Report prepared by international experts certifies "first of its kind" statistics
Report: Current investments in telecommunications provide 60,000 new job opportunities in the domestic market
More than SR 200 billion investment in telecommunications.
80% of technology-investments are in telecommunications sector.
Broadband services expansion linked to individual shares of GDP
Al Riyadh, KSA: A new specialized report launched recently about the Information and Communication and Technologies "ICT" sectors revealed the positive impact of investments in these sectors of more than SR 200 billion, contributing to the creation of 60,000 new job opportunities a year in the domestic market, reflecting positively on the kingdom's GDP, with revenues reaching around SR 50 billion every year.
The report highlighted the leaps in expenditure in information technology in Saudi Arabia, compared to levels achieved in other developed countries achievements in this sector, such as Australia, as well as being higher than those achieved in China, India, Chile, Malaysia, and Mexico. The telecommunication sector represents 2% of the total GDP in KSA, and nearly 4% (when not taking oil revenues into consideration)
According to the report, the accelerated growth in telecommunications and information technology investments provide huge economic benefits, as in Malaysia which witnessed relevant economic growth of 0.66% annually, according to data from the Conference Board, indicating that the increase in the size of investments will enable Saudi Arabia to equal the capital in this sector of that in Malaysia (which in essence means that every Saudi national will receive an additional $240)
Telecommunication investments....Open gates
ICT investments in the kingdom has reinforced the growth of expansion in mobile and broadband networks, demonstrated clearly in increasing numbers over the past few years, by pumping investments of more than $10 billion, which has encouraged mobile networks in the kingdom to transform from traditional internet services to 3G technology, by providing certain content (photos, video clips and so on)
Moreover, the entry of what's known as e-commerce platforms and the use of broadband applications (33 fixed broadbands for every 100 homes in Saudi Arabia) has demonstrated the strength of performance of the Saudi market. A study conducted by the Communication and Information Technology Commission shows that around 5.53% of families have internet service, 80% of who use DSL lines, which means broadband is now integrated into 43% of all homes.
The report indicated that the expansion of 3G technology in the kingdom is probably linked to the individual's share of GDP. The report by the authority showed that 17% of those surveyed use video calls and 6% of them browse the internet via 3G technology, while 4% use the internet using their mobile phones.
Commerce: Electronically promising in the Kingdom
Interestingly, according to the report, the performance of the kingdom in E-banking services is close to the levels of some southern European countries, at a minimum.
The survey conducted by the Communication and Information Technology Commission compared other countries to the Kingdom and allowed for comparisons in online banking and e-commerce with other countries, and identifying the percentage of purchasers over the internet. According to the survey, 35% of those surveyed bought goods and service over the internet. However, the report noted that the special economic climate in the kingdom has to be taken into consideration, like unutilized workforce, large oil reserves; therefore information technology in the kingdom can play the role of an economic facilitator.
Socially: The Internet is as necessary as electricity
The report pointed to distinguishing patterns of behavior between males and females in internet usage. For example, males prefer using the internet for services that facilitate planning their journeys and purchasing cars, while females prefer to use it for healthcare and educational services.
More than 50% of those surveyed agreed that they couldn't live without the internet, while the percentage of those who consider the internet as necessary as electricity increased more among the youth, thus positively impacting social relationships in the Kingdom.
According to International Telecommunication Union, internet penetration in Saudi Arabia has reached 41% while mobile phones subscriptions have grown for , by three times over the past 5 years every 100 people , recording a rise of 186% over the last two years.
In the Kingdom, the report finds distinguishing behaviors among males and females in access of broadband using mobiles, with males having a higher propensity to accessing the news, sending and receiving emails. However, surprisingly, both males and females were equal in broadband usage of social networks, with 95% of men accessing Facebook and 93% among females, followed by Twitter - 22% for males and 3% for females - taking into consideration that those numbers are higher in Riyadh and Jeddah.
Facebook research also shows that there 3 million Facebook subscribers in Saudi Arabia, among 10 million internet subscribers
Today, "WITSA date reveals that the Kingdom spends 70% to 80% of the total expenditure on ICT sectors on telecommunications, compared to 45% to 55% in those economies which have higher usage in those sectors, such as United States economy-.
About the report:
The report prepared by STC in cooperation with specialist international experts in telecommunication is considered to be an "economic reference" for future studies, included two sections:
© Press Release 2012
