Oman Information Technology Report 2016
BMI View: The Omani IT market has a mixed medium term outlook due to economic challenges associatedwith the decline in the oil price. The government and wider economy are dependent on the hydrocarbonssector to a greater extent than elsewhere in the GCC, which will squeeze enterprise IT spending and theretail market through lower confidence levels, particularly in 2016 and 2017. The IT market is, however,expected to recover over the medium term, and register a CAGR of 5.1% for 2016-2019, with considerablystronger growth forecast for 2018 and 2019. Rapid population growth and modernisation by enterprisesand public authorities are key to the growth outlook, though we caution that the outlook for IT hardwarespending growth is weaker due to high device penetration rates.
Latest Updates And Industry Developments
Computer Hardware Sales: OMR112mn in 2016, rising to OMR122mn in 2019 at a CAGR of 3.5%.Population growth will provide an engine for hardware spending to increase, but high penetration of PCsamong households, and multiple device ownership, will limit segment growth over the medium term.
Software Sales: OMR45mn in 2016 to OMR51mn in 2019, corresponding to a CAGR of 5.6%. Impetusto modernise operations will support an increase enterprise software investments, while a wider array ofSaaS products should help to deepen the market to Oman's relatively untapped pool of SMEs.
IT Services Sales: OMR55mn in 2016 to OMR65mn in 2019, equal to a CAGR of 7.8%. IT servicesoutperformance over the medium term will be based on increasing demand for cloud computing andsmart services, as well as outsourcing, from the public and private sectors.
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