New Computer Technology market report from Business Monitor International: "Saudi Arabia Information Technology Report Q2 2012"

Boston, MA -- (SBWire) -- 05/21/2012 --Saudi IT spending is expected to reach US$2.1bn in 2012, up 8%, with BMI upwardly revising its forecast after the PC market outperformed the MEA region to report solid growth in 2011. Saudi Arabia has the biggest IT market in the Gulf region and the Kingdom will continue to be a lucrative market for technology products and services over the forecast period as it invests to upgrade its IT and communications infrastructure. The country's relative political stability compared with some others in the region will also attract vendors.

Headline Expenditure Projections

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Computer hardware sales: US$2.0bn in 2011 to US$2.1bn in 2012, +7% in US dollar terms. Forecast in US dollar terms upwardly revised due to stronger than expected PC sales growth in 2011. Software sales: US$699mn in 2011 to US$765mn in 2012, +9% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification and software-as-a-service (SaaS) business models are expected to provide a growing opportunity for vendors.

IT Services sales: US$1.1bn in 2011 to US$1.2bn in 2012, +9% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification with increased spending on ICT infrastructure translating into long-term growth in IT services investment Risk/Reward Ratings: Saudi Arabia's score was 51.3 out of 100.0. Saudi Arabia dropped to sixth place in our MEA RRR table,. The country ranked sixth for its IT Market score, with its Country Structure score dropping to 65.

Key Trends & Developments.

- Riyadh's 2012 budget has a heavy focus on capital investment to improve the country's transport, energy and social services infrastructure - and this should generate more opportunities for vendors of IT products and services. The next period promises to see more opportunities in sectors such as oil and gas, financial services, healthcare, education and communications.
- Youthful demographics and a growing population should drive demand as BMI predicts that per capita IT spend will reach US$195 by 2016, with PC penetration rising to more than 30%. We see the consumer PC segment holding up relatively well in 2012 as public sector wages, social benefits and food and fuel subsidies have all been hiked substantially in the past year
- 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.

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