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Information and Communication Technology (ICT) adoption in the Arab world grew by 24 per cent in 2003

Posted: 30 June 2004

With a 42 per cent share of the high-value ICT contracts signed in 2003, UAE and Saudi Arabia lead the region in ICT adoption

Adoption of Information and Communication Technology (ICT) in the Middle East continued to demonstrate a healthy upward trend in 2003. According to a recent survey conducted by Madar Research, the combined regional ICT index registered 24 per cent growth over four segments, including installed PC base, internet penetration, mobile networks and fixed land lines.

In another significant indicator of ICT adoption trends, the UAE and Saudi Arabia were in the first and second position respectively in the count of high-value ICT contracts (valued at more than US$ 100,000 per contract) signed in 2003.

“The ICT markets have never been more vibrant in the Middle East and more particularly in the GCC countries. The initial investments made by governments and private organisations into advanced ICT infrastructures have begun to demonstrate visible benefits in streamlined work flows, improved customer relationship and data management, as well increased profitability,” said Ahmed Ali Ashadawi, President and CEO, Al-Falak, the leading IT and Communications solutions provider in the GCC (Gulf Cooperation Council) region. “This has encouraged more and more organisations in both the public and private sectors to install new or upgrade existing ICT networks. This is reflected in the steady increase in the installed PC base and internet penetration, as well as mobile networks in the Middle East.”

According to statistics provided by Madar Research Group, Internet penetration, growing at 45 per cent, has registered the steepest growth as compared to other segments of ICT markets. Mobile phone subscription has gone up by 40 per cent. The installed PC base grew by 14 per cent in 2003, with the rate expected to rise to 16 per cent in 2004. The slowest growth took place in the fixed line segment. The estimated 10 per cent of growth in this segment is reflective of the increased preference given to mobile communications.

In a related Madar survey of top 400 ICT deals signed in the Middle East in 2003, it was revealed that while the UAE (with 24 per cent share of the deals) maintained its lead position in ICT adoption, Saudi Arabia (with an 18 per cent share) had made impressive gains. In the third place were Kuwait and Egypt (tied at 10 per cent each). Oman, Iraq and Jordan were some of the other countries that demonstrated increased ICT adoption in 2003.

In another interesting development, Middle Eastern ICT technology providers have won an increasing number of ICT contracts within the region, with Egypt and UAE tied at 4 per cent each, along with France, Germany and India. With a 51 per cent share of the market, USA remains the single largest provider of ICT technology, through both direct supplies and partnerships of US companies with local distributors.

“As one of the leading IT and Communications solutions providers with more than 25 years of experience in the region, we, at Al-Falak, have perceived an increased demand for our ICT consultancy, as well as Human Resources services. With a view to meeting this demand and encouraging the further growth of the market, we have recently re-focused our marketing strategy on development of human skills, and the introduction of new and pioneering technology in the region,” explained Ashadawi.

“With a region-wide distribution network, we have actively identified the industry segments with high demand for cutting-edge technologies. Besides the telecommunications industry, the high-growth sectors are Government organisations and the Finance and Banking sector, both of which are already our areas of strength, along with the Oil and Gas industry. Over the years, we have also garnered extensive experience in the Education, Health, Travel and Hospitality and the Small and Medium enterprise segments of the ICT market. With ICT solutions customized to client as well as industry requirements, we will seek to apply our experience into the further development of these segments,” concluded Ashadawi.

About Al-Falak
Al-Falak Electronic Equipment & Supplies Company is one of the leading suppliers of network solutions, computer hardware, application software, manpower and IT consultancy services within the Middle East. Since its formation in 1981, the company has provided the information infrastructure to many prestigious organizations, which range from practically every government ministry and agency to universities in Saudi Arabia, Kuwait, the United Arab Emirates, Bahrain, Qatar and Oman, as well as domestic and international private companies.

Al Falak’s name is now practically synonymous with IT in the region. This 100% Saudi owned company has built upon its platform of existing partnerships with some of the most reputable companies in the IT industry. The majority of their staff is IT professionals, consultants, specialists or technicians. This combination helps to ensure that Al-Falak keeps fully abreast of industry standard platform changes to offer constantly updated systems integration, installation, programming, training and support.

For more information see www.alfalak.com

Posted by Richard Price, Editor Pipeline Magazine

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