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Saudi Arabia Information Technology Report Q1 2016

  • ID: 3606492
  • January 2016
  • Region: Saudi Arabia
  • 71 pages
  • Business Monitor International
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The steep decline in the oil price in 2014 and 2015 has put Saudi Arabia's economy on a lower growth trajectory and as a result we have downgraded our IT market outlook in the Q116 update. We now forecast total spending will grow at a CAGR of 1.8% over 2015-2019 to reach SAR42.8bn in 2019. The hardware segment is forecast to underperform over the medium term as a combination of economic uncertainty and market maturity sees spending contract, though volume growth is expected to return in the final years of the forecast. The services market is the bright spot in our outlook, with cost efficiency and flexibility generating solutions expected to see the strongest demand from local enterprises looking for manoeuvrability in an uncertain economic environment. This is even true for the oil and gas segment, where low prices could actually prove a catalyst for a new generation of investment in smart services to increase efficiency and ensure margin maintenance in a depressed global market.

Latest Updates & Industry Developments

Computer Hardware Sales: SAR18.3bn in 2016 to SAR18.1bn in 2019. A weak economic backdrop will combine with market maturity and a dynamic of price erosion to see the hardware segment underperform over the medium term.

Software Sales: SAR8.6bn in 2016 to SAR10.0bn in 2019. While projects face being deferred or scaled back in the oil sector, enterprise software adoption will continue to deepen among small- and mediumsized enterprises.

IT Services Sales: SAR11.9bn in 2016 to SAR14.6bn in 2019. Solutions offering cost savings and flexibility to enterprises in an uncertain environment such as outsourcing, cloud computing and smart services expected to underpin outperformance.

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Latest Updates & Industry Developments

SWOT

IT SWOT

Industry Forecast

Latest Updates

Structural Trends
Table: IT Industry - Historical Data And Forecasts (Saudi Arabia 2012-2019)

Industry Risk Reward Index

Middle East And Africa Risk/Reward Index
Table: MEA IT Risk/Reward Index - Q116

Market Overview

Recent Developments

Hardware

Software

Cloud Computing

Services

Industry Trends And Developments

Regulatory Development
Table: IT Regulatory Authorities

Competitive Landscape

Local Companies
Table: Arabic Computer Systems (ACS)
Table: Hasoub
Table: Saudi Business Machines (SBM)
Table: STC Advanced Solutions (formerly AWAL IT Services)

Regional Overview

Middle East And Africa

Demographic Forecast

Demographic Outlook
Table: Population Headline Indicators (Saudi Arabia 1990-2025)
Table: Key Population Ratios (Saudi Arabia 1990-2025)
Table: Urban/Rural Population & Life Expectancy (Saudi Arabia 1990-2025)
Table: Population By Age Group (Saudi Arabia 1990-2025)
Table: Population By Age Group % (Saudi Arabia 1990-2025)

Methodology

Industry Forecast Methodology

Sources

Risk/Reward Index Methodology
Table: IT Risk/Reward Index Indicators
Table: Weighting Of Components

Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown

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