Information technology business in the UAE crossed USD 2.01 billion last year, growing at 10.1 per cent. The UAE's IT sector is the fastest growing in the world, according to industry experts. And, the market will grow at the same rate till 2010, when it will reach $2.5 billion.
This success saw the light because of the UAE's zero income and corporate tax policy, strong legal framework, robust and effective intellectual property protection system, and the free flow of capital, information, and people. Now, the UAE is looking forward to bring in investment for the semiconductor sector.
The UAE needs basic technology tools and services but the position of the market in the life-cycle curve is at expansion stage. The average annual growth rate of the Middle East and North Africa region's IT and communication sector will be 9.9 per cent until 2010.
While the region's growth in the sector is the highest globally, there is a lot more potential since the industry is in the infancy stage. The way is paved for innovation and options in comparison to more mature and saturated markets. The average increase in IT expenditure and investment in the Gulf and Middle East stands at about 8.5 percent until 2011 compared to a 4.3 percent of other market.
Overall, the UAE looks poised to absorb a lot of investment in IT and communication, promising a far superior Return On Investment (ROI) to investors.
1 comment:
These are nice insights regarding the industry. You have a nice way of analyzing the industry according to industry life cycle. It certainly relates to an article I recently read: http://www.coursework4you.co.uk/industry_lifecycle.htm.
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