Growth in Internet users in GCC spells boom time for PC vendors

Dirk de Waegenire

Dubai, Jan.5, 2003 () -- The growing popularity of the Internet in the GCC states has brought about a resultant increase in PC penetration, according to findings by Dubai-based pan-Arab Madar Research Group. Recent studies by the group estimate that the number of Internet users in the GCC countries has multiplied ten-fold in the past four years, while PC penetration has doubled during the same period. The figures also point to an unprecedented spurt in demand for PCs in the near future,going by the trend in Europe and the United States where the Internet-to-PC penetration is in the ratio of around 1:1. Statistics recently released by Madar Research indicate that in the six GCC states, there are 121 users per 100 PCs, a ratio that appears to be set to change dramatically in view of the high computer literacy in the GCC region which incidentally has more than 40 per cent of all Internet users in the Arab world, though it is home to only 11 per cent of the total Arab population.

The positive growth forecast has generated great interest among PC vendors operating in the region as they can now look forward to expanding their customer base and increased IT spending. Commenting on the recent figures released by Madar Research, Dirk de Waegenire, Vice President International Sales, Fujitsu Siemens Computers (FSC), the fastest growing IT vendor in the region, said: "These estimates reiterate what we have projected all along and only serve to reinforce our initial plans to expand our operations further in the region. The Internet has been a driving force for many people to buy PCs, laptops and notebooks. The excitement surrounding the Internet has become all-pervasive and is reflected in the general trend for individuals to own a PC and in the mushrooming of Internet cafes. Sooner or later, these new converts are going to become PC owners, slowly bridging the gap between PC penetration and Internet usage." "The increasing use of the Internet in the business scene as Gulf-based companies reach across the world to create a global presence, has also brought about a consequential rise in PC buying. With an increasingly mobile workforce, there is a clear requirement for a new generation of products and solutions that enable organizations to integrate mobile workers with business critical resources, and drive new business and revenues faster and more efficiently

The Mediterranean, Middle East and Africa (MMEA) region has proved to be one of the fastest growing segments in this context with FSC recording an overall growth of 107 per cent across its product range," he added. The Internet spread in the GCC countries has been driven by advanced telecommunications infrastructure, high purchasing power and a Government-spearheaded push towards digital economy. In 1998, GCC had just 330,000 Internet users and 1.2 million installed PCs, giving a ratio of one Internet user per 3.6 PCs.

Today there are 3 million Internet users and 2.5 million PCs. In comparison to the scenario in the US however, this growth is still relatively slow. Madar Research figures show that the overall Internet penetration in the GCC now stands at 9.23 per cent, while PC penetration is just 7.64 per cent, in sharp contrast to the scene in North America where the Internet penetration is 57 per cent and PC installed base is 62 per cent. There are 109 PCs for every 100 users in America. Taken individually, some GCC countries have seen a higher IT growth than others. The UAE leads the way in Internet penetration of around 28 per cent, while Bahrain figures at the top by way of a strong PC base of 16 per cent. Qatar and Kuwait have recorded an impressive growth in PC penetration, a trend that is likely to be repeated in several other Arab countries. "We have set our targets very high for the region, spurred by promising growth trends fuelled by Governments that are committed to support and lead the IT revolution and a population that has displayed a voracious appetite for PCs and IT products," said de Waegenire. "The Internet is finding applications across Government departments and sectors, as well as businesses that are compelled to migrate to advanced systems and techniques in order to survive in a competitive world." -keralamonitor.com