Boom or bust

There are also those in the market who feel that, particularly in Dubai, the channel is not as developed as the market itself and suffers from a lack of infrastructure that was not installed as the market rapidly developed.

A source involved in distribution in Dubai is adamant that the channel is more interested in short-term trading gains and making money over the creation of proper business plans and solid infrastructure. The same source claims the channel is now highly dependent on the distribution, second-tier of the channel for financial assistance and product know-how.

If such a problem exists it is surely the result of a market in the UAE - though certainly quite mature when compared to neighbouring countries which have not enjoyed the same bureaucratic freedom - that experienced an accelerated adolescence. Perhaps it may still be some time before the channel can fully cope with the demands of the UAE as a regional hub and the market with the most aggressive turnover in this region. Yet, it is also important to note that several sources in the channel suggest that the IT market may be facing a slump and resellers are going to have to work hard to ensure profitability over the next few years.

Samer Malak, channels manager Middle East at McAfee, does not hold the same pessimistic view of the UAE channel. He feels that resellers stand out from their competitors in surrounding countries by being "purpose created" and insists they are, on the whole, better structured and possess a professional mindset that is well equipped to deal with the challenges of a local market that is fast becoming a global market.

There are also elements of the UAE IT market that have forced resellers to rapidly evolve whilst staying firmly routed in traditional practices. As the UAE continues to develop and build on the legacy it has already created, the channel has had to think globally and regionally, as well as locally.

This is a market that grew up in the souks and on Computer Street, with business being conducted on first name terms. It has had to adapt to vast expanse brought about by oil money and the influx of giant multinational vendors and hyper-retailers alike. What makes the UAE IT market unique is the fact that those who work in the trenches of its channel have managed to retain that local touch that has served them so well for so long. Tripp Lite's Sharma is an ardent supporter of the local approach to the UAE market.

We are in a region that unlike Europe and the US is personal touch-orientated. If you want to do business in the GCC, in the UAE and in Dubai, you have to have personal relationships," professed Sharma. "I can ensure you that whether it is at the reseller level or the distributor level, the touch has to be 10 times as much in 10 years' time if you want to survive in this part of the world.

So it seems that no matter how large the market swells to, the personal touch is still a very important tactic in protecting market share, according to those vendors who trumpet the channel-friendly tune. Developing the skills and capabilities that help to nurture and strengthen these relationships remains the secret to combating the side effects of a bulging and competitive environment.

Although it can be difficult to get some channel players to admit the IT market in the UAE is anything but flush with success, there are a few worrying cracks that resellers and indeed other channel members will need to sidestep in the coming seasons.

The first such issue has been raised by distributors and vendors alike. It is becoming increasingly difficult to recruit and keep talented employees with the specialist knowledge needed to serve complex IT sectors from networking and ERP solutions to workstations and high-end computing.

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