1. MARKET ALERT ON DEVELOPMENT OF ICT INDUSTRY
IN OMAN
Oman in Brief
Capital: Muscat
Land area: 309,500 sq. km (bordering UAE, Yemen, KSA)
Population (2009 est.): 3.4 million including expatriates
GDP Per Capita (2009 est.): US$23,900
Real GDP growth (2009 est.): 2.7%
Consumer Price Inflation (2009 est.): 5.3%
Principal growth sector: Manufacturing, tourism, agriculture and petroleum
Currency: USD = 0.3845 Omani Riyal
Exports: $29.34 billion (2009 est.)
Major Exports: petroleum, fish, metals, textiles
Major Export destinations: China 31.7%, South Korea 17%, UAE 11.7%, Japan
11%, Thailand 7.1% (2009)
Imports: $18.41 billion (2009 est.)
Major Imports: machinery and transport equipment, manufactured goods, food,
livestock, lubricants
Major Imports sources: UAE 27.2%, Japan 15.6%, US 5.7%, China 4.6%, India
4.5%, South Korea 4.2%, Germany 4.2% (2009)
Oman’s ICT Market:
The Omani authorities have made a significant push in recent
years to improve their e-government offering, including the
creation of an internet portal for government services and, most
recently, the inauguration of the Sultanate's first cyber centre.
The facility, based in Muscat, and known as the Oman National
Computer Emergency Readiness Team (CERT), was opened
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2. earlier in April 2010 to provide the Sultanate with enhanced
security for its information assets, as well as coordinating
emergency responses to incidents relating to the internet.
Internet penetration in Oman continues to remain relatively low.
According to Internet World Stats, an online agency which
monitors global internet penetration statistics, Oman had
557,000 internet subscribers in September 2009, representing a
penetration rate of 16.3%. By comparison, the current average
penetration rate for the Middle East is 28.8%.
One reason for the relatively low figure is Oman's widely
dispersed population, which naturally presents a challenge for
telecoms providers. However, developments in both technology
and market organisation look set to gradually overcome this
through the use of 3G and WiMAX.
Recently Oman has introduced another Fixed Line Operator
called Nawras. Nawras is currently in the process of laying 5000
km of fibre-optic cables and hopes to serve 81% of the
population by next year. Nawras, a joint venture involving
Qatar's QTel, Danish firm TDC and several local partners, has
been a mobile service provider since 2005 and hopes to enhance
the market offering of integrated telecoms services in Oman, as
well as developing the wholesale market through resellers and
partnerships. The company will also be using WiMAX for its
fixed services.
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3. The ICT market in Oman will continue to see a growth in demand
for new technology and Additional services. A recent market
report predicted that demand for consumer electronics in Oman
will grow from US$487 million this year to US$600 million by
2014, with computer hardware (representing 36% of the market)
expected to grow at a compound annual growth rate of 6%
during that period. The market for mobile handsets, which are
also becoming a popular method of accessing the internet, is
expected to reach over US$200 million by 2014, with mobile
penetration hitting 174.3%. Strong figures such as these points
to a continued healthy future for Oman's IT sector.
Prepared by: MATRADE Dubai – July 2010
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4. MARKET ALERT ON DEVELOPMENT OF ICT
INDUSTRY IN QATAR
Qatar in Brief
Capital: Doha
Area: 11,520 km2 (Over 560 km of coastline with over 200km of beaches)
Population: 840,000 (2009 est)
GDP: US$93.63 billion (2009)
GDP growth rate (2009): 9.5%
Per capita income (2009): US$121,700
Inflation rate (2009): -3.9%
Exports: $37.43 billion (2009 est.)
Major Exports: liquefied natural gas (LNG), petroleum products, fertilizers, steel
Major Export destinations: Japan 38.3%, South Korea 20.8%, Singapore
11.1%, India 4.6%, Thailand 4.3% (2009)
Imports: $20.87 billion (2009 est.)
Major Imports: machinery and transport equipment, food, chemicals
Major Import sources: US 12%, Germany 8.9%, Italy 8.8%, Japan 7.9%, South
Korea 7.4%, France 6.2%, UAE 5.4%, UK 4.9%, Saudi Arabia 4.6%, Turkey
4.2%, China 4.2% (2009)
Qatar’s ICT Market
The telecoms sector is set for major change in 2010 as a new
operator, Vodafone, enters both the fixed-line and mobile
market, ending the monopoly of Qatar Telecom (Qtel). While the
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5. sector has witnessed exuberant growth over past years, the
entrance of Vodafone is expected to stimulate new opportunities
for both providers and customers as competition heats up.
Mobile penetration in Qatar is high, even regional standard,
standing at about 150% in 2008, while fixed-line remains
relatively low, at just under 30% at the end of 2008. But the fixed-
line data service segment has grown rapidly, with broadband
take-up growing by 50% year-on-year in 2008.
Vodafone will invest heavily to make its mark in the Qatari
market. It seems likely both operators will begin to look to
added-value services over the coming years, bringing new
products to a technology-hungry market. The effects of the
financial crisis on the sector so far is non-existent. Added
competition in the market should result in investment in product
development and customer service through adopting to latest
technology.
The rapidly expanding non-hydrocarbons sector of the economy
is fuelling growth in IT services and the government is
determined on rolling out further IT infrastructure in a bid to
establish Qatar as a leading knowledge-based economy.
Development and high spending in health and education
systems as well as the financial services and communications
sector have boosted growth in the IT industry as firms, both
public and private, seek technical services and solutions.
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6. Government support is led by the Supreme Council of
Information and Communication Technology (ictQATAR), which,
under its master plan for Qatar’s ICT sector is working on a
series of targets and benchmarks for improving information and
communications technology (ICT) appropriation in the country
at large. The plan will enable the government to fully implement
its e-government strategy, with a target of 80% of all public
services online by the third quarter of 2010. The government is
pushing ahead on the IT research and development fronts
through the recently inaugurated Qatar Science & Technology
Park (QSTP), which has already attracted leading international
firms like Cisco and will host the Qatar Robotics Surgery Centre,
due to launch in the second half of 2009. With government
commitment and economic development to fuel demand, the
future looks bright for the Qatari IT sector.
Prepared by: MATRADE Dubai – July 2010
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