In May 2007 I met with academicians, local experts and researchers in the UAE. I hoped to gain an informed insight into the efforts being made in the region that would facilitate an Arab renaissance�€�Gitanjali Bakshi (Strategic Foresight Group)

Gitanjali: I recently read an article in the Gulf News on the scarcity of entrepreneurship in the UAE? Is this true? If so where do you think the weaknesses lie?

Dr. Shamsi: In the past, since government employment was given to nationals, the real need to graduate with any kind of degree was less, hence the scarcity of entrepreneurship. Job security with the government sector did not encourage the local population to take initiatives. Entrepreneurship involves an element of risk taking. Why would anyone want to venture into uncharted territory when employment was guaranteed? Another reason for the lack of free enterprise was a slight disjoint between the education system and the needs of the labor market.

Now policies have changed. Measures are being taken by the government and academic centers to combat the trend. The government no longer offers air tight employment guarantees for nationals. Employment is based on merit i.e. whoever is best suited for the post irrespective of nationality. The government is also taking measures that would support entrepreneurship such as feasibility studies, financial backing, low interest loans, information on the materials required to start your own business and institutions that provide adequate training. The education system is also changing to incorporate the requirements of the labor market. A growing private sector is another factor that is encouraging a diverse business economy. Salaries available in private sector jobs are more attractive and this becomes an incentive to branch away from traditional forms of business. 

Gitanjali: What are some of the recent developments in the field of business and entrepreneurship that you think are promising steps towards a renaissance or advancement within the country?

Dr. Shamsi: In my opinion recent government initiatives to encourage women in the field of small business is extremely promising. If you look at university enrollment in the UAE, it is much higher amongst women than it is amongst men. On an average 75% of the students enrolled at UAE University are girls and only 25% are boys. Since female graduates outnumber male graduates many new institutions have sprung up that are concerned with SME�€™s (small and medium enterprises), especially those that primarily target women business initiatives. All the emirates have a business women�€™s council and there is a similar body at the federal government level as well. These councils are very active in encouraging young women to have their own businesses. Efforts are made to make information available to them through workshops and activities along with financial assistance.

At first women used to engage in more traditional activities like tailoring and salons, now attitudes have changed, first amongst the expatriates and recently amongst local women. One of the prevailing ideas is getting women involved in the work environment through technology. With the use of programs like online marketing, younger women who have just started their families are able to have a more flexible and accommodating work schedule so that they can comfortably juggle domestic and vocational requirements. Working on the internet from home will also help them to remain active in their respective fields without the risk of falling behind. I think lots of women have opted for these alternatives.

Gitanjali: Considering the economic importance given to the oil sector in this region what are the other areas of business that the government is looking into in order to diversify their economy?

Dr. Shamsi: Most of the GCC countries are looking into different sectors with a view to diversifying their economy. Both the tourism and hospitality businesses are flourishing in a destination like the UAE. Other sectors include manufacturing, trade, real estate and agriculture.