Arabic Peninsula
ICT Market trends
In parallel with the current development trend in Middle Eastern countries, the ICT channel is characterized by the strategic junction between the traditional IT sector and consumer electronics. Channel partners, distributors and resellers are seeing their business expand to new markets, discovering new opportunities and defining new market strategies accordingly. As a result, large retail chains are diversifying their offerings in order to satisfy current Middle Eastern digital consumers especially with hardware offers. Given the early development stage of the ICT market, the hardware sector has managed to maintain a high level of demand these past few years.
The most important market in the region in terms of business capacity is UAE, its economy also influencing the Eastern African and South-Eastern Asian markets. Several large distributors are expanding their retail presence in the Saudi Arabian and UAE ICT markets. The simultaneous development of SMB companies also contributes to the expansion of the ICT sector.
In terms of market value, UAE's ICT market is number one; nevertheless, the most dynamic region remains Dubai, currently affected by the real estate crisis and the weakness of the local industry.
The multifaceted cultures in the Middle East influence the sector’s expansion. Strong growth and the high dependence on oil resources (mainly the price level) are the determining factors of an increased consumption to bring ICT levels up to international standards. The region is in the midst of a complete process to attract foreign investments and make UAE a technology hub; development projects in the Middle East include building economic centres. The banking sector remains one the largest vertical industries in terms of ICT investments over the next few years. With ongoing initiatives to create free trade zones, similar benefits should be felt by other economic sectors at the same time. The Gulf countries are investing huge amounts in ICT infrastructure in order to be at the forefront of the technology evolution phase.
In the telecommunications sector, the strong increase in mobile phone and internet usage during the early Y2K continues. As for 2007, UAE had the highest mobile penetration rate among the Middle Eastern countries followed by Saudi Arabia. The rise of internet has also contributed to the development of telecom infrastructures in the region and to the rise in demand for computer hardware technology.
Following the positive growth in the industry, opportunities have arisen in the Middle East for 3G, WiMAX, etc. This upgrade in terms of services is also strongly related to the development of the country’s infrastructure.
Over the next decade, the Gulf Cooperation Council countries are planning to spend approximately 25% of their infrastructure development funds on developing the ICT market. Government initiatives along with the liberalization and privatization of the telecom industry are fuelling ICT growth in the Middle East.
The most important market in the region in terms of business capacity is UAE, its economy also influencing the Eastern African and South-Eastern Asian markets. Several large distributors are expanding their retail presence in the Saudi Arabian and UAE ICT markets. The simultaneous development of SMB companies also contributes to the expansion of the ICT sector.
In terms of market value, UAE's ICT market is number one; nevertheless, the most dynamic region remains Dubai, currently affected by the real estate crisis and the weakness of the local industry.
The multifaceted cultures in the Middle East influence the sector’s expansion. Strong growth and the high dependence on oil resources (mainly the price level) are the determining factors of an increased consumption to bring ICT levels up to international standards. The region is in the midst of a complete process to attract foreign investments and make UAE a technology hub; development projects in the Middle East include building economic centres. The banking sector remains one the largest vertical industries in terms of ICT investments over the next few years. With ongoing initiatives to create free trade zones, similar benefits should be felt by other economic sectors at the same time. The Gulf countries are investing huge amounts in ICT infrastructure in order to be at the forefront of the technology evolution phase.
In the telecommunications sector, the strong increase in mobile phone and internet usage during the early Y2K continues. As for 2007, UAE had the highest mobile penetration rate among the Middle Eastern countries followed by Saudi Arabia. The rise of internet has also contributed to the development of telecom infrastructures in the region and to the rise in demand for computer hardware technology.
Following the positive growth in the industry, opportunities have arisen in the Middle East for 3G, WiMAX, etc. This upgrade in terms of services is also strongly related to the development of the country’s infrastructure.
Over the next decade, the Gulf Cooperation Council countries are planning to spend approximately 25% of their infrastructure development funds on developing the ICT market. Government initiatives along with the liberalization and privatization of the telecom industry are fuelling ICT growth in the Middle East.
Stat for Middle East and Levant countries.
1 E 1 0 0 0 1 1 0 0 1 1 1 STATS_PRC_REF_TOTAL_COLUMN STATS_VAR_FIRST_PERCENT STATS_TOTAL_PRC_NONE STATS_PRC_FORMAT_DEC_2_PRC 22293 Manufacturers 0 22294 ISVs 0 22295 IT and Telecoms Services 0 22296 Resale 0 22297 Other IT and Telecom related activities 0 18098 Iraq 0 17209 Israel 0 17210 Jordan 0 17213 Lebanon 0 17962 Palestinian Settlements 0 17231 Syria 0 17195 Bahrain 0 17212 Kuwait 0 17225 Oman 0 17226 Qatar 0 17228 Saudi Arabia 0 17237 United Arab Emirates 0 17238 Yemen 0 17953 Iran 0 17234 Turkey 0 ICT Partners for Middle East and Levant (available from compuBase)
Stat by activity (main business model)
1 E 1 All_Middle_East.sel 0 0 0 1 1 0 0 1 1 1 STATS_PRC_REF_TOTAL_COLUMN STATS_VAR_FIRST_PERCENT STATS_TOTAL_PRC_NONE STATS_PRC_FORMAT_DEC_2_PRC 18097 Levant countries 0 18077 Arabian Peninsula 0 21788 Other Middle East 0 16000 Manufacturer 0 15990 Software publisher 0 15989 Publisher of software for a specific activity 0 15988 Publisher of software for a specific process of companies 0 15993 Software solutions or services integrator (developed by third parties) 0 15995 IT services, Software development (hosting, maintenance, training, bespoke software development....) 0 15996 Telecom services (Telecom operator, ISP...) 0 15991 Telecom & network infrastructure integrator 0 15992 IT infrastructure integrator 0 15994 Consulting 0 15999 Reselling to individuals 0 15998 Reselling to enterprises (hardware, software & services & assemblers) 0 15997 Wholesaler (resale of IT and Telecom products to resellers) 0 19130 Web agency 0 16002 Other IT and Telecom related activities 0 Database for the Middle East - Click on any cell in the table to see the corresponding selection Create your own company selections in the Middle East >>Here
For a specific target of ICT players for the Middle East >>Contact us here
FURTHER SOURCES OF INFORMATION
Distribution players: APTEC ONLINE (by INGRAM MICRO) ; REDINGTON GULF FZE (SAUDI) (AE); EASTRONICS Ltd (Israel) ; PC ZONE (Jordan)
IT Channel Press & Players: Channel Middle East (ITP), The Channel (IDG)