Levant region to post average growth rate of more than 15 % in Information Technology
The Levant region is poised to register a compound average growth rate of more than 15 per cent in Information Technology over 2003 - 2008 period, which would boost the region's total IT spending to an annual US$ 4.5 billion in 2008, said a recent Madar Research study.
Nearly half of the total IT spending will be on computer equipment, including PCs, notebooks, servers and peripherals, in view of the fact that the region has a low PC penetration of 2.11 per cent, and Internet penetration of 3.63 per cent.
The study describes the Levant region - comprising Egypt, Iraq, Jordan, Lebanon, Palestine and Syria - as the Arab world's IT melting pot, with the highest growth of 43 per cent projected for Iraq.
"While some Levant countries have achieved remarkable results in PC penetration over the past few years, others are aggressively promoting the adoption of IT, spearheaded in most cases by respective governments," said Farid Sabbagh, Distribution Manager, Middle East, Fujitsu Siemens Computers.
"It is obvious that the demand for computer hardware in all Levant countries will shoot up dramatically. Fujitsu Siemens Computers, as part of its expansion drive, is expecting to take a considerable market share in the computer equipment segment, as we have been able to make major inroads into the Middle East markets, driven by our state-of-the-art products and solutions that are designed to help end-users migrate to the IT world more efficiently
According to the Madar study, the highest concentration of IT spending across the Levant in 2003 was for computer equipment. Egypt spent 46 per cent of IT budget on computer hardware and peripherals, with initiatives like "Computer for Each Student" and the "PC for Each Home project."
Iraq's IT spending in 2003 accounted for a mere 8.66 per cent of the total Levant market, but the country is projected to register the highest compound average growth rate of 44 per cent, to reach US$ 1.185 billion in 2008.
The study further shows that Jordan, Lebanon and Syria will achieve a compound growth rate of 11.6, 10.1 and 15.5 per cent over the 2003 - 2008 period. Palestine has the lowest IT market value, but this is offset by a high Internet penetration rate of 8.42 per cent, second only to Lebanon (11.8 per cent).
"The Levant markets display trends that indicate an immediate acceleration in the spread of computer literacy and IT penetration," said Sabbagh. "Fujitsu Siemens Computers is constantly monitoring the situation in each of these markets. With our focus on state-of-the-art solutions that have made us one of the leading IT vendors globally, we are ready to make aggressive forays into the Levant countries." (menareport.com)