UAE Country Commercial Guide 2012 - Export.gov

Significant obstacles still stand in the way of a more pronounced recovery, including weak credit
conditions and Dubai's onerous debt repayment schedule. The shift towards more cautious domestic
spending patterns is likely to persist well into 2012, with overall consumption growth remaining
muted, particularly in Dubai, though increased tourism may provide some positive boost to demand.
Sub-Sector Best Prospects Return to top
Computer hardware accounts for approximately 55% of the UAE’s consumer electronics spending;
followed by AV devices at about 35%; and mobile handsets 11%. Important to this sector is the the
UAE’s role as a trading hub serving the expanding markets of Saudi Arabia and the Gulf, as well as
the Indian sub-continent, the Commonwealth of Independent States (CIS), and East Africa.
Opportunities Return to top
The compound annual growth rate (CAGR) for sales of computer hardware over 2012-2016 is
forecast at about 6%, with stronger demand in the notebook sector. The AV market is expected to
grow at a CAGR of 5%. The rollout of high-definition broadcasting will drive demand for premium TV
sets and Blu-ray devices. Mobile handsets are expected to grow at a CAGR of 6%. Sales will be
dominated by the replacement market and revenues will be driven by demand for smart phones and
3G handsets. The competition between two local telecom providers, Etisalat and du telecom, will
further drive development in the 3G handset segment.
Trade Show: Gitex – October 14 – 18, 2012 (http://www.gitex.com/).
Web Resources Return to top
The Content Factory: http://www.tcf-me.com/client_portal/10/news_releases/1004365021
Business Monitor International: http://www.marketresearch.com/Business-Monitor-Internationalv304/United-Arab-Emirates-Consumer-Electronics-6773396/