BT to open new regional headquarters in Dubai

Dubai: British telecom giant BT announced it is opening a new regional headquarters in Dubai on Sundat as part of a drive to increase its Middle East-based business.

Brian Armstrong, BT's regional director for the Middle East and Africa, said Dubai had positioned itself as a place where companies headquartered their regional businesses.

While Armstrong said the BRIC countries Brazil, Russia, India and China are the most talked about emerging markets, BT sees a lucrative opportunity here.

"The Middle East as a region has a very attractive market size. GDP growth is the same story. Of course, China is growing a little faster," said Armstrong, who believes the current Middle East growth sustainable for the next 10 to 15 years.

"We've been doing business in this region for more than 20 years and we want to further invest in the region," said Olivier Campenon, president of Europe, the Middle East and Africa for BT. The company currently has 60 people in the region, and hopes to double that number.

Despite the ups and downs of the stock market, and mumblings that the property market is overheated, Armstrong said the overall macroeconomic view of the region was rosy.

"Any emerging markets have risks," Armstrong said, adding that the boom in tourism was helping the stability of the region. "A lot of what is happening here in Dubai is helping that."

He said, BT was far more concerned with the status of the Doha round of World Trade Organisation talks.

Since the initial Doha round in November 2001, talks have stalled as developing and developed nations slug it out over everything from protectionist farm policies to dumping of goods.

The lack of movement in the trade talks could damage international businesses if countries backslide into protectionist policies, Armstrong said.

Despite plans to double their regional workforce, and the $18 billion BT is investing globally in its new multi-service IP-based network, only a relatively modest amount invested regionally.

The platform, dubbed the 21 Century Network, supports everything from internet to voice and private line services and is due to be finished by March 2007.

According to Campenon, however, BT is staying out of investments like laying cable that forms the backbone of information transmission.

Instead, BT is concentrating on setting up nodes, which will allow local networks to connect with the firm's worldwide distribution network.

BT is an investor in the East African Submarine System (EASSy), a cable that will complete the optic fibre ring around Africa in conjunction with other submarine cable systems.

Armstrong said BT currently had no announcements concerning the project.

And despite BT's significant presence in the consumer telecom industry, elsewhere, Armstrong said that wasn't the direction the company would be taking in the Middle East.

"We aren't here to compete or displace the local telecoms," said Brian Armstrong, regional director for the Middle East and Africa. "We certainly see the local telecoms as partners, not competition."

Already BT is partnered with Etisalat, and talks are underway with newcomer du, said Peter Ashton, business manager Middle East for BT, although nothing has been finalised.