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INTERNATIONAL ISSUES

ROBERT E. MARKLAND, Feature Editor, University of South Carolina

Technology Management and the Development of the Gulf States: Opportunities for Collaboration

by Essam Mahmoud, Arabian Gulf University

The Gulf Cooperation Council (GCC), the economic and political organization which exists to integrate the Arabian Gulf states, recognizes the crucial contribution that technology makes to economic development. As a result, the GCC has established several scientific institutions to promote technological development. Among these is the educational institution, Arabian Gulf University (AGU), located in Bahrain. The university serves the six Gulf states of Bahrain, Kuwait, Oman, Saudia Arabia, Qatar and the United Arab Emirates (UAE), and offers special programs geared to help these states meet their development goals.

The College of Postgraduate Studies at AGU includes the "Sphere of Technological Studies." This unique grouping of studies, specially designed for the circumstances of the Gulf states, is comprised of three technological sub-areas: Desert and Arid Zones, Biotechnology, and Technology Management. Each sub-area offers a diploma, masters and doctoral degrees. To the extent possible, the administration and faculty emphasize state-of-the-art technology in the classroom. The university seeks to ensure that faculty and students study problems facing the Gulf region and address them utilizing the most recent technology, within the framework of current resources.

In the context of the educational process, the notion of technology transfer is very important. Arabian Gulf University (AGU) follows the approach of exchanging knowledge with well- established overseas institutions. The administration encourages universities seeking ties with foreign schools to exchange experiences with AGU and develop more formal links. Bahrain is a suitable location for such endeavors because the government promotes an open market, making the country attractive for foreign investors. There is strong economic growth, and Bahrain is the regional center for many multinational corporations and financial institutions. For example, Bahrain serves as the regional headquarters for DHL. The population is cosmopolitan and English is widely spoken, facilitating educational and technological exchanges.

The Technology Management Program has recently been revised and includes courses (all of which are taught in English) such as:

-- Organizational aspects of technology management

-- Managing international technology transfer

-- Strategic technology management

-- Information technology management

-- Technology development

-- Socio-economic aspects of technology

Also, the program support courses such as introduction to computers, statistics, production management and technological forecasting. All courses focus on the specific needs of the Gulf region, using an approach that stresses academic excellence as well as the reality of business practices. There is a great deal of cooperation between the program, businesses and government. For example, close collaboration exists between AGU and Aramco, the United Nations Environment Program, Saudia Airlines, Batelco (the Bahrain telecommunications company), and others. These organizations participate in teaching and in providing insights and experiences to students. All master's and doctoral students conduct original empirical research, working closely with organizations in the Gulf region. These organizations often seek the assistance of faculty and students when improving their management processes. In addition, students conduct research of particular relevance for public policy-making, such as the impact of the World Trade Organization (WTO) on the Gulf states.

At present there is considerable emphasis in the Gulf on implementing total quality management practices. Executives from Aramco recently shared their TQM experiences with AGU students. One student is writing a thesis concerning TQM practices in the construction industry in the Gulf. Another trend in the Gulf states is diversification into manufacturing, which is a result of the desire to reduce the dependence on oil. One of the biggest difficulties of Gulf firms is how to access export markets for manufactured goods. A way to overcome this problem is to find existing companies in the U.S. or Europe who can transfer their operations to the Gulf and serve overseas customers from the new location. For example, a Bahraini investor recently bought a U.S. electronics component manufacturer and plans to relocate the factory in the Gulf. The United Arab Emirates has achieved much success in its diversification efforts through the Jebel Ali Free Trade Zone, which has attracted over 300 businesses from over 40 countries. These kinds of investments can contribute greatly to the transfer of technology to the region. Several AGU students are researching how technology transfer can best be implemented in different sectors and in different GCC countries.

Increased manufacturing activity brings with it the risk of environmental degradation, however. One environmental problem faced by all the Gulf states is the lack of potable water and the resulting need for desalination plants. More manufacturing investment places added pressure on the supply of water. Many plants, as well as hotels, have their own desalination plants. Middle East Desalination Systems is a new joint venture between UAE and U.S. partners to manufacture and supply desalination units to offshore oil companies in the GCC. The equipment is to be manufactured in Abu Dhabi with all possible materials coming from the UAE.

There is increasing awareness of environmental issues on the part of the public, as well as governments and private companies. The Gulf War's detrimental impact on the environment, particularly in Kuwait, may well have been a catalyst for growing environmental concern. The Omani government places great emphasis on environmental issues and has been called the "greenest of governments." The Sadaca Environmental Group is to build a waste recycling plant in Jeddah, Saudi Arabia. Responding to concerns about the environment, some AGU students are planning theses in the area of environmental management.

The service sector in the Gulf is expanding, with an emphasis on financial services, tourism and improving health care facilities. Gulf Air's operations continue to expand; the airline recently won an award for service. Two Gulf countries placing an emphasis on tourism are the UAE and Oman. The UAE seeks to benefit from the trend in "ecotourism" by offering desert safaris. Oman is able to capitalize on the cleanliness of the country and its considerable scenic beauty.

Health care facilities in the Gulf are being continually upgraded to include new approaches in health care administration and the latest medical technology. The Aramco hospital in Dhahran, Saudi Arabia, uses telemedicine. The interest in how information systems technology and quality management processes can improve health care is evident from the large number of training conferences and seminars held. For example, this author attended two such conferences last year in Najran and Jeddah in Saudi Arabia. In March, the Arab Institute for Development is holding a conference on TQM in health care in Dammam, Saudi Arabia. An issue often mentioned in the news, and which is related to technology and health care, is the need to improve trauma centers and to provide helicopter transportation of accident victims to hospitals. In January, a training seminar on this topic was held in Bahrain. A technology management student at AGU is researching how technology can be used to prevent fatal road accidents.

In response to the current state of management and technological development in the Gulf states, the Technology Management Program administration is considering new program specializations such as health care technology management and environmental management. These areas have been chosen in particular because of their synergistic fit with the other Sphere of Technological Studies sub-areas. For example, health care technology management is able to benefit from collaboration with biotechnology studies and environmental management is related to work being conducted by faculty and students in both Biotechnology, and Desert and Arid Zones.

The development and improvement of the program rely on the continuous feedback provided by other educational institutions as well as by businesses. AGU is in the process of establishing good ties with other schools around the world. Any interested DSI members should contact Essam Mahmoud at the Technology Management Program, College of Postgraduate Studies, Arabian Gulf University, P.O. Box 26671, Manama, Bahrain, tel. (973) 265226, fax (973) 272555, for collaboration, training possibilities, sharing of ideas, student exchanges, etc.

***************************************************************** ESSAM MAHMOUD serves as His Highness Shaikh Isa Bin Salman Al-Khalifa Chair of Technology Management and coordinator of the Technology Management Program at Arabian Gulf University. He is an associate editor of Decision Sciences and has published widely.

Dr. Robert E. Markland
Department of Management Science
College of Business Administration
University of South Carolina
Columbia, SC 29208
803-777-7448
fax: 803-777-6876
bobbym@darla.badm.scarolina.edu