Dubai worried about 'digital divide'

E-commerce is affecting growing numbers of people

By Julia Wheeler in Dubai

An Organisation for Economic and Co-operation Development electronic commerce conference in the Gulf Emirate of Dubai has been warned not to allow technological gaps between countries to grow out of control.

The warning comes amid increasing evidence that differences in the e-business capability of developed and developing countries are growing wider and wider.

Dubai is keen to show the OECD the steps it is taken in it's ambition to become the centre of the IT industry in the Middle East and beyond

The fact that the United Arab Emirates, an emerging market is hosting the e-commerce conference is intended to demonstrate that the OECD is addressing the problem of a knowledge gap between industrialised and developing countries. A phenomenon known as the "digital divide".

The Crown Prince of Dubai - the brains behind attempts to transform the Emirate into an e-commerce hub - Sheikh Mohamed, told the conference that this technological gap is the biggest challenge it faces.

He called on the group to establish an international organisation to deal with the problem, and to help governments and companies in developing countries achieve productive and efficient information technology sectors.

Investment

It is widely acknowledged that this means money, for investment in telecommunications and education, as well as establishing new laws and regulations to deal with a business sector which by its very nature is continually changing.

Emerging e-markets like Dubai and the rest of the Middle East want to make sure they are not being left behind

Dubai is keen to show the OECD the steps it has taken in its ambition to become the centre of the IT industry in the Middle East and beyond.

They include the launch of the $200m state-of-the art Internet City, opened last October.

The Emirate is certainly ahead of the rest of the Gulf where governments and companies are being advised to move quickly because time is not on their side.

It is the first time such a meeting has been held outside an OECD country.

E-commerce lessons

Emerging e-markets like Dubai and the rest of the Middle East want to make sure they are not left behind, and are looking to learn lessons from those further down the e-commerce road.

In particular, there are concerns about providing affordable access to the internet, as well as overcoming cultural and language barriers.

There is also the question of trust and how secure business conducted electronically can be for governments, companies and individuals.

The thorny issue of taxing e-commerce is also on the agenda, as well as how any tax collected should be shared internationally.

Potential competitors

Among those imparting their wisdom at the two-day conference is the laptop-carrying chief minister of the Indian state of Andhra Pradesh, Chandrababu Naidu, who is credited with transforming his state into a booming IT hub.

On Monday, he met the man behind Dubai's moves towards e-commerce - Crown Prince Sheikh Mohammed - to exchange notes.

But the two could find themselves in direct competition in the world of borderless business.

Dubai has a declared objective of becoming the e-commerce hub for a huge region, including the whole of south Asia.