Kuwait ICT Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Kuwait ICT Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

During the time frame of the forecast, the ICT market in Kuwait is expected to register a CAGR of 10%.The market is likely to grow because digitalization and the need for scalable IT infrastructure in Kuwait are on the rise.

• Government policies and PPP initiatives like the National Development Plan, called 'New Kuwait," are expected to develop substantial IT and communication infrastructure to support the national development plan. The Communication and Information Technology Regulatory Authority (CITRA) in Kuwait is responsible for overseeing the ICT sector and monitoring and protecting the interests of users and service providers in the country while ensuring equality of opportunity, transparency, and fair competition.
• The country has been among the early adopters of the 5G network. The adoption of 5G technology has been key to achieving the country's vision of 2035, as has the earmarking of human and financial resources to create a wider and deeper IT ecosystem. As of January 2023, Kuwait ranked seventh globally in Ookla's Speedtest Global Index for mobile performance, with a 109.93 Mbps median speed.
• Also, the ICT market in Kuwait is expected to be one of the emerging markets in the future. This means that hardware, software, and other IT services will be needed. The increasing penetration of technology giants in the country to take advantage of privatization in Kuwait
• But because Kuwait doesn't have enough skilled workers to handle advanced IT and communication technology, the country will have to rely on outside sources to make up for the skills gap. This is likely to slow the growth of the market in Kuwait.
• The COVID-19 pandemic significantly impacted Kuwait's economy. Moreover, the Kuwaiti government attempted to navigate this unprecedented situation and lead the country's economic recovery, emphasizing engagement with and expanding the private sector. The COVID-19 epidemic was also a significant incentive, prompting many firms to immediately switch to digital solutions for business continuity and remote job management.
• These companies are still investing in these apps because they believe they are useful. Post-pandemic, too, the market is growing rapidly with the increased digital transformation activities in various end-user sectors in the country.

• Rapid adoption of 5G would improve connectivity and data in modern society. This would make it possible to support new applications like augmented reality (AR), virtual reality (VR), self-driving cars, and so on.In Kuwait, the market for 5G services is expected to grow over the next five years because more people will want to play video games and because of the Fourth Industrial Revolution.
• ICT spending in Kuwait would be mostly driven by how many people use new technologies like artificial intelligence, cloud computing, big data, and the Internet of Things. Also, the growing use of artificial intelligence (AI) and automation in software, as well as the use of data analytics and big data in end-user industries, are likely to have a big effect on the Kuwait ICT market in the next few years.
• More investments and acquisitions in the IT industry will have a big effect on the growth of the ICT sector in the coming years.Acquisitions in the industry have led the companies to enlarge their scale of operations, increase revenue, and develop expertise. As part of its plan for 2035, the government is also pushing for privatization and has increased its spending.
• There are a number of very promising new businesses in Kuwait that are taking advantage of growth opportunities in the ICT sector, especially in cutting-edge technologies. Kuwait is also capitalizing on emerging trends, specifically in healthcare. Healthcare institutions are using digital technologies to improve health outcomes and provide innovative care delivery models that cater to evolving customer expectations while keeping costs in check.
• Furthermore, the Kuwaiti government’s continued emphasis on the digital transformation of public and private sector services means that mobility, cloud computing, data analytics, and storage will witness high adoption in the coming years. All these factors would support the growth of the ICT market in the country.
• Additionally, the increasing use of mobile devices by people and organizations to search for information, use applications for entertainment and communication, and click pictures, among others, means they can also be used to surf the internet, play games, watch movies, and do other related stuff with access to the internet. According to Speedtest, in the previous year, Kuwait had an average connection speed of 95.04 Mbps.

• The increasing penetration of smartphones is expected to propel growth for the ICT market in Kuwait. The Country's economic growth would increase and become efficient due to technological advancements. Increasing GDP would propel people to spend more on luxury and comfort; with the enhanced purchasing power, consumers are expected to spend more. In 2022, Kuwait's population stood at 4.35 million and had 4.31 million active internet users. This shows that the people living in the region are tech-savvy and adapt to change rapidly. For instance, according to imf.org, the country's GDP stood at USD 105.95 billion in 2020 and is projected to reach USD 183.10 in 2027.
• The increasing use of smartphones, smart wearables, and smart electronics has revolutionized how data is used. The increasing amount of data has made it impossible to use it for a data-based decision. This has propelled companies to use AI and big data analytics to extract useful information to make informed decisions and keep track of changing consumer preferences and buying patterns.
• Moreover, In May 2022, Zain Kuwait announced the availability of voice-over 5G services. This makes Zain one of the first global telecom provider to offer Vo5G coverage throughout Kuwait. Customers of Zain experience a unique experience because of the innovative technology. It enables people to use compatible cell phones to access ultra-fast internet and make voice calls. Following intensive testing to determine the readiness of its network, Zain has commercially released this service to operate at the maximum quality.
• Technology start-ups are being encouraged, and the government sees private sector jobs and initiatives as an important part of the drive to diversify the economy while attracting higher levels of international investment.

The Kuwaiti ICT market is moderately fragmented despite the presence of major players like Ooredoo, Zain, IBM Corporation, Huawei Technologies, and Cisco Systems. Players in the market are adopting strategies such as partnerships, mergers, innovations, and acquisitions to enhance their product offerings and gain a sustainable competitive advantage.

In June 2022, Zain, a leading mobile voice and data services provider in seven Middle Eastern and African markets, said it had finished the first live trial of the Open and Virtual Radio Access Network in Kuwait.Zain Kuwait's position on the global ICT map went up because of this innovative achievement, which was done with the help of Mavenir and Masiya.

In June 2022, ZainTech, the digital and ICT solutions arm of Zain Group, partnered with Atos, a global leader in digital transformation, to meet the growing needs of the B2B market in all of Zain's Middle East and North Africa (MENA) operations, starting with Kuwait.With the help of this partnership, businesses, governments, and communities in the MENA region would be able to search for, monitor, contain, and respond to threats around the clock.ZainTech and Atos would also provide cloud knowledge and solutions to help organizations speed up their digital transformation and bring innovative and disruptive digital technologies to their industries.

In March 2022, Ooredoo Kuwait named LigaData as its key data partner at MWC 22. LigaData, experts in data analytics, were recently hired by Ooredoo Kuwait to help with data-driven digital transformation projects. Ooredoo Kuwait is a part of the Ooredoo Group, which has businesses in 12 countries around the world. Ooredoo also said that its partnership with LigaData has made it more determined to give Kuwaiti society more power by promoting digital transformation and making people's digital lives better.

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