Innovation's always a casualty in recession and high start-up costs along with a corporate culture that prizes traditional business approaches are hampering the growth of new internet enterprises in the Gulf region, according to a recent report. Set-up costs are an abvious issue since it's possible to start a business in Canada for C$70 (Dh210) whereas in the Gulf it can cost US$13,600 (Dh 50,000).
In spite of this, the barriers to entry - both cultural and financial - haven't snuffed out the flame of innovation. 5 GCC countries now rank in INSEAD's top 35 Global Innovation Index. Qatar leads the field placed 24th and is swiftly followed by the UAE (26th), Kuwait (30th), Saudi Arabia (32nd) and Bahrain (34th).
