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Follow on Google News | New Market Research Report: Saudi Arabia Information Technology Report Q2 2011New Computer Technology research report from Business Monitor International is now available from Fast Market Research
In 2011, Saudi IT spending is forecast to record high single-digit growth compared with 2010. Government-driven investments in transportation, property constructions and water and power plants, will drive opportunities for IT vendors. The government's five-year development plan focuses mainly on infrastructure and aims to boost the role of the non-hydrocarbon private sector. Saudi Arabia's IT market has a number of positive drivers, including a growing population and government projects. BMI predicts that per-capita IT spend will reach US$186 by 2015, as PC penetration rises to more than 30%. Youthful demographics and a growing population will support a positive market trajectory. ------------------------------------------------------------ Full Report Details at - http://www.fastmr.com/ ------------------------------------------------------------ Industry Developments The government continues to regard development of the country's information communications technologies (ICT) industries as a national priority. Saudi Arabia's governing Shoura Council has a strategic objective for the IT industry to raise its contribution to GDP to 20% by 2020. Another key goal is to raise broadband penetration to 31% by 2013. Despite the economic downturn, Saudi Arabian government bodies pressed ahead with ambitious egovernment and IT projects. Among major projects, the Medical Services Division (MSD) of the Ministry of Defence and Aviation (MODA) was implementing a nationwide unified medical system. The system aimed to link all 26 MSD hospital and 68 medical centres and clinics across six of the county's regions. The Saudi government is implementing a US$3.1bn plan to improve the education system. The focus of the plan, approved by the Saudi cabinet in 2009, is to equip schools to keep pace with scientific and technological activities. The King Abdullah Project has allocated around half the funds (SAR4.2bn) to improve the education environment and another SAR3.58bn for extracurricular activities. Competitive Landscape In 2010, IT vendors were positioning themselves to take advantage of an expected new wave of investment by the energy sector. In May 2010, Elecsys, a provider of data acquisition, telemetry and analysis systems for critical industries, announced that it had appointed Saudi company Gulf Energy Solutions Corporation (GESCORP) as a distributor partner. In January 2010, Sahara Petrochemicals Company adopted HP systems to improve its data centre infrastructure The consumer goods sector also saw demand for e-business solutions, offering vendors opportunities in 2010. In November 2010, Alfia Foods, part of leading Saudi industrial group the Savola Group, announced the implementation of the Oracle E-Business suite to support long-term growth strategies and integrate and streamlining manufacturing processes. Growing opportunities mean that multinational vendors have continued to increase their presence in the Saudi market. French IT Services giant Atos Origin announced in 2010 that it would return to Saudi Arabia and the GCC states. In December 2010, Certified IT Consultants (CIC,) one of the largest SAP services companies in the region, said that it was setting up an office in Riyadh. Computer Sales Saudi computer hardware sales including PCs, notebooks and accessories are forecast to reach US$1.9bn in 2011. PC penetration is currently about 24% and should increase to more than 30% by 2015. In contrast to other states in the region, such as the UAE, which have recently been hit by an exodus of expatriate workers, Saudi Arabia's growing population will be a positive market driver. Stronger demand in the notebook sector is the main growth area, as consumer sales feel the benefits of aggressive channel promotions. Small and medium-sized enterprises (SMEs) are exhibiting a stronger tendency to favour mobility, accounting for a growing proportion of notebook shipments. One of the government policies that vendors are capitalising on is the well-known United Instalment Scheme (USI) finance option, which makes high-quality notebooks available to small and medium businesses. Software BMI forecasts a software market value of US$666mn in 2011, up from US$608mn in 2010. The software segment is projected to grow at a CAGR of 9% over the forecast period. Oil and gas is the largest software vertical purchasing sector, followed by government and telecoms, but there is a growing interest in vertical solutions in industries like retail, construction and engineering. Over BMI's five-year forecast period, software-as- IT Services The Saudi Arabian IT services market is estimated at around US$1.1bn in 2011 and is expected to grow at a CAGR of 9% over the 2011-2015 forecast period. The economic slowdown inevitably had an effect on demand in some of the key IT spending verticals. The next period promises to see more opportunities in sectors such as oil and gas, financial services, healthcare, education and communications. Support and maintenance account for around one-third of spending on IT services, but the market for more complex services such as outsourcing has grown. E-Readiness Increased public awareness of the internet, the growth of broadband services, the decreasing cost of internet access and computers (both PCs and laptops) and a wider range of internet services have all been cited as reasons for the strong internet usage growth. 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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