Omens look bad for Dubai computer trader
Future of IT re-exporter looks grim following speculation that owner has fled the market
Fears are mounting that depressed market conditions have caused another Dubai IT trader to shut up shop.
Sahwan Computer Technology, which is based in the Khaleej Centre off Khalid Bin Waleed Road, has not been open for business for the last three days. Calls to the showroom last night went unanswered.
Sources claim the owner of the shop fled the country last week, leaving behind trade debts estimated at between AED800,000 and AED1m (US220,000 and US$270,000). The money is believed to be owed mainly to other IT dealers in the Dubai market.
"We don't know exactly how things are going to turn out in this case, but as of now the situation looks a little dicey," said one trader.
Sahwan sold a wide variety of IT products from international brands, including components, notebooks and PC upgrade equipment. Most of its business is understood to have come from re-export activities to East Africa, particularly Djibouti.
The Dubai trading channel has been plagued by financial problems this year. Local players suggest that losses arising from defaults during the first six months of the year totalled more than US$5m as companies such as Jebel Hatta, Al Kuwami and Syntax went to the wall.