Saudi Arabia is ranked 40th in the IT sector worldwide and fifth in the Arab world, according to a study conducted recently in Riyadh. The study issued by Riyadh Chamber of Commerce and Industry said the north of the capital had 55 percent of IT installations, while the city's downtown had about 33 percent, amounting to SR100,000. The study recommended the establishment of a fund to support the IT industry. Saudi Arabia has the biggest IT market in the Gulf, with a forecast value of $3.3 billion in 2010 expected to rise to $4.6bn by 2014, according to another report released last month. The Saudi Arabia Information Technology Report Q2 2010 from companies and markets predicted that per capita IT spend will reach $173 by 2014, as PC penetration rises to more than 30 percent. In August 2009 the Saudi Council of Ministers approved the establishment of a new joint stock company called Saudi Electronic Information Exchange Company (Tabadul). The new company, which is owned by the state-run Public Investment Fund, has been created to take advantage of opportunities generated by government-driven e-projects. Meanwhile, a report released in July 2009 by Arab Advisers' Group ranked Saudi Arabia first among Arab countries for e-commerce growth This report valued e-commerce transactions in Saudi Arabia at SR12b with 14.26 percent of the population engaging in such transactions. The report identified government support as key factor behind the growth.
