Business | Technology
Cisco plans Dh5.8b investment in UAE
Cisco on Monday announced that it will invest over Dh5.8 billion to develop information and communication technology (ICT) in the UAE over the next five years, according to John Chambers, Cisco's chairman and CEO.
- By Scott Shuey, Chief Business Reporter
- Published: 00:54 January 22, 2008
Dubai: Cisco on Monday announced that it will invest over Dh5.8 billion to develop information and communication technology (ICT) in the UAE over the next five years, according to John Chambers, Cisco's chairman and CEO.
Chambers made the announcement following a meeting with Mohammad Al Gergawi, UAE minister of state for Cabinet Affairs.
"This is something Cisco has been working on for two years," said Sam Al Kharrat, managing director of Cisco's region offices in Dubai. "When John visited here two years, His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, asked him to invest in Dubai and help 'push his people'."
Al Kharrat said the investments are Cisco's response to Dubai and the government of the UAE. He also said the investments are very much in line with Shaikh Mohammad's 2015 plan to further develop the UAE.
The investment will allow Cisco to expand in the UAE. Al Kharrat said 650 new jobs will be created in Dubai, and these jobs will be focused on research and development, not sales. He said it was unusual for Cisco to put that type of research and development into emerging markets.
The investments will also create Cisco's Global Centre for Connected Real Estate, where the company will highlight what it has learned about networking homes, businesses and other types of real estate in Dubai.
The company will also expand the number of Cisco Networking Academies currently in the UAE by 20, bring the number to 59, and sponsor research at the Dubai School of Government. Al Kharrat said the research would focus on trust and collaboration in the Arab World.
Services
Finally, Cisco intends to invest $400 million in fin-ancing services for its channel partners and customers. Al Kharrat said this initial capital would allow companies who want to build out their infrastructure, but might not have the liquidity, to do so. Cisco is also considering establishing a financial services company in Dubai.
Paul Mountford, president of Cisco's emerging markets division, said in a statement that the investment demonstrated the company's continued, long-term commitment to the UAE. He also said the investment will help make the UAE a centre for innovation, instead of just a user of technology.
Cisco, based in San Jose, California, will open new regional offices in Dubai in April, just down the road from its current offices in Dubai Internet City.
The company will also open an Abu Dhabi office in June.
Focus: Making inroads
Cisco has been making inroads into emerging markets over the last few years, especially India, where it recently opened a $50 million globalisation centre in Bangalore.
Emerging markets have been prime territory for Cisco because of the lack of previous infrastructures, often referred to as a legacy infrastructure, which often complicates the introduction and construction of new technology.
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