Business Monitor International


Saudi Arabia Information Technology Report

Published 04 August 2014

  • 105 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Saudi Arabia Information Technology Report

BMI View: the Saudi Arabian IT market is set to remain the biggest in the Gulf region over the medium term with continued support from government policy and the dynamic of enterprise modernisation. Clearly defined ICT policies, helped by the country's relative political stability, aim to increase the sector's contribution to overall economic growth. Meanwhile, high income levels in Saudi Arabia are a boon to premium vendors such as Apple, as well as reducing consumers' appetite for counterfeit products, with well-developed formal distribution channels making it easier for vendors to reach customers. There is however downside to an otherwise positive outlook due to the deteriorating security situation in Iraq and Syria as well as the effects of 'Saudisation' which is expected to be a drag on consumer spending. 

Headline Expenditure Projections

Computer Hardware Sales: SAR10.3bn in 2013 to SAR10.6bn in 2014, +2.6% in local currency terms. Desktop and notebook volumes are expected to stabilise in 2014, while the continued growth of the tablet market will see total value growth accelerate from 2013.

Software Sales: SAR3.6bn in 2013 to SAR3.9n in 2014, +7.4% in local currency terms. The withdrawal of Microsoft support for XP will increase OS spending in enterprises, while wider enterprise software adoption will continue to deepen among SMEs.

IT Services Sales: SAR5.0bn in 2013 to SAR5.3bn in 2014, +5.6% in local currency terms. Adoption of cloud computing services will be the fastest area of growth, but smart infrastructure deployment is also an emerging growth area.

Key Trends And Developments

  • The Saudi hardware market contracted in 2013 as desktop and notebook volumes declined sharply; however, there remains growth potential over the medium term to attract vendor interest. For instance, Taiwanese vendor Acer  is targeting double digit growth in 2014 through its range of tablets and hybrid notebooks. Meanwhile global tablet market leader Apple  was...

Table of Contents

BMI Industry View
7
SWOT
9
IT SWOT
9
Wireline SWOT
11
Political
13
Economic
15
Business Environment
16
Industry Forecast
17
Table: IT Industry - Historical Data And Forecasts (Saudi Arabia 2011-2018)
17
Macroeconomic Forecasts
22
Table: BMI And Bloomberg Consensus Forecasts For Brent, Q114-2016 (USD/BBL)
24
Industry Risk Reward Ratings
29
Table: Middle East And Africa RRRs - Q3 2014
32
Market Overview
33
Hardware
33
Software
40
Services
46
Industry Trends And Developments
53
Regulatory Development
59
Table: IT Regulatory Authorities
59
Competitive Landscape
62
Local Companies
62
Table: Saudi Business Machines (SBM)
62
Table: AWAL IT Services
63
Table: Hasoub
64
Table: Arabic Computer Systems (ACS)
65
International Companies
65
Regional Overview
66
Demographic Forecast
71
Table: Saudi Arabia's Population By Age Group, 1990-2020 ('000)
72
Table: Saudi Arabia's Population By Age Group, 1990-2020 (% of total)
73
Table: Saudi Arabia's Key Population Ratios, 1990-2020
74
Table: Saudi Arabia's Rural And Urban Population, 1990-2020
74
Methodology
75
Industry Forecast Methodology
75
Sources
76
Risk/Reward Ratings Methodology
77
Table: It Risk/Reward Ratings Indicators
78
Table: Weighting Of Components
79

The Saudi Arabia Information Technology Report features Business Monitor International (BMI)'s market assessment and independent forecasts covering personal computers and software; semi-conductors, memory chips, integrated circuits and general components; the internet and IT solutions. It analyses analyses regulatory changes (licensing, customs and intellectual property protection) and competitive landscapes comparing IT companies by products, sales, market share, investments, projects and expansion strategies.

BMI's Saudi Arabia Information Technology Report provides industry professionals and strategists, corporate analysts, IT associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the IT industry in Saudi Arabia.

Key Benefits

  • Benchmark BMI's independent IT Industry forecasts for Saudi Arabia to test other views - a key input for successful budgetary and strategic business planning in the Saudi IT market.
  • Target business opportunities and risks in Saudi Arabia's IT sector through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments in Saudi Arabia.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts, views and trend analysis covering IT, regulatory changes, major investments and projects and significant national and multinational company developments.

Regional Overview

Cross-border analysis of regional markets, commenting on IT penetration (PC and internet) and market growth drivers (IT market size and IT market compound growth).

Country Market Overview

Structure, size and value of the industry sectors including hardware, software and services; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments and government authority.

BMI Industry Forecasts

Historic data series and forecasts to end-2018 for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:

IT Sector: IT industry value (US$bn); IT sector contribution to GDP (%); value of hardware, software and services industry (US$mn); PC, peripherals and software imports and exports (US$mn); PC, peripherals and software sales (US$mn); number of PCs (`000); PCs/100 inhabitants; internet users (`000); internet users per 100 inhabitants; broadband subscribers (`000); broadband subscribers per 100 inhabitants.

Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).

BMI Macroeconomic Forecast

BMI forecasts for all headline macroeconomic indicators to end-2018 including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.

Competitive Landscape

Full analysis of the competitive landscape within the hardware, software and services sectors.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc