Abu Dhabi seeks to promote role as communication hub

Abu Dhabi: Abu Dhabi, holder of more than 7 per cent of the world's oil, is hosting top media executives this week as it seeks to promote its role as a communications centre.

News Corp. Chairman Rupert Murdoch, Google Chief Executive Officer Eric Schmidt and Skype Technologies Chief Executive Officer Josh Silverman are among those attending the Abu Dhabi Media Summit running through today. It's a showcase for the special media zone which has lured companies including Cable News Network to base regional operations in the UAE.

Speaking at a reception in Abu Dhabi late Tuesday, Murdoch urged Middle East governments to only intervene with a "light hand," to encourage media and entertainment businesses to develop and invest in the region.

Abu Dhabi, which is also building branches of Paris's Sorbonne University and the Louvre and Guggenheim museums, says attracting television, film, publishing and other creative industries can help the emirate's economy diversify away from oil-dependence. Critics say the UAE should first relax restrictions on the internet and stop trying to curb press coverage of issues.

"If you want to have a free media city, you have to have a free media," said Samer Muscati, a researcher at Human Rights Watch in New York who criticised a proposed press legislation.

A measure approved last year though not yet passed into law would allow fines for any "misleading" article in the local press that harms the country's reputation or its economy. It would also require journalists to reveal their sources.

Tax exemptions

Abu Dhabi offered tax exemptions and relaxed some of the internet restrictions it applies elsewhere, including blocking sites such as Flickr and Skype, to attract companies to Two-Four-54, the media "free zone" it opened in 2008. Two-Four-54 helps new ventures by buying a stake.

"Those investments will range from half a million dollars [Dh1.8 million] to $5 million on average," said Wayne Borg, chief operating officer of Two-Four-54. "These small cottage-based industries are the ones that drive innovation and creativity and most importantly, drive the jobs in this sector."

Two-Four-54 has formed training and educational partnerships with organisations including Apple and the BBC. This week it announced a joint venture with Fox International Channels in multimedia and documentary production.

A unit of Mubadala Development Co., Abu Dhabi's investment arm, has also bought a 10 per cent stake in Zuffa, owner of the Ultimate Fighting Championship and World Extreme Cagefighting. The group has also hosted a range of live concerts in the emirate featuring acts such as Beyonce and Aerosmith.

Karim Sabbagh, a partner at the Booz & Co. in Dubai said the region spends about $1 a year per capita on advertising, compared with $40 in developed countries.