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33-582: Dubai Internet City, a member of Dubai Holding subsidiary TECOM Investments , was founded in October 1999, and it opened its doors in October 2000. It was established by Sheikh Mohammed bin Rashid Al Maktoum . It housed 100 companies at launch. In August 2000, Siemens Business Services (SBS), Cisco , and Sun Microsystems received Dubai Internet City’s first major infrastructure contracts. As of 2019, DIC housed over 1,600 companies and has become

66-661: A public objective. For that reason, SOEs primarily operate in the domain of infrastructure (e.g., railway companies), strategic goods and services (e.g., postal services, arms manufacturing and procurement), natural resources and energy (e.g., nuclear facilities, alternative energy delivery), politically sensitive business, broadcasting, banking, demerit goods (e.g., alcoholic beverages ), and merit goods (healthcare). SOEs can also help foster industries that are "considered economically desirable and that would otherwise not be developed through private investments". When nascent or 'infant' industries have difficulty getting investments from

99-495: A regular enterprise, state-owned enterprises are typically expected to be less efficient due to political interference, but unlike profit-driven enterprises they are more likely to focus on government objectives. In Eastern Europe and Western Europe , there was a massive nationalization throughout the 20th century, especially after World War II . In the Eastern Bloc , countries adopted very similar policies and models to

132-477: A state railway). They can be considered as government-affiliated entities designed to meet commercial and state capitalist objectives. The terminology around the term state-owned enterprise is murky. All three words in the term are challenged and subject to interpretation. First, it is debatable what the term "state" implies (e.g., it is unclear whether municipally owned corporations and enterprises held by regional public bodies are considered state-owned). Next, it

165-921: Is a public company headquartered in Dubai , the United Arab Emirates , and traded on the Dubai Financial Market (DFM)  under the symbol TECOM. Before the IPO, TECOM Group was a member-owned by Dubai Holding , a UAE state-owned enterprise . Dubai Holding remains one of the stakeholders of TECOM Group. As of 2023, TECOM Group's portfolio consisted of 10 business districts catering to companies operating in design, education, manufacturing, media, science, and technology. TECOM Group has been developing business districts and associated facilities in Dubai since 1999. The group has worked with

198-562: Is a viable argument for SOEs is debated. SOEs are also frequently employed in areas where the government wants to levy user fees , but finds it politically difficult to introduce new taxation. Next, SOEs can be used to improve efficiency of public service delivery or as a step towards (partial) privatization or hybridization. SOEs can also be a means to alleviate fiscal stress, as SOEs may not count towards states' budgets. Compared to government bureaucracy, state owned enterprises might be beneficial because they reduce politicians' influence over

231-614: Is also working on developing a freight terminal for the UAE’s national railway project, Etihad Rail. In June 2022, the Group announced its intention to float on the DFM, subsequently raising $ 1.67 billion from an IPO. It started trading on the DFM in July 2022. In February 2018, Malek Al Malek took over as Group CEO of TECOM Group, replacing Dr. Amina Al Rustamani. After the public listing, Al Malek

264-764: Is approximately 70% of total employment. State-owned enterprises are thus a major factor behind Belarus's high employment rate and a source of stable employment. In most OPEC countries, the governments own the oil companies operating on their soil. A notable example is the Saudi Arabian national oil company , Saudi Aramco , which the Saudi government bought in 1988, changing its name from Arabian American Oil Company to Saudi Arabian Oil Company. The Saudi government also owns and operates Saudi Arabian Airlines , and owns 70% of SABIC as well as many other companies. China's state-owned enterprises are owned and managed by

297-469: Is contestable under what circumstances a SOE qualifies as "owned" by a state (SOEs can be fully owned or partially owned; it is difficult to determine categorically what level of state ownership would qualify an entity to be considered as state-owned since governments can also own regular stock , without implying any special interference). Finally, the term "enterprise" is challenged, as it implies statutes in private law which may not always be present, and so

330-617: Is highlighted in the predominant local terminology, with SOEs in Canada referred to as a " Crown corporation ", and in New Zealand as a " Crown entity ". The term " government-linked company " (GLC) is sometimes used, for example in Malaysia , to refer to private or public (listed on a stock exchange) corporate entities in which the government acquires a stake using a holding company . The two main definitions of GLCs are dependent on

363-409: Is the latest addition to the group's portfolio of business communities. The group launched an innovation strategy worth AED 4.5 billion to create infrastructure and drive entrepreneurship. This includes developing innovative parks, creative spaces, technology laboratories, and smart buildings, launching new business incubators, and establishing a start-up fund to stimulate innovation. As part of this,

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396-560: The Dubai Government on Dubai Design District , Dubai Industrial City, Dubai Internet City , Dubai Industrial City, and Dubai Science Park . TECOM manages Dubai Internet City , Dubai Media City , Dubai Studio City and Dubai International Academic City. Dubai Design District (d3) is also a part of the group's themed developments portfolio, located adjacent to the Business Bay area. Emirates Towers District

429-715: The State-owned Asset Supervision and Administration Commission (SASAC) . China's state-owned enterprises generally own and operate public services, resource extraction or defense. As of 2017 , China has more SOEs than any other country, and the most SOEs among large national companies. China's SOEs perform functions such as: contributing to central and local governments revenues through dividends and taxes, supporting urban employment, keeping key input prices low, channeling capital towards targeted industries and technologies, supporting sub-national redistribution to poorer interior and western provinces, and aiding

462-523: The CEMEA region and technology conglomerate Meta Platforms also established its regional headquarters in the UAE at Dubai Internet City in 2022. In December 2022, Dubai Internet City broke ground on a new area named Innovation Hub Phase 2. In 2023, Dubai Internet City signed a strategic partnership with German Entrepreneurship GmbH to provide support to German start-up companies seeking to do business in Dubai. In

495-547: The DIC. DIC is located adjacent to other industrial clusters such as Dubai Media City and Dubai Knowledge Park (formerly Dubai Knowledge Village ). Dubai Internet City is a frequent participant in the GITEX GLOBAL trade show. Dubai Internet City is about 25 kilometres south of downtown Dubai city, on Sheikh Zayed Road between Dubai and Abu Dhabi . It is located adjacent to Dubai Marina , Jumeirah Beach Residence and

528-882: The Minister of Finance II, the Minister in the Prime Minister's Department in charge of the Economic Planning Unit, the Chief Secretary to the Government, Secretary General of Treasury and the heads of each of the GLICs (the Employees Provident Fund, Khazanah Nasional Berhad , Lembaga Tabung Angkatan Tentera (the armed forces pension fund), Lembaga Tabung Haji and Permodalan Nasional Berhad . Khazanah Nasional Berhad provided

561-1019: The USSR. Governments in Western Europe, both left and right of centre, saw state intervention as necessary to rebuild economies shattered by war. Government control over natural monopolies like industry was the norm. Typical sectors included telephones , electric power , fossil fuels , iron ore , railways , airlines , media , postal services , banks , and water . Many large industrial corporations were also nationalized or created as government corporations, including, among many others: British Steel Corporation , Equinor , and Águas de Portugal . A state-run enterprise may operate differently from an ordinary limited liability corporation. For example, in Finland, state-run enterprises ( liikelaitos ) are governed by separate laws. Even though responsible for their own finances, they cannot be declared bankrupt ;

594-507: The form of Public Sector Undertakings (PSUs). The Malaysian government launched a GLC Transformation Programme for its linked companies and linked investment companies ("GLICs") on 29 July 2005, aiming over a ten-year period to transform these businesses "into high-performing entities". The Putrajaya Committee on GLC High Performance ("PCG"), which oversaw this programme, was chaired by the Prime Minister , and membership included

627-399: The government, prevent private sector monopolies, provide goods at lower prices, implement government policies, or serve remote areas where private businesses are scarce. The government typically holds full or majority ownership and oversees operations. SOEs have a distinct legal structure, with financial and developmental goals, like making services more accessible while earning profit (such as

660-561: The group launched a new platform for entrepreneurs and media start-ups. The group first invested in incubation and innovation centers in 2013, within Dubai Internet City, which has since worked with more than 20,000 people on hackathons, competitions, and community events. TECOM Group has collaborated with the UAE’s Ministry of Industry and Advanced Technology (MOIAT) to facilitate the country’s decarbonization efforts. It

693-412: The leading application of the incomplete contract theory to the issue of state-owned enterprises. These authors compare a situation in which the government is in control of a firm to a situation in which a private manager is in control. The manager can invest to come up with cost-reducing and quality-enhancing innovations. The government and the manager bargain over the implementation of the innovations. If

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726-592: The negotiations fail, the owner can decide about the implementation. It turns out that when cost-reducing innovations do not harm quality significantly, then private firms are to be preferred. Yet, when cost-reductions may strongly reduce quality, state-owned enterprises are superior. Hoppe and Schmitz (2010) have extended this theory in order to allow for a richer set of governance structures, including different forms of public-private partnerships . SOEs are common with natural monopolies , because they allow capturing economies of scale while they can simultaneously achieve

759-399: The private sector (perhaps because the good that is being produced requires very risky investments, when patenting is difficult, or when spillover effects exist), the government can help these industries get on the market with positive economic effects. However, the government cannot necessarily predict which industries would qualify as such 'infant industries', and so the extent to which this

792-428: The proportion of the corporate entity a government owns. One definition purports that a company is classified as a GLC if a government owns an effective controlling interest (more than 50%), while the second definition suggests that any corporate entity that has a government as a shareholder is a GLC. The act of turning a part of government bureaucracy into a SOE is called corporatization . In economic theory ,

825-451: The question of whether a firm should be owned by the state or by the private sector is studied in the theory of incomplete contracts developed by Oliver Hart and his co-authors. In a world in which complete contracts were feasible, ownership would not matter because the same incentive structure that prevails under one ownership structure could be replicated under the other ownership structure. Hart, Shleifer, and Vishny (1997) have developed

858-423: The regional base of many of the world's news agencies as well as the main digital content generator for Arabic media. Data center infrastructure provider Khazna announced it was establishing two new data centers in Dubai Internet City in 2022. In the same year, Intel announced the opening of its first artificial intelligence research and development center at Dubai Internet City. Visa established its headquarters for

891-859: The same year, technology company Yango expanded its offices into Dubai Internet City. The economic rules of DIC allow companies to be exempt from all taxes and customs duty for a period of 50 years guaranteed by law. The park’s status as a free economic zone  also allows it to offer 100% foreign ownership, similar to other designated economic zones in the United Arab Emirates. These freedoms have led many global information technology firms, such as Facebook , LinkedIn , Google , Dell , Intel , Huawei , Samsung , SAP , Microsoft , IBM , Oracle Corporation , Tata Consultancy , 3M , Sun Microsystems , Cisco , HP , Nokia , Cognizant , Accenture , Hisense and as well as UAE-based companies such as Tecom Group, Ducont, to move their regional base to

924-469: The service. Conversely, they might be detrimental because they reduce oversight and increase transaction costs (such as monitoring costs, i.e., it is more difficult and costly to govern and regulate an autonomous SOE than it is the public bureaucracy). Evidence suggests that existing SOEs are typically more efficient than government bureaucracy, but that this benefit diminishes as services get more technical and have less overt public objectives. Compared to

957-465: The state answers for the liabilities. Stocks of the corporation are not sold and loans have to be government-approved, as they are government liabilities. State-owned enterprises are a major component of the economy of Belarus . The Belarusian state-owned economy includes enterprises that are fully state-owned, as well as others which are joint-stock companies with partial ownership by the state. Employment in state-owned or state-controlled enterprises

990-497: The state's response to natural disasters, financial crises and social instability. China's SOEs are at the forefront of global seaport-building, and most new ports constructed by them are done within the auspices of the Belt and Road Initiative . As of at least 2024, an Ethiopian SOE is Africa's largest and most profitable airline, as well as Ethiopia's largest earner of foreign exchange. In India , government enterprises exist in

1023-542: The term "corporations" is frequently used instead. Thus, SOEs are known under many other terms: state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, government-owned company, government controlled company, government controlled enterprise, government-owned corporation, government-sponsored enterprise , commercial government agency, state-privatised industry public sector undertaking, or parastatal, among others. In some Commonwealth realms , ownership by The Crown

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1056-629: The well-known Palm Jumeirah , areas which are rapidly becoming three of the most exclusive (and expensive) residential areas of Dubai. DIC is less than 1 km from the sea coast and is near several five-star hotels. The nearest metro station the eponymous Dubai Internet City station on the Red Line of the Dubai Metro , located on Sheikh Zayed Road. 25°05′42″N 55°09′36″E  /  25.095°N 55.160°E  / 25.095; 55.160 TECOM Investments TECOM Group PJSC

1089-481: Was named Chairman of the Group. Abdulla Belhoul is the present CEO of TECOM Group. For the year 2022, Tecom Group posted a net profit of AED 725.6 million. This Dubai -related article is a stub . You can help Misplaced Pages by expanding it . State-owned enterprise A state-owned enterprise ( SOE ) is a business entity created or owned by a national or local government, either through an executive order or legislation. SOEs aim to generate profit for

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