EMPA Middle East FZCO
Nicholas Argyrides, MD
Tel: +971 4 803 9500
Active accounts: 850
Regional offices: UAE, KSA, Egypt.
Key brands: Intel, Fujitsu, Toshiba, Kingston.
Ownership: Privately owned
2011 sales: $106m
2010 sales: $130m
What were the company’s milestones in 2011?
Most of last year, EMPA focused on consolidating its business both from an operations and product-portfolio perspective. We were also able to stabilize our components business despite the volatility in the market.
What are your strategic plans for the rest of 2012?
Although the broadline business will remain part of EMPA’s contribution to the market, our strategy involves combining broadline with ‘tactical’ vendor offerings in security and storage.
What is the most pressing distribution issue?
Profitability and credit risk are the two main challenges that the sector is presently grappling with. Also relevant, is the issue of over-distribution and over-supply in the form of grey (parallel) imports.
Has the Middle East distribution sector recovered from the recession?
Although conditions have relatively improved the past few quarters, certain indicators clearly suggest that we are not there just yet. Banks are still not extending adequate loan and other facilities to businesses.
Verdict: Even though EMPA showed a decline in its overall revenues in 2011, the company has streamlined its business to focus more on the bottom line basics, a seemingly intelligent move given the market conditions. The distributor looked to broaden its former components focus with a mix of interesting additions in the areas of security and storage.