UAE bans Blackberry services

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The United Arab Emirates outlined plans Sunday to block BlackBerry e-mail, messaging and Web browsing services in a crackdown that could jeopardize efforts to establish the country as an international business hub.

The government cited a potential security threat because encrypted data sent on the devices is moved abroad, where it cannot be monitored for illegal activity. But the decision — quickly followed by a similar move in Saudi Arabia — raises questions about whether the conservative Gulf nations are trying to further control content they deem politically or morally objectionable.

BlackBerry phones have a strong following in the region, not only among foreign professionals in commercial centers such as Dubai and Abu Dhabi, but also among youth who see their relatively secure communication channels as a way to avoid unwanted government attention.

Unlike other smart phones, BlackBerry devices use a system that updates a user's inbox by sending encrypted messages through company servers abroad, including RIM's home country of Canada.

Users like the system because it is seen as more secure, but it also makes BlackBerry messages far harder to monitor than ones sent through domestic servers that authorities can more easily tap into, analysts say.

"This is the irony, that it's the device with the highest security features. These same security features that corporations like have become an issue of national security for the government," said Simon Simonian, an analyst at Dubai-based investment bank Shuaa Capital. "The UAE doesn't want to take any chances and they want to monitor what is going on in the country."