DUBAI, UAE: Don't be surprised if you wake up one day and read a headline that heralds the coming of age of Dubai as a silicon frontier! The government of Dubai has been efficiently and effectively taking the necessary steps required to make that happen. It has set up the Dubai Silicon Oasis Authority (DSOA) as the engine for propelling Dubai into the knowledge economy.

H.H. Sheikh Mohammed bin Rashid Al Maktoum Ruler of Dubai, Vice President  and Prime Minister of the UAE, Ruler of Dubai, said, "Our vision is to make Dubai Silicon Oasis one of the world’s leading centers of advanced electronics innovation, design and development."

Economy and business destination
Dubai boasts of a robust economy, the GDP being $53.8B in 2007. The GDP has a very low dependency on oil, which was >5 percent in 2006, a fact not well known to many. While it has a small population of just 1.42 million, people from other nationalities -- a total of 185 -- comprise a whopping 1.2 million or so.

Dubai is now counted among the world’s top financial centers, boasting of world-class infrastructure, state-of-the-art telecom, and already a home to 139 major Fortune 500 regional offices.

Dubai also boasts of the world’s fastest growing airport, which is located near Deira. A new airport, with six parallel runways, is under construction near Jebel Ali. Dubai also hast two seaports, including the world’s largest man made port in Jebel Ali.

The Dubai Metro project is also underway. If this is not enough to propel the city as a leading business destination, Dubai also has highly superior logistic facilities -- all major cargo services operate out of here., besides reliable power and utilities, and state-of-the-art IT and telecom infrastructure.

Some major international investments in the UAE region make very interesting reading. For instance, Abu Dhabi has an 8.1 percent stake in Advanced Micro Devices (AMD). Abu Dhabi also has 4.9 percent stake in Citigroup. Dubai Holdings has major investments in Daimler AG (2 percent), EADS (3.12 percent), and Tussauds Group (20 percent). The DIFX has a major stake in both NASDAQ and OMX.

The UAE itself is a regional powerhouse. UAE ranks #28, highest in the Arab world, compared to Israel #19 and Egypt #63. It is also the second largest MENA market for PCs -- 594K units vs. 684K for Saudi Arabia, as per IDC.

DSOA's value propositions
The DSOA was set up to create a universally recognized state-of-the-art technology oasis by facilitating and promoting technology-based industries, and R&D, within a fully integrated community. DSO is a technology-centric free zone. The Dubai Silicon Oasis is spread over 7.2sqkm. In fact, Dr. Jihad Kiwan, director, DSOA, pointed out that the DSOA was large enough to fit in eight wafer fabs!

The DSOA offers multiple value propositions. In terms of financial incentives, it offers full repatriation of capital and profit, 100 percent ownership, zero corporate tax for 49 years, which is renewable, and most importantly, zero income tax for 49 years, also renewable.

If this isn't enough, the DSOA offers lower cost operations for technology companies, besides subsidized staff accommodations for R&D engineers. Throw in stringent IP laws, direct investment and support the creation of the DSOA tenants’ business ecosystem, and you have the complete package.