I got a Sony 5.1 system some time back from Dubai (Amp+SW+speakers, no DVD player) and it is good.
Just recently I got another one abroad, its a Yamaha (YHT-185). With same wattage as the Sony, its quality is much better than the Sony. Very clear and balanced sound.
I would recommend Pioneer and Yamaha in your budget. They are available at Nashco electronics, Zamzama.
Sony, Philips etc are mediocre. OK, but not for audiophiles.
Another good option would be Logitech or Creative Mega/Giga systems, they are really good too. Plus u can connect them to your PC as well as home theatre.
Personally, I like big speakers (the floor standing ones), but they are not in vogue these days. They produce the best sound.