UAE ERP Market is
anticipated to grow at a steady CAGR during the forecast period of 2024-2028. United Arab Emirates has undergone instant financial
growth in recent years with a focus on differentiating its economy and decreasing
its dependency on oil. As part of these efforts, many companies in the UAE are
transferring to enterprise resource planning systems to modernize their
operations and improve efficiency.
Enterprise Resource Planning (ERP) solutions are
commonly used by organizations to manage their business in structural and
standard way. In the current period, an ERP solution’s business functions have
processed from minor aid and planning operations to whole business process
integration, which includes major responsibilities and decision-making. An ERP
software comprises several software modules, and every module concentration on
certain business activities, including material purchasing, inventory control,
accounting, finance, and HR. Also, to fulfil the needs of the companies,
modules can be customized. The growing need for operational efficiency and
transparency in business processes and escalating demand for ERP software from
small & medium enterprises, are anticipated to drive the market growth. In
addition, the growing adoption of cloud and mobile applications is estimated to
progressively impact the growth of the market in the UAE. The high acceptance
of ERP solutions in small and medium enterprises and the rapid change of modern
business models are likely to provide better opportunities for the expansion of
marketing planning resources in the coming years.
In conclusion, the country has shown tremendous
results in the development of renewable energy, such as solar and wind, as well
as other energy sources. This will impact the sales of ERP solutions in the
region and thus, provide substantial growth in the UAE ERP market. The market
is vastly encouraging with several companies providing energy-saving services
in the region.
The Growing Acceptance of Cloud Computing
The acceptance of cloud computing is expected to
increase the popularity of ERP solutions in UAE. ERP solution is expected to be
dominated by cloud-based solutions. The implementation and operational cost of
cloud-based solutions are comparatively less as compared to on-premises
solutions. The business infrastructure and market size of small and medium size
businesses are higher than large enterprise and thus, they prefer less costly
and effective solution. Cloud based solutions fulfil the needs of such
companies, and thus is expected to drive the UAE ERP market as well. Cloud ERP
solution suggestions lower operational and implementation costs, automatic
updates, easier and faster execution and maintenance, and complete mobility for
users. These benefits make cloud ERP solutions more attractive to businesses,
especially small and medium-sized businesses, and are expected to drive the
growth of the UAE ERP market in the upcoming years.
Need for Acquiescence with Government Authorities
The UAE government has started several procedures that
require business to fulfil with specified requirements. Government provides
facilities to various sectors such as healthcare, retail, finance, and
manufacturing. ERP solutions can alleviate corporations to conform with these
guidelines by requiring a single source of fact for all their data. This can
help organizations to avoid penalties for non-acquiescence, and it can also
help them to improve their efficiency and productivity. These regulations
require healthcare suppliers to restrain precise records of persistent data,
and also require them to report certain types of incidents to the government.
ERP solutions can help healthcare providers to comply with these regulations by
providing a centralized system for storing and managing patient data. The
necessity for accordance with government policies is a major driver of the UAE
ERP market. As the UAE government continues to implement new regulations, the
demand for ERP solutions is expected to grow. In addition to the need for
compliance, there are several other factors that are driving the growth of the
UAE ERP market. These reasons include the growing demand for cloud-based ERP
solutions, the rising demand from small and medium-sized businesses, and the
strengthening accessibility of skilled IT professionals. The UAE ERP market is
expected to grow at a high CAGR during 2024-2028. This growth is being led by a
quantity of factors, including the necessity for accordance with government
regulations. Some advantages that ERP solutions can provide corporations in UAE
are stepped forward settlement with authorities’ regulations:
As mentioned above, ERP solutions can help businesses
to comply with a wide range of government regulations. This can help businesses
to avoid penalties and can help them to improve the efficiency of their
operations. Increased efficiency and productivity: ERP solutions can help
businesses to automate their business processes, which can lead to augmented
efficiency and productivity. This can release up employees to focus on more
strategic tasks, and it can also help businesses to reduce costs.
Improved decision-making: ERP solutions can provide
businesses with perceptions into their procedures that can help them to make
better outcomes. This will lead to enhanced growth and cost effectiveness.
Overall, ERP solutions can offer several advantages to corporations in the UAE.
These advantages include better-quality in accordance with government
instructions, increased efficiency and productivity, improved decision-making,
and superior customer service. As the UAE government continues to employ new
regulations, the demand for ERP solutions is expected to grow in the forecast
period.
Rising Demand from Small and Medium-Sized Businesses
The rising demand from
small and medium-sized businesses for ERP solution has significantly increased
over the period. In recent time, small and medium-sized businesses have grown
in substantial value in the UAE's economic landscape. These firms contribute to
job creation opportunities, innovation, and overall economic growth.
Recognizing the manifest of SMBs, the UAE government has numerous active offers
and amendments to finance their development and urge entrepreneurship.
Moreover, a growing number of small-medium businesses are arising through
distinct sectors such as retail, manufacturing, healthcare, and services.
With their growth, small &
medium businesses (SMBs) encounter the challenge of operating complicated
business practices, efficiently. ERP solutions are made for overcoming such
situations. ERP software assimilates diverse functional spaces such as finance,
sales, inventory management, human resources, and customer relationship
management into an integrated platform. It enables firms to automate processes,
increase data accuracy, and extend real-time insights into their operations.
The rising demand for ERP
systems among SMBs in the UAE can be attributed to several factors. As we know,
SMBs are progressively identifying the need for digital transformation to stay
viable in an increasingly growing business environment. The SMBs understand
that manual developments and unrelated advances impede progress and
effectiveness. By implementing an ERP solution, SMBs can rationalize their
operations, optimize resource allocation, and increase overall productivity.
For ease of doing business and transparency, the government started promoting
the utilization of ERP solutions to other firms in the recent year. The small
firms are attempting to affiliate themselves with these initiatives and
leverage government support, and thus have become more interested in buying ERP
solutions. Small medium businesses (SMB) now have more knowledge of cloud-based
ERP solutions, and how it will help them to enhance their business modules.
Cloud ERP extends flexibility, scalability, and cost-efficiency, making it an
ideal choice for SMBs with limited resources. Moreover, the UAE government's
focus on digitalization and smart initiatives has further accelerated the
adoption of ERP systems among small and medium businesses. In conclusion, the
rising demand for ERP systems in the UAE is primarily driven by small and
medium-sized businesses. These corporations’ evaluation the want for digital
transformation, stepped forward operational performance, and actual-time
insights. With government support, availability of cloud-based solutions, and
increasing awareness of its benefits, firms are embracing ERP systems to unlock
their full potential and drive growth in the UAE's dynamic business landscape.