SmartCity Malta SmartCity Malta, a planned “state-of-the-art ICT and media park”1 in southern Malta, is one of the largest ICT projects in Europe due to be realised during the next years – a good enough reason to have a closer look at it.
Who is behind SmartCity Malta? .................................................................... 2 The global SmartCity network concept .......................................................... 3 SmartCity Malta facts .................................................................................... 4 Special features of SmartCity Malta ............................................................... 4 Why Malta?.................................................................................................... 5 Review .......................................................................................................... 6
Fig.1: SmartCity Malta in a model2
http://www.smartcity.ae/malta/why-smart-city.html, accessed 21.11.2007 SmartCity – Network of Opportunities, p. 25, http://www.smartcity.ae/resources/brochure/smartcitybrochure.pdf, accessed 27.11.1007 1 2
Who is behind SmartCity Malta? SmartCity Malta is a not only inspired by the Dubai Internet City (DIC) – the infrastructure behind SmartCity Malta is the same as the one behind DIC. SmartCity Malta is a joint-venture of TECOM Investments and Sama Dubai. TECOM Investments (TECOM stands for Dubai Technology, Electronic Commerce and Media Free Zone Authority), responsible for investments and companies in the ICT sector, is a member of Dubai Holding as well as Sama Dubai, which is practically its “international property arm”3. Dubai Holding is an investment company owned by the Government of Dubai. The Dubai Internet City, like SmartCity Malta a member of TECOM Investements, was founded in 2000 and is meanwhile home to more than 10,000 employees and 850 companies, among them virtually all major global ICT companies like Microsoft, Siemens, IBM, HP, Dell, Samsung, SAP, Oracle, Cisco or Sony Ericsson – but also to small and medium sized businesses. The DIC comprises companies from nearly all sectors of the ICT industry. It is designed as a free economic zone, guaranteeing 100% foreign ownership as well as 100% tax exemption.4 Dubai in general and DIC in particular serve as a hub for coordinating and expanding business activities especially in the Middle East, the Indian subcontinent and Africa. SmartCity Malta itself is not a sole entity, but is part of a future network of SmartCitys which is supposed to span the world. The corporate office as well as the model Dubai Internet City is based in Dubai, the first branches in Malta and Kochi/India. Fig. 2: Organisational structure behind SmartCity Malta5 Dubai Holding
TECOM Investments
Dubai Internet City
Dubai Media City
Sama Dubai
…
…
SmartCity
SmartCity Dubai
SmartCity Malta
SmartCity Kochi
http://en.wikipedia.org/wiki/Sama_Dubai, accessed 21.11.2007 See http://en.wikipedia.org/wiki/Dubai_Internet_City, accessed 27.11.2007 5 Compiled by the author, based on http://en.wikipedia.org/wiki/Dubai_Holding, accessed 22.11.2007, and http://www.smartcity.ae/faqs.html#q4, accessed 22.11.2007 3 4
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The global SmartCity network concept The motto of the SmartCity expansion concept is “Expanding the global footprint, one region at a time.”6 Indeed, this concept is highly ambitious, promising amongst others the following benefits: Fig. 3: Potential benefits of the global SmartCity Network7
Most modern urban and technological infrastructure Possibility to expand business to other SmartCitys
Proven qualification in developing ICT clusters (e.g. DIC)
Global SmartCity Network
Access to knowledge from other SmartCitys
Global SmartCity structure as a networking platform for its tenants
Relocation from one SmartCity to another without problems
Opportunity to access various HR pools and country markets
The SmartCity concept claims to provide its tenants with excellent and unique international business opportunities. The different SmartCitys, supposed to cover all ICT relevant areas worldwide, shall be more than isolated entities: The network due to develop is much more than a byproduct; it is an essential element of SmartCity. The crucial thing about the global SmartCity network is that every single ICT cluster shall work as a kind of key, opening up “exciting new markets where companies can expand”8. The network of SmartCitys worldwide might function like a road system, transporting and exchanging business contacts, business opportunities, skilled employees etc.
http://www.smartcity.ae/, accessed 21.11.2007 Compiled by the author, based on SmartCity – Network of Opportunities, p. 6, http://www.smartcity.ae/resources/brochure/smartcity-brochure.pdf, accessed 22.11.1007 8 http://www.smartcity.ae/global-network.html, accessed 22.11.2007 6 7
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SmartCity Malta facts The plans for SmartCity Malta are impressing: With an investment sum of more than 300m USD, it is supposed to create at least 5,600 jobs (65% of them in the knowledge industry) on an area of 360,000m². The plans for SmartCity Malta are as new as they sound and look like: Initial discussions between TECOM Investments and the Maltese government took place in the beginning of 2006, and about one year later, in March 2007, the Maltese government approved the plans for SmartCity Malta. The first works on the site of the future SmartCity started in October – and finally, if the timetable can be adhered to, the first tenants will move in by the middle of 2008. But of course, construction and developing works will take much longer to complete the whole area – the ICT park shall be completed by 2015, the residential and commercial parts by 2021.9
Special features of SmartCity Malta There are several particularities that will tell SmartCity Malta apart from other technology parks: First of all, SmartCity Malta is supposed to adopt a local approach as well as an international one at the same time. On the one hand, SmartCity Malta will be integrated in a global network with all the advantages provided by it, as described above. On the other hand, it shall “create a flagship development that is locally inspired and well integrated within its historic and natural context” 10 It will be fostered by its local environment – and, in reverse, will foster it. The direct impact of SmartCity Malta on Malta’s GDP is expected to amount to around 580-790m USD in 2018 (5-7% of the Maltese GDP).11 Besides this double emphasis in geographical terms, it is above all the ambitious plan of the doers behind the SmartCity concept, seeing in SmartCity Malta much more than a conglomerate of offices for companies working in the same industry, which makes it unique. SmartCity Malta will consist of three main parts: office space (28%), public space (33%) and residential space. Its aim is to combine excellent working conditions with diverse lifestyle amenities to ensure the wellbeing of the high-qualified staff. Hospitals, schools, educational institutions, retail and recreational facilities, gymnasiums, hotels, social and cultural events, an
See http://www.3amsystems.com/smart-city-malta.htm, accessed 22.11.2007 KPMG: Socio-economic impact assessment of the SmartCity (Malta) project – Executive Summary, http://www.miti.gov.mt/docs/Socio-economic%20impact%20assessment%20%20executive%20summary.pdf, p. 2, accessed 26.11.2007 11 KPMG: Socio-economic impact assessment of the SmartCity (Malta) project – Executive Summary, http://www.miti.gov.mt/docs/Socio-economic%20impact%20assessment%20%20executive%20summary.pdf, p. 5/7, accessed 26.11.2007 9
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amphitheatre and even a lagoon will be integrated12, creating an entity that really deserves the title “city”. Fig. 4: The future lagoon area in SmartCity Malta13
Another important feature of the SmartCity concept is to transfer the onestop shop model, successfully created for the Dubai Internet City, and use it also in Malta. The idea behind this model is to simplify administrational issues for companies. Fostered by an intense cooperation with Maltese ministries, SmartCity Malta will offer “a range of support services like business set-up, licensing, registration, incorporation, events and hospitality services from one single window”14. Enterprises shall be enabled to fully concentrate on their business, without loosing time and energy in bureaucratic side-shows.
Why Malta? The potential reasons for choosing Malta as the first SmartCity branch worldwide are diverse – a dominant factor was for sure the location of Malta in the Mediterranean Sea, offering an excellent strategic position for both the European Market and the MEA countries bordering the Mediterranean Sea. Furthermore, the business environment and infrastructure plays an important role, as well as the technology affinity of government and population and a highly skilled workforce. SmartCity itself gives the following reasons:
12 See SmartCity – Network of Opportunities, p. 24, http://www.smartcity.ae/resources/brochure/smartcity-brochure.pdf, accessed 21.11.1007 13 http://en.wikipedia.org/wiki/Image:Smartcitymalta.jpg, accessed 22.11.2007 14 http://www.smartcity.ae/news/060607.html, accessed 26.11.2007
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Fig. 5: Reasons for the location „Malta“15
Strategic location State-of-the-art infrastructure
Accelerating business growth
E-Government Success
Focused on education
WHY MALTA? High productivity levels
Technologically innovative
Social and economic stability
Top support services Highly skilled workforce
Review The doers behind SmartCity do not only have an excellent idea, but also the experience to implement it successfully. They have proven in Dubai that their concept is a model for the future of the international ICT industry – and also for other industry clusters (Dubai Media City). Consequentially, they are taking now the next step in a globalised world: They are going global themselves, creating an international network of ICT parks. The plans are indeed very ambitious. If we have a look at some anticipated features, we see that some of them are more predictable and more easy to realise than others may be: Creating not only excellent working conditions, but also interesting lifestyle features is a point that was realised already in DIC up to a certain extent.16 It shall be brought to perfection in the future SmartCitys all around the world. As this point is more or less just a matter of planning and experiences were 15 Compiled by the author, based on SmartCity – Network of Opportunities, p. 24/25, http://www.smartcity.ae/resources/brochure/smartcity-brochure.pdf, accessed 23.11.1007 16 See http://www.dubaiinternetcity.com/why_dubai_internet_city/one-stop_shop/, accessed 26.11.2007
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already gained in this field, it should be possible to implement it and to create a city of its own that no one has to leave for anything – because virtually everything is already there. And there is also a good chance that people will use these offers – not exclusively, but often: Large parts of the staff will be from abroad and too busy to build up a network of friends and places to go, so many will be grateful to have a broad range of offers where to spend not only their working, but also their (limited) leisure time. The one-stop shop concept is an idea not only tested in, but derived from DIC and its success there. Of course, this concept highly depends on a fruitful cooperation with local and national authorities and governmental entities – they have to approve the framework in which such a model can exist. In Malta, it seems that it will work: a Government Services Unit will be established which is supposed to “operate hand in hand with the various Ministries”17. It remains to be seen how this can be handled in future locations, especially in countries where it might be more difficult to involve the authorities. Anyway, the advantages provided by the existence of a SmartCity will probably be persuasive enough in most cases to convince the authorities to do their best in assisting the companies there. We see that most likely, the single SmartCitys will work, that is quite sure. Locations will be chosen carefully, and the more clusters will be created, the more experience will be gained and the more famous and attractive the idea will be. So, the crucial point for SmartCity will be the globalisation concept and the question whether it will work; whether it will be possible to interconnect the single SmartCitys; whether we will have a conglomerate of ICT clusters in the end – or a real network, being a catalyst for business relationships and a key to new markets. In short: The crucial point is whether SmartCity will be able to generate an international added value beyond the value of each SmartCity. Answering this question is impossible in the moment. From today’s perspective, the answer is likely to be yes. But the global vision of SmartCity is a very long-term matter. The first SmartCitys are planned, but until they will be in the position to exploit all options, about ten years will go by – and these are only the first two SmartCitys. So, it is certain that a long time will pass until a network will exist that theoretically will have the potential to create an added value. And it is impossible to predict exactly how the ICT industry and the whole business world will look like in 20 or 30 years and if this model will still be timely then. The bottom line is that the doers behind SmartCity have made an important move in a direction that seems to be the right one for today and the next years – and might also be the right one in a long-term perspective. The risk is the time factor and developments that are not foreseeable today. But even if the installation of an effective network should fail in the end – each SmartCity that is built up will most likely be a success of its own.
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http://www.smartcity.ae/news/060607.html, accessed 27.11.2007
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