Contributions of Abu Dhabi's Electronic Markets

Due to their enviable low tax and duty free structures, the environment of Abu Dhabi and Dubai remain highly conducive to a highly pleasant shopping experience, especially when it comes to electronic items. In fact the local Chamber of Commerce and Industry has highlighted and appreciated the contribution of the consumer electronic goods market to the economy of the country in light of the PCs, notebooks and accessories making up the dominant share of consumer spending last year.

The appreciation reflects the value that Abu Dhabi’s consumer electronics market has for the UAE’s economy and puts the spotlight on the emirate’s unique geographical location, as the country is a major electronics trading hub that re-exports consumer electronic items to South Asia, the CIS states, Africa and the rest of the Gulf. In comparison, Dubai forms a major trading center for the UAE electronics market accounting for 80 per cent of UAE's total exports and 85 per cent of re-exports.

The electronics market has seen phenomenal growth in recent years. In addition, the organizing of large electronic exhibitions in Abu Dhabi not only provide an impetus to the electronics market but reaffirms the emirate's position as an electronics investment hub in the region as various Government initiatives promote the UAE as a favorite business destination.

The consumer electronics market in Abu Dhabi has been boosted by excellent telecommunications and IT infrastructure. Local market demand in the UAE has become more important than re-export trade in recent years. In fact the domestic consumer electronic devices market including computing devices, mobile handsets and video and audio gaming products was estimated to be valued at around $2.9 billion in 2008. The most important categories were computer hardware, mobile handsets and audio-visual devices.

The UAE’s domestic consumer electronics market is estimated to increase to $3.9bn in value by 2013. It is further expected that increased demand will be driven by the popularity of 3G and 4G mobile handsets, notebooks, big screen LCDs, smart-phones and other new devices.

Despite the global economic slowdown, demand was expected to hold steady in 2009. From 2010 onwards, demand is expected to increase strongly for the categories that comprise the consumer electronics market. Export demand emanating from the GCC countries and India is expected to help mitigate the adverse impact of the slowdown in the export market of the USA.

It is the low import duty rates that have made the UAE a trading center for consumer electronic goods. However destinations for exports and re-exports have shifted over the years, with waves of demand for electronic goods seen from Africa and the CIS states. Initially, most of the trade was based with South Asian countries. Lately the CIS has emerged as a major export destination. More currently, East Africa has also become a major destination for UAE consumer electronic goods, which has compensated for a leveling off in demand from the CIS.