Kazi Najib Ashraf: trade winds UAE

NAJIB,S corner VIP article Mobile trading is at a whole new level and has always been evolving. A fast-moving commodity unlike any other product depending on brand movements and regional geopolitical situations, it still holds the power of the legends. UAE being the hub of regional trade, recent developments in terms of markets and regulations has had a paradigm shift in how things will be done from now on. Change is always good, but at times painful to move into the next phase. Markets are maturing and coming on par with the international way of doing business. There is a strong in-country focus with the core being sold at independent retailers and key domestic retailers, and a major influence of network operators providing attractive packages to lure in new consumers.

I had a frank conversation with four experts with in-depth views and experience of the market that revolved around only two questions: what the current state of trading is, and what future they see for this dynamic trade.

An optimist by nature, Mahmoud Tawfiq of al

Thanayyan International sees the current slowdown as an expected phenomenon after years of an overheated market.

Today, the brands on their own do not offer any added value in terms of feature set or design. The overall approach is to have a strong in-country presence. The carousel revolves around Apple, Huawei/Honor and Samsung controlling the channels, and so does the investment in branding and visibility. There had once been a rush from traders to take on distribution of brands, but this has alarmingly disappeared. For the time being, there is a correction in the market consisting of a downward trend. Lending for SME’s as well as credit insurance for mobile businesses is a challenge. Additionally, the introduction of VAT in UAE and Saudi Arabia has adversely affected local business. To top it all off, the ROI on business is getting more and more restricted. Trends are moving from trading to servicing of channels, and whoever is patient enough to cater to this change will be the ultimate winner. In the meantime, Saudi Arabia, Iraq and a few major regional markets have closed their doors to product being re-exported from the UAE, adding fuel to the already existing fire.