Credit concerns set to dominate meeting of IT traders

DCTG board members poised to outline the plans and actions to protect the financial health of resellers in Khalid Bin Waleed Road

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By  Andrew Seymour Published  July 6, 2009

Members of the Dubai Computer Traders Group (DCTG) will this week convene for their second annual general meeting against a backdrop of uncertainty for the local IT dealer community.

While the DCTG is celebrating its first year as an official association, the agenda of the AGM is set to reflect the challenges faced by hardware and software resellers in the wake of deteriorating market conditions.

At the top of that list is the issue of credit security, with DCTG board members poised to outline the plans and actions that the group will take to protect the financial health of resellers in Khalid Bin Waleed Road — the primary computer trading district in Dubai.

Credit provision remains a major talking point in the Dubai channel following a spate of ‘runaways’ since the turn of the year.

SMC, Green Forest and Micropoint exited the market after encountering difficulties, while struggling Febis Computers — part of the same group as Dallas Computer, Maxima and Ample Computer — was only saved after creditors agreed to a long-term repayment plan. At least four more traders are reported to have fled the market in the past month after running up debts totaling several million dollars.

One of the main speakers at the AGM will be Mohamed Jomma, business development manager at Emcredit, an information services company formed three years ago to provide enterprise and credit information solutions for the UAE market.

As well as outlining membership details for the next 12 months, DCTG bosses intend to update dealers on the establishment of a local office and comprehensive auditing system.

Late last year, DCTG president Shailendra Rughwani told Channel Middle East that the organisation would ‘screen’ prospective members in a bid to ensure the integrity of the group and push ahead with plans for a rating system to measure the creditworthiness of resellers. An update on the progress it has made on that front is expected to be given at this week’s meeting.

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