September, 2015

IT Market in Qatar

Mukul Naskar

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Table of Contents

Welcome to Qatar : Some Facts

IT Services Market

IT Hardware/Software market

IT Service Providers

Major Initiatives/Reforms

Key Drivers for Growth

Challenges Ahead

Some Major Projects

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Welcome to Qatar : Some Facts

Qatar is the World’s Richest Country with the highest “per capita” income

Qatar’s mobile penetration stands at 167 percent, one of the highest in the world.For all countries the average is 76 percent, and among developed countries theaverage is 116 percent

Qatar has the world's third largest natural gas reserves and oil reserves in excess of 25 billion barrels (4.0×109 m3)

Qatar ranks in the top quartile of all countries surveyed in the 2014 WorldEconomic Forum’s Networked Readiness Index

Qatar is the first Arab country to host the FIFA World Cup

In 2010, 89 percent of households had a computer and 85 percent of individualshad one smart phone

The ICT market in Qatar keeps growing and is projected to expand at a double digitcompound annual growth rate which is the highest in the region

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Qatar : IT Services Market

2013 2014 2015 2016(F) 2017(F) 2018(F)

Development/Maintenance/Support

DBMS

Cloud/Virtualization

BI/Analytics/Reporting

Managed Services/Outsourcing

536600

672

753

843

944

CAGR= 11.7%

IT services market is expected to grow at a CAGR of 11.7% for the next 5 years in Qatar* All figures in $ mn

Reference- International Data Corporation(IDC) reportshttp://www.theedge.me/qatar-it-services-market-poised-for-strong-growth/#sthash.9HXFjuVg.dpuf

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Qatar : IT Hardware & Software Market

2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5 2019

229248

269292

316343

597617 638

660682

706

Hardware Sales

Software Sales

CAGR= 3.4%

CAGR= 8.4%

• IT hardware market to undergo a medium term growth after a small contraction in 2015 especially in the Tablets market

• Scope remains for growth in the enterprise software market over the medium term with low current penetration by international standards.

• 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 : IT Service Providers

Service Provider

Mannai

Services Offered

Enterprise Resource Planning, Reporting, Event Management, Medical Certification systems Cisco, Microsoft, HP, Symantec, Toshiba, VMWare, Novell, Transcend etc Strong Cisco partner

ICT- Midis

Computing Systems, Cloud & Mobility, Converged Infrastructure, Business Intelligence, Business Process Optimization, Network & Telephony

Avaya, Microsoft, HP, Citrix, Fortinet, F5, Juniper etc Platinum Citrix partner in Qatar, very strong Avaya presence

Salam Technology

Digital Infrastructure System, Office Automation Systems, Managed Services & Resources, Network & Telephony

Autodesk, Bluecoat, EMC, IBM, Microsoft, Samsung, Oracle, Canon, Juniper etc Strong Canon partner in the region

Qatar Computer Services Systems Integration, Project Management, Software Development, Technical Support,

Managed Services IBM, Lenovo, VMWare, CISCO, Fujitsu, WYSE, Zebra, Riverbed etc

Gulf Business Machines Application Support and Maintenance, Integration, Managed Services, Security, Consulting

Services IBM of Middle East

Solutions Middle East Mobility, Virtualization, Cloud Computing, Consultancy, Networking Citrix, Opentext, Riverbed, Nutanix, Lakeside etc Citrix Solution Advisor- Gold for Qatar

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Qatar : Major Initiatives/Reforms boosting IT spend

Modernizing the ICT infrastructure to improve connectivity Boosting IT Capacity through Digital Inclusion and ICT Human

Capital Modernizing the IT legal and regulatory framework to include

cyber safety and security

Qatar’s National ICT Plan To provide public-facing end-to-end online services, ensuring

the quality of Information Services Development of Hukoomi platform to make transaction end-to-

end through online portal like renewal of health, registration of new business

Maximizing the use of mobile technology in providing simple and easy services

e-Government 2020 Strategy

Ooredoo launched the portal to lease virtual cloud-based business software and applications for SME

To reduce Capex investments and enable SME to launch faster in a cost effective manner

Marketplace for 6 fields – security, video collaboration, marketing, storage, back-up and home page builder

Al Khalij Commercial Bank is the first bank in GCC to sign up for Ooredoo’s Cloud Security Service

Smart Cloud Marketplace Portal National Vision to become a Self Sufficient economy thereby

moving away from the dependency on Hydrocarbons and Natural Gas

Modernization of existing infrastructure through IT enabled services

Economic Growth, Social Development and Environmental Management

Qatar National Vision 2030

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Qatar : Key Drivers for IT Growth

FIFA 2022• Huge investments

expected due to the World Cup in 2022

• Increased investments in Digital Infrastructure and Mobile Computing

Large Number of SME’s E-Governance

Cloud Based Solutions

IT Infrastructure Uphaul

• More than 23,800 private Companies in Qatar, among which 70% are SME’s

• Increases the IT uptake leading to investments

• Government’s focus on implementing e-Governance and liberalizing telecom policies

• High focus on Cloud Based/Virtualization solutions to embrace mobility and BYOD

• Major investments in IT infrastructure like networking, Security appliances expected

• To develop a collaborative work environment

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Qatar : Challenges Ahead

Fluctuating price of Oil and Natural Gas and

heavy dependency on these resources

Uncertainty over FIFA 2022 and the recent

enquiries about corruption charges

Dependency and link to other Gulf countries

which are going through a turmoil

ICT Skills Deficit- Qatar’s digital literacy

lags behind many advanced nations

Slow rate of adoption of latest technologies due to not so matured

IT market

Connectivity Issues- Need for a robust and

ubiquitous infrastructure that enables high speed

broadband connectivity for all households and

businesses

Business Environment Challenges- Need to

modernize policies and regulations to protect the interests of end

users

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Qatar : Some Major Projects – The Way Forward

Key Projects

Doha Metro

Barwa City Development

FIFA World Cup

StadiumsRoad Projects

Lusail

NDIA

Following are some of the major projects going on in Qatar where the need for IT investments is huge and should be the primary prospects for any IT company in Qatar

85 KM Railway network in Qatar Estimated Project Value- $ 85 BN

A high class real estate project with residential apartments, schools, hospitals, shopping complexes

Estimated Project Value- $ 1.35 BN

New Airport Terminal to increase passenger and cargo-handling

Estimated Project Value- $ 600 MN

State of the Art Stadiums at Lusail, Al Khor, UMM Salal

Estimated Project Value(combined)- $ 1.2BN

Lusail City and Rail Transit System Estimated Project Value- $ 1.8 BN

East-West Corridor Dukhan Highway East Lusail Expressway Estimated Project Value- $ 2.8 BN

Thank You