Boston, MA -- (SBWire) -- 08/08/2013 --IT is central to Saudi Arabia's modernisation and economic diversification plans. We expect the government's efforts at achieving both goals, and other growth and development targets, to drive IT spending during our forecast period, ending 2017. There is a strong pipeline of major IT projects by government and enterprise across multiple sectors. We expect the implementation of these projects to boost IT spending in the latter part of 2013 and over the medium term. Particularly large opportunities exist in healthcare and education, as well as cloud computing adoption and investments in smart systems that require hardware, software and services. These trends will combine to ensure Saudi Arabia remains the biggest IT market in the Gulf, and the kingdom will continue to be a lucrative market for technology products and services.
Headline Expenditure Projections
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Computer Hardware Sales: SAR7.91bn in 2012 to SAR8.39bn in 2013, +6% in local currency terms. Although PC sales slowed down in H113, growth in the segment is driven by a deepening of the tablet market and evolution in form factors.
Software Sales: SAR2.88bn in 2012 to SAR3.05n in 2013, +6.2% in local currency terms. Upgrades to Windows 8 will boost sales in 2013, while modernisation by enterprises will provide momentum for the business software market over the medium term.
IT Services Sales: SAR4.55bn in 2012 to SAR4.90bn in 2013, +7.8% in local currency terms. Investments in smart cities' projects and the adoption of cloud computing services will drive growth.
Risk/Reward Ratings (RRR): Saudi Arabia's score is 58 out of 100.0. Although this was a considerable increase from a score of 53.4 in the previous quarter, Saudi Arabia dropped one place to sixth in our latest Middle East and Africa RRR table.
Key Trends & Developments
- Government IT spending is an important pillar of Saudi Arabia's IT market growth, with the government taking advantage of developments in several industries to lower costs and improve services. According to Telecare provider CompuGroup Medical (CGM), the Saudi government allocated US$1.74bn for medical devices in 2012, growing 17.8% from 2011. IT services and hardware are increasingly important to developments across many different sectors, creating opportunities for IT hardware and software companies to diversify revenues. CGM's positive outlook for the Saudi telecare market is shared by mobile operator Mobily, which has launched a telecare partnership with drugmaker Sanofi.
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New Market Report Now Available: Saudi Arabia Information Technology Report Q3 2013
New Computer Technology market report from Business Monitor International: "Saudi Arabia Information Technology Report Q3 2013"