable the city’s planners to develop a range of solutions based on a shared data platform, says Dr Aisha. “To achieve our ambitious mandate, Smart Dubai has pioneered the most comprehensive blueprint globally, encompassing the whole city, not just one sector or district,” she says. “We are unifying op-
Building a Knowledge Economy - UAE VISION 2021
$5.9 BN
Anticipated cost savings resulting from Dubai’s smart transportation strategy
erations to enable impact across the city, from infrastructure connected to the Internet of Things, to open data and shared data, deriving insights and innovation.” Du CEO Osman Sultan says Dubai will set a new global-standard for smart applications, providing world-class services to residents and visitors alike. “The city be able interact with these new ways of doing things, the city will have access to the huge amount of data, and the city will be able to do better planning, better anticipation, the city will be able to see the trends and how people interact with the place,” he says. Dr Aisha says that Smart Dubai will reshape the way government services are structured to meet the needs of the customer, “rather than the other way around”. “We envision radical enhancements to our city leadership decision-making, operational efficiencies, and daily quality of
life,” she says. “The Smart Dubai Platform will benefit everyone: For a city planner, directing operational cost-savings into data-driven research and development; For a mother, checking health data from her child’s school to determine if a flu vaccination is required; For a father, reviewing household energy consumption to conserve resources and save money for a family vacation; For a tourist, utilising the live public transportation data to make the most out of his time spent in the city; And for all commuters, enjoying reduced traffic congestion as more and more services are transacted online.” SMART ROADS & TRANSPORT STRATEGY According to the Dubai – A New Paradigm for Smart Cities report, published by KPMG, practical measures will be implemented across core infrastructure and service sectors. Smart sensors will be placed in and along roads and at traffic signals to measure and detect traffic congestion. The resulting data will be analysed in real time to optimise traffic flows, while providing updates via apps to road users and pedestrians. Meanwhile, wireless sensors will be placed in carpark areas and will alert nearby road users as to the availability of car spaces in their vicinity. Such innovations will prove a boon for motorists tackling Dubai’s traffic snarls. Indeed, the number of cars on Dubai’s roads almost doubled in less than a decade, from 740,000 in 2006 to more than 1.4 million in 2015. Dubai is also one of the world’s leading proponents of autonomous transportation. In April 2016, HH Sheikh Mohammed launched the Dubai Autonomous Transportation Strategy, which aims to ensure a quarter of all cars on Dubai’s roads are self-driving by 2030. With these vehicles linked to the Smart Dubai communications grid, the emirate will realise savings of more than $5.9 billion through the reduction of transportation costs, accidents and carbon emissions. Less time spent on the road also means more time working, which will further enhance Dubai’s economic propects. “Dubai is leading the cities of the world by taking a big leap in the adoption of
“To achieve our ambitious mandate, Smart Dubai has pioneered the most comprehensive blueprint globally, encompassing the whole city, not just one sector or district …We envision radical enhancements to our city leadership decision-making, operational efficiencies, and daily quality of life” HE DR AISHA BIN BISHR, DIRECTOR GENERAL OF SMART DUBAI OFFICE artificial intelligence to serve humanity and establish a global model of the city of the future as we aim to become the world’s largest laboratory for technology and research and development (R&D),” commented HH Sheikh Mohammed at the launch of the strategy. Dubai’s residents are also keen to embrace this transportation revolution. According to a recent report published by the World Economic Forum, 70% of Dubai residents would prefer to use autonomous transportation, compared to an average 58% worldwide. The provision of roads and transport-related government services will also become more efficient as a result of the Smart Dubai Platform. Dubai’s Roads and Transport Authority is in the process of making its entire range of services available via smartphone apps. More than 170 services are currently available, ranging from taxi bookings to Salik toll payments, as well as smart parking solutions. The breadth of services available reflects the UAE’s goal of becoming a global leader in the provision of e-government services. According to the E-Government Development Index, issued by the United Nations Department of Economics and Social Affairs, the UAE currently ranks first in the Arab World and the West Asian region respectively for e-government services, and eighth overall worldwide. DATA KEY TO SMART CITY VISION The ubiquitous nature of smartphones is also key to the success of the Dubai’s
HE Dr Aisha Bin Bishr
smart city strategy. As HH Sheikh Mohammed recently tweeted: “Our goal is for the entire city’s services and facilities to be available on smartphones ... we want to provide a better quality of life for all.” Remarkably, the UAE boasts the world’s highest smartphone penetration rate, at 78 percent of all handsets in circulation. These handsets are essential to the sharing and sourcing of data, which underpins the Smart Dubai Platform. Data protection is also at the forefront of Dubai’s smart city strategy. “Data Privacy and data protection is a main priority for us when we are addressing data sharing and data openness; it has been across different stages of preparing the inventories of data from government entities, through to classification and preparing for sharing of data on the
UAE VISION 2021 - Building a Knowledge Economy
073
DUBAI SMART CITY
“The city be able interact with these new ways of doing things, the city will have access to the huge amount of data, and the city will be able to do better planning, better anticipation, the city will be able to see the trends and how people interact with the place”
platform,” says Younus Al Nasser, nesses will also benefit from assistant director general of Smart the government’s relentless Dubai Office. drive toward creating new To this end, the Dubai govefficiencies across all sectors ernment recently introduced the of the economy. Dubai Data Law, which sets out a As a result of Dubai’s range of legal parameters for the Integrated Energy StrateHE DR AISHA BIN BISHR, sourcing and sharing of data, and gy, new offices being built DIRECTOR GENERAL OF SMART DUBAI OFFICE aims to protect personal data and across the city must meet ensure the highest degree of privastringent environmental As the world’s first, city-wide, live cy. Eight data classification pilot projects sustainability criteria, which are designed sentiment capture engine, the Happiness have been completed to date and others to help the city meet its ambitious target Meter, as it has been dubbed, will enable are planned or underway. of reducing energy and water demand by authorities to map the rate of satisfaction “Data today is the fuel of the smart city 30% by 2030. These smart offices will among residents through the analysis of a transformation,” says Nasser. “Dubai Data not only help save the environment, but centralised data dashboard. Establishment will lead the implementation they will also reduce operating costs for According to the Smart Dubai Office, of Dubai Data Law, which will lead to betbusinesses occupying these buildings. the initiative is among the first of its kind ter decision-making across different sectors The UAE was recently ranked ninth in in the world to gauge “delightful expeand really fuel the creativity and innovathe world by the Green Building Council riences” across an entire city, including tion across different sectors, be it academia in terms of the number of buildings certiprivate sector and government entities in or entrepreneurs, and allow them to create fied to Leadership in Energy and Environparallel. The Happiness Meter can be inbenefits and insights from the data.” mental Design (LEED) standards, which is tegrated into existing feedback collection a measure of a building’s energy efficiency. applications, such as those found online, SMART AND HAPPY Having increased its stock of LEED-ceror can physically installed as a standWith this legal framework in place, other tified building space by 72% in 2015 alone unit at physical locations across the essential services will soon be automated, alone, the UAE is on track to achieve a emirate. improving the quality and provision of top five ranking within the next decade, “Through its simplicity and ease of use services to Dubai’s residents and visitors given the rate of sustainable construction the Meter integrates seamlessly into the to the emirate. From advanced teleand development planned. experience flow of residents and visitors medicine services in healthcare to smart Indeed, according to recent analysis of Dubai, while creating meaningful data monitors for everything from utilities published by Honeywell Internationtowards the goal of ‘making Dubai the provision to safety and security and road al, the UAE accounts for more than happiest city on earth’,” says a Smart traffic flows, the Smart Dubai Platform two-thirds of the 1,236-LEED certified Dubai Office spokesperson. envisages a more efficient, enjoyable and projects currently underway in the GCC. Ensuring the highest degree of safety active lifestyle experience for the city’s 2.4 ‘’It is also the frontrunner in the region in and security is also high on the agenda. million residents. implementing unified building codes for Dubai Police is currently trialing one of the Indeed, improving the happiness and new buildings,” it stated. world’s first humanoid robots for active well-being of the city’s residents is one of Furthermore, according to KPMG, duty. The ‘Robocop’ will speak six languag- DEWA aims to install 250,000 smart the first strategic goals announced by the es and will be programmed to perform Smart Dubai Office. meters in all residential, industrial and autonomous duties much like commercial properties by 2018 as part a human policeman, including of the smart city initiative. “DEWA will interacting with citizens and deploy smart-grid to automate grid-control attending emergencies. The decisions and to deliver new services to first robot policeman is schedconsumers, allowing them to automate and uled to enter service in 2020, control their power consumption,” KPMG in time for World Expo. states in its Smart Cities report. These initiatives will help Dubai meet BUSINESS BENEFITS its stated goal of reducing energy demand While the government focuses by 30% by 2030 and mark another imon improving living standards portant step in the emirate’s bid to become Osman Sultan, CEO of telecoms operator, du for the city’s residents, busithe world’s smartest city.
074
Building a Knowledge Economy - UAE VISION 2021
An innovative twist to your meetings
Following our extensive remodeling and refurbishment, discover the leading destination for meetings and events in Dubai. Experience 17 state-of-the-art meeting rooms with natural daylight and two dedicated VIP boardrooms, or add an innovative twist to your next meeting with unique facilities adjacent to the hotel. +971 4 341 0000 | meetings.malloftheemirates@kempinski.com | kempinski.com/dubai
Dubai’s innovators collaborating to build region’s first truly smart city
T
here is an essential truth in the old saying that it takes a village to raise a child. The logic that the collaborative efforts of a community are required to teach a person all the skills and values they need for life comes to mind when considering Dubai’s ambitious target of becoming the Middle East’s first truly “smart city” by 2020. Only by drawing on all of the emirate’s talents, and with all of its government entities, companies and residents working together in partnership, can this vision be achieved. Thankfully, a creative village is forming right now in Dubai and the era of the smart city is near. The definition of a smart city is relatively flexible and open to debate. Beyond using digital technology to improve the lives of citizens, residents and visitors, the definition has been broadened in recent years to include qualities such as happiness and, perhaps most importantly, security. Put simply, in a world of evolving complex networks and infrastructure, a truly smart city not only keeps its residents happy and connected, it also ensures their complete security. Since HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, set out his smart city vision hundreds of new initiatives and services have been launched in the UAE to ensure it becomes a reality. All major consumer facing government entities, including Dubai Electricity and Water Authority (DEWA), Roads and Transport Authority (RTA), Salik and Dubai Police have their own personalised apps. The Museum of the Future hosts an incredible wealth of futuristic prototypes that could become commonplace in the coming years. The ambitious Mission to Mars project is the first major space programme launched by an Arab country. The list goes on. Moreover, additional specific smart city targets have also been set, including a goal for the UAE to be the Arab world’s first cashless society by 2020, and for a quarter of the cars on Dubai’s roads to be driverless by 2030. With each new initiative and target, the need
Dubai is home to Visa’s third global innovation centre, joining facilities in San Francisco and Singapore
076
Building a Knowledge Economy - UAE VISION 2021
By John McGuire* and Karl Tlais**
John McGuire, vice president, Innovation & Strategic Partnerships, Visa
for cooperation and collaboration is amplified. A common link between all interactions in a smart city is that they involve a payment at some point in the system. The driverless car will need to pay road tolls, smart government services incur a fee, registration and renewal transactions have to be paid for. And this is where Visa comes in. With the world’s largest and most secure payment network, Visa is a Karl Tlais, senior director of Innovation and natural hub around which to coordi- Strategic Partnerships, Visa, Central Europe nate innovation and support Dubai’s smart city vision. That is why in May 2016 Visa chose Dubai as the site for our third global innovation centre, following in the footsteps of San Francisco and Singapore. The 4,000 square foot facility in the heart of Dubai Internet City is a place where Visa can foster innovation and promote “open commerce” by enabling partners to engage, experience and collaborate. In the intervening months, the Visa Innovation Centre Dubai has hosted many of the country’s key players, including DEWA, RTA,
Dubai Health Authority, and numerous banks and merchants, all of whom understand that a smart city can only be built in partnership, not in isolation. So how does the nation’s creative village come together in Visa’s regional Innovation Centre? First, all guests need to shake off their ‘corporate hang ups’, so they have to take off their ties, get relaxed on the comfortable and colourful bean bags and get to know each other. The Visa team conducts design thinking exploration sessions, where an innovation brief is defined and a project methodology is designed. A co-creation session happens next, which is like a high-energy design sprint/hackathon, from which rapid prototypes are developed to help test a concept. Then the real work starts. With a vision in mind, the team encompassing the Visa and partner teams will analyse the landscape. By any measure, Dubai is a natural choice to be a smart city. The UAE is home to 170 government entities, 350,000 merchants, and $230 billion worth of consumer payments, of which 75 percent are still processed in cash, meaning the transition to a smart city can occur alongside the shift to digital payments, delivering a double benefit to the economy. Inspiration can often be found by looking at the landscape. Essentially, any object that can be connected to the internet can become a payment device. The physical means may vary across merchants and issuers but the key component is a fortified, one hundred percent secure, digital payments network. And that is where Visa steps in. Looking at Dubai’s existing smart city infrastructure, retina scan technology employed by Dubai Airports for faster immigration processing could be used to make faster payments at government or private outlets using Visa’s system as the means to do so. With Dubai residents being familiar with the technology through its use at the airport, it would be a relatively small step to adopt it for different smart city applications. Once inspired, the process of generating ideas becomes much easier. One idea with huge implications for Dubai’s smart city objective is the ‘car of the future’. Visa’s technology is able to transform the car, a ubiquitous machine of which there are an estimated 1.4 million in Dubai, into a secure payment device which can then be used in an array of practical applications. Take parking, for instance, which is central to most Dubai residents’ daily lives. The team from Visa’s regional Innovation Centre in Dubai have developed a system based on blockchain technology that accurately logs the time spent in a particular parking space and automatically makes the exact payment, saving time and money for both the driver and the authorities. The same technology is also being used in a prototype to enable a person to order a pizza or fuel and pay for it using their car. With the motivation to consolidate transactions into singular devices, the opportunity to link Emirates ID biometric data with Visa’s payments tokenisation technology to deliver a huge range of smart city services is another source of inspiration for the team. Biometrics are unique identifiers for their owners that complement our core strategy of ensuring guaranteed verification for safety. With an idea in mind, the team will then think about people and personas. What is the problem we are solving and for whom? Visa doesn’t innovate simply for the sake of innovation, but to solve an
Dubai is planning for 25 percent of all cars on its roads to be autonomous by 2030
existing problem. A clever innovation may grab a person’s attention but they will only adopt it if it answers a problem they have. The Visa Innovation Centre Dubai looks to solve problems, and every idea it works on is assessed on how it can help the differing needs of the emirate’s key groups, including nationals, white collar and blue collar workers, and tourists. Once clear about the problem it is solving, and for whom, the idea is translated into a workable concept and prototype using design thinking methodologies. Current concepts being explored include a biometric contactless fingerprint scanner that allays any hygiene concerns around physically touching a device. Visa has also plugged in its technology to Alexa, a voice recognition technology, transforming the device into a voice banking solution that allows customers to have their own personal banking assistant in the convenience of their own home. Visa’s core strength lies in building a secure technological network so versatile that it can be adopted to any device globally; devices that people find easy and convenient to use. Most of these concepts are still in their infancy but each has the potential to bring Dubai another step closer to being a truly smart city by 2020. The key basis for each concept is the guarantee of its security and infallibility of its systems against any breach. Each concept also demonstrates the unique richness of Dubai’s creative village. Smart city ideas intended for the world’s busiest airport can be utilised in Dubai’s world-class banks, for instance, while technology to pay for parking could also buy you a pizza. With three years to go until 2020, Dubai’s creative village is continuously forming strategic partnerships and collaborating on disruptive concepts that are helping to build the region’s first truly smart city. * John McGuire is Visa’s Vice President of Innovation and Strategic Partnerships for the Central & Eastern Europe, Middle East & Africa (CEMEA). In this position, John is responsible for developing and delivering the overall ‘Innovation Engagement’, ‘Innovation Experience’, ‘Collaboration/Prototyping’ and ‘Strategic Partnership’ activities in the region’s innovation centres. **Karl Tlais is the senior director of Innovation and Strategic Partnerships at Visa for Central Europe, Middle-East and Africa. He is based in Dubai, UAE and leads Visa’s innovation strategic partnerships, business development and global venture program in the region covering market influencers, key government and enterprise clients, ecosystem partners and FinTech hubs.
UAE VISION 2021 - Building a Knowledge Economy
077
UAE, stepping into the future In the past, the UAE’s rulers have shown great foresight in steering the diversification of the nation’s economy away from oil. Looking ahead, the current generation of leaders are targeting technology and innovation as the next building block for job creation and the country’s future prosperity beyond oil, and laying the groundwork for the UAE to become a global centre for the knowledge-based economy.
Foresight: Using the Megatrends lens to look into the Future Wayne Gretzky, the most successful ice hockey player of all time, credits his father for much of his success. Teaching him to “Go to where the puck is going, not where it has been,” gave him the edge that enabled him to constantly be ahead of the competition. That’s what the UAE has done over the past sixty years, preceding the “puck” multiple times. Its diversification strategy beyond oil began in 1959 with the dredging of the Creek. By the 1980s it was investing in creating a travel and tourism hub with the founding of Emirates Airline, which along with Etihad Airways, is now at the forefront of a technology-intensive and world-leading aviation business built from scratch. In 2006, Masdar was founded to lead investments in renewable energy. A few years later advanced composite aerostructures business Strata began supplying parts for the world’s major aircraft manufacturers. Successful de novo economic clusters in multiple industries have been formed, and most recently, the country is anticipating the age of innovation and taking steps to mold society around values like tolerance, and promote happiness. We would see the UAE as a perfect case study for anticipating and responding to the Megatrends that are shaping our future.
Figure: The Middle East is at the epicenter of the Megatrends
Demographics Changes
e.g., 80-100 Mn jobs needed in 10 years
Shift in Economic Power
e.g., lower oil prices, role of Sovereign Wealth, access to Indian subcontinent
Accelerating Urbanization
e.g., moving to OECD urbanization levels, with challenges of education, infrastructure
Climate Change, Resource Scarcity
e.g., triple the population and decline in oil/ water by 2050
Technology Breakthroughs
Emphasis on “smart cities”; very high internet and mobile penetration rates
Global Megatrends and how these are transforming the Middle East We see five megatrends impacting the world and this region over the next few decades. Demographic and social change has driven both prosperity and instability in much of the Middle East, as explosive population growth has boosted economies, strained resources and raised the spectre of youth unemployment. Part of that population growth stems from the inflow of expatriates, responding to the shift in global economic power which has placed the Middle East firmly in the centre of the world’s fastest-growing markets allowing Dubai, in particular, to turn itself into a global hub.
Urbanisation is transforming nations worldwide. This region is one of the most highly urbanised in the world and, with new cities under construction, the level is still rising. It is a struggle to develop sufficient infrastructure to cope with both the population explosion and the pressures brought by climate change and resource scarcity – water consumption and energy diversification will become more pressing issues in coming years. Technological breakthroughs could be part of the answer, but the disruption that digitalization is bringing to today’s organizations also requires new skills that are currently in short supply in the Middle East. The Middle East, perhaps more than any other region, is at the epicentre of the megatrends reshaping the world. Understanding how these structural trends will impact it – both separately and together – is vital to get a clear picture of how to tackle the challenges ahead successfully and to uncover opportunities that may have never been considered. Also see: http://www.pwc.com/m1/en/issues/megatrends.html, http://www.pwc.co.uk/issues/megatrends/megatrends-overview.html
The UAE Vision 2021 outlines a proactive response to these Megatrends – the economic and societal changes expected in coming years driven by factors such as a growing young population, urbanization, climate change, and technological advances. The UAE Vision 2021 sets an ambition to become a knowledge-based economy, with strong education and healthcare systems, boost investments in innovation and technology, strengthening its entrepreneurial ecosystem, attracting tourists, improving the country’s business environment and increasing its attractiveness to foreign investment. Setting and tracking national goals – related to competitiveness, extent of economic diversification, ranking in the global innovation index, the proportion of workers in the knowledge economy, and others – will help maintain the focus on progress towards the UAE’s longer term vision. In addition, the UAE government’s goal of “happiness” for its residents – through a blend of income, health, and social well-being – demonstrate that the country is not merely focusing purely on economic growth, but also citizens’ quality of life. An interesting illustration of UAE’s progress since 1971 is presented via Gapminder World’s Trendalyzer Software (www. gapminder.org). We analysed the five decades since independence, by looking at UAE’s Income (GDP per capita) and Life Expectancy in 1971, 1991, 2011, and 2015. The UAE has achieved rapid and impressive progress over the years, boosting the population’s wealth and health. GDP per capita on a purchasing power parity (PPP) basis has improved from ~$40,000 to more than $65,000, and life expectancy from 62 years to 77 years, putting it among the top few nations in the world. A lot of the credit for this goes to the UAE’s leadership who have continued to make bold moves in recent years to chart the nation’s future. There is no sign that any of this momentum is being lost, with UAE Prime Minister and Ruler of Dubai Sheikh Mohammed bin Rashid al Maktoum, and Abu Dhabi Crown Prince Mohammed bin Zayed Al Nahyan both making clear their commitment to ensuring that the UAE will have no regrets when it ships the last barrel of oil. Setting the Strategy: Creating a Competitive Advantage The UAE’s forefathers recognized that the oil-based economy was transitory and that they had to create the foundations for a sustainable economy. The father of the nation, the late Sheikh Zayed always emphasised the importance of building human capital, saying: “Wealth is not money. Wealth lies in men. This is where true power lies.” Then there is the famous quote from Sheikh Rashid Bin Saeed when he decided to dredge the Dubai Creek in 1959 (which subsequently helped Dubai become a major trading port in the Middle East), “My grandfather rode a camel, my father rode a camel, I drive a Mercedes, my son drives a Land Rover, his son will drive a Land Rover, but his son will ride a camel.” Already wary of the dangers of an oil-fuelled economic boom and bust, the UAE’s forefathers acted with a grander vision in mind.
Creating a culture of innovation Innovation is increasingly becoming the watchword for economic planning and private sector engagement in the UAE and across the Middle East. In PwC’s last Middle East Private Sector Innovation Survey 80% of the companies surveyed said they expect to increase innovation investment, and 34% said they anticipate a significant increase in innovation spending by over 10%. The UAE is continuing to foster an innovation ecosystem with increasing focus on building a knowledge-based economy. Even the country’s attempts to foster innovation are themselves ambitious and innovative. Dubai is building a Museum of the Future that will be part-tourist attraction, and an incubator for innovative new technologies and entrepreneurs, a venue for learning and public events, and a platform for testing inventions and prototypes. The World Government Summit aims to harness technology and innovation to solve challenges facing governments and society. All these initiatives place a heavy focus on partnering with the private sector as a way to boost outcomes. In addition to knowledge capital, improvement in financial capital is boosting innovation performance, with the number of Venture Capital deals increasing by 50% in the region between 2010 and 2012, 47% of these deals were in the technology space, and the UAE captured more than 25% of the total number of VC deals over the same time period. The number of technology startups in the MENA region has grown from 520 startups in 2012 to 880 startups in 2015, with UAE technology startups increasing from 96 in 2012 to 185 in 2015. The Sheikh Mohammed bin Rashid Innovation Fund, a recent UAE initiative sets out to fill a longstanding financing gap faced by entrepreneurs, innovators and innovative companies through the provision of a government-backed guarantee. This and other initiatives have made the environment for small and medium sized enterprises (SMEs) in the UAE very attractive now, and the benefits for start-ups that can be leveraged from this ecosystem are phenomenal.
The years since have shown the wisdom of that strategy, and the realization that besides hydrocarbons, the country’s other unique global advantage is its location at the crossroads of East and West, and its ability to attract people from around the world that can be the basis for evolving its economy to an innovation and knowledge-based one. The non-oil economy already now makes up a greater part of UAE’s GDP than oil revenues, and the growth of the knowledge-based economy targets oil to be less than 20% of GDP in the next 10-15 years. The focus now is boosting that share, and becoming a global hub for innovation. The UAE Vision 2021 sets out multiple targets for the country to aim for. As part of boosting the knowledge economy the country is aiming for specific goals including ranking in the top 10 countries on the Global Competitiveness Index, reaching number one in the World Bank’s Ease of Doing Business Index, boosting the share of small businesses in the non-oil economy, and increasing non-oil economic growth to over 5% a year. It also wants to be in the top 10 on INSEAD’s Global Innovation Index and boost the number of workers in the knowledge economy to over 40%.
Innovation is about solving issues through new ideas and business models that are better than the competition. Traditionally, economists and researchers have measured country research and development (R&D) spending to predict technological success. But over the past few decades countries and companies have recognized the importance of both technological and business innovations. Many of the UAE’s success stories over the past two decades have been innovations that do not necessarily rely on large R&D investments. Though UAE’s R&D spend as a percentage of GDP is significantly lower than countries such as the US and UK, its proportionate share of business innovations is perhaps very high. Examples of these include – setting up of Mubadala (a leading Abu Dhabi sovereign wealth fund), UAE’s ambitious Space Program, Emaar’s business model, Saadiyat Cultural District, Smart Dubai, and many others. Figure: Successful organizations and countries leverage both technology and business model innovations Business Model Innovation What is the value of what is being delivered?
How it is created and delivered?
To whom it is delivered
Technology Innovation
Value Proposition
Products/ Services
Value Network
Process Technologies
Target Customer
Supporting Technologies
Product and services offered in the market
Drivers of performance of products & services
Enabler to execute the strategy faster & leverage time to gain competitive advantage
These achievements are the result of consistent progress over the years, and PwC’s bi-annual Middle East Private Sector Innovation Survey has tracked this. In our 2013 report, we talked about a ‘new cycle’ of innovation – reflecting the intersection of ubiquitous next generation technologies (Internet, tablets, mobile, etc); unique regional ambitions related to the desire to be distinctive and successful; and greater connectivity with the rest of the world via public and private sector interactions. An interesting example of this is Masdar Power, a developer and operator of renewable power generation projects that has built a portfolio of strategic utility-scale renewables projects, and won some iconic projects including the 630MW London Array wind farm, and Dubai’s 800MW solar plant. From declaring 2015 as the “Year of Innovation”, to launching initiatives such as UAE Innovation Week, the country’s leadership and supporting government authorities have emphasized the role of creativity for the nation’s future. The UAE’s budget allocation towards education and innovation stands at over 20% of overall spending2. In addition, every government department allocates 1% of its budget towards innovation and customer service.
Figure: The ‘new cycle’ of innovation, exemplified by the UAE1
Global Access & Reach
Global Innovations, Regional Capabilities
Regional Ambitions, Investments
Potential to Export Innovations Capital & Vision
Ubiquitous Technologies Regional Innovations
The UAE is also focused on addressing gaps in the country’s capabilities, as also indicated by the recent Dubai Innovation Index and the Global Innovation Index. These include – a focus on talent and skills, strengthening the infrastructure for R&D and innovation, intellectual capital, enhancing customer services (to achieve Seven Star levels), and maximizing benefits through collaboration between the public and private sectors. Laying the Groundwork: Designing the Ecosystems of Tomorrow To guide the UAE’s path towards a more innovation-driven economy, the National Innovation Strategy (NIS) was launched in 2015. This aims to foster an environment of innovation, competition and promote entrepreneurship and business disruption across 7 focus sectors: transportation, water, education, renewable energy, technology, health and space. The first phase alone of the NIS includes 30 initiatives to be completed within three years. These are a comprehensive set of proposals to address some of the regional hurdles, including focusing the government on innovation and partnerships with the private sector in the delivery of its services and new legislation, and adapting successful strategies from elsewhere in the world like building innovation incubators, international research partnerships and incentives for the private sector. The recent digitization trend is receiving a lot of attention in the UAE, in particular for the industrial sector. The World Economic Forum addressed the Fourth Industrial Revolution in its 2016 proceedings. We use the term ‘Industry 4.0’ to describe the focus on the end-to-end digitization of all physical assets and integration into digital ecosystems. We find that companies around the world are using digitisation to increase their design and production efficiencies, enhance product quality, and develop and deliver new business models with the aid of digital offers and services. This is almost a new $1 trillion business3. Several UAE companies – such as Strata, Emirates Airlines, and Ducab – are active adopters of Industry 4.04, demonstrating their efforts to move to “where the puck will be”.
On the fast track: A new cycle of Innovation in the Middle East, PwC publication, February 2013 http://www.uaeinteract.com/society/education.asp 3 2016 Global Survey “Industry 4.0: Building the Digital Enterprise” 4 2016 Middle East Survey “Industry 4.0: Building the Digital Industrial Enterprise” 1
2
Figure: The Fourth Industrial Revolution promises significant efficiencies and convenience through the use of a range of technologies (e.g., smart sensors, IoT platforms, cloud computing, 3D printing, virtual reality, and many others)
and entrepreneurship ecosystem have been recently coupled with government-backed and government-partnered accelerators, such as the Dubai Future Accelerators, and the Catalyst, an Abu Dhabi based partnership between BP and Masdar Institute.
2015+
Industry 4.0
End of 18th century
Industry 1.0
Digitization and Integration of Value Chains and Products/ Services (Internet of Things/Services)
Industry 2.0
Industry 3.0
Automation and robotic
Mass production and assembly lines
Steam engine manufacturing
1800
New Digital Business models Integrated Data Analytics as core capability
Flexibility and complexity
1970th Beginning of 20th century
Digital Enterprise
1900
2000
2014
2020
In the spirit of global leadership, the UAE Ministry of Economy led the launch of the Global Manufacturing & Industrial Summit (GMIS) with the United Nations Industrial Development Organization (UNIDO) in 2016, also in collaboration with the Global Agenda Council for the Future of Manufacturing of the World Economic Forum. GMIS is part of a wider global initiative to promote and advance inclusive and sustainable industrial development. By bringing the public and private sectors together with civil society, GMIS will encourage greater investment in manufacturing capabilities, drive innovation and promote skills development worldwide. Together, selected representatives from the public sector, private sector and civil society will formulate a global declaration that will promote inclusive and sustainable industrial development globally5. Another key UAE initiative is the Sheikh Mohammed bin Rashid Innovation Fund, which sets out to fill a longstanding financing gap faced by entrepreneurs, innovators and innovative companies through the provision of a government-backed guarantee. Innovators – both small and large – face difficulties in obtaining access to affordable finance in the region given the absence of a venture capital industry and the inexperience of traditional lenders in financing new ideas or processes. This reluctance has led to an innovation financing gap which prohibits innovators and companies from taking bets on their ideas. To bridge this financing gap, the UAE Federal Government announced the establishment of this innovation fund in 2015, which is set to be launched at the end of 2016, as an effective and sustainable solution to support the private sector through a targeted government intervention. Such government interventions seek to have a positive ripple effect on the entire ecosystem in conjunction with existing private sector activities and other government-led initiatives. In the case of the UAE, accelerators and incubators in the innovation
http://g-mis.com/about-gmis/what-is-gmis-2/; https://institute.unido.org/ launch-of-the-global-manufacturing-and-industrialization-summit
5
These activities are already being recognized globally. The recently released Global Innovation Index 2016 has acknowledged the UAE’s efforts to propel economic growth through innovation activities, improving its rank by 6 positions since last year’s publication. The UAE currently ranks in 41st place across 128 economies, while it leads in innovation across the Arab world. It has demonstrated the greatest success (as measured by rank-level increases) in Market Sophistication and Knowledge and Technology Outputs. Notable surges in domestic credit and private sector venture capital deals further illustrate the UAE’s desire to foster entrepreneurship through traditional and non-traditional financing opportunities paired with a supportive culture of active nation-wide institutions and ministries, each eager to sponsor and promote innovation.
Looking to the Future The ‘resource curse’ has become a cliché for countries so rich in natural resources that they are unable to move their economies beyond them. Yet the foresight that leaders in the UAE have shown in the past, and the success they have already had in charting a different course, bodes well for the nation’s future. The UAE has already started to lay out the policies and articulate the ambition for what sort of country and economy it wants to become. A mixture of strong government leadership from the highest levels and throughout the ministries, clear industry priorities, a focus on education, investments in innovation, business model innovation, and attracting foreign direct investment and global talent should all give reassurance to all investors and citizens that the UAE is piloting towards a prosperous future at the centre of global knowledge economy.
Contact
Dr. Anil Khurana Partner, Strategy & Innovation T: +971 (0) 4 304 3652 M: +971 (0) 50 883 6369 M: +1 978 943 2094 E: anil.khurana@pwc.com
Mona Abou Hana Partner, Government & Public Sector Consulting T: +971 (0) 4 515 7187 M: +971 (0) 56 216 1120 E: mona.abouhana@pwc.com
© 2016 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to the UK member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
BUILDING A COMPETITIVE KNOWLEDGE ECONOMY EDUCATION
KNOWLEDGE IS POWER The UAE is committed to the development of a world-class education system that places innovation at its core
I
n line with Vision 2021, UAE authorities are taking an innovative approach to raising standards in the country’s education system, combining the implementation of cutting-edge e-learning platforms and technologies with the adoption of stringent global benchmarking criteria. The National Agenda calls for students enrolled in UAE schools to rank among the best in the world in reading, mathematics, science and technology, with a strong grounding in Arab cultural values, and in particular, Arabic language abilities. The UAE government is investing huge sums to position the country as a world-leader in education provision. According to Alpen Capital’s GCC Education Indus-
082
Building a Knowledge Economy - UAE VISION 2021
try Report for 2016, the UAE allocated 21.2 percent of its federal budget for 2016 to education, compared to an average 15.6 percent across the GCC and a paltry 4.2 percent in the United States. “The UAE government has been making significant strides to fulfill its vision to build a first-rate education system,” Alpen Capital stated in the report. “To achieve this objective, the government aims to equip schools and colleges with smart devices, make substantial investments to increase enrolments at pre-schools, improve the students’ capabilities in subjects such as mathematics and science, and hire internationally accredited teachers.” These “significant strides” have seen the country’s education system rapidly gain international credibility. In the 2015-2016 Global Competitiveness Report published by the World Economic Forum, the UAE ranked 12th for the quality of its higher education and training, and 13th for primary education. The results were compelling given 140 countries were involved in the study. TECHNOLOGY IN CLASSROOMS As a result of the government’s investment strategy, school students in state-funded classrooms are benefiting from access to the latest e-learning technologies and innovations. Almost 100,000 students enrolled in 423 government-funded schools across the country are currently provided with Wi-Fi-enabled tablets equipped with e-learning curriculums thanks to the Mohammed bin Rashid Smart Learning Programme. Launched in 2012 by HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the programme is designed to enable students to get to grips with real-world technology from an early age and enhance the education experience. HH Sheikh Mohammed has played a key role in spearheading efforts to raise education standards in the UAE. “Our interest in the education sectors and making it a top priority, stems from our belief that the progress and welfare of any nation starts with the development of its educational systems,” HH said in 2012. “The Smart Education Initiative [matches] our vision and ambition for [a] better future, which starts from our schools and educational curricula in the light of our
Building a modern education system that is based on knowledge and innovation and transforms towards smart learning is what is needed in local schools. It is important to integrate the basic elements and tools into the education system enabling the teachers and students to acquire advanced skills through the use of technology and enhance the learning methods UAE Minister of Education HE Hussain al-Hammadi
national responsibilities towards our citizens in order to prepare them for a new world that requires advanced skills to cope with modern changes and developments in the academic and living domains.” The rollout of the Mohammed bin Rashid Smart Learning Programme has been as swift as it has been successful. By 2017, the programme is expected to be installed in K-12 government school classes, and by 2018, the initiative will have been adopted by all government-funded schools across the UAE, providing more than 121,000 students with access to cutting-edge e-learning technologies and applications. The Ministry of Education, in conjunction with UAE telecommunications provider Etisalat, has equipped school campuses with 4G network access and a range of e-learning technologies, including e-boards in classrooms. It has also developed a range of e-content for students, including digitising textbooks and other reading material for viewing on Apple iOS and Android platforms. As a result of these efforts, the UAE now ranks ninth of 140 countries worldwide in terms of internet provision in schools. “The main goal is to reform education in the UAE to become one of the best education systems in the world,” Mohammed Gheyath, director general of the programme, said in 2015. “We’re not giving tablets or internet connections only, we are enhancing the entire education ecosystem, starting from the curriculum all the way through to the
UAE VISION 2021 - Building a Knowledge Economy
083
EDUCATION
technology and gadgets that will help them to access the curriculum.” PROGRESS THROUGH PARTNERSHIPS In a bid to accelerate the rollout of smart learning initiatives in UAE classrooms, the UAE Ministry of Education has established a series of partnerships with private enterprises in recent years. To assist with the development of e-learning content, the Ministry is working with Etisalat and Google. One of the highlights of the partnership has been the launch of an Arabic-language channel on YouTube featuring more than 600 learning tutorials covering a variety of subjects and targeted at Year 11 and 12 students. In March 2016, the Ministry signed a first-of-its-kind agreement with Microsoft Gulf, comprising of a suite of initiatives that will serve six major strategic priorities of the Ministry to integrate smart learning into the education system. According to a Ministry statement, the objective of the agreement is “to enable public schools to get the most out of ICT and curriculum integration which provides schools with an opportunity to benefit from modern communication systems as well as deal with any challenges pertaining to smart learning”. Commenting on the agreement, HE Hussain al-Hammadi, the UAE Minister of Education, said: “Building a modern education system that is based on knowledge and innovation and transforms towards smart learning is what is needed in local schools. It is important to integrate the basic elements and tools into the education system enabling the teachers and students to acquire advanced skills through the use of technology and enhance the learning methods.” Importantly, the agreement also provides a pathway for young Emiratis to pursue technology-focused careers. The ‘Fursati’ programme will identify 25 talented students who will be trained by Microsoft and then provided access to a network of potential career opportunities. PRIVATE EDUCATION FLOURISHES The demands of the UAE’s vast expat population, which hails from more than 200 countries worldwide, has seen the country’s private education sector develop rapidly in the past decade. Today, of the 1,200 schools in operation, almost half (542) are privately funded, with this number growing rapidly at a rate of around seven percent p.a. More than 255,000 students are currently enrolled in private schools. “An open economy, favorable investment climate, and a large base of expatriates have led to the setting-up of a large number of private international as well as community schools in the UAE. The country has the largest number of English-medium international schools in the
084
Building a Knowledge Economy - UAE VISION 2021
“The UAE government has been making significant strides to fulfill its vision to build a first-rate education system. To achieve this objective, the government aims to equip schools and colleges with smart devices, make substantial investments to increase enrolments at pre-schools, improve the students’ capabilities in subjects such as mathematics and science, and hire internationally accredited teachers” Alpen Capital GCC Education Industry Report 2016
The Mohammed Bin Rashid Smart Learning Programme strategy rollout 2015-2018 SCHOOLS
CLASSES 7,606
423
423
6,829
423 5,314
283
1,760
2015
2016
2017
2018
2015
TEACHERS
2016
2017
2018
STUDENTS 12,320
121,205
11,450
110,833 99,912
8,964 6,349 34,513
2015
2016
2017
2018
2015
2016
2017
2018
Students enrolled in UAE schools enjoy access to advanced e-learning technologies.
world and a growing preference for international curricula among both expatriates as well as nationals,” states Alpen Capital in its GCC education report. Private schools in Dubai alone generated more than $1.5 billion in revenues in 2015, while English-language schools accounting for 33 percent of all private institutions. In Abu Dhabi, 45 new privately funded schools opened between 2011-12 and 2014-15 at a total cost of $600 million, according to data supplied by Alpen Capital. The UAE also has the largest number of English-medium international schools in the world (where English is the primary language of learning) and Dubai has the most of any city, according to The International Schools Consultancy (ISC). The UAE is home to 589 of these schools, with Dubai accounting for almost half this number (276), the organisation said. TERTIARY EDUCATION EXPANSION The UAE’s tertiary education sector has also grown significantly in the past decade, spurred on by the arrival of major international universities and post-graduate institutions including New York University of Technology (USA), Rochester Institute of Technology (USA), London Business School (UK) and University of Wollongong Dubai (Australia). The UAE is also home to prestigious government-funded universities, including United Arab Emirates University and Khalifa University. Enrolments at tertiary education institutions in the UAE grew 9.1 percent annually from 2009 to reach 143,000 students in 2014, according to Alpen Capital data.
Strong demand for vocational-based learning has also seen a proliferation of specialised colleges that promote skills-based education and training modules. According to Alpen Capital, the UAE’s long-term ambition is to “position itself as an international education hub to attract students from across the globe. Dubai and Abu Dhabi have remained at the forefront of this vision”. AN EXAMPLE FOR THE REGION The scale and ambition of the UAE’s efforts to raise standards in public and private schools makes it a model for the rest of the Arab world to follow. The success of initiatives such as the Mohammed bin Rashid Smart Learning Programme auger well for the adoption of similar e-learning initiatives elsewhere in the region. To this end, authorities are currently assessing a proposal for the establishment of a regional Smart Learning Centre in the UAE, in conjunction with the Arab Regional Office of the International Telecommunications Union (ITU). Ebrahim Hadad, director of the Arab Regional Office of ITU, said the centre would provide regional education bodies with the chance to learn from the UAE’s experience, equipping their education providers with knowledge gained from the Mohammed Bin Rashid Smart Learning Programme. “Arab countries don’t have to start from zero, they can learn from the UAE experience,” Hadad told Arab media in December, 2015. “The centre aims to support Arab countries in their smart learning adoption through capacity building. We will concentrate on teachers and see how we can upgrade their skills.”
UAE VISION 2021 - Building a Knowledge Economy
085
EDUCATION
IN FOCUS:
Knowledge and Human Development Authority
T
he Knowledge and Human Development Authority (KHDA) is the government department responsible for the growth and quality of private schools, universities and training institutes in Dubai. In the 2016/17 academic year, KHDA welcomed 15 new schools to the emirate’s education sector, bringing total student capacity to more than 300,000. Nearly 90 percent of all education facilities in Dubai are privately funded.
Q: HOW WILL THE KHDA SUPPORT/IMPLEMENT THE MAIN GOALS OF THE UAE VISION 2021 NATIONAL AGENDA? Two education goals of the National Agenda will see the UAE scoring among the top 15 countries in TIMSS and among the top 20 in PISA. The good news is that many private schools in Dubai – particularly those offering the International Baccalaureate and the National Curriculum for England and Wales – are already performing to these standards. We’ve taken a number of different approaches to give all our schools the best chances of achieving these targets. One of these is the National Agenda Parameter. Our team works closely with all private schools in Dubai to help them put in place and implement annual plans to improve student outcomes in line with the targets. Schools also take part in yearly assessments that track their individual progress against the National Agenda targets. We understand that high-quality education is the responsibility of the whole education community. Last year, we ran Test4Good, a campaign that helped to raise parents’ awareness of international assessments
086
Building a Knowledge Economy - UAE VISION 2021
Dr Abdulla Al Karam, director general and chairman of the board of directors, Knowledge and Human Development Authority, Government of Dubai, discusses the education sector’s crucial role in delivering the main facets of UAE Vision 2021 by getting them to take an adapted version of the tests themselves. Many parents told us what an enlightening experience it was, and that it helped them to empathise more with what their children were experiencing. We are now in the second year of our ongoing Lighthouse initiative, which brings school principals together to share ideas and learning that will help us meet the targets of the National Agenda. Last year, groups of school principals from different curricula met to examine the countries that have increased their own international assessment outcomes, and determine if and how these models can be applied to Dubai. This year, different groups of principals are looking at how Social Emotional Learning can be integrated into existing curricula to enable students to learn more effectively.
Q: WHAT ARE SOME OF THE TECHNOLOGICAL INNOVATIONS BEING PROMOTED BY THE KHDA IN THE EDUCATION SECTOR? We live in a Smart City. To us, this means that we’re always looking for new and innovative ways to serve our customers, then aligning those solutions with the
appropriate technologies. We have recently improved the Parent/School Contract, which outlines the rights and responsibilities of parents and schools in Dubai, to allow parents to sign through the KHDA app from home. This feature is part of our goal to not only meet the needs of our community, but to preempt them, delivering a service that is integrated, seamless and comes from the heart. We are also part of the Dubai Future Accelerators programme, which brings leading international companies and entrepreneurs together with Dubai partners to find people-focused, tech-enhanced solutions to complex challenges. As part of this project, we’re looking to transform assessment systems so that they work across curricula and create learning outcomes that focus on Arabic language, wellbeing and coding, among other areas.
Dr Abdullah Karam, director general and chairman of the board of directors, KHDA
Q: HOW IS PROGRESS BEING MADE IN RAISING STANDARDS IN THE EDUCATION SECTOR? We take a differentiated approach to improving Dubai’s education sector. Just as each student is different, each teacher, and each school is also different. We have seen a great deal of improvement in the quality of education our schools offer since KHDA was established in 2007. When we first began annual inspections of schools in 2008, for example, 30 percent of students attended schools rated good or better. Just eight years later, that number has jumped to 52 percent, and it’s increasing year by year. Inspections are a valuable tool for measuring and talking about quality of education in Dubai, but we understand that we must not rely on inspections alone for continuous improvement. In recent years we have begun a number of initiatives that focus on happiness and well-being, grounded in collaboration between teachers, school leaders, and the whole education sector. In fact, the entire education community – including parents, teachers, principals, students, government, and the corporate sector – is working together more closely than ever before to ensure that all students in Dubai have access to high-quality education that will enable them to lead happy and productive lives.
Q: WHAT ARE THE MAIN CHALLENGES ASSOCIATED WITH RAISING EDUCATION STANDARDS IN DUBAI? Our approach to raising standards is based on building strengths, rather than overcoming challenges. Dubai’s schools, for example, offer 17 curricula from around the world. Each of those curricula has its own strengths — our job as a regulator is to enable an environment where these schools can share positive practice with each other, thereby improving the entire private education sector. We are also working with Dubai’s schools to bring more positive education-based practices into teachers’ classrooms and students’ homes. Positive education is grounded in the belief that schooling is not just about academics, but the whole child; about educating the heart as well as the mind. Dubai’s schools serve families and parents from 183 different nationalities. All of these parents want their children to be healthy and happy, and all schools want
UAE VISION 2021 - Building a Knowledge Economy
087
EDUCATION
parents and students to be happy. We believe this is an excellent starting point to talk about and share the good practices that schools are already doing to promote well-being. We’ve found that the more the education community talks about happiness and well-being, the more school leaders want to share the well-being-based culture they are building in their schools, and the more it becomes integrated into everyday life.
Q: WHAT ARE SOME OF THE MOST SUCCESSFUL INITIATIVES IMPLEMENTED BY THE KHDA TO DATE? Just like Dubai, our private education sector is dynamic and forward-looking. With our partners in the education community, we’ve launched and continued a number of initiatives that have helped to improve the quality of education across all schools. One of these is What Works, which brings together teachers from across Dubai’s schools to share the best of what they do with other Dubai teachers. Since the first What Works was held at the beginning of the 2012/13 academic year, 12,000 teachers have attended more than 600 workshops at 24 events. The real value of What Works is not just in the connections made and learning shared on the day of the events, but in the culture change it has affected. The value of positivity – of concentrating on what’s working – has strengthened the working practices of educators across Dubai and the learning outcomes of students. Teachers from different schools, catering to different groups in the community, regularly visit each other to give and learn. What Works has created a compassionate eco-system of schools, teachers, parents and students that recognises and values the role each plays in improving education in Dubai. The success of What Works has led to other strengthbased collaborative initiatives. Living Arabic, a series of teacher-led events hosted by schools, is inspiring a renewed love of the Arabic language among teachers, students and parents. We’ve seen great examples of students developing apps in Arabic, making films in Arabic and using Arabic calligraphy to make works of art. Living Arabic is helping to bring classrooms and families together to appreciate how the richness of classical Arabic can be applied to contemporary life. We recently held the #10Minutes10Days challenge to encourage more parents to spend quality time with their children by reading together for 10 minutes over 10 days. Teachers of Dubai uses the power of social media to share the positive, inspirational stories of individual teachers across Dubai.
088
Building a Knowledge Economy - UAE VISION 2021
“Two education goals of the National Agenda will see the UAE scoring among the top 15 countries in TIMSS and among the top 20 in PISA. The good news is that many private schools in Dubai … are already performing to these standards”
For students, we worked with social entrepreneurs across Dubai to hold the Dubai Saturday Club. This project involved more than 100 students from different schools and nationalities working in teams over a three-month period to design and prototype products and services to benefit the community. We had great feedback from parents and students about Dubai Saturday Club, and we’re looking forward to the second edition being staged early next year. In higher education, Dubai has played a central role in Quality Beyond Borders, an initiative which brings together quality assurance agencies from around the world to improve standards in the higher education in the private sector. The Abundance Group, made up of Outstanding and Very Good schools across Dubai, has recently come together to build on the spirit of collaboration and togetherness in Dubai’s education sector. Working closely with other schools to identify their specific improvement needs, Abundance Group schools put together long-term programmes that will ultimately enhance the quality of education offered by all schools. In time, the best schools in Dubai will be identified not only by the quality of education they offer, but also by what they give back to the community. Taken together, these initiatives have transformed, and are continuing to transform, the culture of education in Dubai.
FWU GROUP
HIGHTECH FINANCIAL ENGINEERING ®
FWU Group Bringing global insurance logistics to perfection with Hightech Financial Engineering Effective diversification in business is one of the major strengths of FWU Group. We have focused on a product feature – unit-linked life assurance – and spread our know-how globally. We have developed the Islamic (Takaful) insurance business for the Middle and Far Eastern markets, following along the lines of conventional insurance business in Europe, and this has led to outstanding results. We have two key sales channels for our retail business: In Europe we sell our products through classic brokerage, and for more than 13 years now we have successfully provided private label bancassurance products. Our bancassurance model focuses on the strategy that the banks can offer our white label products under their own branding. Our insurance product solutions offer a bespoke risk underwriting solution whereby no customer is rejected. Our USP remains our groundbreaking bancassurance IT system, which allows sales and administration using desktop and mobile (tablet based) solutions. With such systems and
FWU AG Boschetsrieder Straße 67 D-81379 München Telefon: +49.89.74 85 88 0 e-Mail: premium@fwugroup.com
processes, we are able to offer standardized and yet easily adaptable tool sets, to meet banks‘ internal requirements. We have used the efficiency of our IT systems and our knowledge of the insurance business to develop the transaction business. With it, FWU Group purchases policy portfolios and integrates them intelligently into the product range of our life insurance subsidiary ATLANTICLUX in Luxembourg. FWU Group disposes over the know-how, IT infrastructure and years of experience in the finance business that this demands. Members of FWU Group: FWU AG (Munich) FWU Global Takaful Solutions (Dubai) ATLANTICLUX Lebensversicherung S.A. (Luxembourg) PREMIUM SELECT LUX S.A. (Luxembourg)
www.fwugroup.com
FWU Global Takaful Solutions Al Fattan Currency Tower 2 DIFC PO Box 482026, Dubai Telephone: +97.144175500 e-Mail: premium@fwugroup.com
HEALTHCARE
MEDICAL WONDERS
The UAE is a world-leader in the provision of advanced healthcare services and is pioneering a range of ground-breaking preventative and bio-medical technologies that will revolutionise patient treatments
090
Building a Knowledge Economy - UAE VISION 2021
“Advancing social development with a focus on healthcare is one of the strategic approaches of the UAE Government. The introduction of the advanced technologies at our hospitals will contribute to greater efficiency in patient care and also contribute to the better health of the people” HE Dr. Mohammad Salim Al Olama, Undersecretary of the UAE Ministry of Health
A
central ambition of UAE Vision 2021 is the creation of advanced, world-class healthcare infrastructure, and the development of new medical treatments utilising cutting-edge technologies. With a rapidly growing population, significant investments are being made in the establishment of world-class medical research centres and healthcare facilities. According to Alpen Capital’s GCC Healthcare Industry 2016 Report, healthcare spending in the UAE grew at an annual rate of 8.9 percent from $8.4 billion in 2008 to $12.9 billion in 2013. The per capita healthcare spend in the UAE was $1,569 in 2013, the second highest in the GCC. The private sector dominates the country’s healthcare infrastructure, operating almost 70 percent of the UAE’s 115 hospitals (as of 2014). The healthcare market in the UAE is projected to be worth $19.5 billion in 2020, indicating an annual average growth rate of 12.7 percent from 2015. By comparison, the value of the healthcare sector in Saudi Arabia – the region’s largest country by population and economy – is expected to reach $27.4 billion in 2020, highlighting the significant value per capita of healthcare services in the Emirates.
Abu Dhabi and Dubai are home to the majority of these hospitals, and boast some of the most technologically advanced healthcare facilities in the region. According to Alpen Capital data, Dubai spent AED12.8 billion ($3.5 billion) on healthcare in 2014, of which the private sector accounted for 66.6 percent. From 2012, overall healthcare spending grew by 27.7 percent, while the private sector expanded by 37 percent. “Abu Dhabi and Dubai, the major healthcare hubs, have taken significant steps to develop the sector,” the firm states in its GCC Healthcare Industry 2016 report. “Abu Dhabi was the first Emirate to introduce mandatory health insurance for expatriates by linking it to resident permits. The emirate has also announced the construction of several new hospitals to meet the growing demand for care. “Dubai has emerged as one of the top healthcare destinations globally. The emirate has an advanced healthcare system with numerous hospitals and primary healthcare centres offering stateof-the-art medical technologies and services that match international standards. The city has also developed two healthcare free zones: Dubai Healthcare City and Dubai Biotechnology and Research Park, to meet the demand for high-quality care. The Emirate announced mandatory health insurance in 2014. “Today, Dubai is perceived as one of the top destinations for medical tourism, in particular, for cosmetic surgery. In the first half of 2015, the emirate hosted 260,000 medical tourists.” IT INVESTMENTS Underpinning the development of the country’s advanced healthcare infrastructure has been its significant investment in cutting-edge IT technologies. “The GCC region is witnessing a wave of information technology applications in delivering effective healthcare,” Alpen Capital states in its GCC Healthcare report. “The adoption of such technologies has the potential to
UAE VISION 2021 - Building a Knowledge Economy
091
HEALTHCARE
improve the quality of care and reduce the cost substantially for both patients as well as providers.” According to industry analyst Gartner, healthcare providers in the Middle East and North Africa will spend $2.78 billion on IT products and services in 2016, a significant proportion of which will be accounted for by UAE-based facilities. This forecast includes spending by healthcare providers (which covers hospitals and physicians’ practices) on internal services, software IT services, data centres, devices and telecom services. Gartner says telecom services, which include fixed and mobile services, will remain the largest overall spending category throughout the forecast period within the healthcare providers sector, with an expected market size of $1 billion in 2016. “IT services spending is estimated to reach $371 million in 2016. Implementation, with an estimated market size of $99 million in 2016, and consulting, with an estimated market size of $98 million in 2016, will be two of the largest sub-segments within IT services [this year],” says Moutusi Sau, principal research analyst at Gartner. “Software spending will have the largest growth by 11.2 percent over last year to reach $438 million in 2016.” One of the biggest and most impressive healthcare infrastructure projects to date is the establishment of a smart data centre for storing medical records in Dubai, which was launched earlier this year by Dubai Health Authority (DHA). The DHA is currently working to transfer all existing medical records to the central database. The new facility will provide storage capacity for the next decade, with the option for further expansion in the future. The facility forms the cornerstone of the DHA’s ‘Electronic Medical Record’ initiative, which was launched as part of Dubai’s Smart City strategy. PRIVATE-PUBLIC PARTNERSHIPS According to Alpen Capital, UAE authorities have had significant success attracting foreign healthcare firms to the country. This strategy has furthermore resulted in the UAE forging several collaborations and strategic tie-ups between public and private companies and healthcare stakeholders. One such example is the UAE Ministry of Health’s (MoH) partnership with GE Healthcare, for the provision of state-of-theart diagnostic technologies in government-funded hospitals. GE recently supplied its latest CT technology to the radiology departments of 11 of the 15 MoH hospitals in the country. These installations are in line with the MoH’s strategic plan to modernise and innovate hospitals across the Emirates with stateof-the-art technology and facilities that help address the increasing incidence of non-communicable diseases (NCDs) or ‘lifestyle diseases’ in UAE. Commenting on the development, HE Dr. Mohammad Salim Al Olama, Undersecretary of the UAE Ministry of Health, says: “Advancing social development with a focus on healthcare is one of the strategic approaches of the UAE Government. At the Ministry of Health, we are committed to introduce the world’s best and most advanced technologies to our hospitals to raise them
092
Building a Knowledge Economy - UAE VISION 2021
“Using 3D printing in medical printing is important as it is considered to be one of the most important fields given its direct link to human life” Saif Al Aleeli, CEO of Dubai Future Foundation
$350M
The projected value of Dubai’s 3D-printed medical products sector by 2025
$108
The projected price of 3D-printed prosthetic limbs produced in Dubai by 2025
THE RISE OF ROBODOC The Dubai Health Authority (DHA) recently launched the pilot phase of its telehealth project, dubbed RoboDoc, which it claims will significantly enhance the manner in which healthcare is delivered in the emirate. “DHA is the first government health organisation in the region to implement telehealth,” says Amani Al Jassmi, director of Information Technology at the DHA. “This project is in line with the vision of Dubai Smart City and it is one of the core projects for the DHA because telehealth can ensure consistent, highquality of care, anytime, anywhere and any place due to the remote present robot systems.” Al Jassmi explains that as part of the pilot, a robot has been placed in Hatta Hospital’s emergency
department which is linked to Rashid Hospital’s Trauma Centre. This enables multiple specialists from the Trauma Centre to provide immediate consultations for a patient in Hatta hospital. “Thus, the RoboDoc will help reduce transfer of patients to Rashid Hospital’s trauma centre. It will also helps enhance the function of other DHA emergency departments and ICUs,” she says. Al Jassmi added that another robot has been placed in the 24-hour Nad Al Hammar Primary healthcare centre, which is also linked to Rashid Hospital’s trauma centre. Telehealth provides immediate access to consultation with specialists. Using a robot, doctors can consult with two or more specialists
to truly international standards. One of the key pillars of our strategic vision is to enhance the preventive health system, which places the highest importance on diagnostic technologies. “The introduction of the advanced technologies at our hospitals will contribute to greater efficiency in patient care and also contribute to the better health of the people. By assuring excellent service standards through deploying the latest technologies, we are bringing transformational change to our healthcare system. Through our partnership with GE Healthcare we are drawing on the company’s competencies in advanced medical technologies for our hospitals.”
in different healthcare facilities at the same time to get immediate specialised advice. Similarly, doctors from Hatta Hospital will be able to consult with a neurologist from Rashid Hospital and a cardiologist from Dubai Hospital at the same time. “Through this technology we are cutting down time-lapses, providing the patient with immediate access to specialised healthcare, improving medical efficiencies and thus improving the happiness index of our customers,” Al Jassmi explains. DHA’s robots are designed by InTouch Health Technologies. In future phases, DHA plans to extend the use of RoboDocs to ICUs, NICUs and for further consultation purposes.
BIO-MEDICAL INITIATIVES The UAE is also investing heavily in biomedical research in a bid to become a world-leader in the development of advanced treatments, including the use of 3D-printed prosthetic limbs, teeth and bio-implants. DHA is working to promote Dubai’s position as a global centre for 3D-printed medical products, building international partnerships with key players around the world. The Authority estimates that the value of 3D-printed medical products in Dubai will reach AED1.3 billion ($350 million) by 2025. It recently announced a range of ambitious goals in the sector, including the stated aim of producing prosthetic limbs based on 3D-printing technologies for less than AED400 ($108) by 2025. According to Humaid Al Qatami, chairman of the Board and Director General of DHA, it also plans to produce tooth implants using the same technology in record time. “We [will] produce ceramic teeth in less than 20 minutes, use 3D printing in orthopaedic surgeries and create 3D-printed casts, which will speed the healing process of patients by 40 to 80 percent,” he told reporters earlier this year. “To meet the Dubai 3D Printing Strategy, DHA has begun determining the work methodology, which ultimately aims to utilise technology for the service of humanity and promote the status of the UAE and Dubai as a leading hub of 3D printing technology by 2030.” DHA plans to establish working alliances with local and international partners to position Dubai as a global leader in the 3D-printed medical products sector. “Using 3D printing in the medical [sector] is important as it is considered to be one of the most important fields given its direct link to human life,” says Saif Al Aleeli, CEO of Dubai Future Foundation, a DHA partner. “Through these initiatives, we plan on using the latest technologies as well as partnering with organisations who have experience in the field of 3D printing to find solutions for medical challenges.”
UAE VISION 2021 - Building a Knowledge Economy
093
ADVANCED HEALTHCARE
DUBAI HEALTHCARE CITY FREEZONE: INSTRUMENTAL TO THE UAE’S GROWTH 094
Building a Knowledge Economy - UAE VISION 2021
“Our objective is to meet the needs of the UAE population and serve as a successful global healthcare hub model. Our dynamic freezone structure ... strengthens our investment environment and enables us to grow as a healthcare and wellness ecosystem”
in the UAE is projected to be worth US$ 19.5 billion in 2020, indicating an annual average growth rate of 12.7 percent from 2015. The outpatient and inpatient markets are projected to reach US$ 12.1 billion and US$ 7.5 billion, respectively, in 2020. The country is likely to see a nearly 3 percent annual increase in the number of hospital beds required, equating to more than 13,800 beds in 2020. The expansion of the UAE’s healthcare sector is driven by an increased need for healthcare services as a result of higher life expectancy, rapid population growth, higher insurance penetration and the Dubai government’s mission to transform the emirate into a global medical services hub.
Dubai Healthcare City is playing a pivotal role in transforming Dubai into a global medical services hub
T
he UAE is looking to become a commercial, economic and tourism hub for more than two billion people by 2021, through moving towards a knowledgebased economy which is not dependent on oil for its sustainability. The UAE’s Vision 2021 strategy aims to achieve the shift in the economy through several strategies including promoting innovation, research and development and encouraging high value-adding sectors. A growing world-class healthcare sector that constantly meets the changing health demands of the UAE population and attracts investment in the industry is an integral part of this transformation. According to the GCC Healthcare Industry report 2016 published by investment bank Alpen Capital, the healthcare market
OPERATIONAL STRUCTURE Spearheading the development of the healthcare sector in the emirate is Dubai Healthcare City (DHCC), the world’s largest healthcare freezone, to meet the growing demand for quality healthcare. The freezone was established in 2002 to offer 100 percent ownership structure. The freezone, comprising two phases, is strategically located in the heart of Dubai, occupying over 27 million square feet and H.E Dr Raja Easa Al Gurg is home to more than 350 clinical and non-clinical partners. Her Excellency Dr Raja Easa Al Gurg, vice chairperson and group chief executive officer, Dubai Healthcare City Authority (DHCA), the governing body of DHCC, says: “Our objective is to meet the needs of the UAE population and serve as a successful global healthcare hub model. Our dynamic freezone structure, based on a balance between governance and flexibility, strengthens our investment environment and enables us to grow as a healthcare and wellness ecosystem.” DHCC provides the necessary framework, such as facility establishment and licensing, to attract healthcare leaders. As enablers, the
UAE VISION 2021 - Building a Knowledge Economy
095
ADVANCED HEALTHCARE
350
Dubai Healthcare City clinical & non-clinical partners
159
Medical facilities housed at Dubai Healthcare City
freezone creates the optimum environment to achieve its vision to become an internationally recognised location of choice for quality healthcare and an integrated centre of excellence for clinical and wellness services. “There are a number of factors that strengthen our position as a leading hub for medical tourism including Dubai’s strategic location where the majority of the world’s countries are within four to eight hours flying-time, its world-class infrastructure and the required elements of innovation, safety and regulatory environment. In DHCC, our competitive advantage has always been quality assurance within a strong regulatory framework. Our outpatient quality standards are accredited by the International Society for Quality in Healthcare (ISQua),” says HE Dr Al Gurg. In response to its mandate to increase quality healthcare services, DHCA, unveiled in 2015 two new operational sectors - an investment sector tasked with enhancing DHCC’s global healthcare standards and strengthening its medical tourism portfolio of healthcare services, and an education sector which will oversee the development of medical education in the freezone. “Our freezone model achieves operational efficiencies and its investment and education sectors support and strengthen the economic climate of the UAE and the growing need of the population and the healthcare industry,” says HE Dr Al Gurg. PROJECTS IN PHASE 1 In 2015, the clinical facilities in DHCC increased by 28 percent, reaching 159 facilities, comprising JCI-accredited hospitals, outpatient medical centres and diagnostic laboratories. The number of specialties also increased last year by 68 percent to reach 152 while a 20 percent increase was registered in the number of licensed professionals, reaching 5,400. DHCC’s phase 1 is home to the freezone’s first digital hospital, Dr Sulaiman Al Habib Hospital, which started operating in 2015. Covering 175,000 square feet, the facility provides 122,500 square feet of medical facilities with a 200-bed capacity, including 32 intensive care unit beds and seven operation theatres, each equipped with the latest medical technology. The facility also has the world’s most advanced computed tomography called ‘Revolution CT’. PHASE 2 EXPANSION DHCC’s Phase 2 expansion, which launched in 2015, occupies an area of 22 million square feet in Al Jaddaf. It aims to drive the global trend of preventive healthcare taking into account local and regional healthcare demands and demographic change. “We are confident that Phase 2 will drive wellness tourism together with medical tourism, boosting Dubai’s diversified economy. We will be offering quality wellness services to strengthen the health system and bring patient-centered care to the forefront,” says HE Dr Al Gurg. The UAE tops the list in the Middle East and North Africa (MENA) region in the World Bank’s ranking of ease of doing business, indicating the country’s business regulation quality and efficiency. Reflective of this market confidence, till date, Phase 2 has 40 percent of its master plan in committed projects. They are
096
Building a Knowledge Economy - UAE VISION 2021
expected to be completed by 2021. Phase 2 will drive wellness community, comprising premium apartments, serviced residences, tourism along with medical tourism through unique concepts four- and five-star hotels, and retail and leisure features, spread and specialised services such as rehabilitation, counseling, sports over approximately 2.9 million square feet in Phase 2. medicine and elderly care for both residents and visitors. Tapping into the growing demand among people looking for PIONEERING MEDICAL UNIVERSITY evidence-based and holistic care, Phase 2 will be home to WorldThe expansion of the UAE’s healthcare sector brings with it a Care Wellness Village. Strategically located on the waterfront, the set of challenges including insufficient numbers of medical WorldCare Wellness Village (occupying an area 810,000 square professionals and the reliance on foreign manpower to fill the feet) is estimated to be significantly larger in scale and offerings existing gap. to current wellness properties in Europe and the US. The concept To address the gap, the freezone provides medical education will contribute to DHCC’s vision to become an internationand continuous professional development programmes through ally-recognised location of choice for quality healthcare and its medical institution such as the Mohammed Bin Rashid Uniwellness services. versity of Medicine and Health Sciences (MBRU) and its learning The WorldCare Wellness Village – anchored by a 100,000 resource Khalaf Ahmad Al Habtoor Medical Simulation Centre. square feet Wellness Centre – will focus on prevention and To fill the gap, the MBRU was established comprising of two management of diseases such as obesity, colleges: the undergraduate medical hypertension, diabetes and other physical school and a postgraduate dental “We identified early on conditions. Many of these address local school, Hamdan Bin Mohammed Coland regional needs and demographic lege of Dental Medicine. that a health system has to changes. “We identified early on that a health develop local talent, reIntroducing a variety of complementary system has to develop local talent, search capacity and infraservices, amenities and attractions includresearch capacity and infrastructure, structure, as well as look at ing hotels and restaurants is paramount as well as look at international best for the success of any medical tourism international best practices practices and work alongside long-term destination; with that in mind, about 25 trusted international partners,” says HE and work alongside longpercent of Phase 2 has been allocated to Dr Al Gurg. term trusted international the hospitality sector, out of which 10 The College of Medicine, Dubai’s first partners” percent is allotted to hotels. co-educational undergraduate proIn 2015, DHCA announced a joint gramme, is to accept its first batch of 60 venture with the developer Nshama students by September. To help develop to establish Al Fursan, an integrated the new medical college, the Univer-
UAE VISION 2021 - Building a Knowledge Economy
097
ADVANCED HEALTHCARE
sity has signed an agreement with UK’s Queen’s University Belfast to advise on curriculum development, recruitment and selection of staff, and student admissions. However, the MBRU, even before the arrival of its first batch of medicine students, has become a pioneer in the UAE’s medical scene as it performed the emirate’s first organ transplant surgery in June. The surgery, in collaboration with Mediclinic City Hospital, the freezone’s first general hospital, was performed on a 29 -year-old Emirati woman who suffered kidney failure due to diabetes. Prior to the surgery, the mother of two underwent four hours of haemodialysis, three times a week, over the last year. The kidney from a deceased donor was provided through the Saudi Center for Organ Transplantation (SCOT) in Saudi Arabia, the reference centre for Organ Transplant in the GCC. “The MBRU was created in line with the vision of His Highness Sheikh Mohammed to ‘improve the quality of healthcare services and the health status of the population. We aim to create the necessary infrastructure to address challenges in the healthcare sector, such as the demand for organ transplantation, to ensure that Dubai residents are healthy and happy individuals. This initiative stems from an effective and balanced strategy for MBRU that aims at achieving regional leadership and global recognition in the fields of education, scientific research, medical services and community engagement,” says HE Dr Al Gurg. The surgery was performed by a highly qualified team led by Dr David Hickey, a well-known transplant surgeon and former director of the National Kidney and Pancreas Transplant Programme in Ireland and Dr Farhad Janahi, assistant professor at MBRU and consultant urologist, and the Mediclinic City Hospital transplant team. The surgery also marked the launch of the MBRU Organ Transplant Programme which aims to establish, in partnership with healthcare providers, services for organ transplantation in Dubai, to meet the growing demand in the emirate. An estimated 2,500 patients suffer from kidney failure in the UAE and such
098
Building a Knowledge Economy - UAE VISION 2021
“Our healthcare and wellness offerings ... gives us confidence we are building a strong foundation for future generations to enable them to take the growth of our nation to new horizons”
programmes and initiatives aim to provide help to those patients by increasing the rate of organ transplantation in the country, which eventually improves the quality of life of those patients and their families. The MBRU is also home to learning resource Khalaf Ahmad Al Habtoor Medical Simulation Centre, which has two operating theatres, an adult and paediatric intensive care unit, as well as three wards, including a maternity suite and neonatal resuscitation equipment and a dental surgery training suite. The mannequins include a Human Patient Simulator, which has been designed to interface with patient monitors and with lungs that respond to mechanical ventilation, and a METIMan wireless patient simulator designed to withstand real-life indoor and outdoor environments and to enable students to practice techniques such as defibrillation and chest tube replacement. The centre has received more than 5,000 trainees since it was set up in 2012. The all-encompassing offering of DHCC, namely education, regulation and a business friendly environment gives the freezone a global competitive edge which is driving a world-class healthcare and wellness growth. “Our healthcare and wellness offerings, dynamic and robust regulatory framework and regionally responsive and globally connected education system gives us confidence that we are building a strong foundation for future generations to enable them to take the growth of our nation to new horizons,” says HE Dr Al Gurg.
WATER MANAGEMENT
A MOST PRECIOUS RESOURCE The UAE is developing cutting-edge renewable energy-based desalination technologies in a bid to meet its future capacity requirements and carbon emission reduction targets
100
Building a Knowledge Economy - UAE VISION 2021
I
n a country that receives just 78mm of average rainfall each year – the equivalent of about six weeks’ rainfall in London – water is arguably the UAE’s most precious and rare resource. As is the case for the vast majority of its neighbours in the GCC region, the UAE’s reliance on desalinated water supplies is increasing rapidly, and given the sheer pace of economic growth, the burden on this resource is growing annually. Exarcebating the challenge is the UAE’s dearth of renewable water resources. The United Nations defines a country’s water scarcity threshold as 1,000 cubic metres per capita per annum. In 2015, Dr Han Seung-Soo, the UN’s special envoy on Disaster Risk Reduction and Water and former prime minister of Korea, revealed the UAE’s renewable water capacity was a paltry 83 cubic metres per capita per annum. Speaking at the International Water Summit in Abu Dhabi the same year, he said that as a result, demand had been “met through the exploitation of groundwater resources and desalinated water”. “But the total water consumption exceeds 24 times the natural recharge capacity whereas groundwater supply has fallen by 18 per cent since 2003,” he explained. The UAE’s GCC neighbours also rely heavily on desalinated resources to meet their domestic demand. In fact, the GCC region accounts for 40 percent of the world’s installed desalinated water capacity, with the UAE ranking second only to Saudi Arabia in terms of production and consumption, with about 14 percent of total capacity. According to government estimates, the UAE spends around $3.3 billion annually on water desalination programmes, with this figure increasing annually as production rises to meet growing demand. Addressing the Emirates Centre for Strategic Research and Studies’ 17th annual conference on Water and Food Security earlier this year, Dr Rashid Ahmad Bin Fahd, UAE Minister of Environment and Water, revealed water consumption in the GCC had risen from 6 billion cubic metres in 1980 to 26 billion cubic metres in 1995. Alarmingly, water stocks fell from 700 cubic metres per head of population to 170 cubic metres in 2000. “The groundwater shortage has led to
“Water is more important than oil for the UAE. We are preoccupied by this major issue. I believe that the problem lies in the fact that the population of the Arabian Peninsula is incessantly growing while the region today does not possess a lot of water resources” HH Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and chairman of the Abu Dhabi Executive Council
growing demand for fresh water. Around 70 per cent of available fresh water is used by the agriculture sector, while water demand in the urban sector has more than doubled. Moreover, domestic water consumption is not economical. All these factors complicate the problem,” Dr Bin Fahd told delegates. According to MEED Projects, GCC countries have invested more than $76 billion in new desalination plants in the past decade. To meet expected demand, this figure is likely to more than double in the next 10 years. The issue of water security has been at the forefront of the UAE’s economic priorities for decades. Unsurprisingly, the issue has been given added impetus in recent years as a result of the country’s ambitious economic diversification strategy and rapid population growth. “Water is more important than oil for the UAE. We are preoccupied by this major issue. I believe that the problem lies in the fact that the population of the Arabian Peninsula is incessantly growing while the region today does
UAE VISION 2021 - Building a Knowledge Economy
101
WATER MANAGEMENT
not possess a lot of water resources,” HH Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and chairman of the Abu Dhabi Executive Council, declared in 2011. “Today, water can be provided through desalination, but within decades the situation will be different as there are no rivers in the region and no technology at present under our disposal to help meet the region’s demand for fresh water. “Therefore, we have to focus our efforts on conducting relevant studies and research and on drawing up suitable strategies and
solutions to come up with ways to meet future demand and preserve our natural resources for the coming generations.” To date, the energy-intensive nature of traditional water desalination processes means that its production is ten-times less efficient than surface fresh water production. Historically, almost a third of the UAE’s greenhouse gas emissions have been generated by its installed base of mostly gas-powered desalination plants. In an effort to meet its carbon emission reduction targets, the UAE is striving to develop cutting-edge desalination processes that Main: A water desalination plant in Dubai. Left: Storm clouds gather over Dubai Marina. Right: A rare sight in Dubai. The UAE receives just 78mm of rainfall each year.
EVERY CLOUD… THE UAE’S NOVEL APPROACHES TO BOOSTING GROUNDWATER SUPPLIES In a bid to boost its groundwater supplies, the UAE has magnesium into clouds, with the chemical concoction bonding positioned itself as one of the world’s foremost pioneers of with water vapour to produce rain, usually within the space cloud-seeding technology. of 30 minutes. In 2015, 186 cloud-seeding missions were launched in the The UAE recently launched a $5 million Rain Enhancement Emirates, with this figure expected to at least double this year. Research Programme, which is designed to develop new While it remains difficult to truly ascertain the success approaches to cloud-seeding. or otherwise of these efforts, UAE authorities point to rising One of the more curious approaches to generating rainfall rainfall during unseasonable months as evidence in support currently under consideration by UAE authorities is constructof its strategy. ing a man-made mountain in the Emirates. The National Centre of Meteorology & Seismology (NCMS) The mountain would help create cloud cover which could maintains a fleet of six Beechcraft King Air c90 aircraft then be seeded to produce rain. for the cloud-seeding projects. The process involves firing The project has received $400,000 in funding to date, with flares containing sodium chloride, potassium chloride and the NCMS conducting an initial assessment of the viability of 102
Building a Knowledge Economy - UAE VISION 2021
the project and potential locations for its construction. “Building a mountain is not a simple thing,” American scientist Roelof Bruintjes, who is leading the project in conjunction with the NCMS, told ArabianBusiness in May. “We are still busy finalising assimilation, so we are doing a spread of all kinds of heights, widths and locations [as we simultaneously] look at the local climatology. “If [the project] is too expensive for [the government], logically the project won’t go through, but this gives them an idea of what kind of alternatives there are for the long-term future. If it goes through, the second phase would be to go to an engineering company and decide whether it is possible or not,” Bruintjes added.
MASDAR INSTITUTE FOCUSES ON WATER TREATMENT INNOVATIONS TO MEET ABU DHABI’S CROP IRRIGATION NEEDS Masdar is currently investigating ways of fully exploiting Abu Dhabi’s wastewater resources to support the emirate’s growing agricultural sector. According to recent research conducted by Masdar Institute graduate student Maria del Rocio Gonzalez Sanchez, groundwater in the UAE is being pumped for irrigation purposes at a rate of about 860 billion litres per year, and is depleting at a rate of 0.5 centimetres a year. At present, about 60 percent of treated municipal wastewater produced in the UAE capital is reutilised for landscape irrigation purposes, while the remainder is pumped out to sea, according to Dr. Farrukh Ahmad, associate professor of chemical and environmental engineering at Masdar Institute of Science and Technology. “Our team at Masdar Institute wants to capitalise on that dumped wastewater, known as treated effluent, clean it up and recycle it back into our food production chain for edible crop irrigation. This could free-up Abu Dhabi’s limited freshwater for our drinking and washing needs while providing more water to meet our agricultural requirements, thereby enhancing food security. Essentially, it could be a win-win situation,” he wrote in a briefing earlier this year. Dr Ahmad says Masdar is developing new techniques designed to combat disease-causing bacterial pathogens via DNA sequencing, and residual pharmaceutical micropollutants that can potentially accumulate in edible crops and can lead to problems such as antibiotic resistance. “Our proposal to use treated municipal wastewater to irrigate edible crops is exactly the kind of integrated thinking we need in order to enhance food security while reducing water and energy consumption. We are working to provide some of the solutions necessary to sustainably meet the UAE’s growing demand for water and food,” he adds.
leverage the latest clean-energy technologies, including solar and geothermal energy capacity. Abu Dhabi’s Masdar Institute is viewed as a world leader in the field of clean-energy desalination production. In 2013, the organisation launched a pilot programme that saw the development of four new desalination plants that are currently trialling a range of innovative approaches to clean-energy desalination. The Public-Private Partnership (PPP) initiatives aim to commercialise the most promising technologies for local and regional implementation and to have a commercial-scale facility operational by 2020. Masdar has selected four well-known international partners for the trials: Abengoa, Suez Environment, Sidem/Veolia, and Trevi Systems.
The technologies being trialed are divided into those already proven in commercial environments, such as reverse osmosis systems, and those deemed on the cutting-edge, including innovative membrane- and thermal-processes, respectively. Masdar says the latter half are technologies that have not been commercialised or used on a utility scale anywhere in the world. The initial trial is expected to conclude towards the end of 2016, with the most promising technologies being then implemented in a commercial environment, powered by renewable energy, such as solar, wind, geothermal or a combination of one or more sources. “Our aim is to improve energy efficiency for desalination plants and have all of them 100 per cent-powered by renewable energy in the long run,” Mohammed El Ramahi, associate director at Masdar told local media prior to the launch of the project.
UAE VISION 2021 - Building a Knowledge Economy
103
BANKING & FINANCE
FUNDING
INNOVATION 104
Building a Knowledge Economy - UAE VISION 2021
The Sheikh Mohammed bin Rashid Al Maktoum Fund to Finance Innovation is set to prove a major pillar in the UAE government’s innovation investment strategy
O
ne of the key ambitions of Vision 2021 is to transform the UAE into a global hub for innovation. In August, the UAE was ranked 41st in the world in the Global Innovation Index 2016, produced by the Cornell University, INSEAD, and the World Intellectual Property Organisation. Despite ranking highest among the six nations of the Gulf Cooperation Council (GCC) and six places higher than last year, there is much room for growth. While the UAE ranks highly for innovation inputs – including education standards, government effectiveness and regulatory quality – it fares less well for innovation outputs and areas over which the state has less direct control. Things like patent and trademark applications,
“Innovation and creativity will not flourish without a supportive financial environment, and this fund is only a start. We are looking forward to developing partnerships that will increase this investment so that innovation can become one of the pillars of our national economy” HH SHEIKH MOHAMMED BIN RASHID AL MAKTOUM
articles in scientific journals, ease of resolving insolvency, industrial design, ease of getting credit and protection for minority investors, are all areas where the UAE has room for development. The latest survey ranks the UAE 25th in the world for innovation inputs, but 75th for outputs, demonstrating the latent potential that is yet to be exploited. In November 2015, Vice President and Prime Minister of the UAE and Ruler of Dubai HH Sheikh Mohammed bin Rashid al Maktoum launched the Sheikh Mohammed bin Rashid Al Maktoum Fund to Finance Innovation during UAE Innovation Week. The fund will have AED2 billion ($544 million) to back entrepreneurs and it is one of the key pillars of the government’s efforts to boost innovation outcomes by providing funding
UAE VISION 2021 - Building a Knowledge Economy
105
BANKING & FINANCE
BENEFICIARIES OF THE SHEIKH MOHAMMED BIN RASHID AL MAKTOUM FUND TO FINANCE INNOVATION Seven key sectors will benefit from AED2bn worth of government funding designed to drive innovation. They are: Renewable Energy Encouraging innovation in the industries related to renewable and clean energy, in addition to promoting applied research in the field of clean technology, and establishing a new system based on decentralised power generation. Transportation Stimulating innovation in the field of air and maritime transport, services and logistic cities in order to provide new and innovative products and services, as well as enhancing the efficiency of procedures, and shortening the times in linking east with the west, and the north with the south. The strategy also focuses on innovation in the field of vehicles and drones. Education Encouraging innovation in education by providing students with the skills of the 21st century, such as critical thinking, problem solving, creativity and innovation, perseverance, the ability to adapt and others, in addition to creating labs for innovation in schools and universities to encourage inventions. Health Encouraging innovation in the provision of healthcare services and treatments using advanced technologies, and encouraging the development of pharmaceutical industries and biotechnology, in addition to working with strategic partners to develop the medical research sector in order to treat prevalent diseases. Water Encouraging innovation in addressing water scarcity. Technology Innovative approaches to high-tech research and development. Space Exploring space and developing technology in the fields of communications, satellites, and research related to the transfer of space technology for use on Earth through specialised institutions, in order to develop the space sector as one of the key growth sectors of the national economy. Source: UAE Ministry of Finance
$544M
Total capitalisation of UAE government innovation funds
106
Building a Knowledge Economy - UAE VISION 2021
to the private sector. “Innovation and creativity will not flourish without a supportive financial environment, and this fund is only a start,” HH Sheikh Mohammed said at the Innovation Fund’s launch. “We are looking forward to developing partnerships that will increase this investment so that innovation can become one of the pillars of our national economy.” Initially, the Ministry of Finance will be responsible for administering the fund which is set to be launched by the end of 2016. The government has already held workshops with government bodies, entrepreneurs and financial institutions as it seeks to establish how the fund will operate. The aim of the fund will be to provide a supportive and sustainable environment for innovation, through guaranteeing that financing will be available to overcome one of the most common challenges for getting innovative new ideas off-the-ground. “This initiative reflects the leadership’s vision to instill a culture of innovation in order to advance sustainable development,” comments Obaid bin Humaid Al Tayer, Minister of State for Financial Affairs. “We aim to make the UAE one of the top 10 most innovative countries in the world by 2021. The establishment of the Mohammed bin Rashid Innovation Fund will help in creating a supportive environment for innovation and innovative entrepreneurship by providing the funding necessary for establishing, managing and developing innovative projects.” One of the key features of the fund will be that it is open to any resident, individual or company registered in the UAE, and is not restricted just to UAE nationals. By opening up the fund to foreign residents or companies based in the UAE, it will help encourage entrepreneurs and businesses to choose the country as a base of their operations, which should help drive economic growth, job creation, and innovation in ways that a fund focused purely on citizens would not. Al Tayer says the fund will “play a significant role in driving growth and economic development within the UAE, and in strengthening the country’s position on both a regional and global level.” The main criteria to apply for finance from the innovation fund is having a unique and innovative project, a long-term business plan and feasibility study, and the initial stages of the project already completed. A small fee will be charged for each loan application. Keeping within the framework of the UAE’s broader vision, the fund will be focused on the seven major industrial sectors outlined in the National Innovation Strategy; renewable energy, transportation, education, health, water, technology and space. It also aims to collaborate with private sector financial institutions including commercial banks, investment funds and family businesses to help nurture the broader financing environment in the country. This last area will be a significant part of the Innovation Fund’s work. While the AED2 billion allocated to the fund will have a significant impact on the start-up scene in the UAE, it will not be enough to fill the funding gap that currently exists in the venture capital/angel investing space. Leveraging the fund and co-investing with private sector institutions like banks and
private equity funds will help expand the reach of that AED2 billion. As many of the fund’s loans will have a relatively short tenor, there will also be ample opportunity for recycling its capital as loans get repaid. Successful equity investments in startups that grow rapidly have the potential to generate significant returns, which can help build the fund further. Further details of exactly how the fund will operate will be announced shortly, as the Ministry of Finance is still conducting the feasibility studies and preparatory work for the launch of operations. A pilot phase is already underway to help in formulating the policies and procedures of the fund. Once operational, the Innovation Fund will need to work in cooperation with several other funding initiatives undertaken by authorities in the country to stimulate economic development. In April, HH Sheikh Mohammed announced the launch of the Future Endowment Fund, a Dubai initiative that will have AED1 billion ($272m) in capital to invest in innovation across key growth sectors. A further AED1 billion has been allocated for the Dubai Future Accelerators Programme. Dubai Crown Prince Sheikh Hamdan bin Mohammed Al Maktoum said at the launch of the programme in July: “Our goal is to transform the city of Dubai into a global test bed for leading ideas and technologies.” The Accelerators programme has moved quickly, having already selected 30 firms to take part in its first round, which will involve testing their ideas, giving them access to workspace and a prototyping lab, and access to industry experts and government leaders. Among the first 30 ventures supported by the Accelerators programme are the superfast intercity transport system Hyperloop One, self-driving vehicles firm Next Future Transportation, and blockchain tech outfits Concensys and Honeywell.
30
Ventures funded by the Dubai Future Accelerators Programme to date UAE SMES: DRIVING ECONOMIC GROWTH There are an estimated 350,000 small- to medium-enterprises (SMEs) operating in the UAE today, providing jobs for more than 85 percent of the country’s private sector workforce. In line with Vision 2021, the UAE government aims to nurture this hugely important sector of the economy, offering incentives and safeguards that will underpin future growth. SMEs currently generate 60 percent of UAE GDP, with this figure expected to rise to 70 percent by 2021. The Khalifa Fund for Enterprise Development has launched a series of initiatives over the past 12 months designed to support the development of the SME sector. In addition to funding, it offers entrepreneurs training and mentoring programmes. In a bid to boost confidence among SMEs, UAE President Sheikh Khalifa bin Zayed Al Nahyan also recently issued a new federal bankruptcy law by decree. The revised law for the first time provides a comprehensive legal framework which is designed to help indebted companies avoid bankruptcy and liquidation. The law provides safeguards for both creditors and debtors in insolvency cases. Creditors will be able to commence proceedings against insolvent companies when debts of AED100,000 or more are owed beyond 30 days. Insolvent companies will now have the option to avoid liquidation by pursuing four options: financial reorganisation, pre-emptive settlement, financial restructuring and the raising of new funds. A new government body, the Committee of Financial Restructuring (CFR), will oversee the process outside the courts. Importantly, the new law states that creditors cannot bring criminal charges against executives of insolvent companies when a cheque bounces, if the company is in the process of being restructured. “Mature economies have proven the need to implement a bankruptcy law in each country that wishes to strengthen its economic status,” says Obaid bin Humaid Al Tayer, Minister of State for Financial Affairs. “The bankruptcy law is one of the most important pillars for the local economy, as it provides protection for all parties, in addition to its pivotal role in attracting capital, in a safe and attractive investment environment, providing protection legislation and legal acts.”
UAE VISION 2021 - Building a Knowledge Economy
107
BANKING & FINANCE
Dubai Electricity and Water Authority (DEWA) has also launched an innovation fund to develop creative ideas proposed by its employees. The big challenge for these funds will be picking out successful long-term investments or industries to back. This may be less of a problem as the government, particularly in Dubai, has vast experience collaborating with the private sector or managing investments in private sector enterprises. For example, Emirates Airline, Emaar Properties, and Emirates NBD are all national champions with varying degrees initiatives to transform the country into an innovation hub and of government-ties. the recognition that the region’s relatively wealthy, tech-savvy Turn8, an initiative developed with ports operator DP World, population represents an underserved market. Mohammed Alhas been investing in innovative products since 2013. To date, abbar, a prominent Dubai businessman best known as chairman it has made about 60 accelerator investments around the of Emaar Properties, is currently raising $1 billion to invest in world, but with a focus on Dubai. It’s success goes some way technology firms in the Middle East. to demonstrating how Dubai can further develop the governAs more capital starts to become ment-backed co-investor approach. available for entrepreneurs in the UAE, Part of Turn8’s success can be the funds should succeed in their aim of attributed to its ability to leverage attracting more international talent to the skills and experience of partners the country. That should boost knowllike DP World. By inviting entrepreedge-based employment as start-ups neurs to solve challenges faced by and innovative ideas become reality and the government, the Dubai Future develop into new industries. Eventually, Accelerators programme is intended this will be a boon to the UAE economy to work more like a partnership with as it pursues its plan for rapid economic the private sector than an attempt by diversification which lies at the heart of the government to pick-out promising the Vision 2021 Agenda. new technologies. With innovation such a core part of Exactly how the Sheikh Mohammed the UAE’s national strategy, ensuring bin Rashid Al Maktoum Innovation that the financing infrastructure to supFund aims to overcome these issues port new ideas and creativity is robust will not become clear until more deis essential. Even as other initiatives are tails of how the fund will operate are launched by the government and private announced later this year. sector, the Sheikh Mohammed Bin One thing that is clear though, the OBAID BIN HUMAID AL TAYER, Rashid Al Maktoum Innovation Fund fund will be a welcome addition to the MINISTER OF STATE FOR FINANwill be a core part of driving this fundUAE’s venture capital environment. CIAL AFFAIRS SPEAKING AT THE ing agenda, as it works with banks and The landscape is rapidly developing LAUNCH OF THE FUND finance houses to deliver its ambitions. in response to both the government’s
“This fund is considered one of the most important financing tools in the region. It is expected to play a significant role in driving growth and economic development within the UAE, and in strengthening the country’s position on both a regional and global level”
108
Building a Knowledge Economy - UAE VISION 2021
SPACE EXPLORATION
THE FINAL FRONTIER The UAE is committed to developing a thriving, commercial space industry and supporting international initiatives aimed at advancing space exploration
110
Building a Knowledge Economy - UAE VISION 2021
T
he UAE’s recently launched National Space Policy will see more than AED20bn ($5.45bn) invested in developing a thriving, globally competitive aerospace industry, which also positions the UAE as a pioneer in space exploration and innovation. In announcing the launch of the policy in September, HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, said: “Our ambition is limitless and we are working tirelessly to realise it. We have the largest regional space transportation operator, the largest international companies providing satellite insurance services, an adequate legislative and regulatory environment, and a variety of research centres, all of which aim to ensure the wellbeing of our people and the world. “Our goal is to build a strong and sustainable Emirati space sector that supports the interests of the nation and its vital sectors. “A sector that serves to diversify the economy and develop the UAE’s scientific prowess and the culture of innovation.”
“First and foremost, an advanced space industry is predicated upon significant educational progress — particularly where science, technology, engineering and mathematics are concerned. This is one of the major ongoing strategic goals that the UAE Space Agency and its partners have been addressing”
The UAE Space Agency is the first of its kind in the GCC region and aims to position the country as a leading innovator in the field. Its work is also a crucial tenet of UAE Vision 2021. The Agency plans to launch the country’s first unmanned probe to Mars in 2021, making it the first mission to the Red Planet by an Arab nation. The launch will also coincide with the 50th anniversary of the UAE’s federation. Here, UAE Space Agency chairman HE Dr. Khalifa Al-Romaithi, discusses the organisation’s work, the UAE’s ambitions in the field of space exploration, and the broader benefits in regards to economic diversification. Q. THE DEVELOPMENT OF A VIABLE SPACE INDUSTRY AND EXPLORATION PROGRAMME IS A KEY GOAL OF UAE VISION 2021. HOW HAVE THE UAE’S SPACE INDUSTRIES DEVELOPED TO DATE AND WHAT ARE KEY GOALS FOR THE COMING YEARS? The UAE space industry has developed in a number of distinct directions. Most notably, the commercial sector has produced an impressive satellite network that is constantly expanding.
YahSat and Thuraya are both approaching their tenth anniversaries, and are now providing specialist services with vast geographical coverage. YahSat, which is fully owned by Mubadala, is capable of delivering satellite communications to more than 140 countries across the Middle East, Africa, Europe and Asia. It introduced the region’s first multi-purpose satellite system, consisting of the Y1A and Y1B satellites and accompanying ground infrastructure. Thuraya currently operates the Thuraya 2 and Thuraya 3 satellites that were built in cooperation with Boeing. These satellites provide mobile satellite telephony to more than 162 countries around the world. Meanwhile, the Mohammed bin Rashid Space Centre (MBRSC) is responsible for some cutting-edge research and development. In fact, it was the MRBSC that launched both the Dubai-1 and Dubai-2 Earth observation satellites. A major function of the UAE Space Agency is to facilitate such coordination between all the relevant stakeholders and interested parties so that such expertise can be UAE Space Agency chairman HE Dr. Khalifa Al-Romaithi
UAE VISION 2021 - Building a Knowledge Economy
111
SPACE EXPLORATION
shared across the sector — and indeed society at large. We recently established the Emirates Space Innovation Group (ESIG), which brings together satellite operators, researchers, specialists, and university departments under joint projects and common goals. This is conducted within the confines of the UAE space sector strategy, which the UAE Space Agency developed and implemented. Since being founded two years ago, the Space Agency has also worked effectively to bolster the UAE’s standing within the global space sector, establishing links with NASA and gaining membership on the United Nations Office for Outer Space Affairs (UNOOSA) and the International Space Exploration Coordination Group, among other organisations. Q. THE UAE HAS ANNOUNCED ITS PLAN TO SEND A PROBE TO MARS BY 2020. WHAT ARE SOME OF THE KEY CHALLENGES ASSOCIATED WITH MEETING THIS GOAL? With any interplanetary mission, there are significant technical challenges surrounding a successful launch, which is preceded by long periods of testing and calibrating all aspects of the probe. As the first such mission of its kind for the UAE — and indeed the region as a whole — there will be a steep learning curve. That is why we have put together a strong and dedicated team of engineers and researchers, all of whom are eager to deliver on the project’s goals and deadlines. This team of dynamic young Emiratis currently numbers around 70 individuals, but is expected to grow to 150 by 2020. Furthermore, through our numerous joint cooperation agreements, including established relationships with international agencies and organisations, we are mitigating against any such challenges as much as possible. Many of our memorandums of understanding with foreign space agencies include clauses covering knowledge exchange, capacity building and training programmes. Having generated significant scientific and engineering specialisation in this manner, we are confident that all the teams involved with the launch stand the best chances of success.
and GPS all bring huge advantages to our daily lives as a result of advancements in the space sector. So this educational drive is not only beneficial for the space sector — it will also bring great benefits to many other industries. For example, as we enter the post-oil economy, the energy sector will reap the rewards of our efforts to encourage youth into studying science, technology, engineering and maths, as well as the energy research and development conducted by the space sector. Similarly, engineering projects throughout the country will be significantly improved by the increased enthusiasm that we are working to ferment among students.
Q. THE AGENCY HAS ANNOUNCED IT IS DEVELOPING A SPACE-BASED WORKFORCE DEVELOPMENT PROGRAMME – WHAT ARE THE MAIN FACETS AND GOALS OF THE INITIATIVE? We are engaged in a number of human capital and development programmes, often conducted in collaboration with different partners and stakeholders. Most recently, we announced the launch of ‘Generation Space: The Space Fundamentals Training Programme’, alongside Lockheed Martin and Mubadala. This programme is an in-depth course, held across the UAE and USA. It aims to develop a detailed and intimate knowledge of technical topics relating to space research and exploration, and draws on the latest training techniques, such as LockQ. THE UAE IS POSITIONING ITSELF AS A SPACE PIONEER IN THE MENA REGION. WHAT heed Martin’s virtual reality facility. It KIND OF ECONOMIC AND SOCIAL BENEFITS WILL A also provides work experience, fully VIABLE SPACE INDUSTRY BRING TO THE COUNTRY? “A significant amount of exposing participants to the specifics of First and foremost, an advanced space modern technology has its working in roles within the sector. industry is predicated upon significant origins in the wider space This brings together three separate educational progress — particularly strands of our long-term strategic vision. where science, technology, engineering industry… So this Firstly, it brings together key stakeholders and mathematics are concerned. This is educational drive is not within the Emirates, which is part of our one of the major ongoing strategic goals mandate. Secondly, it increases the level that the UAE Space Agency and its part- only beneficial for the space sector — it will also of international cooperation within the ners have been working to address. UAE space sector. And finally, it seeks to A significant amount of modern bring great benefits to prepare younger generations and early-catechnology has its origins in the wider many other industries” reer professionals for their future leaderspace industry. Satellite technology, ship of the sector. All of these factors are better connectivity, Earth observation
112
Building a Knowledge Economy - UAE VISION 2021
necessary for developing a knowledge-based economy, in line with UAE Vision 2021 and the Abu Dhabi Plan. In this vein, we are also actively engaged with both the Ministry of Education and the Ministry of Higher Education and Scientific Research with a view to igniting interest in the space sector and its related industries. For younger generations, this involves a range of initiatives, such as our Mars Habitat, Rocket Design and Genes in Space competitions. All of these have proven highly successful in generating interest among younger generations. Similarly, the agency has worked with key stakeholders and education partners to introduce advanced syllabi for bachelors and masters programmes at universities across the UAE. For example, the American University of Sharjah began a space science technologies BSc programme earlier this year. Another major project that will contribute greatly to the UAE’s workforce and capacity in the field is the Space Research Centre, which will be based in Al Ain and represents the region’s first such institute. With regards to developing a space-based workforce, this will be a significant step forward for not only the UAE, but also the whole of the Middle East. Q. THE AGENCY WILL HOST THE FIRST GLOBAL SPACE CONGRESS NEXT YEAR IN ABU DHABI. WHAT WILL BE THE MAIN POINTS OF DISCUSSION? WHAT ARE THE GOALS OF THE EVENT? The main areas of discussion and debate will focus on space policy and strategy, with the goal of gaining better insight into, and understanding of, these issues and topics. Ultimately, the main aim is to develop our collective capacity for engaging in space exploration and research. The discussions and initiatives stemming from the two day conference will have a practical and lasting impact on the overall development of the space sector in the Middle East and globally. It’s also an opportunity to showcase applications for the latest space technologies and promote the development of a highly skilled, technical workforce. More broadly, it demonstrates the UAE’s capacity for rapid innovative advances. Despite being founded just two years ago, the UAE Space Agency will soon host more than 600 leading experts from around the world, including space agency heads, specialists in academic fields and research units, government ministries and C-Level executives from space and aerospace companies. It speaks volumes that the first ever Global Space Congress is being held in Abu Dhabi. Q. WHAT INTERNATIONAL AGENCIES IS THE UAE SPACE AGENCY PARTNERING WITH FOR SPACE EXPLORATION AND OTHER INITIATIVES? WHAT KIND OF BENEFITS DOES INTERNATIONAL COOPERATION WITH THE LIKES OF NASA OFFER? The Space Agency has entered many cooperation agreements and memorandums of understanding with foreign space agencies and international organisations. Most recently, we entered a cooperation agreement with NASA, but we have signed similar memorandums and agreements with roughly a dozen other organisations across the world to date.
UAE SPACE AGENCY HELPS FUTURE INDUSTRY LEADERS REACH FOR THE STARS The UAE Space Agency is committed to fostering the next generation of business and scientific leaders in the emirates. To this end, the agency recently signed an agreement with Lockheed Martin and Mubadala to launch a space-based workforce training programme to develop emerging leaders in the UAE space industry. The inaugural Generation Space: The Space Fundamentals Training Programme for early career professionals across the UAE aerospace industry launched in August, 2016, and included training in the UAE and the United States. Dr Khalifa Al Romaithi, chairman of the UAE Space Agency, said: “This latest initiative represents and realises the long-term strategic vision of the UAE Space Agency, which seeks to bring together Emirati stakeholders as well as maximising international cooperation in the space sector. Furthermore, we are committed to instilling a sound scientific understanding among up-and-coming Emiratis as part of our efforts to develop a knowledge-based economy.” In September, the early career professionals completed a US space industry immersion programme hosted by Lockheed Martin. This segment of the programme included attendance at the OSIRIS-REx launch along with job shadowing, touring Lockheed Martin’s virtual reality facility, and viewing satellite production facilities. “We are excited to be a part of the UAE’s journey into space,” said Nabil Azar, regional director of Lockheed Martin’s Space Systems Company. “This programme brings together emerging Emirati leaders to support their training and development to literally reach beyond the stars. But much more than a training opportunity, ‘Generation Space’ supports the growth of a generation dedicated to the UAE’s space industry and the country’s dynamic vision towards a diversified knowledge-based economy.”
While each arrangement might apply a separate and distinct focus, they serve the same broader purposes. Firstly, international cooperation is crucial for advancing the growth and development of the UAE Space Agency and space sector. As a relatively new space agency, we must learn as much as possible from our more established counterparts abroad. But there are also areas into which we can provide insight for our international partners, and all our joint cooperation agreements are mutually beneficial. Secondly, this kind of cooperation helps develop other sectors and industries, such as aviation. Any advances made in the space sector will serve as a catalyst for economic diversification that is central to the UAE’s long-term vision and mission. Thirdly, such partnerships open the door to wider international relations efforts, and help cement ties with key economic and diplomatic allies abroad. Our agreement with NASA has certainly strengthened the long-standing relationship between the UAE and USA, as have our contracts with the many other national space agencies.
UAE VISION 2021 - Building a Knowledge Economy
113
ARTS & CULTURE
CULTURAL CAPITAL
The UAE is fast developing a reputation as the Middle East’s cultural hub, fuelled by unprecedented investments in infrastructure designed to nurture and showcase the best Arab creative talent
114
Building a Knowledge Economy - UAE VISION 2021
NURTURING CREATIVITY Since its establishment in 2008, Abu Dhabi’s twofour54 media zone has earned an international reputation for nurturing young Arab creative talent. Here, twofour54’s acting CEO, Maryam Al Mheiri, discusses the precinct’s role in supporting the UAE’s development as a global creative hub
Q. WHAT ROLE IS TWOFOUR54 PLAYING IN SUPPORT OF UAE VISION 2021 AND THE COUNTRY’S ECONOMIC DIVERSIFICATION STRATEGY? twofour54 aims to contribute to UAE Vision 2021 as well as the recently launched Abu Dhabi Plan through developing a sustainable, world-class media industry in Abu Dhabi that acts as a sustainable platform for content creation, helping to boost our knowledge economy and reduce our reliance on oil. twofour54’s vision is to build a globally recognised hub for the media industry and attract more media and entertainment businesses to set up in the zone in order to contribute to the country’s GDP. Additionally, talent development lies at the heart of our agenda to nurture UAE nationals who are key to the industry’s growth and sustainability. We want Abu Dhabi to be the location of choice for media companies wanting to tap into the growing Middle Eastern market.
Q. HOW HAS THE UAE MEDIA SECTOR DEVELOPED SINCE TWOFOUR54’S ESTABLISHMENT? CAN YOU HIGHLIGHT SOME OF TWOFOUR54’S SUCCESS STORIES TO DATE? twofour54 was established in 2008 to cultivate Abu Dhabi’s media freezone and provide products and services to attract local, regional and international media businesses to the emirate. Named after the geographical coordinates of Abu Dhabi, twofour54 is now home to more than 400 media companies as well as 400 multilingual freelancers. twofour54 has made great strides forward in building Abu Dhabi’s reputation as the destination of choice for media and entertainment companies wanting to tap into the Middle East market. The industry ecosystem that we have built has attracted the best in the business. Not only are we home to one of the biggest news networks in the world, CNN, but we’ve successfully hosted the filming of Star Wars: The Force Awakens, the third-highest grossing film of all time. Our campus has also become a hub for prominent names serving across different media sectors like gaming, advertising, publishing and public relations. Examples of this include Fox News, Sky News Arabia, Sport
UAE VISION 2021 - Building a Knowledge Economy
115
ARTS & CULTURE
360, Ubisoft, Edelman, APCO Worldwide, Brunswick, and M&C Saatchi. The collaborative campus environment that we have built has enabled more Arabic-language projects to be delivered from Abu Dhabi, such as the revival of Iftah Ya Simsim, the Arabic version of Sesame Street, as well as digitally-led projects like Lamsa World, an Arabic children’s edutainment app. In the past year, we have added to Abu Dhabi’s industry infrastructure with our first film backlot and additional filming locations. This helped us to secure filming projects for a number of Arabic-language television dramas timed for Ramadan viewing. We also hosted our longest feature film production to date, Dishoom, a Bollywood film which was on location in Abu Dhabi for six weeks. Q. WHAT ARE TWOFOUR54’S MAIN AREAS OF FOCUS IN TERMS OF DEVELOPMENT? Our focus for achieving growth is on industry stimulation activities, in particular, increasing Arabic content creation and developing Emirati talent in order to attract more media companies to the UAE. twofour54 is a broad service offering that is much more than a real estate base. twofour54’s strategic priorities include enhancing sector governance, expansion of the zone and growing the audio-visual media and digital sectors. At a time when digital content is becoming more and more popular, we see huge growth opportunities in this sector and are supporting partner companies such as Lamsa, the developer of the region’s leading edutainment app for children. The company recently announced that its users had completed one billion minutes reading its educational Arabic content and from its base here in Abu Dhabi, Lamsa is helping to meet demand for quality digital and educational content in our native language. We also see growth potential in production services for long- and short-form television series as well as feature films from both the region and international production houses.
“Our focus for achieving growth is on industry stimulation activities, in particular increasing Arabic content creation and developing Emirati talent in order to attract more media companies to the UAE”
Q. How is technology and innovation shaping the future of media production in the UAE? We are witnessing an explosion of content creation as a result of innovation and new technologies. We consume media very differently to 10 years ago, using platforms that have brought us into an increasingly digital age. We also create content differently — anyone with a smartphone and an internet connection can write, record and release content. Technology is the driver of efficiency and reach in many industries and media is no exception. As a result, we are making sure that we look at how we can support digital propositions. One of the ways we do this is through our support of the start-up accelerator, Flat6Labs. Launched in 2014, Flat6Labs provides digital content creators and entrepreneurs seed funding, mentoring and business advice.
Q.WHAT ARE THE BIGGEST CHALLENGES FACING THE FUTURE GROWTH AND DEVELOPMENT OF THE UAE’S MEDIA PRODUCTION SECTOR? The challenges facing the industry come down to supply and demand. As the number of media companies in the UAE grows, there is more pressure on space, facilities and of course, the ability to provide the right human capital to these businesses. However, we need to grow the number of media companies in the UAE in order to meet another key challenge in the industry: the increasing demand for truly localised content. In the past few years, we have witnessed a huge increase in demand not just for Arabic-language content but content that is culturally rich and relevant. Awareness of this demand is growing and it presents a huge opportunity for media companies who understand it and can position themselves to respond to it. twofour54 recently hosted some of America’s best television executives whose visit to UAE was driven by this challenge. In a similar way to how the Korean entertainment industry has succeeded in capturing the interest of Chinese audiences, twofour54 strives to create Arabic content of an international standard that will appeal to international audiences. An example of this is Emirati film From A to B, directed by Ali Mostafa and co-produced by twofour54 in Abu Dhabi. The film’s UK rights were acquired by Studio Canal and it was screened at many international film festivals.
116
Building a Knowledge Economy - UAE VISION 2021
Q. HOW DOES TWOFOUR54 PLAN TO NURTURE THE NEXT GENERATION OF EMIRATI TALENT? WHAT SERVICES AND INITIATIVES DOES TWOFOUR54 OFFER IN SUPPORT OF THIS TALENT? Local talent development is high on twofour54’s agenda because we know that having Emirati talent coming through the ranks in the industry, especially the private sector, is key to our industry’s future sustainability. We look at the whole journey of talent. That journey can start with a student being accepted into one of our scriptwriting workshops and progressing to receiving funding for a creative project or being offered an internship on the set of an international production like Star Wars. Our main talent development initiative is ‘creative lab’. Through this initiative, we support a community of young people interested in creative industries, offering use of our world-class facilities to train, network and collaborate on projects ranging from cartoons, mobile apps, short films and podcasts. We also help to link our members with learning opportunities such as industry talks and internships. We have more than 10,000 creative thinkers registered to our online platform for creative lab. When it comes to talent development, we believe in the power of partnerships. We work closely with our 400 campus partners, as well as the international film production companies coming to Abu Dhabi, to create opportunities for Emirati talent development. In 2015, we helped more than 200 students gain internships and work placements, with some of these leading to full-time employment within the private sector. We also support the work of other entities, such as Abu Dhabi Arts and Music Foundation, which runs an annual Young Media Leaders programme, and the Emirates Novel Award & Programme, which is focused on the discipline of creative writing.
Q. HOW IS TWOFOUR54 SUPPORTING VISION 2021’S EMIRATISATION STRATEGY, WHICH AIMS TO INCREASE THE NUMBER OF EMIRATIS IN THE UAE WORKFORCE? All of our talent development initiatives have a strong Emiratisation focus because we know that local engagement in the industry is key to its future. In addition to our talent development activities described above, we also see it as our role to educate students, parents and the whole community that a career in media is a credible, viable alternative to the traditional fields of oil, gas and banking.
Q.WHAT IS THE LONG-TERM VISION FOR TWOFOUR54? Our vision is to be a globally recognised hub for the media industry and a sustainable catalyst and platform for the authenticity, diversity and creativity of media from Abu Dhabi. We want to keep on building and developing our infrastructure, our talent pool and our reputation as an international media hub and location of choice for film productions.
Maryam Al Mheiri UAE VISION 2021 - Building a Knowledge Economy
117
ARTS & CULTURE
INSIDER’S VIEW: MYRNA AYAD, DIRECTOR OF ART DUBAI Q.HOW HAS THE CREATIVE ARTS SCENE EVOLVED IN THE UAE OVER THE PAST DECADE? Tremendously. Dubai boasted a handful of galleries and is now home to thriving gallery districts, such as Alserkal Avenue, DIFC and now the Dubai Design District. With the growth of its gallery scene and developments such as the recently opened Dubai Opera and Art Dubai, the emirate is now regarded as an arts and culture hub. Abu Dhabi has ambitious plans for Saadiyat Island including the development of worldclass museums. The UAE capital also recently inaugurated Warehouse421. The facility has been staging exhibitions, talks and workshops under the auspices of the Sheikha Salama Bint Hamdan Foundation, which is the Commissioner of the UAE Pavilion at the Venice Biennale. The UAE participated for the first time at La Biennale in 2009 and has secured a permanent space in Venice and has also twice participated at the Architecture Biennale. Sharjah operates a world-class biennial and fantastic programming led by the Sharjah Art Foundation. There is no other country in the world with three culturally active cities located in such close proximity to one another — it is incredibly rewarding to witness this development.
Q. WHAT ROLE HAS GOVERNMENT INVESTMENT PLAYED IN SUPPORTING THE DEVELOPMENT OF THE UAE’S ARTS SCENE? The announcement by the Abu Dhabi government in 2007 of its plan to develop Guggenheim and Louvre museums on Saadiyat Island was a cultural game-changer. The UAE’s participation at the 2009 Venice Biennale – the nation’s first – was a significant cultural step forward for the country. We’ve also noticed a greater number of government entities setting aside art acquisition budgets.
Q. WHAT GRASSROOTS INITIATIVES HAVE MOST IMPRESSED YOU? Art Dubai is perhaps the first on the list of grassroots initiatives in the UAE that have impressed me. It is far more than a commercial platform — it acts as a global cultural powerhouse through the exhibition of art from all over the world, through an extensive not-for-profit programme, and through an educational arm that rolls out sessions for the community. Other grassroots initiatives include entities such as the Sharjah Art Foundation, the Sheikha Salama Foundation and Alserkal Avenue. Each has, in
118
Building a Knowledge Economy - UAE VISION 2021
its own right, acted on the principle of soft power by engaging communities and acting as cultural servants to a growing art-appreciating society.
Q HOW HAS ART DUBAI/DESIGN DAYS DUBAI EVOLVED DURING THIS PERIOD? Art Dubai was established in 2007 and welcomed 40 galleries and 8000 visitors in its first year. By comparison, this year’s instalment welcomed 94 galleries and 27,000 visitors. The world not only views Dubai and the UAE as major cultural capitals, but the world is now at Art Dubai. It’s also where visitors can view the best of contemporary and modern art from the Middle East, North Africa and South Asia — no other fair in the world boasts such diversity.
Q. HOW DO YOU THINK THE UAE’S CREATIVE ARTS SCENE COMPARES TO INTERNATIONAL RIVALS? It’s important to think of the UAE’s relative age — for such a young nation to have achieved so much, culturally speaking, in such a short amount of time, is indeed admirable. Another facet to consider is the impact and influence of diasporic communities in the UAE that call this country their home and who have contributed greatly to the nation’s cultural infrastructure. There is also the positioning of the country itself — it is and always has been a haven and it is perceived as a place where all things are possible. There is a desire among Emiratis and expats alike to ensure that the UAE remains the region’s cultural capital and to also secure its place among the world’s leading cultural centres. I believe that Art Dubai has contributed to this: it acts as a mandate to Dubai and to the nation as a whole. As mentioned, it’s wonderful and enriching to be living in a country with three culturally active cities that are located in such close proximity to one another; it’s hard to think of another nation that compares in this respect.
Q. HOW DO YOU THINK GLOBALLY RECOGNISED PROJECTS SUCH AS THE GUGGENHEIM AND LOUVRE IN ABU DHABI WILL BE RECEIVED? I think they complement the current cultural ecosystem and will contribute to greater debate, exchange and engagement. Museums are educational centres, among other things, and their presence will no doubt foster a greater sense of art appreciation. They will also cultivate the art of patronage. As a child growing up in Dubai, my parents ensured we visited museums all over the world. It’s heart-warming to think that in addition to major institutions the world over, I will get to take my daughter to some right here in the UAE.
UAE VISION 2021 - Building a Knowledge Economy
119
ARTS & CULTURE
D3 EMBRACES DUBAI’S SMART CITY INITIATIVE
Through collaborations with DEWA, RTA and Empower, Dubai Design District (d3) is implementing a number of bespoke initiatives designed to support Dubai’s Smart City strategy. An array of smart service applications including smart parking meters, smart energy meters, and smart waste management services are being rolled out across the creative zone. With additional security through smart access control and more innovative ways of utilising data through data virtualisation, d3 is also offering its clients cutting-edge services designed to enhance the way they do business in the park. “We believe Dubai is ideally placed to provide the Smart City benchmark for the rest of the world’s emerging economies to follow,” says Dr. Amina Al Rustamani, group chief executive officer of TECOM Group. “Through the 21 Smart initiatives introduced at d3, we are seeking to change the way business is conducted across sectors, and to deliver a greater quality of life and experience for millions of people. Encouraging innovation and leveraging technology and data lie at the heart of this.” At the Internet of Things (IoT) World forum recently hosted by d3, the creative zone offered 300 visiting delegates an opportunity to witness the smart initiatives planned for the emirate by entities across Dubai.
120
Building a Knowledge Economy - UAE VISION 2021
UAE: THE REGION’S CULTURAL CAPITAL The UAE has embarked on a host of landmark projects that will help create an arts and culture hub the envy of the world
SAADIYAT ISLAND More than $28 billion-worth of projects on Saadiyat Island will be completed by 2018 across the three districts under construction: Saadiyat Cultural District, which will soon be home to three world-class museums – Louvre Abu Dhabi, Zayed National Museum and Guggenheim Abu Dhabi (2017) – plus a new Performing Arts Centre and a leisure, dining and entertainment hub, The District; Saadiyat Beach District, with fivestar beach resorts; and Saadiyat Marina District, the island’s commercial centre. MUSEUM OF THE FUTURE The $200 million Museum of the Future project, launched in 2016 by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, will house some of the world’s latest inventions in an unusual, circular-shaped building. It will feature innovation labs and act as a “permanent exhibit for future inventions”, according to HH. SHEIKH MOHAMMED BIN RASHID LIBRARY This $272 million venue, located in the Al Jaddaf area of Dubai and expected to open in 2017, is designed to resemble a large open book. The library will hold more than 1.5 million volumes, one million audio books and two million e-books, making it the world’s largest electronic collection and the biggest library in the Arab world.
Saadiyat Island
EXPO 2020 DUBAI SITE The $4 billion Expo 2020 Dubai site located in Dubai South will be a self-contained city of sorts spanning some 438 hectares and with an exhibition area covering 4.38 square kilometres – the largest site in the history of World Expo. The six-month-long event is expected to attract 25 million visitors, create at least 250,000 jobs and contribute more than $19 billion to the UAE economy. DUBAI DESIGN DISTRICT Known as d3 and located near Downtown Dubai, this is now the city’s hub for design and creativity and features fashion shows and launches, as well as art exhibitions.
Museum of the Future
DUBAI OPERA This recently opened 2,000-seat venue is the centerpiece of Emaar’s new arts and culture precinct in Downtown Dubai, which will also feature hotels, a retail plaza and a waterfront promenade.
Expo 2020
DUBAI STEPS Dubai Stairs is a cultural and sports project spearheaded by Dubai Municipality with 500 stairs that symbolise the “challenges and progress of Dubai”. While a location for the project is yet to be confirmed, the landmark will be used as a venue for hosting sporting events. It is expected to stand 100 metres high — equivalent to a 25-storey building.
Dubai Opera
UAE VISION 2021 - Building a Knowledge Economy
121
INDEX OF ADVERTISERS
122
Abu Dhabi Tourism & Culture Authority
p1
Ajman Tourism Development Department
p99
Dubai Chamber
p126
Dubai Healthcare City (DHCC)
p4&5
Dubai Investments PJSC
p39
Etihad Rail
p109
FWU Group
p89
Kempinski Hotel Mall of the Emirates
p75
Maserati
p125
Partex Oil and Gas
p65
PwC
p23
Shurooq
p6
Starwood Hotels Al Habtoor City
p51
The Address Boulevard Dubai
p8
The Vision Destination Management
p69
Visa
p2&3
Building a Knowledge Economy - UAE VISION 2021