SAP will expand business in the Middle East and north Africa
Tag: SAP expand business, north Africa
Summary: As well as investing in new markets, SAP has made a number of acquisitions to boost its reach in emerging technologies.
SAP said it would hire 500 more people for its Middle East and Africa division, almost tripling the current headcount of 300. The company also aims to certify 2,000 new consultants who can help clients use SAP’s computer systems – three times the existing number.
The company said it would establish several new offices across the region, in addition to its existing operations in Dubai, which have been going since 2007.
The investment follows a plan, unveiled last autumn, to invest $2bn to double the size of SAP’s footprint in China. SAP is aiming to increase its annual revenues by about 40 per cent to €20bn by 2015, part of which will be driven by expansion in emerging markets.
Despite the unrest of the Arab spring last year, SAP said the Middle East and north Africa (Mena) region was one of its best-performing, with double-digit compound revenue growth between 2008 and 2011. According to IDC, the technology analyst company, SAP has a 37 per cent share of the Middle East and north Africa market for business software.
“SAP has experienced good growth rates already in Mena, and now we look to accelerate this,” said Werner Brandt, SAP’s chief financial officer. “Mena is one of the fastest-growing regions for SAP moving forward.
“Globally, our ambition is to exceed €20bn in total revenue by 2015. Our goal is to reach more than 1bn people with our mobile solutions. We are aiming to build a €2bn cloud business and to become the fastest-growing database company.”
SAP said it was also looking at expansion in Latin America, although no new spending plans have been announced there.
In contrast with many of its technology sector peers, SAP has been bullish about growth after achieving record annual profits last year. The company has hinted that the €20bn medium-term sales target could be increased to €21bn.
As well as investing in new markets, SAP has made a number of acquisitions to boost its reach in emerging technologies.