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Follow on Google News | Market Report, "Kuwait Information Technology Report Q1 2011", publishedNew Computer Technology research report from Business Monitor International is now available from Fast Market Research
Kuwait's IT spending is forecast to record high single-digit growth in 2011 as the market consolidates a recovery in 2010 from the impact of the economic crisis, which hit Kuwait particularly hard. Businesses are expected to maintain a cautious attitude to IT investments In 2010/11 Kuwait government spending was expected to increase by 10%, following a 38% decrease in the previous year. BMI projects a 2011-2015 IT spending compound annual growth rate (CAGR) of 7%. Kuwait's IT market has a number of enduring strengths, including its relatively small but tech-literate and wealthy population, which make Kuwait an important regional testing ground for new products. Per capita IT spending is forecst to reach US$323 in 2015 from US$249 in 2011. Industry Developments Despite the economic downturn, the last two years have seen continued e-project implementation by various Kuwaiti state organisations. The social welfare ministry now allows online submission of forms and email notifications. The defence and finance ministries are also recognised as particularly advanced, while the finance minister has called on the ministry's IT staff to redouble their efforts in this area. In Q410 the Kuwaiti Ministry of Education announced the launch of a New Technology Infrastructure Project (NTIP) which is aimed at raising the level of IT utilisation in schools. The NTIP project has been billed as just one of the first in a series of planned projects to raise the standard of IT systems in schools. Another related project announced by the MoE is the establishment of a cloud computing centre to serve students and teachers. Company News Growing regional opportunities have led French IT Services giant Atos Origin to announce that it will return to Kuwait. The company plans to serve the GCC region from an office in Riyadh, Saudi Arabia, and a services centre in Egypt which will employ around 100 people. Atos Origin had sold its previous Middle East organisation in 2006, to local management, and the organisation was subsequently acquired by HP. IT vendors are continuing to strengthen distribution strategies for the Kuwait market. In March 2010 Aspen Technology, a provider of sofware and services to the process industries, announced the signing of Arabesque Group as its new representative in the Kuwait market. Meanwhile, enterprise resource planning (ERP) vendor Sage has expanded its partnership with Kuwait-based Eastern Solutions to include the distribution of its ERP and customer relationship management (CRM) solutions in the country. Investors are also looking to take advantage of the regional IT services opportunity. In April 2010, Capinnova Investment Bank announced a minority investment of US$20mn in Kuwait IT services vendor EBLA Computer Consultancy. The investment was one of the largest technology investments in the GCC in 2010. Computer Sales In 2011, the Kuwaiti computer hardware market is expected to reach a value of US$342mn, consolidating a recovery in 2010 from the impact of the global economic crisis. Overall computer hardware sales were estimated at around US$317mn in 2010, making Kuwait the third largest market in the region after Saudi Arabia and the UAE. Software In 2011, total spending on software is forecast at US$220mn, up from US$204mn the previous year. The oil, gas and utility industries in Kuwait will remain a major source of spending and the government's plans to expand oil production to 4.0mn barrels/day in the next 10 years will necessitate additional investment. With trade liberalisation and growing regional competition continuing to fuel enterprise spending on software and systems, however, there should be growth potential across many sectors. Services The Kuwaiti IT services market is projected to be worth around US$253mn in 2011 and is forecast to grow at am 9% CAGR to a value of US$351mn by 2015. The economic situation and credit tightening have had an impact on projects in some key verticals that have been driving IT spending. These include not only oil and gas but the financial, government, education, construction and healthcare sectors. E-Readiness Kuwait is one of the most advanced technological markets in the Gulf, but high subscription costs continue to restrict internet penetration. Growth in the numbers of broadband subscribers has been stronger, but the numbers are still very low. Competition is limited in the supply of broadband services and thus prices have remained high, deterring many potential subscribers. For more information or to purchase this report, go to: - http://www.fastmr.com/ About Business Monitor International Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at http://www.fastmr.com/ About Fast Market Research Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156. # # # Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available. End
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