The Information Technology (IT) sector in Kuwait is expected to grow from $400 million at present to $712 million by the year 2006 if the concerted campaign against piracy continues to bring down the software piracy rates from the existing 76 percent to 66 percent in the near future according to the results of a study conducted by International Data Corporation (IDC).
The study has concluded that Kuwait has already begun to acquire the benefits received from a 13-point drop in piracy rates since 1996. This has helped triple the growth of the software industry in the country and the IT sector in general has also doubled in size.
"The research results are a compelling evidence of how the commitment to reduce software piracy by governments in the region such as Kuwait can stimulate tremendous growth in the software industry,” said Jawad Al-Redha, Co-Chairman, Middle East, Business Software Alliance (BSA).
“The study has clearly shown that lesser piracy could mean faster growth. Cutting Kuwait's piracy rate by 10 percent to reach 66 percent could mean additional revenue of $375 million to the economy. These positive figures once again bring to the forefront the key role that the protection of Intellectual Property Rights plays in achieving a healthy economic climate and creating new opportunities for entrepreneurs and the Kuwaiti job force in general," Al-Redha added.
The IDC study says that the continued efforts to reduce software piracy will also reflect positively on the employment sector by creating more than 500 jobs for Kuwaiti nationals within the IT sector. The local IT industry revenues are also expected to increase by more than $72 million. The beneficiaries of the Intellectual Property Rights (IPR) protection campaign will also include the Kuwaiti government, which is expected to collect an extra one million dollars in tax revenues.
"The BSA is satisfied to note that the worldwide campaign to protect Intellectual Property Rights has shown tremendous progress and yielded positive results in Kuwait," Al-Redha added.
The study highlighted the direct relationship between usage of legal software and progress in the IT sector. As Kuwait reduced its piracy rate by 13 percent between 1996 and 2002, its software industry grew by 320 percent. This helped fuel the growth of the IT sector which now accounts for 1.3 percent of the country's overall economy.
The study also tabled the major achievements of Kuwait between 1995 and 2001, which were direct result of its anti-piracy efforts. During this period, the IT sector added $880 million in sales to the local economy and created 1,700 high-tech jobs for Kuwaiti nationals.
The Business Software Alliance (BSA) is an international organization representing leading software and e-commerce developers in 65 countries around the world. Established in 1988, BSA has offices in the United States, Europe and Asia. As the voice of the software industry, BSA helps governments and consumers understand how software strengthens the economy, worker productivity and global development and how its further expansion hinges on the successful fight against software piracy and Internet theft.
BSA's efforts include educating computer users about software copyrights; advocating public policy that fosters innovation and expands trade opportunities; and fighting software piracy. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
