Business Monitor International


Saudi Arabia Information Technology Report

Published 09 January 2015

  • 112 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: Sau di Arabia offers compelling growth opportunities for IT solution providers across multiple industry verticals owing to the kingdom's strong macro fundamentals and the government's economic diversification plan, which is driving growth and investment in the private sector. We believe that global IT firms with considerable local presence will benefit the most from this opportuni ty. A number of major IT firms have already taken steps in recent years to ramp up their operations in the country, usually through partnerships with local system integrators.

Headline Expenditure Projections

Computer Hardware Sales: SAR10.3bn in 2014 to SAR10.3bn in 2015, +0.2% in local currency terms. Desktop and notebook demand expected to remain stable, but a slowdown in tablet demand will be a drag on overall hardware spending.

Software Sales: SAR4.1bn in 2014 to SAR4.5n in 2015, +8.2% in local currency terms. Enterprise software adoption will continue to deepen among SMEs, while SaaS and security software expected to outperform.

IT Services Sales: SAR5.6bn in 2014 to SAR6.1bn in 2015, +10.3% 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

  • Indian IT services giants have made major strides in Saudi Arabia in recent years and continue to target the enterprise market opportunity. For instance, in September 2014 Wipro won a contract from the Saudi Electricity Company (SEC) to deliver two major SAP ERP applications projects that will improve SEC's service delivery to its 5mn customers. The projects are expected to be completed by mid-2015. Earlier in January, Wipro won a joint contract with Cisco to launch three smart hospitals in Saudi Arabia for Al Hammadi Hospitals. Meanwhile, Tech Mahindra established a JV with Midad Holding, a subsidiary of Al Fozan Group, in July 2014to complement Tech Mahindra's existing...

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
23
Economic Analysis
23
Table: BMI AND BLOOMBERG CONSENSUS* FORECASTS FOR BRENT, USD/BBL
26
Table: Economic Activity (Saudi Arabia 2009-2018)
29
Industry Risk Reward Ratings
30
Table: MEA IT Risk/Reward Ratings Table, Q414
35
Market Overview
36
Hardware
36
Software
44
Services
51
Industry Trends And Developments
58
Regulatory Development
65
Table: IT Regulatory Authorities
65
Competitive Landscape
68
Local Companies
68
Table: Saudi Business Machines (SBM)
68
Table: AWAL IT Services
69
Table: Hasoub
70
Table: Arabic Computer Systems (ACS)
71
International Companies
71
Regional Overview
72
Demographic Forecast
77
Table: Saudi Arabia's Population By Age Group, 1990-2020 ('000)
78
Table: Saudi Arabia's Population By Age Group, 1990-2020 (% of total)
79
Table: Saudi Arabia's Key Population Ratios, 1990-2020
80
Table: Saudi Arabia's Rural And Urban Population, 1990-2020
80
Methodology
81
Industry Forecast Methodology
81
Sources
82
Risk/Reward Ratings Methodology
83
Table: It Risk/Reward Ratings Indicators
84
Table: Weighting Of Components
85

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.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the IT sector and within the broader telecommunications, political, economic and business environment.

BMI Industry Forecast

Historic data series (2010-2013) and forecasts to end-2019 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:

  • IT Sector: Industry value (USDmn); IT sector contribution to GDP (%); value of hardware, software and services industry (USDmn); PC, peripherals and software imports and exports (USDmn); PC, peripherals and software sales (USDmn); number of PCs (‘000); PCs per 100 inhabitants; internet users (‘000); internet users per 100 inhabitants; broadband subscribers (‘000); broadband subscribers per 100 inhabitants.
  • Economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).

Information Technology Risk Reward Index

BMI’s Risk Reward Indices provide technology manufacturers, service providers, and IT vendors/leasing agents looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.

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 Macroeconomic Forecast

BMI forecasts for all headline macroeconomic indicators to end-2019 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.

Regional Overview

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

Sources

The information Technology Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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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