'IT boosts development initiatives'

Dubai: Information technology not only empowers the key players of the economy, but it enhances the ability to govern and intelligently manage development initiatives, Shaikha Lubna Al Qasimi, Minister of Economy, said.

"Many countries in the Middle East, including my own country - the UAE, have actively pursued economic reforms that have helped us increase business activities across all sectors.

"These initiatives are part of a strategy of economic diversification to attain sustainable levels of economic growth. In fact, all the emirates across the UAE have already established relevant IT-focused departments to encourage and spur the growth of IT all over the country," Shaikha Lubna said at the 2008 Maximo Middle East User Group Conference recently.

Quoting an IDC report, she said sales of business process management (BPM) software grew by almost 80 per cent to Dh3.27 billion or around Dh890 million in 2006, and has been projected to achieve a 44 per cent compound annual growth rate in the next five years, further pushing market value to a phenomenal Dh20.2 billion in 2011.

Additional reports reveal a similarly positive result for the enterprise resource planning (ERP) software market in Europe, the Middle East and Africa, as initial estimates revealed Dh29.7 billion in total software revenues in 2006.

The ERP market is projected to progress at a compound annual growth rate of 7.4 per cent to around Dh42.6 billion by 2011.

She said the UAE, for instance, has been reforming and creating policies to encourage the development of high-growth areas such as construction, tourism, and information and communications technology, among others.

"In the real estate segment, which incorporates the booming tourism and hospitality sectors, around Dh500 billion worth of development projects are underway within the next five years.

The value of active construction projects in the Gulf has already exceed Dh3.67 trillion, with the UAE contributing more than Dh811 billion of this," Shaikha Lubna said.