Dubai Chamber: IT market worth $3.2 billion in 2009
Local governments account for around 20% of all IT services spending in the country
The Dubai Chamber of Commerce & Industry claims the IT market in the United Arab Emirates will be worth $3.2 billion this year, based on its analysis of a recently published Business Monitor International (BMI) report.
The October BMI report however, which itp.net was privy to, forecasts the UAE IT market will suffer an 8% contraction in spending compared to last year to reach $2.8 billion in 2009.
According to BMI the UAE's computer hardware is the hardest hit in the region by the global recession this year and is projected to have a value of $1.5 billion, representing a 12% contraction from 2008.
The software market is not expected to show major gains either, but the UAE is being hailed as one of the region's fastest-growing ERP markets. IT services spending growth will be flat in 2009 but remain in positive territory over the next four years, with spending expected to rise from an estimated $816 million this year to around $1.3 billion in 2013.
The BMI report also adds that the UAE IT market as a whole, which represents 1.2% of the country's GDP, is expected to grow despite the recession to reach around $4.1 billion in 2013. Dubai Chamber's analysis differs slightly to put the market value at $4.7 billion instead.
According to Dubai Chamber, the chief drivers of the sector include local and federal government initiatives and development of the non-oil sectors such as real estate and tourism.
It's believed that local governments account for around 20% of all IT services spending, with Dubai leading the way.