How can free zones drive the Islamic media sector?

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Free zones are an important strategy for driving sector development and economic growth. Two of the world’s leading media free zones are in the United Arab Emirates (UAE) and are attracting media companies from around the world. How can free zones help in driving the development of the Islamic-themed media sector?

LEADING OIC MEDIA FREE ZONES

A key principle behind free zones is “clustering”, which means that businesses in a similar sector co-locate, share best practices and ensure easy connections between customers and suppliers.

The media industry is particularly well-suited to clustering as it is generally heavily concentrated in a handful of cities globally.

Among Organisation of Islamic Cooperation (OIC) countries, notable free zones dedicated to the media sector have emerged in the UAE in recent years. TwoFour54 in Abu Dhabi and Dubai Media City  are examples of top-ranked free zones supporting the global media sector.

Founded in 2008, TwoFour54  supports leading global and regional brands in the industry, including the Financial Times and Sky News Arabia as well as blockbuster Hollywood and Bollywood films. It has attracted over 200 international and global media companies and close to 300 Small and Medium-sized Enterprises (SMEs).

In 2015, TwoFour54 won praise for its role in supporting start-ups by the FDI Intelligence Awards, a Financial Times publication that annually ranks free zones globally. The free zone was also ranked 21st in the Financial Times’ FDI Intelligence Global Free Zones of the Future Ranking published in 2012/13.

Neighboring emirate Dubai has also established a robust infrastructure for media companies, which includes the Dubai Creative Clusters Authority. It contains four clusters, one of which is media.

Across Dubai Media City, Dubai Studio City, and the International Media Production Zone, the Dubai Creative Clusters has registered over 1,500 companies and close to 1,800 qualified media professionals. The support it provides starts from production right through to distribution. Dubai Media City in particular was ranked no. 10 in the FDI Intelligence Global Free Zones of the Future Ranking.

GOVERNMENT SUPPORT

A number of new Islamic media initiatives around the world have emerged, including UK-based Alchemiya, the world’s first streaming service for Islamic-themed media; North America-based Muslim Kids TV, an interactive online channel dedicated to teaching Muslim children about the religion; and Malaysia-based TV AlHijrah, an Islamic media channel exploring formats such as reality TV, competitions, and Shariah-compliant advertising.

However, Islamic-themed media is still in its infancy as an industry, with limited support from OIC governments.

Michael Milo, Founder of Muslim Kids TV and former Director of Programming at Huda TV in Egypt, told Salaam Gateway, “[In] Muslim countries, in particular in GCC countries, ministries of culture [and of] religious affairs do need to start investing in Islamic-themed media.”

Examples of existing initiatives supporting Islamic-themed media within the Gulf Cooperation Council (GCC) include Twofour54’s SANAD Fund for Arab filmmakers, Doha Film Institute‘s Injaz, and the Arab Fund for Arts and Culture, all of which support film projects in the Middle East and North Africa (MENA) region, including Islamic-themed media projects.

In another key Islamic economy, Malaysia, TV AlHijrah is funded by the government but the authorities could do a great deal more to drive the development of an important industry, including exploring the possibilities of a free zone strategy.

HOW FREE ZONES CAN HELP ISLAMIC-THEMED MEDIA

Dubai Production City has supported Islamic-themed media companies such as Barajoun, an animation studio that is producing the Islamic-themed movie Bilal.

Numerous Islamic-themed programs have also been produced in TwoFour54, including Ramadan drama Hob Fe Al Arbaeen and popular children’s television show Iftah Ya Simsim. 

There have been limited attempts to co-locate companies that produce Islamic-themed media within free zones, but there are clear potential benefits to doing so: 

Locating within an existing free zone can help companies innovate and fill important gaps.

Islamic-themed media has been dominated by talk shows with religious scholars, and there are many gaps in this industry that are only beginning to be filled as it branches out. Co-location will help spur innovation and drive cooperation among different companies, creating an ecosystem for Islamic-themed media to thrive in.

Muslim Kids TV’s Milo commented, “I think a dedicated area in a free zone would be very advantageous, especially if there was additional support available to stimulate the industry, including start-up programs, consultancy services, conferences, and training.”

“Currently, Islamic TV channels dominate the Islamic media space and these channels are very spread apart geographically as well as when it comes to cooperation. Most often they view [each other] as competition. A free zone may overcome these challenges and benefit these companies through increased cooperation,” he added.

Islamic-themed media companies can avoid many common pitfalls within a free zone.

A common challenge for Islamic-themed media companies, and one of the biggest reasons for failures among start-ups in general, is a lack of financing. Milo believes that free zones are the answer. “I can see free zones having the effect of an incubator where various supports are provided.”

“Islamic media companies search for the most cost-effective infrastructure because they have resource limitations and many are not-for-profits. Strong subsidies would benefit these companies and could be used to [convince] them to [re]locate,” said Milo.

Mutual support would help SMEs to thrive and companies to support each other in ways beyond a focus simply on profits. An example of what such support would look like is TV AlHijrah’s low-cost advertising.

The station’s manager of sales and marketing, Salehuddin Jumiri, commented, “We are launching a campaign to target SMEs and the fee for them to advertise is much lower than other TV stations, which helps their business significantly.”

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