UAE IT services market reaches $507 million

IDC predicts continued strong growth in services, MDS leads services vendors for third year running.

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By  Mark Sutton Published  September 5, 2007

The UAE's IT services market was worth $507.81 million in 2006, marking year-on-year growth of 22.7%, according to research from IDC. The analyst company expects to see strong spending over the next five years, to take the market to $964 million by 2011.

For the third year running, the market was led by MDS whose revenue accounted for 12.2% of the market. Emirates Computers, Injazat Data Systems, Mercator and Gulf Business Machines were other high ranking vendors. Together, the top five companies accounted for 35% of the total market spending.

Sami Abi Esber, president of MDS UAE Holdings said: "This was yet another successful year, and MDS has enjoyed further growth during 2007 of more than 25%. We have managed to secure some of the most prestigious contracts in the UAE, and we put this down to our dual strategic approach of having four dedicated lines of business - eSolutions Group, Systems Group, Systems Integration Group and Site & Power - as well as providing support for customers for their IT business as a whole."

Systems integration was the largest single area of IT services expenditure in the Emirates, accounting for $132.6 million or 26% of total spending, while deployment and support of hardware (18%) and software (14%) accounted for a further 32.9% of the market, or $166 million.

The leading sectors for IT services spending were government, which made up 26.5% of the total, finance accounting for 18.2% and telecom for 11.1%. Other important sectors were transportation and construction.

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