Dubai leads as Siemens expands digital operations
Siemens, Europe’s largest industrial conglomerate and one of the 10 largest software companies globally, is bringing more of its expertise to the UAE by setting up a global division catering to airports, cargo and logistics in Dubai.
Roland Busch, chief technology officer, said that as part of its efforts to lead in the area of data analytics, digitisation, automation and electrification, the Munich-based company is boosting its spending on research and development by 8 per cent in 2018 to €5.6 billion.
That is up from €5.2bn a year earlier – and €1.2bn of that total is invested in its digital business.
The company’s MindSphere Application Centre in Dubai, and the new unit dedicated to airports and cargo, will be based in the Dubai South area next to the Expo 2020 site.
Siemens describes the Mindsphere platform as an “open, cloud-based internet of things operating system that lets you connect your machines and physical infrastructure to the digital world” with a view to increasing efficiency and optimisation of businesses.
“MindSphere is an open operating system. You can connect all the different dots, the energy system, the buildings, mobility under one umbrella, a sector coupling so to speak,” Mr Busch said.
“So you can gather data, store them and make them available for creating cases and applications.”
Siemens has about 40,000 staff dedicated to research and development, including about 200 artificial intelligence analysts responsible for expanding its software offering.
The Swedish security and defence firm Saab has opened a development and production centre in Abu Dhabi’s Tawazun Industrial Park, a zone for defence and aerospace manufacturing.
“Saab will develop and manufacture products for both UAE and the international market,” it said on its website. “Other examples of product areas that may be applicable in addition to sensor systems are civil security, vehicle protection and training.”
Part of Tawazun Holding, the park is home to a number of companies around several clusters that include defence-related manufacturing, metal basic industries, precision manufacturing, aerospace and oil and gas support and service industries.
Abu Dhabi is developing a local defence sector as part of meeting its security needs and diversifying its economy away from oil. The UAE was the 14th largest military spender in the world in 2016, at US$22.8 billion or 5.7 per cent of GDP, according to the Stockholm International Peace Research Institute.
“This decision [of Saab to open a centre] emphasises the UAE’s importance as an industrial and commercial hub for strategic industries and demonstrates Saab’s commitment to serving their wide base of customers in the region and beyond,” said Tareq Al Hosani, chief executive of the Tawazun Economic Council, the state news agency Wam reported.
The council is the body tasked with developing the emirate’s defence and aerospace industry.
“When Saab establishes operations in the UAE, a new home market is created, from where we in the future can export to other countries as well,” said the Saab chief executive Hakan Buskhe, adding that “at the same time, this will contribute to the development of engineering skills and creating high-tech jobs in UAE”.