Dubai's private sector continues to foster innovation

Companies across Dubai are increasing their efforts to foster innovation, reflected by the 4.7 per cent improvement in the innovation score of Dubai's private sector over the 2017-2018 period, new analysis conducted by Dubai Chamber of Commerce and Industry has revealed.

Released on the occasion of UAE Innovation Month, the analysis showed Dubai's private sector innovation score rising to 64.4 per cent in 2018, marking a 13 per cent improvement compared to 2015. Based on the feedback of 1,600 Dubai-based companies, the analysis identified several areas where Dubai's private sector saw improvement, including accessing new ideas, developing new products and services, technology readiness, and talent and organisational culture. These findings underline the efforts of Dubai-based companies to keep pace with the rapid innovation-related developments and implement innovative initiatives to enhance their competitiveness.

"Several positive trends were revealed in the analysis that signal a strengthening commitment on the part of Dubai's private sector in adopting innovative policies, strategies and solutions that will drive sustainable growth and boost competitiveness," said Khalil Haddad, director of Strategy and Corporate Development at Dubai Chamber.

The analysis found that in 2018, growth and revenue generation saw an improved score of 48.9 per cent compared to 40.8 per cent in 2017, recording a 19.7 per cent growth. With regards to new products and services, it showed that the private sector grew by 15.5 per cent in 2018 compared to 2017, while its technology readiness rose by 15.6 per cent to reach 66.8 per cent in 2018. The emirate's private sector's innovation score saw a 56.5 per cent increase in the category of enablers compared to 51.9 per cent in 2017, while the score for" access to new ideas" grew by 8.5 per cent, rising to 72.9 per cent compared to 67.2 per cent in 2017.

The findings showed that companies in Dubai expect to see increased revenue from growing technology adoption and innovative products and business models, while they also reflected significant advances in innovation enablers across various economic sectors and fields. Experts have noted that businesses across Dubai and the UAE have been quick to observe technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), and Virtual Reality (VR), and determine how they can be used in their present and future innovation strategies.

Dr. Anil Khurana, partner of Strategy and Innovation at PwC Middle East, noted that the transformation made possible with the Fourth Industrial Revolution is radically reshaping traditional industries and business models. "That is why today, the opportunity lies in the hands of the companies that are able to adapt, innovate and compete against this still unfolding and ever-changing backdrop. Our research tells us that those who champion the use of IoT, in manufacturing for instance, are able to see revenue and cost gains of 20 to 25 per cent. That is a twofold increase from what they could have expected only three years ago."

Vinay Chandran, partner, AA & IoT Lead, Middle East at Digital McKinsey, however, said that despite growing interest and investments in technology-driven innovation, several companies are still stuck in the initial stages of their transformation journey. "The Internet of Things is transforming every aspect of our professional and personal lives, from AI-powered chatbots to self-driving cars. Yet, despite its impact many companies are struggling to capitalise on its potential. Our research has found that of the enterprises that have launched pilot projects to develop IoT-enabled products and services or use the IoT to achieve operational improvements, less than 30 per cent have taken these beyond the pilot phase."

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