Information
Technology in the UAE
There is little notable production of hardware components in the UAE. In the future however this may change with the unveiling of Dubai Internet City. Currently, and for the near-term, the UAE is a net importer of hardware technology. Taiwan and Hong Kong are the primary exporters, with the U.S. following closely behind. A large market exists for the purchase and sale of hardware technology. The Emirians are willing to pay top dollar for quality products. The only locally assembled hardware components are in the Jebel Ali Free Zone. The nation is not globally recognized as a hardware manufacturer, and there are no niches in which it dominates.
Import/Export:
The hardware market in the UAE relies heavily on imports from Hong
Kong and Taiwan. Taiwan is the primary exporter of hardware components
to the UAE, and holds almost 70 percent of the total market. On average,
55,000 personal computers are imported annually, and almost 40 percent
are re-exported. The secondary players in the market are Japan, England,
Singapore, and the Netherlands.
In regards to the printer market, dot matrix printers are virtually obsolete. Ink Jet and Laser Jet printers dominate the market, with 60 percent of sales being for Ink Jet printers. Hewlett Packard is by far the most popular import, with Epson, Lexmark, Fujitsu, QMS, and Tectronics also present.
Hardware Subsectors:
Although hardware is not locally manufactured in any notable amounts
hardware sales are active. The following table presents the primary
subsectors of the hardware market in the UAE and the relative market wealth:
|
|
|
| Personal Computers | $105,000,000 |
| Workstations | $68,000,000 |
| Computer Monitors | $61,000,000 |
| Printers | $57,000,000 |
| LAN Equipment | $52,000,000 |
| Modems | $25,000,000 |
|
TOTAL
|
$368,000,000 |
The United Arab Emirates has numerous subsectors in the hardware market and each is projected to grow substantially. It is interesting to note, that the majority of the hardware resellers are only located in the relatively modernized Emirates of Abu Dhabi, Dubai, and, to a lesser amount, Sharjah. Furthermore, the foreign owned companies are primarily in the Free Trade Zones because of ownership requirements. See IT Geographics for more information on free trade zones.
In order to further spur the growth of this market it is imperative that the UAE continue to provide incentives to foreign investors. The introduction of Dubai Internet City will probably have a positive impact on the hardware manufacturing market. DIC, according to its charter, will have mechanisms by which hardware and software can be tested in facilities and office buildings with in the free trade zone before they are released commercially. This provides a prime opportunity for companies interested in establishing hardwaare manufacturing centers in the UAE to test their products. Furthermore, increasing the number of free trade zones or lessening foreign ownership restrictions would facilitate the growth of this market.
The following table presents the number of companies (according to the
pink
pages) of many of the hardware subsectors in the UAE:
|
|
Companies |
| Communications Equipment & Systems Suppliers | 51 |
| Computer Renting and Leasing | 9 |
| Computer Equipment and Supplies | 19 |
| Computer Modems and Accessories | 23 |
| Computer Monitor Filters | 15 |
| Computer Power Supplies | 6 |
| Computers – Large Scale | 7 |
| Computers – Micro | 12 |
| Hardware – Retail | 196 |
| Hardware – Wholesale | 174 |
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