UAE electronics market to see $1bn growth by 2013

Demand for electronic products in the UAE have been resilent in 2009 despite the impact of the economic downturn with the market expected to be worth $3.9bn by 2013, according to a new report.

The Dubai Chamber of Commerce & Industry analysis, which was launched to coincide with day one of the GITEX technology exhibition in Dubai, said increased demand would be driven by popularity of 3G mobile handsets, smart-phones, notebooks and big screen LCDs.

According to the chamber's forecasts, demand for electronic goods in the UAE held up this year and is expected to increase strongly for all categories that make up the consumer electronics market in 2010.

Export demand from the GCC countries and India is expected to help mitigate any adverse impact of a slowdown in the export market of the US, the report added.

"Government policies have been a major driver for growth in the market. This is partly because low import duties and direct supplies from manufacturers have contributed in keeping prices in Dubai about 15-20 percent lower than other markets in the region," the report added.

Hamad Buamim, director general, Dubai Chamber, claimed that the electronics market had seen "exponential growth in recent times".

The report said that challenges faced by the UAE consumer electronics market included low margins which created intense competition.

The chamber also said local computer manufacturers and assembler’s continued to face brand competition from large global brands.

"Many buyers still prefer the prestige and security of buying a well-known global brand. As a result, the computer market remains dominated by international players with the top five global brands having at least 50 percent of the market share," it added.

The domestic consumer electronic devices market, defined as including computing devices, mobile handsets and video and audio gaming products, was estimated to be valued at approximately $2.9bn in 2008.

For full coverage of GITEX, see ITP.net

READERS' COMMENTS

MORE FROM ARABIANBUSINESS.COM