BMI View: We downgraded our forecast for the UAE IT market over the next five years to 2018 to reflect the increasing downward pressure on PC sales, especially in the consumer segment where desktops and notebooks are being cannibalised by more mobile form factors such as smartphones and tablets. We expect investments in high capacity servers for data centres to be a key growth driver in the hardware division of the IT market. This will, in turn, boost value growth in the software and services sector s, with cloud-based services expected t o grow rapidly during our forecast period. Meanwhile, the anticipated uptick in investments and visitors into the country in the run-up to 2020 World Trade Expo poses a significant upside risk to growth forecast. We expect government agencies and private companies, especially those in consumer-centric industries such as aviation, retail and hospitality, to invest in IT solutions to improve their operations and services in preparation for the 2020 Expo.
Headline Expenditure Projections
Computer Hardware Sales: AED8.16bn in 2013 to AED8.59bn in 2014, +5.2% in local currency terms. Investment in data centre facilities and enterprise products will offset stagnating growth of consumer products.
Software Sales: AED2.85bn in 2013 to AED3.26bn in 2014, +14.4% in local currency terms. The UAE is one of the region's fastest growing ERP markets as modernisation initiatives continue in an effort to increase international competitiveness.
IT Services Sales: AED4.74bn in 2013 to AED5.32bn in 2014, +12.3% in local currency terms. Managed services will be a leading growth area, with growth of cloud computing and real-time analytics accelerating.
Key Trends & Developments
Telecoms operators in the Middle East have been building up their communications carrier service portfolios, in order to expand their global reach and add value to their enterprise services portfolios. Etisalat and du of the UAE have been particularly successful in...
The United Arab Emirates Information Technology Report features Business Monitor International (BMI)'s market assessment and independent forecasts covering personal computers and software; semi-conductors, memory chips, integrated circuits and general components; the internet and IT solutions. It analyses analyses regulatory changes (licensing, customs and intellectual property protection) and competitive landscapes comparing IT companies by products, sales, market share, investments, projects and expansion strategies.
BMI's United Arab Emirates Information Technology Report provides industry professionals and strategists, corporate analysts, IT associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the IT industry in United Arab Emirates.
- Benchmark BMI's independent IT Industry forecasts for United Arab Emirates to test other views - a key input for successful budgetary and strategic business planning in the Emirati IT market.
- Target business opportunities and risks in United Arab Emirates's IT sector through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments in United Arab Emirates.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering IT, regulatory changes, major investments and projects and significant national and multinational company developments.
Cross-border analysis of regional markets, commenting on IT penetration (PC and internet) and market growth drivers (IT market size and IT market compound growth).
Country Market Overview
Structure, size and value of the industry sectors including hardware, software and services; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments and government authority.
BMI Industry Forecasts
Historic data series and forecasts to end-2018 for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:
IT Sector: IT industry value (US$bn); IT sector contribution to GDP (%); value of hardware, software and services industry (US$mn); PC, peripherals and software imports and exports (US$mn); PC, peripherals and software sales (US$mn); number of PCs (`000); PCs/100 inhabitants; internet users (`000); internet users per 100 inhabitants; broadband subscribers (`000); broadband subscribers per 100 inhabitants.
Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).
BMI Macroeconomic Forecast
BMI forecasts for all headline macroeconomic indicators to end-2018 including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.
Full analysis of the competitive landscape within the hardware, software and services sectors.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.