(MENAFN- Gulf Times) Computer hardware sales in Qatar are expected to reach QR4bn in Qatar by 2019, registering a 5.2% compounded annual growth rate (CAGR) since 2014, BMI Research has said in a report.
Market saturation means there will not be explosive growth, with even the tablet market mature by 2015, but a combination of strong consumption growth and underlying population growth will sustain steady medium-term growth in spending, it said.
According to BMI Research, the country's software sales will scale up to QR828mn by 2019 with a 8.6% CAGR since 2014.
"The dominance of oil and gas in the local economy limits the size of the software market, but scope remains for growth in the enterprise market over the medium term through the modernisation and diversification initiatives of the government," BMI Research said.
IT services sales, the report said, might exceed QR2bn by 2019, following a CAGR of 11.6% since 2014.
Services are expected to perform well in the IT market in the medium term due to demand for cloud computing, smart systems and security services from the public and private sectors.
"Qatar's economic outlook weakened as a result of the fall in oil prices in 2014 and 2015, but relative to other producer states we consider it to have a strong outlook," BMI Research said.
IT market growth will be maintained by large investment in modernisation initiatives such as public infrastructure upgrades and investments ahead of hosting the World Cup in 2022. This is all set against the backdrop of Qatar's high private consumption levels, which combine with the bright economic growth outlook to support BMI's view of the market a regional outperformer.
Additionally, the ICT sector has been a key beneficiary of the government's drive to diversify the economy away from the hydrocarbons, notably through its e-Government 2020 Strategy and strong support for the development of smart cities.
BMI expects the "government to remain committed to these goals, despite the sharp drop in oil prices in the second half of 2014. Indeed, lower oil prices further emphasise the importance of catalysing growth in other sectors, and the government can rely on large fiscal reserves to continue enhancing IT systems across government agencies and state-owned companies, at least over the next two to three years."
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