Business Monitor International


Saudi Arabia Information Technology Report

Published 09 January 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: Clear government support for IT in Saudi Arabia will ensure that it remains the biggest IT market in the Gulf region. While clearly defined ICT policies, helped by the country's relative political stability, aim to increase the sector's contribution to overall economic growth, high income levels in Saudi Arabia reduce consumers' appetite for counterfeit products, with well-developed formal distribution channels making it easier for vendors to reach customers. We note, however, that the effects of 'Saudisation' have yet to run their course, with potential reductions in consumer spending a downside risk to our forecasts.

Headline Expenditure Projections

Computer Hardware Sales: SAR8.36bn in 2013 to SAR8.73bn in 2014, +4% in local currency terms. Although PC sales are slowing, growth in the segment is being driven by a deepening of the tablet market and evolution in form factors.

Software Sales: SAR3.04bn in 2013 to SAR3.22n in 2014, +5.9% in local currency terms. Upgrades to Windows 8 will boost sales in 2014, while modernisation by enterprises will provide momentum for the business software market over the medium term.

IT Services Sales: SAR4.88bn in 2013 to SAR5.20bn in 2014, +6.6% 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 scores 59.2 out of 100.0 in our rankings. This is a substantial increase from 55.8 in Q114, meaning the country has risen one place in our rankings to fifth place out of the 13 markets in our assessment, falling behind Kuwait but ahead of South Africa.

Key Trends And Developments

  • In January 2014 Al Hammadi Development and Investment Company, the parent company of Al Hammadi Hospitals, signed an agreement with technology firms Cisco and Wipro to launch three smart hospitals in Saudi Arabia as part of a SAR90mn (US$24mn) commitment to offer premium healthcare services. Many other public and private...

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: Saudi Arabia's IT Industry - Historical Data And Forecasts, 2010-2017 (SARmn)
17
Broadband
23
Table: Telecoms Sector - Internet - Historical Data And Forecasts, 2010-2017
23
Macroeconomic Forecasts
26
Table: Saudi Arabia - Economic Activity
36
Industry Risk Reward Ratings
37
Table: MEA IT RRR - Q1 2014
39
Market Overview
41
Hardware
41
Software
48
Services
54
Industry Trends And Developments
61
Regulatory Development
66
Table: IT Regulatory Authorities
66
Competitive Landscape
68
Table: Saudi Business Machines (SBM)
68
Table: AWAL IT Services
69
Table: Hasoub
70
Table: Arabic Computer Systems (ACS)
71
Company Profile
72
Microsoft Corporation
72
Hewlett-Packard
79
IBM
86
Table: IBM Acquisitions, 2012 (total value, US$3
88
Regional Overview
92
Demographic Forecast
97
Demographic Outlook
97
Table: Saudi Arabia's Population By Age Group, 1990-2020 ('000)
98
Table: Saudi Arabia's Population By Age Group, 1990-2020 (% of total)
99
Table: Saudi Arabia's Key Population Ratios, 1990-2020
100
Table: Saudi Arabia's Rural And Urban Population, 1990-2020
100
Methodology
101
Industry Forecast Methodology
101
Sources
102
Risk
Risk
Table: It Risk Reward Rating Indicators
104
Table: Weighting Of Components
105

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