GCC Enterprise Resource Planning market to touch USD 270 million by 2008

According to a study conducted by the Dubai based Madar Research Group, the GCC region will post a growth of 15 per cent CAGR (compound average growth rate) over the years leading up to 2008. The expected growth rate will be considerably higher than the CAGR of 6 to 8 per cent displayed by the global ERP markets.

'The vibrant growth in the ERP markets is driven by the consistent growth in demand for crucial Customer Relationship Management (CRM) and Supply Chain Management modules. While the retail market has never really been placed under the spotlight, as far as implementation of ERP solutions is concerned, the fact remains that retail organisations seeking to optimize resource planning and effectively manage trading activity can benefit greatly from effective ERP implementation,' said Ahmed Ali Ashadawi, President and CEO, Al-Falak, the leading IT and communications solutions provider in the GCC (Gulf Cooperation Council) region.

The ERP market value of the GCC region stood at an estimated US$ 134 million at the end of 2003. Of this, Saudi Arabia's share alone was US$ 80 million, with UAE registering second place at US$ 28 million. The combined CRM and SCM (including procurement) modules made up the largest component of the ERP market, with a 31 per cent market share, followed closely by finance at 23 per cent of the market share and HR with a market share of 21 per cent.

'It is significant that the largest demand for ERP solutions to rest in the retail markets of GCC. While the manufacturing and financial segments of regional markets had the financial means to invest in the costlier ERP solutions of a decade or so ago, the retail market, especially the small and medium enterprises have recently begun to benefit from newer ERP suites that are more flexible and more modular, as well as taking less time and money to implement,' explained Ashadawi. 'Al Falak is ideally placed to customize complete IT solutions for clients in this market segment, as the company has garnered years of experience in the ERP market and has handled first-hand the migration of older IT solutions to the cutting-edge software solutions entering the market.'

Ashadawi was speaking on the occasion of Al Falak's participation in the Saudi Retail Forum, held recently at Jeddah, Saudi Arabia, where the company showcased its range of ERP Solutions, Computer Supplies & Accessories, Software Solutions and Networking Solutions. Amongst the components crucial to retail organisations, Al Falak's ERP solutions featured the Implementation of a Point of Sales (POS) Application; Management Information System (MIS); Inventory Management; and Warehouse Integration. At the Forum, Al Falak showcased the combination of PeopleSofts' back-end ERP solution with Retail Pro's front-end point of sales (POS) solution as the complete IT solution for retailers in the Middle East market.

Al Falak also sponsored the exhibition area at the Saudi Retail Forum, which comprised 150 participants from amongst leading retail organisations in GCC.