UAE IT spending is expected to reach US$3.8bn in 2012, up 5%, Government spending and investment should help to support the IT market, with further opportunities in sectors such as education, healthcare, utilities , banking and telecoms. Cloud computing, ERP Software, CRM and business analytics are among enterprise IT investment growth areas.
ERP Systems, Software’s & Hardware Expenditure Projections:
Computer hardware sales: US$1.9bn 2011 to US$2.0bn in 2012, +13.0% in US dollar terms. Forecast in US dollar terms upwardly revised due to stronger than expected retail sales growth in 2011.
Software sales: US$641mn in 2011 to US$681mn in 2012, +6% in US dollars terms. Forecast in US dollars terms upwardly revised due to analyst modification with the UAE being one of the regions’s fastest growing enterprise resource planning (ERP) markets.
IT Services sales: US$1.0bn in 2011 to US$1.1bn in 2012, +7% in US dollars terms. Forecast in US dollars terms upwardly revised due to analyst modification as services have become an increasingly important component of many deployment contracts.
Key Trends & Development in UAE:
· The UAE market has received a buffet from global economic headwinds but demand for IT products and services should continue to grow in 2012. However, the property price slump and financial upheavals are likely to continue to influence business and consumer caution. Abu-Dhabi has been making most of the running in the wake of Dubai financials crisis.
· Growth potential also exists in the less developed northern emirates of Sharjah, Ajman, Umm al-Qaywayn, Ras al-Khaimah and Fujairah. The emirates government has launched a major infrastructure investment program in the northern emirates, which could generate significant opportunities for IT vendors, despite relatively small population size.
· One factor driving retail growth is a pick-up in the number of tourist visitors, which provided a boost to the all-important carry-trade, which had fallen off in 2009. An influx of tourist is expected to swell spending on consumer electronics goods such as notebooks and tablets. However, the possibility of UAE joining sanctions against Iran could have an impact on PC re-reports.