Report: ERP market in the Gulf to touch $270 million by 2008

Published April 27th, 2004 - 03:00 GMT

The Enterprise Resource Planning (ERP) market in the Gulf Cooperation Council (GCC) countries is set to touch an estimated $270 million by 2008.

ERP is an information system or process integrating all manufacturing and related applications for an entire enterprise. ERP systems permit organizations to manage resources across the enterprise and completely integrate manufacturing systems.

The Middle East will post a growth of 15 percent compound average growth rate (CAGR) over the years leading up to 2008, according to a Madar Research report. The expected growth rate will be considerably higher than the CAGR of six to eight percent displayed by the global ERP markets, stated a press release.

"The vibrant growth in the ERP markets is driven by the consistent growth in demand for crucial Customer Relationship Management (CRM) and Supply Chain Management modules," said President and CEO of IT solutions provider Al-Falak, Ahmed Ali Ashadawi. "While the retail market has never really been placed under the spotlight, as far as implementation of ERP solutions is concerned, the fact remains that retail organizations seeking to optimize resource planning and effectively manage trading activity can benefit greatly from effective ERP implementation."

The ERP market value of the GCC region stood at an estimated $134 million at the end of 2003. Of this, Saudi Arabia's share alone was $80 million, with United Arab Emirates (UAE) registering second place at $28 million. The combined CRM and SCM modules made up the largest component of the ERP market, with a 31 percent market share, followed closely by finance at 23 per cent of the market share and HR with a market share of 21 percent. — (menareport.com)