UAE residents' spend on mobiles...

UAE residents spent more than half-a-billion dollars on acquiring new handsets last year.

According to the latest statistics provided by Business Monitor International (BMI), UAE residents spent $508 million (Dh1.86 billion) in 2013.

The rise in demand for handsets – mainly smartphones - is attributed to the growing population and increasing number of tourists.

The UAE enjoys one of the world’s highest mobile penetrations in the world as each individual on an average owns about two handsets – equal to 200 per cent.

BMI expects UAE residents’ spending on mobile phones to be more than 36 per cent to $694m in 2017.

Electronics

Mobile sales accounted for around a quarter of total electronics sales last year.

Residents spent $4.1bn on buying electronics items including computers, audio and video items and mobile phones.

A recent survey by retailer Plug-Ins, reveals UAE residents’ spending on electronics have risen by 62 per cent to Dh4,875 compared to Dh3,000 in September 2013.

Around $2.2bn worth of computers were bought by residents, last year which is expected to surge to $2.7bn in 2017. BMI expects sale of Windows 8 Tablets and ultrabooks to grow, with consumers increasingly interested in services that can be used wirelessly.

Audio and video sales, which totalled $1.4bn in 2013, is likely to touch $1.7bn in 2017. “We believe flat-screen TV sets will remain the main growth driver,” BMI analysts said.

“We expect the continued influx of visitors into the UAE as well as the positive business sentiments and private consumption to sustain demand for consumer electronics products across the three segments of PCs, AV devices and handsets. Over the next few years, we expect more product innovation, distribution channel expansion and aggressive marketing strategies from local and international vendors as they aim to take advantage of the market's strong growth outlook,” BMI says.