PC penetration in the GCC and Levant regions is set to double by 2008. The number of PCs expected to be sold in the two regional blocs between 2003 and 2008 will be around 15 million units, according to a study by Dubai-based Madar Research Group.
When taken individually, the GCC will move ahead with average PC penetration of around 14 percent, against the projected penetration of 5.1 percent for the Levant countries. Strong PC sales in the next three years will help the region narrow the gap in PC penetration with the EU counterparts. Egypt is expected to see the highest growth in PC sales.
“A number of factors are fueling the PC sector in the Middle East,” said Pavan Gupta, GM, eSys Technologies Middle East, an IT component distributor in the region. “For one, governments are strongly pushing e-government initiatives, a move that will make people IT savvy in due course. Secondly, several countries in the region are providing incentives for the development of an IT industry. Thirdly, the business environment is becoming increasingly IT-savvy.”
Anticipating the need for PCs in the region, eSys Technologies Middle East, a subsidiary of Singapore based eSys Technologies, has made Dubai its regional headquarters, with a facility in Jebel Ali capable of producing 400,000 PCs a year. In addition, eSys distributes HDDs, USB flash disks and other components.
“The GCC and the Levant are certainly very vibrant markets for PCs, but a key factor is going to be pricing, as the market is highly price sensitive,” said Gupta. “This is where eSys sees tremendous scope, because we are the pioneers in producing high-quality PCs at reasonable prices. Most of the buyers will look for low-priced PCs and it would be a challenge to most IT distributors and manufacturers to meet the demands of this price-sensitive market.”