2013-02-28 15:04:37 - Recently published research from Business Monitor International, "Egypt Information Technology Report Q1 2013", is now available at Fast Market Research
BMI View: Egypt's IT market is forecast to increase to US$1.9bn in 2013, with our forecast upwardly revised. Recent months have seen a marked improvement in business and consumer sentiment, although the IT market opportunity is constrained by political and economic uncertainty. Over BMI's five-year forecast period, Egypt will benefit from youthful demographics and improving information and communication technology (ICT) infrastructure. However, there are a number of market constraints, including a sub-optimal distribution network outside Cairo.
Headline Expenditure Projections
Computer Hardware Sales: US$1.0bn in 2012 to US$1.1bn in 2013, +8% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification and computer penetration is forecast to rise from 10% now to above 20% by 2017.
Full Report Details
- www.fastmr.com/prod/536435_egypt_information_technology_report_q ..
Software Sales: US$236mn in 2012to US$277mn in 2013, +17% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification and SMEs are beginning to see software investments as more important.
IT Services Sales: US$414mn in 2012 to US$478mn in 2013, +15% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification, with demand from government, finance and telecoms sectors accounting for more than half of total spending.
Risk/Reward Ratings: Egypt's score is 38.8 out of 100.0 and the country is at the bottom in our latest MEA RRR table, behind Saudi Arabia, Kuwait and South Africa. Despite the high growth potential of the market, which was reflected in an industry rewards score of 40.0, Egypt's overall ranking was constrained by a lowest-in-region country rewards score of just 25.0.
* Although BMI expects IT spending to grow, uncertainty about the future direction of economic policy will constrain business investment. Any signs of a return of instability could have an impact on the long-term development of Egypt's IT services sector. Following the events of 2011, some retail outlets and distributors suspended operations, causing disruption to supply chains, which are already patchy outside of major cities.
* Egypt's IT market will stay hardware dominated, with spending on PCs sustained by initiatives such as the 'Computer For Every Student' and 'PC for Every Home' programmes. Hardware accounted for an estimated 62% of Egypt's IT spending in 2012. Households are responsible for 20-25% of unit sales, with 1.0-1.5mn households said to possess a computer at present.
* The Egyptian government has stressed its commitment to modernisation and to continued investment in Egypt's IT sector, with a number of initiatives announced to support local sector companies. Access to credit remains a barrier for smaller Egyptian companies, but initiatives such as that launched by the Bank of Alexandria will help smaller Egyptian companies invest in IT.
Report Table of Contents:
- Egypt IT Sector SWOT
- Egypt Telecommunications Sector SWOT
- Egypt Political SWOT
- Egypt Economic SWOT
- Egypt Business Environment SWOT
MEA IT Risk/Reward Ratings
- Table: Middle East And Africa IT Risk Reward Ratings, Q113
MEA IT Markets Overview
- End-User Analysis
- Table: Egypt IT Industry - Historical Data And Forecasts (US$mn unless otherwise stated), 2009-2017
Industry Forecast Internet
- Table: Telecoms Sector - Internet - Historical Data & Forecast, 2010-2017
- Table: GDP By Expenditure, 2009-2017
- IT Services
- Raya Holding
- Microsoft Corporation
- Oracle Corp
- Table: Oracle: Selected Acquisitions
- Table: Egypt's Population By Age Group, 1990-2020 ('000)
- Table: Egypt's Population By Age Group, 1990-2020 (% of total)
- Table: Egypt's Key Population Ratios, 1990-2020
- Table: Egypt's Rural And Urban Population, 1990-2020
- How We Generate Our Industry Forecasts
- IT Industry
- IT Ratings - Methodology
- Table: IT Business Environment Indicators
- Table: Weighting Of Components
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
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