BMI View: After spending contracted in 2015 as the hardware segment dragged down the IT market as a whole, we expect the market to return to growth over the medium term, but at a relatively subdued compound annual growth rate of 3.4% over 2016-2020 , with total IT spending rising to AED19. 6 bn in 2020. Our core scenario is for the oil market to stabilise and raise the economic trajectory of the UAE and wider region, which will strengthen enterprise sentiment and encourage investment, particularly in software and services such as cloud services and Internet of Things solutions. However, t he hardware market will be much more challenging for vendors as a result of market maturity and economic uncertainty.
Latest Updates & Industry Developments
Hardware Sales: AED7.7bn in 2016 to AED7.4bn in 2020. A decline in visitor spending as sanctions on Iran are eased will be a drag given the core domestic market is saturated, outweighing the positive impact of population growth.
Software Sales: AED3.5bn in 2016 to AED4.2bn in 2020. Enterprise spending should move higher again, with areas of outperformance expected in Software-as-a-Service and cybersecurity solutions.
IT Services Sales: AED6.0bn in 2016 to AED8.0bn in 2020. Demand for cost efficiencies in the oil sector is a new opportunity for smart services providers, while more broadly we expect wider growth of outsourcing, managed services and cloud computing in the UAE.
|Conditions Will Improve But Downside Risks To Remain Elevated|
|IT Market Forecast By Segment (2013-2020)|
|e/f = estimate/forecast Source: BMI|
The United Arab Emirates Information Technology Report features BMI Research'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.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the IT sector and within the broader telecommunications, political, economic and business environment.
BMI Industry Forecast
Historic data series (2010-2013) and forecasts to end-2019 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:
- IT Sector: Industry value (USDmn); IT sector contribution to GDP (%); value of hardware, software and services industry (USDmn); PC, peripherals and software imports and exports (USDmn); PC, peripherals and software sales (USDmn); number of PCs (‘000); PCs per 100 inhabitants; internet users (‘000); internet users per 100 inhabitants; broadband subscribers (‘000); broadband subscribers per 100 inhabitants.
- Economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).
Information Technology Risk Reward Index
BMI’s Risk Reward Indices provide technology manufacturers, service providers, and IT vendors/leasing agents looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.
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 Macroeconomic Forecast
BMI forecasts for all headline macroeconomic indicators to end-2019 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.
Cross-border analysis of country markets in the region, commenting on IT penetration (PC and internet) and market growth drivers (IT market size and IT market compound growth).
The information Technology Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.