UAE electronics market to grow 6% in 2010
Sales of electronic goods set to rise to around $2.77bn this year
The UAE consumer electronics market is expected to retain its title as one of the leading markets in the region, with sales forecast to rise six percent to around $2.77bn this year, according to a study released by the Dubai Chamber of Commerce and Industry on Saturday.
“Located at the crossroads of Asia, Africa and Europe, the electronics distributors of the UAE serve a potential market of almost two billion consumers,” the report by the Dubai Chamber said.
Strong local demand is also likely to contribute to the growth in the market.
The study quotes a report by Business Monitor International (BMI), which found that the emirates was the biggest market in the Gulf for consumer electronics and is forecast to grow six percent in 2010, up from $2.62bn in 2009 to $2.77bn by the end of the year.
Dubai is the dominant market, with the emirate accounting for around two-thirds of consumable electronic goods imported in the UAE.
The Dubai Chamber study found that the series of shopping festivals held each year in Dubai helped boost sales, with festivals such as Summer Surprises, Gitex Shopper, Consumer Electronics Expo and the Dubai Shopping Festival accounting for up to half of sales for some distributors.
However, there are some direct challenges for distributors, the study found, including the growth in counterfeit electronic goods and low margins due to increased competition in the market.