news

(from the 'Times of Malta', Sunday, 13th May, by Malcolm Naudi)

The first offices within SmartCity Malta are expected to be open for
business by 2009, Fareed Abdulrahman, executive director of SmartCity, told
The Sunday Times last week.

"The development will proceed in phases, lasting up to 2021," he said. "Our
target is to finish the project within 14 years."  Mr Abdulrahman expects SmartCity Malta to attract investments of about US$300 million. "Apart from these, we will invest in promoting SmartCity Malta in global campaigns as well as transferring know-how in clustercreation for knowledge-based industries."

TECOM's vision is to be the preferred global business-campus provider for
knowledge-based industries across the world. "As part of this vision, we are
seeking to create a global network of business campuses that provide a
supportive environment for knowledge workers and knowledge-based companies
to flourish and grow," Mr Abdulrahman said.

"We will develop SmartCity Malta to be a key part of this global network."

TECOM's investment decisions are based on certain key criteria. "Primarily,
we look at cities that have a good potential for knowledge-industry
development," he said.

"Other criteria include potential for developing as a regional
knowledge-economy hub, the commitment of the government for knowledge-based
development, the presence of a reliable ICT infrastructure and the presence
of an educated workforce."

Malta was chosen for the SmartCity project because it met TECOM's key
criteria. "(It) clearly has the potential to develop into a
knowledge-economy hub for the Southern European and North African region."

Asked whether there would be any synergy with the adjacent film studios, he
said TECOM would consider tying up with organisations that can add value to
the project, especially if they are related to ICT and media.

The primary focus of SmartCity Malta is on "building an ICT and media
cluster", which Mr Abdulrahman defined as its "core activity". About 46 per
cent of the project will be used for ICT and media-related activities.

Having other facilities, including commercial and residential elements,
"distinguishes the project and creates added value for business partners and
knowledge workers".

Giving more specific figures, he said: "At least 46 per cent of the gross
built area will be used for the ICT and media business park; 29 per cent
will be used for commercial purposes; and 25 per cent will be used for
lodging purposes. About 33 per cent of the land will be allocated for public
spaces."

Looking back on the protracted negotiations, he said the project required
"enormous commitment from both sides" and, he added, "we were determined on
consolidating an agreement that would encapsulate the aspirations of all
involved. It is something that we have achieved together."

There were no stumbling blocks, he affirmed, despite Government's statement
last November that it intended to call off negotiations - only certain
points that needed to be discussed and agreed upon. "The successful
resolution of these points has brought us to this agreement. That is all
history now. The future is bright and ahead of us."

Mr Abdulrahman denied that business partners who are in the existing
business campus in Dubai Internet City or Maltese-owned companies and/or
foreign Malta-based companies will be given first choice at SmartCity Malta.
"We welcome companies who are interested in a long-term investment in Malta
and the Southern Europe and North African region. We are interested in
companies who want to establish a strong long-term relationship with
SmartCity Malta."

In relation to the Malta Government's branding Malta strategy, Mr
Abdulrahman said Government is working very hard to promote Malta as an ICT
destination and TECOM will contribute to that effort. "At some stage, we
will be looking at joint marketing campaigns with the Government of Malta,"
he said, to promote the island as a regional centre of excellence in ICT.

Mr Abdulrahman said he welcomed the Malta Labour Party's vote in favour of
SmartCity Malta in Parliament. "We also thank everyone who supported this
initiative."

Tenants at SmartCity Malta will not be obliged to buy services from the
Maltese ICT industry, but "we will promote relationships between SmartCity
Malta-based companies and Maltese service providers. At the end of the day,
it is the customer's decision."

A listing on the Malta Stock Exchange will be considered "at the appropriate
stage in the development of the project in the light of our overall global
business strategy for SmartCity as well as the specific plan for SmartCity
Malta".

Mr Abdulrahman would not go into detail on the challenges SmartCity Malta
faces: "We have a strong partner in Malta and hence we are confident that
challenges, if any, can be dealt with together."

TECOM's role "is to be a facilitator in the development of Malta's
knowledge-based industries. The conditions for enhancing Malta's ICT
competitiveness are looking bright.

"The Government is extremely committed to developing Malta's ICT sector.
There are other factors that will determine ICT growth, including the
general economic environment and the EU regulatory framework. We are very
optimistic that Malta will be able to tap its potential for ICT growth."

SmartCity Malta will assist Maltese ICT companies to become globally
competitive by giving them a "world-class infrastructure and business
environment to develop and by facilitating new business opportunities", he
said.

Malta will not be the only SmartCity in the European Union. Mr Abdulrahman
sees the island as "a strategic gateway to knowledge-based industry markets
in Southern Europe and North Africa. But you cannot cover all of Europe from
Malta.

"SmartCity has an aggressive plan for Europe in the coming five years. Apart
from Malta, SmartCity is looking at strategic investments in three cities in
Europe by 2010. The idea behind having more than one SmartCity in Europe is
to have a network of knowledge-based industry townships that will
complement, not compete, with each other."

The global plan for the SmartCity concept, he added, is to invest in at
least one knowledge-based industry township in each continent. "Again, our
criteria for identifying cities for such investment include: its potential
for knowledge-based growth, its potential for being a knowledge-economy hub,
and the commitment of the country's government to develop its
knowledge-based industries.

"We are looking to establish a global network of business townships that
will help knowledge-based companies enhance their global reach and
competitiveness," he said.