Reconstruction of the Kingdom’s IT sector is fundamental for modernization and economic diversification plans, according to a report by Business Monitor International.

The report suggested that the government’s efforts at accomplishing other target development will constrain IT expenditure during 2017 as estimated.

Implementations of major IT projects by the government across various sectors are expected to boost IT spending by the end of 2013.

“We have many things that needs to be taken into consideration in order to develop the IT sector in the kingdom,” said Hattan Mohammed, member of the Committee of Communications and Information Technology at the Jeddah Chamber of commerce and industry (JCCI).

Mohammed added: “There are a lot of companies in the private sector today that are focusing on developing the IT sector. Projects are being undertaken, services are being provided and implementations are made in order to meet the needs of the IT sector.”

Mohammed said the government is also focusing on reaching the goal of achieving the “biggest IT market in the Gulf”.

“Both the private and the government sectors are improving the IT sector, they are working hard on it,” he said.

Large prospects are available in the health care and education sectors, as well as cloud computing adoption and investments in smart systems that require the services of hardware and software. These tendencies will merge to ensure that Saudi Arabia remains the biggest IT market in the Gulf, and the Kingdom will prolong its aim to be a profitable market for technology products and services.

Saudi Arabia scored 58 out of 100 in terms of Risk/Reward Rating (RRR). Although this was a significant boost from a score of 53.4 in the previous quarter, Saudi Arabia fell one place to sixth in the recent Middle East and Africa RRR table.

The Kingdom’s IT market growth depends mainly on government spending, with the government benefiting the developments in several industries to minimize costs and perk up services.

“The IT sector of KSA needs more flexibility in terms of online payments and payment processes so that more services/products can actually be sold online,” said Ali Shah, CEO of business-consulting firms ASCS and VRS. “There is possibility of automating most of the things we need to do physically.”