Knowledge transfer from MNCs to the UAE is crucial to the future development of the Emirates’ economy, a report said.

Eighty-four per cent of Gulf-based health care professionals believe the UAE is the number one in terms of being a viable home for companies looking to invest in the Gulf with the aim of transferring knowledge added the poll commissioned by Merck Serono, the biopharmaceutical subsidiary of Merck and carried out by Emerging Markets Intelligence & Research (EMIR), a support service for leading executives of MNCs doing business in the Middle East.

“As a company that is already transferring our German knowhow and innovation through our local manufacturing agreement in the UAE, we believe it is possible for this success to be replicated across other industries in the boarder economy,” said Paolo Carli, head of Middle Near East, Saudi Arabia and Egypt at Merck Serono.

Preliminary findings from desk research and field interviews show that the UAE has made significant technological progress during the past two decades, but the country must advance further if it is to catch up with developed economies.

Being significant creators of new and advanced technologies, MNCs have the potential to play a crucial role in narrowing this gap for the UAE. Although MNCs are not the only source of technology, they are very important in expanding high-technology activities given their sizeable investments on research and development (R&D).

MNCs can transfer a wide variety of technologies and other direct and indirect benefits.

“This transfer takes place via both foreign direct investment (FDI) and various non-equity forms of foreign operations. For the UAE, the bulk of technology dissemination is still undertaken within the MNCs channels, but externalized channels through non-equity forms will become increasingly important,” said Trevor McFarlane, CEO of EMIR.

Foreign affiliates of MNCs can diffuse technology and skills to local UAEs firms, particularly through partnerships and backward linkages through supply chains.

Given that the UAE is a regional headquarters for the majority of MNCs doing business in the Mena region, it enjoys a huge advantage over neighbouring countries in potentially tapping into the expertise within private corporations.

However, further progress in the UAE business environment will help fully exploit MNCs’ global R&D networks for the creation and development of newly advanced industries in the UAE, the report said. – TradeArabia News Service