Media hub strategy bears fruit

Monday, August 11

A new federal media law scrapping jail terms for press violations is nearing approval. It is part of a decade-long effort to boost the United Arab Emirates’ domestic media production and attract foreign media firms. Dubai is now the venue of choice for global media companies seeking a foothold in the region. Sponsoring and advertising in these media advance its strategic goals of becoming a world business and tourism destination.

Dubai led the media hub push with the launch in 2001 of the Dubai Media City (DMC) free zone. Since its launch, DMC has attracted many global media players including Reuters, BBC World, Associated Press Television News, CNN, and MBC. The free zone is managed by TECOM Investments, a company almost completely owned by the family of Dubai’s ruler, Sheikh Mohammed bin Rashid al Maktoum.

Media advantages. A free zone base offers foreign media workers and firms a number of advantages:

Income is not taxed.
Journalists are clustered together, making networking easier.
It offers high quality infrastructure -- fibre optic networks, office, and studio space.
The travel hub makes it easy to dispatch journalists to hotspots.
100% foreign ownership is allowed (compared to 49% outside free zones).

UAE advantages. Benefits to the UAE from developing into a media hub are also numerous:

New revenue streams from licences, administrative fees, and profits from government-controlled companies continue the UAE’s diversification away from energy.
Advertising and sponsorship promote the UAE’s real estate, finance, and tourism sectors.
The government has significant leverage over journalists and content.
The government views developing domestic media as a way to promote national cohesion and the development of civil society.

Dubai’s success with DMC has prompted its wealthier neighbour Abu Dhabi to take a similar tack. Over the last two years Abu Dhabi has centralised its state-owned media assets into a single holding company, the Abu Dhabi Media Company. The centrepiece of this effort was the April 2008 launch of an English language daily broadsheet named The National.

However, these efforts face a number of challenges:

Due to a dependence on foreign workers, developing vibrant domestic media with an Emirati voice is not proceeding as fast as hoped.
Most expatriate media employees do not stay long term.
Rapid inflation is eating into living standards

An aggressive media strategy has helped promote the UAE as a tourism and business hub. Efforts to use media to foster civil society or create a stronger social fabric will take longer and be less successful.

The UAE’s absolute monarchy and powerful business concerns will continue to foster positive coverage by bankrolling friendly media such as The National. The government will use its coercive power over content if key political or economic interests are threatened, but will do so sparingly to avoid alienating its lifeblood of foreign media workers and companies.