The Art of Wow

Digital signage and digital retail solutions are a must in most flagship stores around the Gulf. But the region is suffering from the global Corona effects and the low oil price, the grease that fuels the economy in the region. A look at the current situation.

Political tensions and Covid-19 are causing beads of sweat for digital signage experts in the Middle East. The situation forced the governments of the United Arab Emirates (UAE) to postpone globally significant events. The world exhibition Expo 2020 had to be re-dated by one year to October 2021. The 2022 FIFA World Cup in Qatar is still scheduled for December 2022, but is plagued by construction delays and bad press due to human rights violations. Since the spring, Covid-19 has also dried up the most important industry for Dubai: Aviation and tourism. Regarding Corona, the Kingdom of Saudi Arabia has relaxed the lockdown regulations at least to the extent that cinemas and other leisure activities are allowed to reopen. However, major infrastructure projects in Riyadh and on the Red Sea have also been delayed due to the pandemic. The economic outlook currently looks worse than during the financial crisis in 2008.

Even in the current depressed economic climate regional retailers are open as ever for new WoW experiences. The show must go on and shopping malls have opened again. Obviously, currently budgets are limited, and new ambitious construction projects are on hold, but consumers in the UAE, Saudi Arabia, Qatar are very demanding. They expect world class experiences – the best or nothing. Unfortunately, most projects in the reason just aim for the best Wow-effect and are usually lacking any sustainable, long lasting business models. But large curved, fine-pixel LED-Walls as well as ultra-thin and unusually shaped displays are very popular. Sophisticated digital installations were planned for Expo 2020 – the installation of most of high-profile projects has been delayed. Control and Command Center installation and government in general are mostly delayed since the oil price dropped to new record lows.

Most of digital signage is plain vanilla – usually digital poster and not very dynamic. But local regulations require all signage in Arabic and English, promoting the usage of digital signage not only in QSR but at many touch points throughout all retail and leisure categories. The potential for digital signage remains high, but local market knowhow is mandatory. Most relevant digital signage integrator are operating out of the UAE as most brands and retailers are also headquartered in the UAE.

The Middle East – GCC, Egypt and Levant offer a large potential for digital signage – unfortunately, political tensions make business often a challenge. Invidis has been active in the region for more than ten years and we remain bullish in the mid- to long term.

Information and communications
companies in the Middle East:

UAE
■ Alpha Data
■ Connectiv
■ Etisalat Technology Services (ETS)
■ GBM (Gulf Business Machines)
■ Jumbo Electronics
■ MDSPACC
■ PIXCOM
■ Omnix International
■ TACME
■ TRIGON

Oman
■ Nasma Trading

Kingdom of Saudi Arabia (KSA)
■ Cloud Distribution / Perfect Presentation (2P)
■ Dynamics Systems

Bahrain
■ Fakhro Electronics
■ Infinite Technologies

Qatar
■ Habegger
■ Mannai Group
■ TechnoQ
■ ZERONE Technologies

Kuwait
■ BOnline (ehemals Gulfnet Communications)

Egypt
■ TECO