Middle East Engineering Software Demand Increases

Cambridge, UK. 25 March, 2008. – According to the latest figures from engineering and enterprise IT applications market research and analysis consultant, Cambashi, in 2007 the Middle East market for engineering applications software grew 10% to �110m. Cambashi forecasts that by 2010 it will grow to �149m. These figures include Cambashi’s estimate for software imported to the Middle Eastern region from India and Pakistan but exclude the market in Iran and Iraq, which this year proved too difficult to research.
Where the markets are
Israel represents the biggest Middle Eastern engineering applications market. At �44m it represents 40% of the whole region’s expenditure. In manufacturing engineering applications it accounts for 60% of the regions spending. Surprisingly, it also accounts for slightly over half of all geospatial engineering spending.
Apart from Israel, it can be quite difficult to establish the location of software’s final user. A complex network of intermediaries and agents facilitates cross border trading. However, Cambashi estimates that the UAE is the second biggest market accounting for 29% of the region’s engineering applications spending. The researcher also estimates that 75% of the demand in the UAE is for software serving architecture, engineering and construction (AEC) disciplines, compared with a world-wide proportion of 38%.
Peter Thorne, managing director at Cambashi, commented, “Today, the Middle East is more diverse and sophisticated than most observers recognize. There is a bias towards large scale engineering rather than manufacturing but all kinds of engineering activities can be found.”
Spending on Large Scale Engineering
There are three main factors causing increased demand for AEC software in the Middle East.
National oil companies in the Middle East have increased engineering activities and have invested in their own design centres. An example is Saudi Aramco’s Exploration and Petroleum Engineering Center (EXPEC) facility.
There is a construction boom throughout the Middle East. In Dubai, according to Gulf News, projects worth �200 Bn are in progress and about a quarter of the world's 125,000 construction cranes are currently operating in Dubai.
Road and utility network infrastructure are rapidly being improved, to cope with increased commerce and increasing mobility of a more affluent population.
Growth prospects
Cambashi forecasts that in 2008, Middle Eastern demand will increase another 10% to �120m.
With a large part of the market concentrated in Israel and a fairly mature economy, growth in the region depends to a significant extent on growth in Israel.
Cambashi forecast that in 2008, the Israeli market will grow 8% to �47m. The UAE will enjoy the region’s fastest growth. Cambashi forecasts that growth there will increase from 10% in 2007 to 13% in 2010.
* ENDS* *

Note to Editors
The Middle East comprises all the States on the Arabian geographic peninsular, as well as Israel, Iran, Iraq, Jordan, Lebanon, the Palestinian Territory, Syria, Armenia, Azerbaijan and Georgia. It is split into three sub-groups: Israel; the United Arab Emirates (Abu Dhabi, Dubai, Sharjah, Ajmin, Fujairah, Rasal-Kaimah, Umm al-Qaiwain); and Other Middle East (Armenia, Azerbaijan, Bahrain, Lebanon, Oman, Qatar, Yemen, Saudi Arabia, Kuwait, the Palestinian Territory, Syria).

About Cambashi
Cambashi, based in Cambridge UK, provides independent research and analysis of the business reasons to use of IT in industry world-wide. Its specialist fields include Engineering and Enterprise applications and the infrastructure to enable industrial firms to use IT effectively. Cambashi publishes market size estimates in the Engineering Applications Market Observatory. Its clients vary in size from small to large and include most of the leading software vendors and many pioneering IT users. Cambashi is a member of CATN, an international association of consultants.

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