Editor’s Note:
In our exclusive interview with David Hamod today we talked about the launch of the King Abdullah University of Science and Technology in Saudi Arabia on September 23, 2009. Mr. Hamod, President and CEO of the National U.S.-Arab Chamber of Commerce, was among the invited guests for the inauguration of this landmark institution. While in the Kingdom he shared his thoughts on the commercial prospects for the cutting-edge technologies expected to result from KAUST research and development in this op-ed. We thank Mr. Hamod for permission to share it with you.
KAUST: A Catalyst for Small Business Growth?
David Hamod
In my travels around the Kingdom since the recent launch of the King Abdullah University of Science and Technology (KAUST), I have encountered considerable enthusiasm for this new “House of Wisdom” on the shores of the Red Sea. Saudis and non-Saudis alike recognize that this extraordinary experiment, made possible through the vision of the Custodian of the Two Holy Mosques, has the potential to transform the Kingdom into one of the world’s top destinations for academics looking to conduct scientific research at the graduate level.
What few have apparently realized, however, is that KAUST could also play a leading role in fostering partnerships between entrepreneurs around the world and Saudi Arabia’s business community.
The biggest obstacles for most small companies worldwide are two-fold: access to research facilities and access to capital. The former is essential for start-ups looking to develop cutting-edge technologies, and the latter is vital for production, market penetration, and commercial growth. KAUST, and investors in Saudi Arabia, offer access to all of these.
For small businessmen and businesswomen, particularly those leading early-stage technology start-ups, KAUST’s Innovation Clusters look like a dream come true. On a competitive basis, at little cost to these entrepreneurs, KAUST offers state-of-the-art research laboratories and offices.
But that’s just for starters.
KAUST also offers a business incubator designed to convert high tech research projects into commercial entities that will offer practical applications for the benefit of society. The incubator will assist with business plans, local service providers, accommodations, and other services intended to make the transition to KAUST as worry-free as possible.
Moreover, through the KAUST Industrial Collaboration Program (KICP), the university will introduce these start-ups to such world-class companies as Boeing and IBM — firms that are well positioned to help match up fledgling technologies with global applications. KICP promises to promote collaboration to foster pilot projects, create consequence companies, and build capacity in cooperation with some of the world’s best recognized business entities.
Access to such expertise is essential, but it represents only part of the equation. The other vital element needed is funding.
For worthy start-ups with a good track record, KAUST has established a Seed Fund that may invest up to $250,000. This is a remarkable contribution by any standard, but it pales in comparison to funding that should become available through Saudi Arabia’s private sector.
The Kingdom’s business community is known for its investment savvy but, historically, there were very few “pipelines” in Saudi Arabia that methodically carried entrepreneurs to local investors. With the establishment of KAUST, this may be about to change.
One can imagine a scenario in which chambers of commerce like mine, working in cooperation with the Council of Saudi Chambers of Commerce and Industry, help to identify entrepreneurs overseas who are good candidates for research & development opportunities at KAUST.
These same chambers, working with their member companies, would also be well positioned to provide more substantial seed money in support of those technologies that have promising commercial applications. Such funding is especially important now – at a time when banks around the world have largely shut off the supply of capital to small businesses and entrepreneurs.
KAUST is doing its part to recruit the best and the brightest from Saudi Arabia and around the world to engage in scientific research. With business community collaboration, converting such research to commercial applications for the marketplace holds the potential to create new cutting-edge companies, generate home-grown jobs, and help the Kingdom move toward the knowledge-based society envisaged by King Abdullah.
David Hamod, President & Chief Executive Officer of the National U.S.-Arab Chamber of Commerce, attended the opening of KAUST on September 23, 2009.
About NUSACC:
The National U.S.-Arab Chamber of Commerce (NUSACC), established 40 years ago, is America’s longest serving organization dedicated to U.S.-Arab business. NUSACC is widely regarded as the voice of American business in the Arab world and the premier portal to the United States for Arab commercial enterprises. With offices in New York, Houston, Los Angeles, and its headquarters in Washington DC, NUSACC is well positioned to fulfill its mission to “promote, support, and strengthen U.S.-Arab business and economic cooperation.”
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