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UAE will Spend $3.3b in 
IT and Communications

The total capital expenditure for these communications and IT requirements is estimated to be $1.22 billion this year, $1.33 billion in 2010 and $736 million in 2011, said Ed Malkoun, Group Exhibition Director of IIR Middle East. The database company Proleads conducted the forecast for the Middle East Communications exhibition and conference, which IIR Middle East will hold at the Abu Dhabi National Exhibition Centre on May 25-27.

The forecast indicates that Arab Gulf countries as a whole would spend about $4.5 billion on IT and communications hardware in these same three years. The Proleads forecast covers all six Gulf Co-operation Council countries — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. The results show that the UAE will account for most of the infrastructure demand for materials such as communications cabling, with a projected expenditure 
of $3.3 billion.

The forecast also indicates that in the GCC countries, mixed-use civil projects including roads, schools and hospitals, will account for the bulk of communications hardware spending during the three-year period, at around $2.95 billion. Residential developments will account for a further $674 million, and commercial developments such as airports, offices, hotels, railways and retail shops for about $577 million.

“The steady growth of information technology and communications infrastructure continues to be a major element in the development of the region in spite of slowdowns in other sectors,” Malkoun said.

“On a global basis, fixed broadband Internet lines have reached 1.1 billion — only one sixth of the world’s population,” he added. “Regional figures are still low as Saudi Arabia, the biggest market, has a penetration of only four per cent. Broadband ‘DSL’ penetration in the UAE is around 11 per cent, according to Arab Advisors Group. But, as the Proleads data shows, residential and mixed developments are taking up broadband services aggressively,” he said.

He said it was unclear whether the financial crisis might affect these spending plans but added that none have 
been cancelled.

MECOM will include regional operators and service providers and telecommunication companies and regulators from the Middle East and Africa.

Last year MECOM attracted 5,640 business-to-business visitors from 49 different countries.

ramavarman@khaleejtimes.ae