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Enterprise Application Software Markets in Arab Middle East and North Africa Rebound After Contraction Following Arab Spring, Says IDC

Dubai, January 26, 2012 - While enterprise application software (EAS) markets in the Arab Middle East and North Africa have recovered from the global crisis, the recent Arab Spring may have a mixed impact. Due to political upheaval in the region in the first half of 2011, spending on EAS solutions is expected to have contracted sharply. Nevertheless, according to a recent study by market research company IDC, with major economic stimulus packages announced during H1 2011, public services, housing projects, and the availability of credit are expected to rise over subsequent quarters, boosting IT and EAS investments in the short term. Ongoing and greenfield infrastructure projects are also expected to contribute to increased spending on EAS solutions.

"Spending on EAS solutions in the Middle East and North Africa, or MENA, region has recovered after the global economic crisis, with pent-up demand for up-to-date EAS solutions driving growth. That said, recent political turmoil in several states in the region will affect projects and delay some anticipated EAS spending for 2011 and 2012," says research manager Dhiraj Daryani, IDC Middle East, Africa, and Turkey. "As IT budgets are squeezed, CIOs are being asked to do more with less, and customers are demanding that vendors bring in world-class implementation expertise for EAS projects. The current growth in analytics in the region is just the tip of the iceberg. Enormous opportunities for vendors exist to help organizations unlock the value in their data."

All MENA markets expanded in 2010, with Gulf Cooperation Council (GCC) countries other than Saudi Arabia and the UAE growing the fastest, followed by Egypt and Saudi Arabia. Growth in the Levant (Jordan, Lebanon, and Syria), North Africa, and the United Arab Emirates was comparatively slow. Saudi Arabia remained the largest market in the MENA region, followed by the UAE. The other GCC countries combined (Bahrain, Kuwait, Oman, and Qatar) followed in third position, the North Africa sub-region (Algeria, Morocco, and Tunisia) was fourth, and Egypt came fifth. The Levant was the smallest EAS market in the MENA region in 2010.

EAS license and maintenance (L&M) spending in MENA reached $459.92 million in 2010, representing 7.5% year-on-year growth. The biggest spenders were process manufacturing companies, which accounted for 19.2% of the market. The government sector was the second-largest vertical market, with 14.1% share, while combined finance ranked third, with 11.8% of the total market in 2010.

The MENA region's EAS market is dominated by the global giants SAP, Oracle, and Microsoft Dynamics. SAP was again the largest EAS vendor in the region, reporting L&M revenues of $170.51 million. Oracle placed second, with L&M revenue of $156.39 million and 34.0% share of the market. Microsoft Dynamics remained in third position, with EAS revenue of $39.6 million in 2010, reflecting 8.7% year-on-year growth.

IDC's Arab Middle East and North Africa Enterprise Application Software Market 2011-2015 Forecast and 2010 Vendor Shares (IDC #ZR01T) study provides an overview of the MENA market for integrated EAS suites. EAS vendors tracked in this study include 3i Infotech, Applied Computer Services, Cegid, Epicor, Exact Software, Focus Softnet, IFS, Infor, Involys, Lawson Software, Microsoft, Oracle, QAD, Sage, and SAP. The study provides detailed qualitative and quantitative information, analysis, and forecasts that help illustrate the size and other defining characteristics of the market, leading players and their positioning, which industries are investing in EAS solutions, and how region-specific political and economic conditions affect the MENA market.

For information on purchasing this document or for details about any other IDC research in the MEA region, please contact Karan Dixit (kdixit@idc.com, +971 4 364 2006).

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About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 47 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

© Press Release 2012