BMI View: Uncertainty surround s Saudi Arabia ' s economic and IT market outlook in a lower oil price environment after there were steep decline s in the oil price s in ce 2014 . The core scenario is for a stabilisation in oil prices, and economic performance, that will support an IT spending CAGR of 2.8% over 2016-2020. The hardware segment has the weakest outlook where PC saturation and the threat of cannibalisation by smartphones are negatives - so it will be software and services spending that drive the market expansion to 2020. Relatively low adoption rates, new opportunities such as cloud computing and smart services, as well as opportunities from economic diversification and modernisation are all positives, but we warn that there will be a downside if the oil price moves lower again and affects government spending, or if the execution of economic diversification initiatives is unsuccessful .
Latest Updates & Industry Developments
Computer Hardware Sales: SAR15.1bn in 2016 to SAR15.2bn in 2020. Flat market envisaged, as population growth driver is offset by the potential for cannibalisation of PC sales, particularly tablets, by smartphones.
Software Sales: SAR7.9bn in 2016 to SAR9.4bn in 2020. Low adoption rates for software and economic diversification efforts mean there is considerable potential, but much will depend on the execution of government policies to reduce dependence on oil and gas.
IT Services Sales: SAR10.2bn in 2016 to SAR12.4bn in 2020. The cost savings and flexibility offered by services such as outsourcing, cloud computing and smart services should prove attractive in an uncertain economic environment and drive segment outperformance.
|Hardware Segment A Drag, While Software And Services Have Greater Potential|
|IT Market Forecast By Segment|
|f = BMI forecast. Source: BMI|
The Saudi Arabia Information Technology Report features BMI Research'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.
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.
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.
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).
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.