Dubai Silicon Oasis (DSO), a technology campus being created at an estimated cost of $1.3 billion,
has signed an agreement with U.K.-based Time Group Ltd. to build a factory to assemble computers and televisions,
the first phase of which will cost 150 million dirhams (about $40 million) 
and be ready by the end of 2006

The report quoted Mohammed Al Zarouni, the general manager of the DSO,
saying he was "very optimistic" about talks being held with eight other companies,
including global industry majors, to set up semiconductor and microelectronics design and manufacturing facilities at the park.

The Dubai Silicon Oasis is a 7.2 million square meter technology park 
aimed exclusively at the microelectronics industry and 
being developed largely under the premise of "build it and they will come". 
The first phase comprises a microelectronics innovation center (MIC),
communal laboratory facilities, research and development centers,
academic institutions, and residential areas.
 
The Emirate of Dubai has been attempting to move into electronics and information technology for some time.
It was a backer, together with the Brandenburg region of Germany,
of plans to build a silicon germanium wafer fab in Frankfurt-an-der-Oder;
the ill-fated Communicant Semiconductor Technologies AG.
 
"There are many competitors, such as India and China, but we are improving the incentives.
The latest is a Dubai government decision to subsidize rents for offices, plants and accommodations,
the report quoted Mohammed Al Zarouni as saying. 
Chip manufacturing is also on the table but negotiations with companies have not been finalised yet," the report said he added.


The region has also got involved in venture capital support and late in 2004 the fabless IC design house SiNova Semiconductor Inc.
announced it planned to establish a microelectronics design center in the Emirate of Dubai.