Saudi Arabia Information Technology Report

Published 09 April 2015

  • 118 pages
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  • 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. 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.

  • 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 (SMEs) as Software-as-a-Service (SaaS) becomes more widely available and awareness levels increase. Security software expected to be another area of outperformance, with Saudi enterprises and public bodies exposed to escalating regional cyber skirmishes.

  • 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

  • A combination of BMI's bullish outlook for SME enterprise adoption potential in Saudi Arabia, and the significance of SaaS provision in unlocking the market, was evident in the March 2015 announcement from Saudi Arabian mobile operator Etihad...

Table of Contents

BMI Industry View
7
SWOT Analysis
9
Consumer Electronics Market
9
Political
11
Economic
13
Operational Risk
14
Industry Forecast
16
Table: Consumer Electronics Overview (Saudi Arabia 2013-2019)
16
Macroeconomic Forecasts
20
Economic Analysis
20
Table: Bmi Crude Oil Price Forecast
22
Industry Risk Reward Index
29
Industry Risk/Reward Index
29
Table: MENA Consumer Electronics Risk/Reward Index, Q215
33
Market Overview
34
Computers
34
Table: PC Sales (Saudi Arabia 2013-2019)
34
AV Devices
42
Table: AV Sales (Saudi Arabia 2013-2019)
42
Mobile Devices
47
Table: Mobile Communications (Saudi Arabia 2013-2019)
47
Competitive Landscape
54
Local Companies
54
Table: Modern Electronics Company Limited
54
Table: Alesayi Electronics
55
Table: United Matbouli Group
56
Table: MeMega
56
Table: eXtra
57
Industry Trends And Developments
58
Company Profile
63
Eros Group
63
Jumbo Electronics
66
Axiom Telecom
69
Demographic Forecast
73
Table: Population Headline Indicators (Saudi Arabia 1990-2025)
74
Table: Key Population Ratios (Saudi Arabia 1990-2025)
74
Table: Urban/Rural Population & Life Expectancy (Saudi Arabia 1990-2025)
75
Table: Population By Age Group (Saudi Arabia 1990-2025)
75
Table: Population By Age Group % (Saudi Arabia 1990-2025)
76
Methodology
78
Industry Forecast Methodology
78
Sector-Specific Methodology
79
Sources
79
Risk/Reward Index Methodology
80
Sector-Specific Methodology
81
Table: Consumer Electronics Risk/Reward Index Indicators
81
Table: Weighting Of Indicators
82

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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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