Report: ME consumer electronics market worth $37 billion

The Middle East consumer electronics and technology sector is expected to close the year at a $37 billion high, according to a study by the Dubai-based subsidiary of GfK-MEMRB Marketing Services.

The study also predicts that the market will continue riding the wave of growth to hit $39 - $40 billion in 2009.

Mobile and smart phones make up 41% of the entire digital consumer market with sales of $10 billion expected in 2008. It’s followed by desktop and notebook computers at $5 billion and LCD televisions at $4 billion.

Growth has been impressive in all Middle Eastern countries – most notably, the UAE, Saudi Arabia and Iran.

The study also reveals the market structure by channel where, in the UAE, independent retailers still lead with 60% share in volume for product categories such as digital cameras, LCD televisions and mobile phones. However, large retailers like Plug-Ins, Emax and Sharaf DG are also making their presence felt by capturing the remaining 40%.

The digital consumer technology sector is expected to see retail sales in excess of $24 billion by the end of 2008. “Whatever the effect of the global slowdown, we are anticipating continued regional growth in this sector for the full year of 2008 at 9.6% compared with last year,” said Franck Thureau, General Manager of GfK-MEMRB at a recent conference.