More than 550,000 computer units expected to be sold, as stock of installed computers reaches 4 million

February 27, 2010

Computer hardware sales in the Kingdom of Saudi Arabia is expected to reach SAR 7.5 billion in 2010, fuelled by the growing adoption of technology solutions by businesses and households across the country, and the increasing computer penetration, which has reached 24 per cent and is expected to exceed 30 per cent by 2014. Easy accessibility to top-quality IT products and services has helped encourage IT spending in Saudi, which remains the biggest IT market in the GCC with a forecast value of SAR 19.5 billion by 2014 from an estimated SAR 13.875 billion in 2010.

GITEX KSA 2010, a premier business-to-business networking event and leading consumer ICT showcase, has been one of the key marketing platforms that have supported the sustained growth of the ICT sector and helped drive sales performance of ICT companies in the country. To be held from April 25 to 29 / Jumada al-Awwal 10 to 14  at the Riyadh Exhibition Centre, GITEX KSA 2010 serves as the perfect gateway for distributors, manufacturers, resellers and other ICT businesses to boost exposure and gain a foothold in Saudi Arabia’s lucrative ICT market.

PCs, notebook computers and computer accessories are expected to be among the best-selling product categories at GITEX KSA 2010 as analysts estimate that at least 550,000 computer units will be sold in the country this year alone. Current stock of installed computers in Saudi has been estimated to exceed 4 million units.

Shahid Bhatti, Project Manager of GITEX at Riyadh Exhibitions Company, organiser of the event, said: “With Saudi Arabia being the biggest IT market in the Gulf region, ICT expenditure has always been strong in this country. However, with confidence levels in other industries surging this year following a generally conservative outlook in 2009, we expect greater market activity and more business opportunities at GITEX KSA 2010. At least 15,000 square metres of exhibition space has been allotted this year and we are nearly sold out. This certainly underlines the enthusiasm of ICT companies in the Saudi market this year.”

“GITEX KSA 2010 has consistently provided exhibitors a convenient platform to easily reach buyers and decision makers, generate new leads, showcase new products, and appoint new agents and distributors. In addition, the event concurrently provides direct access to the entire Middle East market, giving exhibitors optimum exposure in key target markets in the region,” added Bhatti.

GITEX KSA 2010 will showcase a wide range of products and services that cater to the full spectrum of Saudi Arabia’s diverse IT segments. The event will run concurrently with Saudi Communications 2010.

New Al-Khobar based entity will focus on providing full-service engineering and project management services

February 24, 2010

Foster Wheeler AG (Nasdaq: FWLT) has announced recently that a subsidiary of its Global Engineering and Construction Group has signed a Joint Venture Agreement to form a jointly owned Saudi Arabian entity with A. Al-Saihati, A. Fattani and O. Al-Othman Consulting Engineering Company (SOFCON) in the Kingdom of Saudi Arabia. The terms of the agreement were not disclosed.
 
The new entity, Foster Wheeler SOFCON Consulting Engineering Company, is planned as a regional engineering hub and will be based in the city of Al-Khobar in the Kingdom of Saudi Arabia. Foster Wheeler SOFCON will focus on providing full-service engineering and project management services for onshore/offshore oil and gas, refining, petrochemicals and associated infrastructure projects in Saudi Arabia.

“Foster Wheeler and SOFCON have a long and outstanding record of successful cooperation in project execution in Saudi Arabia. The formation of this new company demonstrates the ongoing commitment of our two companies in working together to deliver successful projects in Saudi Arabia and the provision of high quality services and expertise from a local base,” said Umberto della Sala, president and chief operating officer, Foster Wheeler AG.

“It is our goal to make Foster Wheeler SOFCON the leading full-service engineering and project management provider in Saudi Arabia, delivering professional and competitive services in front-end engineering, detailed engineering, procurement, construction and project management. The new entity will bring an enhanced value proposition in the development of the local economy and capabilities,” said Ala’a Fattani, president and chief executive officer, SOFCON.

Foster Wheeler AG is a global engineering and construction contractor and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs approximately 14,000 talented professionals with specialized expertise dedicated to serving its clients through one of its two primary business groups. The company’s Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, environmental, pharmaceuticals, biotechnology and healthcare industries. The company’s Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The company is based in Zug, Switzerland.

SOFCON was founded in the year 2000 by engineers Abdullah A. Al-Saihati, Othman R. Al-Othman, and Alaa D. Fattani by merging their respective design engineering organizations into a larger, technically more diverse consolidated company continuously aspiring to achieving the founders’ vision and meeting clients’ expectations in terms of successful delivery of a wide range of local engineering and project management solutions.

SOFCON specializes in providing a complete range of program management, engineering design, procurement, construction and environmental services to various clients in the Kingdom of Saudi Arabia and in the Gulf Co-operation Council countries. As a major engineering and project management service provider to Saudi Aramco, Saudi Electric Company, as well as the SABIC Group of Companies, SOFCON has executed a large number of engineering and project management contracts for prestigious projects. SOFCON’s areas of operation include the oil and gas, refining, petrochemicals, power, water and infrastructure business sectors.

Healthy growth prospects in hardware solutions and specialised technology services to drive increase in IT demand

February 14, 2010

Saudi Arabia, the biggest IT market in the Gulf region, is once again poised to serve as a catalyst for growth in the Gulf as the country’s IT sector is expected to sustain a healthy growth rate with market value reaching SAR 18.1 billion by 2013. Moreover, the impact of the global economic downturn on the country has been compensated by a growing interest by business organisations in technology solutions that boost efficiency and productivity, as manifested by a positive forecast in computer hardware sales, which is expected to sustain a compound annual growth rate (CAGR) of 7 per cent between 2009 and 2013, and the growth in the IT services market, which is poised to achieve a CAGR of 9 per cent during the same period.

GITEX KSA 2010, to be held from March 28 to April 1 / Jumada al-Awwal 10 to 14 at the Riyadh Exhibition Centre, is expected to provide the perfect complement to the positive outlook in the Saudi IT market as the event serves as an ideal gateway for suppliers and buyers of a diverse range of IT products and services to meet and explore new business opportunities. PCs, notebook computers and IT accessories, which collectively generated sales of SAR 7.125 billion in 2009, as well as IT services, which registered around SAR 3.75 billion in sales in 2009, are among the key product categories that are expected to create a huge impact at GITEX KSA this year.

Shahid Bhatti, Project Manager of GITEX at Riyadh Exhibitions Company, said: “We expect another record participation with all the top ICT manufacturers confirming their presence at GITEX KSA 2010. In view of the changes in market dynamics, ICT companies will be actively interacting with corporate buyers, traders and other target audiences as they look out for lucrative deals and explore various joint venture opportunities. GITEX KSA 2010 has been designed to provide invaluable exposure for participating companies who are looking to expand their business or gain a foothold in Saudi’s booming ICT market. Moreover, the event continues to serve as the country’s premier showcase of the latest and most important innovations and breakthroughs in the IT industry.”

With the introduction of advanced IT solutions such as the WiMax broadband, internet and computer penetration are expected to achieve dramatic growth in the next few years, driving sales of various computer hardware and software products as well as computer accessories. In addition, Saudi Arabia’s per capita IT spend is poised to increase and reach around USD 180 by 2013, a key factor that will support the sustained growth of the country’s IT market.

GITEX KSA 2010 will showcase a wide range of products and services that cater to the full spectrum of Saudi Arabia’s diverse IT segments. The event will run concurrently with Saudi Communications 2010.

Riyadh Exhibitions Company (REC) is a leading exhibitions organizer in the Middle East. The Company organizes about a dozen exhibitions annually covering all key economic sectors. It has organized over 330 shows in the last 25 years, and has attracted international participation from over 40 countries, with strong representation from: Western Europe, North America, Australia and the Far East, the Gulf Region, and the greater Middle East. www.recexpo.com

Joint venture between Bosch and Siemens Home Appliances Group (BSH) and Mohammed Alawy Al Saggaff
• Bosch and Siemens Home Appliances Group has 40 years of dynamic market presence in Saudi Arabia
• New company highlights long-term growth plans with a focus on service and investment in regional centres; new Riyadh showroom later this year
• Focus on sustainable development through energy-efficient products

Jeddah, Saudi Arabia; January 31, 2010: The newly-formed BSH Home Appliances Saudi Arabia LLC, a joint venture between BSH Bosch and Siemens Home Appliances Group, the world’s number three and Europe’s number one in the home appliances sector, and Mr Mohammed Alawy Al Saggaff, the founder of Al Jezy Group, a diversified business group, will drive the growth of Bosch and Siemens products, renowned for their quality and technological superiority, in the Kingdom.

This is marked by the addition of an entire new range of high quality Bosch and Siemens products at the dedicated showroom of BSH Home Appliances Saudi Arabia LLC in Jeddah, located at Tahlia Street. A second showroom will open in Riyadh later this year.

The new joint venture, which builds on several decades of active presence of BSH in the Kingdom, is part of an expansion plan for significant growth, and leverages the growth potential offered by the Kingdom, the largest economy in the GCC region.

With a focus on enhanced services, BSH Home Appliances Saudi Arabia LLC, will work towards driving investments in three new regional centres to be managed by experienced professionals. The new entity will also play a key role in the socio-economic development of the Kingdom by promoting new jobs in sales, finance and marketing for Saudi nationals.

BSH Home Appliances Saudi Arabia LLC will further showcase the best selling and high-end Bosch and Siemens products in the Kingdom and undertake nation-wide marketing and sales strategies to enhance market reach and share. Service centers that draw on the market domain knowledge of Mr Al Saggaff, who has over 15 years of experience in marketing BSH products in the Kingdom, will be opened later this year.

In the presence of Mr Jean Dufour, Member of the Board of Management of the BSH Group, and Mr Mohammed Alawy Al Saggaff, the joint venture agreement was signed, at a ceremony in Jeddah.

Mr Dufour said: “BSH is bringing a new business dynamic to the home appliances sector in the Kingdom of Saudi Arabia - one of our largest markets in the Middle East region - with the new joint venture. This is part of our long-term commitment to the Kingdom, which envisages the opening of the dedicated showrooms and service centres as well as the introduction of a wide range of energy efficient and environment-friendly products.”

Mr Al Saggaff explained: “Saudi Arabia is one of the fastest growing economies in the world, which has proved remarkable resilience to the global financial crisis. Led by the visionary policies of the Government in creating new Economic Cities that drive domestic demand, the home appliances sector is poised for growth. BSH brings in the world’s best in consumer appliances, noted for their quality and technological advances, which will appeal to the upwardly mobile young Saudi population.”

Among the key drivers of the Saudi Arabian home appliances market is the rapid industrialization policy of the government that has created new jobs and thus boosted domestic demand. BSH products have already been chosen for high-profile projects in the Kingdom including King Abdullah Economic City, highlighting their quality and technological edge.

BSH’s range of domestic appliances finds resonance with the local consumers for their quality, energy & water efficiency and long life, which have been proved over the past several decades.

“Demand for Bosch and Siemens products is further complemented by the higher disposable income of the Saudi population, led by a strong middle income segment. Today, BSH appliances like microwaves, refrigerators, cooking ranges and smaller household products are considered essentials. Our new joint venture with Mr Al Saggaff, who has several years of experience in driving the marketing of our products in the Kingdom, will further strengthen our growth in the Kingdom,” said Mr Hartmut Wesenberg, Managing Director, BSH Home Appliances Saudi Arabia LLC.

One of the cutting edge benefits of Bosch and Siemens products is their energy and water efficiency. It is estimated that private households are the second largest consumer of energy world-wide and the third largest emitters of carbon dioxide, a greenhouse gas that contributes to global warming. Saudi Arabia also faces strong demand for power and water, thus highlighting the need for efficient consumer appliances.

“The introduction of energy and water efficient products through Bosch and Siemens will further add to the effort of the Kingdom to promote sustainable development. This will be further supported by our planned service centres that will further help customers to improve the efficiency of product usage,” said Mr Al Saggaff.

The BSH showrooms will also provide comprehensive consumer advice and information as well as assist in creating an energy labeling scheme.

BSH’s product range includes cooling, washing, dishwashing, cooking appliances as well as smaller appliances including breakfast sets, food preparation accessories, vacuum cleaners, irons and personal care products, which suit diverse needs of the market.

Saudi Prince grabs second series win as Porsche makes history in Kingdom

Riyadh.  Saudi’s Arabia’s Prince Abdulaziz Al Faisal scored his second victory in three races in the Porsche GT3 Cup Challenge Middle East today as the series created motorsport history in the Kingdom. Read the full story

Karam on special mission in Porsche GT3 Cup Challenge Middle East

Riyadh.  One of Lebanon’s best known drivers from the last three decades stepped back into the limelight today to take on a special mission as motor sport in Saudi Arabia entered a new era. Read the full story

Gulf International for Technology (GIT) to strengthen AIM’s portfolio as Saudi IT market is poised to reach USD 4.8 billion by 2013

Bassam Abu Baker, Group General Manager at AIM

Advanced Integrated Media (AIM), one of the largest distributors in Saudi Arabia Read the full story

Improving liquidity opens up new investment options

(from the left Mr. Ammar Shatta and from the right Mr. Anthony Habis)

Finance and investment firms throughout the Gulf region are making strategic appointments to take advantage of the regional financial market’s resilience Read the full story

ICDL Saudi sheds light on the huge hidden cost of the absence of IT literacy

Dr. Suleiman Al-Dhalaan, Consultant, ICDL Saudi Arabia

ICDL Saudi Arabia, the governing body and certification authority of the International Computer Driving License (ICDL) programme Read the full story

Fonterra today announced it has reached a final agreement to purchase the remaining 51% stake in Saudi New Zealand Milk Products, a joint-venture dairy manufacturing facility with SADAFCO in Saudi Arabia. Read the full story