Dubai-based information technology resellers face a tough time as business margins fall by about 50 per cent due to rising costs and increasing number of expats returning to their countries.

Majority of IT resellers depend on export customers from Africa and local market. In the local market, expats form at least 80 per cent of the customer base.

Rakesh Bohra, Head of Wifi Computer Zone and communication secretary at Dubai Computer Traders Group, said: "Margins in IT business were always thin and now it has got thinner. Maintaining costs is another factor as it is important to give staff the same salary. Market volatility does not change this. This is another reason runaway IT trader cases have risen this year."

IT resellers witness 50% fall in margins