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UAE ranks 24th in global information and communication technology use

By Issac John DUBAI -- The UAE, which is projected to spend $45.8 billion by 2012 in information and communication technology, or ICT, ranks 24th in the world and first among Arab countries in its use of ICT to enhance competitiveness and development, according to a new report released on Sunday by the World Economic Forum

Other Arab countries that are featured in the ranking include Qatar (25), Bahrain (30), Saudi Arabia (33), 
Oman (41).

According to the Global Information Technology Report 2010-2011, Transformations 2.0, Sweden and Singapore continue to top the rankings. This reconfirms the leadership of the Nordic countries and the Asian Tiger economies in adopting and implementing ICT advances for increased growth and development. Finland jumps to third place, while Switzerland and the United States are steady in fourth and fifth place respectively. The 10^th anniversary edition of the report focuses on ICT's power to transform society in the next decade through modernization and innovation.

While the UAE scored relatively well in both the environment and usage categories (25 and 30, respectively), its strongest performance is in the readiness measurement, where it finished sixth out of the 138 countries measured. In several subcategories, the UAE scored even higher: Its level of company-wide technology adoption in the private sector is fifth in the world, the government's procurement of advanced tech products is third, and its per-capita number of mobile telephone subscriptions is first.

Kuwait Financial Centre , or Markaz , in a report said UAE's information and communication technology industry would see $45.8 billion spending in the next few years on the back of a moderate growth of 10 per cent.

Spending on Information Technology, which includes capital expenditure on hardware and software, has grown phenomenally led by the expansion 
in industry. "Information Technology spending is expected to be moderate, and a big chunk of $36.4 billion is likely to go to communications, while the remainder is for the IT segment," said M.R. Raghu, Head of Research at Kuwait Financial Centre or Markaz in a report last year on GCC Infrastructure - ICT Linking in to a Digital World.

In the liberalised and highly competitive markets in GCC, spending on ICT is likely to reach nearly $180 billion in the same period, the report has predicted.

According to WEF report, the Nordic countries lead the way in leveraging ICT. With Denmark in seventh and Norway in ninth place, all are in the top 10, except for Iceland, which is ranked in 16^th position. Led by Singapore in second place, the other Asian Tiger economies continue to make progress in the ranking, with both Taiwan, China, and Korea improving five places to sixth and 10^th respectively.

With a record coverage of 138 economies worldwide, the report remains the world's most comprehensive and authoritative international assessment of the impact of ICT on the development process and the competitiveness of nations. The Networked Readiness Index (NRI) featured in the report examines how prepared countries are to use ICT effectively on three dimensions: the general business, regulatory and infrastructure environment for ICT.

"Innovation and ICT have proven a crucial lever for long-term growth, with countless social and economic benefits and the capacity to significantly improve people's life around the world," said Alan Marcus, Senior Director and Head of Information Technology and Telecommunications, 
World Economic Forum.

"Countries fully integrating new technologies and leveraging the new data revolution in their development and growth strategies are laying the foundations for competitive, resilient economies for the future."

As digital economies steadily become the norm, our goal at Booz & Company is to continue exploring the economic and social benefits that ICT can bring - and the ways in which they are increasingly interconnected," said Karim Sabbagh, Senior Partner and the global leader of the Communications, Media, and Technology practice.

The contribution of Booz & Company, a leading global management consulting firm, to the report discusses the ways in which broadband can enable digital communities, allowing leaders in government, health, transportation and other sectors to capitalise on ICT's potential. 
-- issacjohn@khaleejtimes.com

© Khaleej Times 2011