Qatar Information Technology Report Q1 2013

BMI View: BMI's forecast has been extended to 2017 this quarter. The decision to award Qatar the 2022FIFA World Cup is expected to unleash a new wave of investment, while the government's ICT-2015strategy will also create opportunities. With its booming economy and ambitious ICT investmentprogramme, Qatar is expected to be the fastest growing IT market in the Gulf region over BMI's five-yearforecast period.

Headline Expenditure Projections

Computer Hardware Sales: US$248mn in 2012 to US$260mn in 2013, +5% in US dollar terms.

Forecast in US dollar terms downwardly revised, but Windows 8 and ultrabooks will provide growthareas.

Software Sales: US$98mn in 2012 to US$109mn in 2013, +11% in US dollar terms. Forecast in USdollar terms downwardly revised and BMI expects a stronger strategic focus on software spending andhosted software.

IT Services Sales: US$155mn in 2012 to US$182mn in 2012, +17% in US dollar terms. Forecast in USdollar terms downwardly revised, but services are seen as outperforming the hardware and softwaresegments.

Risk/Reward Ratings: Qatar's score was 59.7 out of 100.0. Qatar ranks third in our latest RRR table,behind the UAE and Israel, but ahead of Saudi Arabia and Kuwait. The country also ranks fifth for itsindustry rewards score of 38.1, and its overall rating was boosted by a high country rewards score of 100.

Key Trends And Developments

Qatar's successful bid to host the 2022 FIFA World Cup has strengthened its ambition to becomethe world's largest sporting event host and will boost the ongoing development of transportinfrastructure as well as the construction of stadiums. Qatari corporations and small and mediumenterprises (SMEs) are looking to benefit from Qatar's expected infrastructure development andrapid growth and will invest in IT to boost competitiveness.

In its attempts to diversify the economy, the Qatari government is undertaking massiveinfrastructure projects, boosting fields such as construction, transport and, increasingly, tourism.Growth in the non-hydrocarbons sector is gathering pace and all these sectors are likely thereforeto offer promise to vendors of IT hardware, software and services.

A 2012 Qtel survey found that 77% of SMEs planned to increase their ICT spending, with theaverage increase estimated at around 20%. This segment represents a potential growth area, as,according to Qtel's figures, only about 60% of businesses in Qatar are currently connected to theinternet. Cloud solutions targeted at this segment are likely to prove a promising opportunity.