Kuwait Information Technology Report Q1 2013
- ID: 2373248
- January 2013
- Region: Kuwait
- 79 pages
- Business Monitor International
Kuwait IT spending is expected to reach US$978mn in 2013, up 4%, buoyed by high oil prices and heavy government spending. Kuwait, the third-largest computer market in the Gulf, should offer favourable IT market trading conditions in 2013, and local IT spending should continue to provide opportunities for IT vendors over our five-year forecast period. Drivers will include government projects,
population growth, and strong demand from the construction and oil and gas sectors.
Headline Expenditure Projections:
Computer Hardware Sales: US$393mn in 2012 to US$401mn in 2013, +2% in US dollar terms.
Forecast in US dollar terms downwardly revised due to macroeconomic factors, but tablets and ultrabooks should provide alternative growth areas.
Software Sales: US$253mn in 2012 to US$268mn in 2013, +6% in US dollar terms. Forecast in US dollar terms downwardly upwardly due to analyst modification and trade liberalisation and growing regional competition are fuelling enterprise spending on software and systems.
IT Services Sales: US$290mn in 2012 to US$309mn in 2013, an increase in US dollar terms. Forecast in US dollar terms unchanged and high oil prices will boost spending growth over the forecast period.
Risk/Reward Ratings: Kuwait's score was 56.3 out of 100.0. Kuwait has dropped to fourth place, out of 11 countries, in our latest RRR table, behind Israel, the UEA and Qatar, but ahead of Saudi Arabia.
Key Trends & Developments:
- Expected increases in oil output and prices should provide support for higher IT budgets in the key oil and gas vertical. Oil companies such as Kuwait leader Kuwait National Petroleum Company (KNPC) continue to invest in IT, and work is under way on the US$14bn Al-Zour refinery. However, Kuwait's Development Plan should encourage a gradual pick-up in the nonhydrocarbons sector over the coming years.
- Construction should be a promising IT spending vertical. Kuwait is emerging as a regional construction hub and projects such as the US$2bn expansion of Kuwait International Airport
(KIA) should drive opportunities for IT vendors. Combined public and sector investment in construction is forecast to surpass US$11bn over the next five years.
- The last two years have seen continued e-project implementation by various Kuwaiti state organisations. The social welfare ministry now allows online submission of forms and email notifications. The defence and finance ministries are also recognised as particularly advanced,
while the finance minister has called on the ministry's IT staff to redouble their efforts in this area. The Kuwaiti Ministry of Education is implementing a New Technology Infrastructure Project (NTIP), aimed at raising the level of IT utilisation in schools. SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 7
Kuwait IT Sector SWOT 7
Kuwait Telecoms Industry SWOT 8
Kuwait Political SWOT 9
Kuwait Economic SWOT 10
Kuwait Business Environment SWOT 11
MEA IT Risk/Reward Ratings 12
Table: Middle East And Africa IT Risk Reward Ratings, Q113 14
MEA IT Markets Overview 15
IT Penetration 15
Sectors And Verticals 18
Market Overview 22
Government Authority 22
End-User Analysis 30
Industry Developments 31
Industry Forecast 34
Table: Kuwait IT Industry - Historical Data And Forecasts (US$mn unless otherwise stated), 2009-2017 37
Industry Forecast Internet 38
Table: Telecoms Sector - Internet - Historical Data & Forecasts, 2009-2016 38
Competitive Landscape 40
IT Services 43
Internet Competitive Landscape 44
Macroeconomic Forecast 47
Table: Kuwait - Economic Activity, 2011-2016 49
Company Profiles 50
Khorafi Business Machines 50
Microsoft Corporation 51
Table: TCS Revenues By Geography, (US$mn) 55
Oracle Corp 67
Country Snapshot 71
Table: Kuwait's Population By Age Group, 1990-2020 ('000) 72
Table: Kuwait's Population By Age Group, 1990-2020 (% of total) 73
Table: Kuwait's Key Population Ratios, 1990-2020 74
Table: Kuwait's Rural And Urban Population, 1990-2020 74
BMI Methodology 75
How We Generate Our Industry Forecasts 75
IT Industry 75
IT Ratings - Methodology 76
Table: IT Business Environment Indicators 77
Table: Weighting Of Components 78