Dubai, September 22, 2010 – The public sector IT spending in Saudi Arabia is expected to grow from around US$ 1.6 billion in 2009 to US$ 2.4 billion in 2013, thereby growing at a CAGR (compound annual growth rate) of 10.9%, says Springboard Research, a leading innovator in the IT Market Research industry. The 2009 Saudi Arabia budget highlights spending on projects related to science and technology and e-government as a means to boost economic activities and enhance the prospects of economic growth and diversification.

The major initiatives taken by the Saudi Arabia government towards Information and Communication Technologies (ICT) include a contribution of US$ 2.1 billion for The National Plan for Science and Technology and considerable allocations to establish technologically equipped schools and hospitals.

“There is a strong and growing demand among Saudi citizens for government services in the health and education sectors.” said Summer Hamad, Senior Research Analyst with Springboard Research. “In an effort to fulfill the growing demand, the Saudi Arabia government is widely utilizing ICT as a means for providing improved services in these areas to more of its citizens at lower costs,” Ms. Hamad added.

Strong Demand for Improved Government Services in Healthcare and Education

The Saudi Arabia Ministry of Finance supported an e-Health project by allocating up to US$ 1.1 billion over four years to help computerize the ministry's directorates, central laboratories, blood banks, colleges and health institutions. The e-Health plan also aims to introduce a smart ID card that would include all data relevant to the patient so it can be used in all healthcare facilities.

In addition, the report cited the government’s plan to implement a US$ 3.1billion plan to improve the education system in the country by focusing on equipping schools with scientific and technological tools and also shift 30% of education curricula online. 

Apart from the healthcare and education sectors, there have also been considerable investments in other Saudi Arabia government units such as defense, aviation, police and railways. 

Massive Investments Towards e-Government Services 

According to the Springboard report, approximately US$ 1.3 billion has been invested in implementing e-Government services and automation (YESSER) from 2004-2009. E-Government plans include creating a national government portal, e-Payment Gateway (SADAD), e-tax system, social insurance system, e-commerce system, and an electronic information exchange system.   

YESSER and other e-government investments have been real drivers of growth in the public sector IT market in the recent years. Springboard expects the Saudi Arabia government to continue spending to improve, expand and maintain these and new e-government services in the years to come.

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About this Report

The Springboard document “Public Sector Market Analysis - Saudi Arabia” provides a comprehensive background of the dynamics in the Saudi Arabia public sector market in order to address market opportunities more successfully. This research
leverages
Springboard’s
in-house
knowledge
base and
additional
interviews conducted with select number of local IT companies, NGOs and IFIs, IT promotion bodies and government ministries.

About Springboard Research

With visionaries others pursue, methods others neglect and ideas others don’t consider, Springboard Research not only seeks to lead an industry – we seek to transform it. Leveraging our pioneering research model and industry thought leaders, Springboard provides greater insight, analysis, and innovation specific to global emerging markets. Working with leading technology vendors, IT professionals, and local channels, Springboard helps our clients lead, rather than follow, market trends.

Springboard has a global presence with research centers in Australia, China, India, Japan, Malaysia, Pakistan, Singapore, the UAE, and the US. We have been acknowledged as an emerging leader and for the last three years been named a “Rising Star” in the global IT market research industry by Outsell, the leading research and advisory firm for the information industry. For more information and access to Springboard’s research, please visit www.springboardresearch.com

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James Erickson, Research Manager, Middle East & Africa   
Springboard Research
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