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Nasscom-Dubai Internet City sign MoU

Kanchana Suggu in Bombay

Dewang Mehta couldn't have got a more appropriate venue for signing this deal. In the backdrop of industry stalwarts, investment bankers, Internet gurus, venture capitalists and a gamut of software professionals, Nasscom president Dewang Mehta and Dubai Internet City chief executive officer Ahmed Binbyat signed a memorandum of understanding pertaining to co-operation in the areas of software services, Internet, e-commerce, information security, content development, knowledge economy, HRD as well as research and development.

Dubai Internet city, with its free trade environment claims to have state-of-the-art real estate, robust telecom and ISP infrastructure. Currently, Dubai Internet city is home to about 400 companies.

"Dubai is emerging as a major market and is an ideal location. The deal will help us to increase business between India and the UAE, especially Dubai. There is a lot of potential for trade to the UAE," says Mehta.

And as always, Mehta substantiates each and every statement with statistics. In 1999-2000 India's software and services exports to United Arab Emirates were at $17 million, which increased to $30 million in 2000-01. In 2001-02, India hopes to export software worth $60 million, in 2002-03 worth $150 million and in 2003-04, it is projected at $300 million.

"Over the next four years, we expect this figure to grow exponentially and reach $500 million by 2004-05," projects Mehta. Nasscom also hopes to exchange research material and periodicals with Dubai Internet City. While highlighting that Dubai has always been an ideal location for Indians, Binbyat refutes that it is not only the low-end Indians who relocate to Dubai, but that most of the trade, business and commerce activities in Dubai are primarily run by Indians. In Dubai, the Internet penetration is about 30 per cent of the population.

Although countries like France, Germany, the US and the UK pose tough competition for Dubai in attracting software professionals from India, Binbyat defends by asserting the fact that the standard of living in Dubai is as high as any of the other European countries and that Dubai also offers low income tax, which is why the disposable income of the people is much higher.

"When an Indian relocates to a European country, he faces problems in adjusting to the culture there. But when he comes to Dubai, it is just like home," says Binbyat.

"We are working with several countries, but not as closely as we are with India. India has always been a destination for us. We wouldn't consider China yet, but Russia is surely emerging. Because of the poor infrastructure and bureaucracy in Russia right now, a lot of these businesses are relocating to Dubai. There might be very few in the IT business, but we can see that number growing," Binbyat told rediff.com.

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