Expanding GCC IT market boosts demand for advanced technology platforms

"The expanding GCC market, which stood at US$ 6 billion in 2002, is poised to record more striking growth within the next three years, fuelling demand for proven solutions for enterprise applications and system integration", said Diyaa Zebian, Regional Manager, Middle East & Egypt, eSolutions BEA. Zebian's optimistic forecast is based on market research projections, which indicate that the GCC IT market value will cross the US$8 billion figure by 2005.

"The pace of IT growth across the region has accelerated remarkably in recent years, as governments and private companies have embarked on streamlining the processes across multi silo applications," said Zebian. "To keep the IT engine running, the services of specialists will be needed to set up the appropriate infrastructure to ensure trouble-free functioning of data and business workflow of various systems."

The region's IT landscape is set to change dramatically within the next years judging by market research figures. According to Madar Reseach Group, the GCC IT market will grow at a compound average growth rate of 9.4 per cent over the next three years, to touch US$ 8 billion per annum. The market will be driven by robust activity in the IT markets of Saudi Arabia and the UAE, which together constitute over 80 per cent of the GCC's entire IT market. The third major player is Bahrain, which has allocated a huge budget for IT, above the world average.

"Much of the growth in the IT services sector as discerning clients are focusing on strategic consultancy, unified technology platforms and total solution approach," said Zebian. "Market figures are projecting a compound growth rate, which fully justifies our new drive for playing a key role in meeting the advanced business requirements of clients. BEA's industry-leading solutions, which are used by some of the biggest corporations globally, are now within easy reach of the region's booming IT industry."

"The bright forecasts in IT growth are supported by massive investments being made by key GCC governments keen to boost their non-oil revenues by moving to the Digital Economy," said Zebian. "The Governments are often the driving force in this IT expansion, and that is one reason why IT growth is higher in the Gulf than some of the developed countries. This drive is impacting businesses as well as the community, indirectly accelerating the region's march towards the Digital Economy."

IT Spending in GCC has shown tremendous growth, according to Madar Research figures.When viewed as a percentage of the Gross Domestic Product (GDP), Bahrain tops the list with 3.97 per cent, against the world average of 3.88 per cent, followed by Saudi Arabia (1.99 per cent) and UAE (1.77 per cent).

Taken as one entity, GCC countries also score well against the world per capita spend on IT, a significant barometer of a country's adoption of IT. Bahrain, UAE and Qatar show a higher per capita IT spend of US$ 453, US$ 336 and US$242 respectively, against the world average of US$ 200 per year. Per capita IT spend in Kuwait, Saudi Arabia and Oman constitutes 85, 77.5 and 38 per cent respectively.

"The figures clearly show that the GCC market holds out great potential for technology platforms specializing in proven solutions. Growth in IT goes hand in hand with sophistication in services," said Zebian. "This position is where eSolutions BEA, who is backed by its acclaimed solutions and a worldwide network, can help various companies leverage the benefits of IT."

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