Madar Research predicts boom in UAE's CRM market

The need to increase customer satisfaction and excel in e-business will drive growth in the UAE's customer relationship management (CRM) market.

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By  Greg Wilson Published  August 6, 2003

The region’s customer relationship management (CRM) market is expected to boom over the next six years. According to statistics from Madar Research, the UAE’s CRM market will be worth US$90 million by 2008.

The financial services, telecoms, energy and airline sectors have been driving CRM growth in the UAE. However, as CRM technology tickles down to mid-sized organisations in other industries the growth rate will accelerate.

Madar predicts the UAE market will achieve 20% compound annual growth between 2003-2008.

“As more of the larger enterprises and customer focused businesses start to gain insight into the various direct and indirect benefits of CRM, and appreciate that the long term returns justify making the relevant investment, growth in the CRM market in UAE is expected accelerate in next two to three years, then stabilise,” predicts Abdul Kader Kamli, president and research director, Madar Research Group.

“Our study indicates that the need to increase customer satisfaction and adopt e-business are the top two market drivers for CRM adoption in the UAE. Vertical markets’ lack of knowledge and the price of software and hardware are the major inhibitors,” he adds.

According to Madar Research, the UAE is six months to a year, ahead of other GCC countries in its adoption of CRM technology.

Elsewhere in the region, the small to medium companies represent a huge opportunity for vendors. Madar estimates that only 2% of SMEs have installed a specialised CRM application.

Madar’s statistics include the value of CRM application acquisition, licensing and external services such as consultation, installation, integration and upgrades.

The forecast market value also includes the application service provision (ASP) segment, but it excludes hardware infrastructure and related services.

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