Dubai Chamber report reviews the trends,expectations for the UAE IT sector

On the conclusion of GITEX Shopper Spring 2015, one of the most anticipated technology events in the region, which was held in Dubai last week and achieved sales exceeding AED 100 million, the Dubai Chamber of Commerce and Industry released a special study on the trends and expectations for the UAE IT and electronics sector, emphasizing on the Chambers leadership role played over the past 50 years as a source of economic studies and information supporting the business sector in the country and the region.

According to the report, the UAE market is witnessing a strong increase in demand for IT products and services driven by the growth in the population and incomes of UAE residents as well as the growth in IT requirements of businesses and families together with an emphasis on innovation.

Commenting on the launch of the study, H.E. Hamad Buamim, President and CEO, Dubai Chamber, said: The Chamber has played a proactive role in encouraging business in Dubai, and for the last 50 years contributed to strengthening Dubai's position as a preferred destination for business based on knowledge and innovation. This study reaffirms Dubai Chambers commitment to its role as a main source of economic data and information for the private sector, and its leadership in the preparation of research, reports and studies, federal and local laws and ministerial decisions.

He added that the economic studies and analyses support the investment decision of global investors while contributing to the economic growth of the emirate as he also stressed that the Chamber will continue to play its role of promoting innovation in the business environment in the coming years.

The study revealed that widespread use of Information and Communication Technologies (ICT) in the UAE has also had a positive economic and social impact. For example, according to the Network Readiness Index 2014 of the World Economic Forums Information Technology Report 2014, the UAE ranks very highly at 4th out of 148 countries in impact of ICT of new services and products and at 2nd position in the impact of ICT on basic services. Internet usage is also high in the UAE with about 85% of individuals using the internet and the UAE ranking at a high 10th of business to-business internet use.

The study pointed out that the demand for computer products across the Middle East and North Africa (MENA) region and South Asia is creating opportunities for UAE businesses to re-export to these regions. As a result, Dubai has become a leading information technology (IT) hub for the MENA region and beyond with major IT companies setting their MENA regional offices in the emirate.

In its overview of the IT sector in the UAE, the study stated that the country specializes in the sale of communications and electronics technology devices. The UAE computer and peripheral market achieved sales volume of about 2,990 units in 2014, and is set to increase by 6.5 per cent to around 3,185 units by 2018, according to a report by the based on data from Euromonitor International. Within the coming three years the market is forecast to be valued at AED 3.37.

The Dubai Chamber report said based on data from trademap.org China, the US, Singapore, Netherlands and Czech Republic were major import sources in 2013 while the top export and re-export destinations during the period included Oman, Uganda, Tanzania and Saudi Arabia.

According to the report, innovations in the global IT sector have also contributed to make productivity improvements in the UAE and across the region. Current and possible future global trends which are expected to impact the UAE IT industry include cloud computing, increased mobile computing, pervasive computing and robotics, the report said. Pervasive computing is the trend of embedding micro-processors in everyday objects such as TV, fridges, microwave ovens and cars so that these objects can communicate with each other.

Spending on cloud computing, in which computing services such as servers, storage and applications are delivered to an organisation through internet services, is increasing in the UAE according to research firm IDC, while mobile computing devices are also experiencing growing demand. In the future, the advent of pervasive computing and furthermore robotics could change the way people work and live and would improve efficiency across the UAE economy, the report said.

With the high importance given to innovation in the UAE, coupled with a strong IT and internet infrastructure, the UAE is well placed to be the hub for global businesses focused on new IT products and services to the GCC, the MENA region and Africa, the report added.