Saudi Arabia Information Technology Report

Published 10 July 2015

  • 88 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 . We believe that global IT firms with considerable local presence will benefit the most from this opportunity . Local players will also benefit as global vendors look to form partnerships to ease market access . 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. The macroeconomic and policy environment is driving IT market growth and investment in the private sector , however there is downside from a prolonged period of depressed oil prices and regional security tensions .

Headline Expenditure Projections

  • Computer Hardware Sales: SAR10.04bn in 2014 to SAR10.03bn in 2015, -0.1% in local currency terms. Desktop and notebook demand expected to continue recovery after cannibalisation during the tablet boom, but a slowdown in tablet demand will be a drag on overall hardware spending, resulting in contraction in 2015.

  • Software Sales: SAR4.4bn in 2014 to SAR4.7bn in 2015, +8.5% in local currency terms. Enterprise software adoption will continue to deepen among small- and medium-sized enterprises as Software-as-a-Service (SaaS) becomes more widely available and awareness levels increase.

  • IT Services Sales: SAR5.6bn in 2014 to SAR6.1bn in 2015, +10.3% in local currency terms. Adoption of cloud computing infrastructure and platform services will be the fastest area of growth, but smart infrastructure deployment is also an emerging growth area.

Key Trends And Developments

BMI believes that through its partnership with Meraas, Aliyun (the datacentres and cloud computing arm of China-based e-commerce giant Alibaba) is well placed to benefit from the emergence of smart cities and related infrastructure over...

BMI Industry View
7
SWOT
9
IT SWOT
9
Political
11
Economic
13
Operational Risk
14
Industry Forecast
16
Table: IT Industry - Historical Data And Forecasts (Saudi Arabia 2012-2019)
16
Macroeconomic Forecasts
23
Industry Risk Reward Ratings
30
Middle East And Africa Risk/Reward Index - Q3 2015
30
Table: MEA IT Risk/Reward Index - Q315
33
Market Overview
34
Hardware
34
Software
42
Cloud Computing
50
Services
54
Industry Trends And Developments
62
Regulatory Development
69
Table: IT Regulatory Authorities
69
Competitive Landscape
72
Local Companies
72
Table: Saudi Business Machines (SBM)
72
Table: STC Advanced Solutions (formerly AWAL IT Services)
73
Table: Hasoub
74
Table: Arabic Computer Systems (ACS)
75
International Companies
75
Regional Overview
76
Middle East And Africa
76
Demographic Forecast
79
Demographic Outlook
79
Table: Population Headline Indicators (Saudi Arabia 1990-2025)
80
Table: Key Population Ratios (Saudi Arabia 1990-2025)
80
Table: Urban/Rural Population & Life Expectancy (Saudi Arabia 1990-2025)
81
Table: Population By Age Group (Saudi Arabia 1990-2025)
81
Table: Population By Age Group % (Saudi Arabia 1990-2025)
82
Methodology
84
Industry Forecast Methodology
84
Sources
85
Risk/Reward Index Methodology
86
Table: It Risk/Reward Index Indicators
87
Table: Weighting Of Components
88

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.

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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