The Dubai Economic Council (DEC) and Philips, the Dutch technology company best known for its consumer electronics business, are partnering up to create a non-profit innovation centre.
The move comes as the UAE searches for ways to boost economic growth at a time when a slump in oil prices is dragging down GDP performance.
The centre, to be based in Dubai, will focus on innovations to improve performance in the field of technology, intellectual property, research and design. It is also aiming to enhance the export capacity and competitiveness of national products, the DEC said.
“Innovation is a qualitative shift in the methods of production, increases productivity, and thus enhances the national product competitiveness in global markets,” said Hani Al Hamli, the DEC secretary general.
“Innovation leads to the development of the individuals’ quality of life and increases the economic welfare rates.”
For its part, Philips said it would employ innovations in its partnership with the DEC to improve performance in the fields of technology, intellectual property, research and design.
“Both Philips and the DEC will work together to create a platform to further develop innovation as a driver of economic growth in the UAE,” said Frans van Houten, the chief executive and chairman of Philips.
A spokesman for the DE C said it was too early to determine the cost of the project and when the centre would be built, adding that more details would come to light next year.
Finding ways to boost the economy has become more urgent after the price of crude, on which the federal government of the UAE relies heavily to fund its budget, has lost more than half of its value since the middle of last year. As a result, the Central Bank is expecting economic growth to slow to 3 per cent this year from 4 per cent last year as the weaker oil price takes a toll on investment.
Sultan Al Mansouri, the Minister of Economy, told the World Economic Forum global summit in Abu Dhabi in October that innovation was projected to account for at least 5 per cent of the country’s GDP by 2021.
mkassem@thenational.ae
Follow The National's Business section on Twitter