The Power List 2013

The channel Middle East Power List has established itself as the ultimate who’s who guide to UAE-based IT distributors and this year it is more comprehensive than ever!

Tags: Channel Middle East Power ListFDC International FZEGlobal Distribution FZE (www.globalfze.com)Jumbo IT DistributionMetra Computer GroupRedington GulfUnited Arab Emirates
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The Power List 2013
By  Manda Banda Published  June 20, 2013

The channel Middle East Power List has established itself as the ultimate who’s who guide to UAE-based IT distributors and this year it is more comprehensive than ever! Now in its Ninth year, the 2013 Power List has been expanded to include distribution houses in Saudi Arabia – a market that is vital to all major vendors and distributors in the region.

Demand for technology products is beginning to pick-up, particularly in the first quarter of 2013. Although the PC sector has seen the worst dip since 1994, demand for tablets and smartphones in the consumer electronics space is driving distributors to not just pay attention to this market segment, but many are getting involved in this business. In fact, majority of distributors that have made this year’s listing have indicated that they have a mobile business division or are intending to launch one soon.

Yet despite the slump that the PC market is experiencing, there is one thing that is common. Distributors have continued to look at ways of improving their bottom line.
Interestingly, distribution companies in the region are aware that it will take longer for the market to experience the sort of scale and growth it enjoyed at its climax in 2007.
As is common place with this research, every distributor featured in this year’s Power List has been approached by the editorial staff of Channel Middle East magazine, to open their financial accounts and give us their audited revenue figures for the past financial year, in this instance for FY2012.

In the past years, the survey focused on companies to provide their projected revenues for the financial year just closed, and to verify that by providing the actual audited accounts of the previous years.

Like was the case last year, the Power List 2013 features final audited accounts which all the 16 distributors shared with us. The companies featured over the coming pages collectively made sales of over $6bn last year. This is a remarkable achievement given the challenges facing the regional IT market.

This year, it’s worth mentioning that Aptec, which has featured in this research for many years is absent following the merger with Ingram Micro in 2012. As a listed entity, Aptec is bound by stock exchange regulations to report a consolidated global sales figure. And because the essence of this research is to get the regional numbers, Aptec was unable to participate but remains one of the biggest distributors serving the Middle East market today.

Another distributor that has been excluded is Golden Systems, which didn’t meet the minimum $100m revenue threshold.

So why have some distributors seen sales decrease, while others posted apparently strong growth when the trend generally has been for distributors to expand at roughly the same pace?

Some companies were more heavily exposed to the challenges that the PC market has been facing particularly those distributing hard disk drives (HDD) and components in general.

Others have been hit by a weak reception for Windows 8, with tablets and smartphones cutting into consumer spending, and pricing and component supply problems for newer ultraslim models with touch.

That aside, there are a handful of distributors featured this year that actually managed to grow their business on an organic basis because they secured new vendor partnerships. Many went in search of greenfield markets particularly in sub-Saharan Africa.

We would like to reiterate that revenue is just one indicator of performance and certainly doesn’t suggest that a distributor with a higher sales revenue figure than another is “better” in any way. After all, the Power List generally excludes many prominent value focused distributors because the very nature of their business means they simply don’t do the volumes needed to warrant a place on the list.

However, what revenue does give us is a snapshot of market demand and an indication of the size and scale of the IT distributors involved in the majority of transactions that take place in the Middle East channel.

All those that made the Power List this year, did more than $100m in revenue in FY2012, so any possible participants need to make this threshold at least.

We believe that it is imperative that all data published in these pages is verified to the best of our ability. We hope the measures outlined above will contribute towards building a more accurate and transparent picture of the distribution sector in the Middle East, as well as creating a level playing field for each distributor included in the list.

Editor’s note

We believe the Power List 2013 contains the 16 largest Dubai- and KSA-based IT distributors operating in the market based on the data available to us at the time of research. However, we also acknowledge that there may be other IT distributors in the region which would qualify for inclusion so if you feel there are any glaring omissions then please let us know and we will consider those companies in future.

The 2013 Power List
DistributorChange20122011AuditorStaffActive Accounts
Redington Gulf FZESame$2.123bn$2.024bnDeloitte & Touche1,39912, 992
Metra Computer FZCOSame$660m$702mErnst & Young8004000
Jumbo IT DistributionSame$513m$443mGrant Thornton100700
FDC International FZEUp$422m$420mPuthran Chartered Acc.180800
Global Distribution FZENew Entry$367m$293.5mMoore Stephans30200
Logicom Middle East GroupSame$320m$335mKPMG2152,500
Almasa IT DistributionSame$310m$318mDeloitte & Touche1751,000
Mitsumi DistributionNew Entry$245mN/APKF1852600
Mindware FZ LCCUp$234.5m$202.7mDeloitte & Touche1391610
Asbis Middle East FZCODown$209m$215mKPMG105700
Trigon LLCUp$162.75m$160mKPMG102400
Westcon ME GroupUp$161m$143mDeloitte & Touche1351000
Despec MERA LTDDown$143.7m$161mKPMG112850
Gulf Shadow Computer SystemsNew Entry$120mN/AYoussry & Co, Auditing & Consultancy1002,000
Al-Jammaz DistributionNew Entry$111mN/AAlbasam160800
Empa Middle East FZCOSame$106m$106mErnst & Young801000

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