Business
Cisco to invest in $256 mn for expansion http://www.ndtvprofit.com/homepage/storybusinessnew.asp?id=30818&template=&cache=4/19/2006%2012:59:22%20PM
Wednesday, April 19, 2006 (Dubai):
Cisco Systems Inc. will invest $256 million to expand its operations in Saudi Arabia, including a new technology incubator and the hiring of hundreds of additional employees.
Cisco CEO John Chambers said the San Jose, California- based company will boost the number of employees in the kingdom from 70 to 600.
It will also establish networking training centres and sponsor a Saudi technology innovation institute and incubation space for local startup companies.
The Saudi Arabian General Investment Authority, which arranged the five-year series of investments, said the company's growing role in the kingdom will help transform the technology and educational sectors.
Saudi Arabia and other energy-rich Gulf countries have sought to use windfall profits from the ongoing oil boom to lessen their reliance on oil and natural gas exports.
The technology, tourism, logistics, trade and real estate sectors have been drawing huge investments in the region. "Saudi Arabia is experiencing a transformation as it expands its economic growth opportunities into new sectors using information technology," Chambers said.
"This investment plan reflects our alignment with the country's focus on entrepreneurship, innovation and education, which we believe will help drive the 21st century global economy," the company said.
Cisco also said it will help network 2,000 homes in Saudi Arabia's poor communities. (AP)