Business Monitor International


Saudi Arabia Information Technology Report

Published 09 October 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:  Saudi 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 opportunity. 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 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

  • In line with our view of global tech firms expanding their local presence in Saudi Arabia to take advantage of the growth opportunities, Tech Mahindra established a JV with Midad Holding, a subsidiary of  Al Fozan Group, in July 2014. There are considerable mutual benefits for the two companies in the JV. Midad is a well diversified holding company with interests in oil & gas, energy, manufacturing and IT & telecoms services. We believe the partnership with Tech Mahindra will strengthen its IT services offering by leveraging Tech Mahindra's expertise, expensive solutions portfolio, and strong global brand....

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.

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