BMI View: IT is central to Saudi Arabia's modernisation and economic diversification plans. We expect the government's efforts to achieve both goals, and other growth and development targets, to drive IT spending during our five-year forecast period, ending 2017. There is a strong pipeline of major IT projects by government and enterprise across multiple sectors. We expect the implementation of these projects to boost IT spending in the latter part of 2013 and over the medium term. Particularly large opportunities exist in healthcare and education, as well as cloud computing adoption and investments in smart systems that require hardware, software and services. These trends will combine to ensure Saudi Arabia remains the biggest IT market in the Gulf and the Kingdom will continue to be a lucrative market for technology products and services.
Headline Expenditure Projections
Computer Hardware Sales: SAR7.91bn in 2012 to SAR8.39bn in 2013, +6% in local currency terms. Although PC sales slowed down in H113, growth in the segment is being driven by a deepening of the tablet market and evolution in form factors.
Software Sales: SAR2.88bn in 2012 to SAR3.05n in 2013, +6.2% in local currency terms. Upgrades to Windows 8 will boost sales in 2013, while modernisation by enterprises will provide momentum for the business software market over the medium term.
IT Services Sales: SAR4.55bn in 2012 to SAR4.90bn in 2013, +7.8% in local currency terms. Investments in smart cities' projects and the adoption of cloud computing services will drive growth.
Risk/Reward Ratings (RRR): Saudi Arabia's score is 55.8 out of 100.0. Although this was a considerable increase from a score of 53.4 in the previous quarter, Saudi Arabia dropped one place to fifth in our latest Middle East and Africa RRR table.
Key Trends & Developments
In common with other GCC states, Saudi Arabia recorded a slowdown in PC sales during H113, mainly due to strong demand for tablets, smartphones and...
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.
- 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).
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.
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.
Full analysis of the competitive landscape within the hardware, software and services sectors.
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.