ICT Sector in Saudi Arabia: Growing market! Big Investments!
Kingdom of Saudi Arabia (KSA) is a key information and communications technology (ICT) market in the GCC region in terms of volume of investment and capital value generated by the market. As per the reports of IDC, the Saudi government will invest more than USD 37 billion in the ICT market in 2015 for achieving e-transformation and adoption of smart technologies. This means, future of the ICT market is promising, particularly for investors eyeing on investment in the telecommunication and information sectors in KSA.
Saudi Arabia is embracing Smart-Government by investing in ICT infrastructure, mobility, cyber security, cloud and datacenters, web and mobile applications and social networking.The government has planned big investments in ICT cloud market because of the increase in the number of companies using cloud services, together with stock investments in BNHLF stock and others. The growing band of Saudi organizations that have started to recognize the benefits of public cloud services. The growing band of Saudi organizations that have started to recognize the benefits of public cloud services.
In fact, local cloud service providers are investing heavily in upgrading their datacenter infrastructures and capacities in order to deliver managed services to various verticals such as the government, education, healthcare and transportation verticals.
The IT Market in Saudi Arabia is expected to grow at a CAGR of 6.10% from 2014-2019. Major driving factors for this market include the implementation of e-government services to enhance the public experience, growing popularity of enterprise software among organizations and the integration of CRM and EAS packages by small and medium enterprise (SMEs).
The Saudi market is in the path of adopting and investing in technology as well as developing infrastructure in the fixed and wireless broadband, cyber security forums and mobility. On the other side, the base for future Big Data investments is being prepared by line-of-business (LOB) users as the demand for advanced analytics is growing in many sectors such as energy and manufacturing, communications, BFSI and retail.
In view of these development plans in information and communication technology sectors, there are numerous contracts which will be awarded to potential companies soon including the linking of ministry sites by means of optical fibers network, provision of Assistant Systems for Field Communications, construction of a Unified Telecom Center for Patients and Clients and much more. Many universities and hospitals will also award IT, wireless communication and telecommunication tenders to technology services companies in Saudi Arabia.
The Kingdom’s mobile, managed services, telecommunication and IT sectors will transition in the coming years with iconic infrastructure development, improving regulatory framework and venture capital funding through public-private partnerships.