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Index1. Business: Summary2. Global innovation index, local competition and market concentration3. Global opportunity index4. Economics, Society & Technology5. Summary of digital
• Annual growth• Digital device ownership• Time spent with media• Internet users: perspective• Frequency of Internet use• Share of web traffic
6. Social media use• Top active social platforms• Facebook user profile
7. Mobile users & connections • Mobile connections• Mobile activities
8. E-commerce by device9. Conclusions
Business Summary
Business Summary • KSA is among three the most attractive countries in terms of global
innovation index, local competition and market concentration in the Gulf &Africa.
• KSA is among six the most attractive countries in terms of globalopportunity index in the Gulf & Africa.
• KSA is among the most attractive countries in terms of digital landscape.• KSA is among six the most attractive countries according to results of
economic, social and technological factors analysis.See summary below & details further in the report.
Among 3-6the most attractivecountries*
Global innovationindex, local competition and market
concentration
Global opportunity
index
Digital landscape
Economic, Social and
TechnologicalAnalysis
KSA Yes Yes Yes Yes
* Conclusions are based on cross-country comparisons among Bahrain,Egypt, Jordan, KSA, Kuwait, Morocco, Nigeria, Oman, Qatar, SouthAfrica and UAE
Global Innovation Index, Local Competition and Market Concentration
Global Innovation index, Local Competition and Market Concentration
KSA is among three the most attractive countries in terms of global innovationindex, competition and market concentration. *
CountryGlobal Innovation Index (Percentage
Rank) (1)
Intensity of Local Competition (2)
Extent of Market Dominance (3)
KSA 0.70 73.5 4.6
Key to table Attractivefactor
Neutral factor
Discouraging factor
Sources: (1) www.globalinnovationindex.org/content/page/data-analysis/ ,(2) 100 = extremely intense https://www.globalinnovationindex.org/content/page/data-analysis/ , Higher competition means healthier markets and more demand for marketing andadvertising services (other things equal).(3) how corporate activity is characterized in the below countries (1 = dominated by a fewbusiness groups; 7 = spread among many firms) http://www3.weforum.org/docs/GCR2013-14/GCR_Pillar6_2013-14.pdf
* Conclusions are based on cross-country comparisons among Bahrain, Egypt, Jordan, KSA, Kuwait,Morocco, Nigeria, Oman, Qatar, South Africa and UAE
Global Opportunity Index
Global Opportunity Index
Country Composite(Score/Rank) (1)
Economic Fundamentals (1)
Ease of Doing Business (1)
Quality of Regulations (1)
Rule of Law (1)
KSA 6.41/36 5.45/52 6.79/41 6.40/40 7.00/21
Source: (1) http://www.globalopportunityindex.org/opportunity.taf?page=compare
Explanation: Each category measures an aspect of the power of economic and institutional factors to attract foreign directinvestment. The assigned composite index value is the average score of the four categories (called component scores). Eachvariable is normalized from 0 to 1. Within each category, the normalized variables are then given equal weight and aggregated,resulting in a normalized category score between 10, indicating the most favorable conditions for investment, and 0, signaling theleast favorable.Economic Fundamentals measures the extent to which a country's macroeconomic environment is conducive to foreign directinvestment. A value of 10 indicates very strong economic fundamentals, while a value of 0 indicates relatively weak conditions.Ease of Doing Business measures explicit and implicit costs associated with business operations. A value of 10 indicates very lowcosts of doingbusiness in a country, 0 – very high.Quality of Regulations/Regulatory Barriers to Investment assesses the effectiveness of policymaking and enforcement in a countryand similarly reflects the extent to which a country's laws and regulations prevent the free flow of trade and investment. A value of10 indicatesefficient enforcementof policies andminimalbarriers to capital flows,while a value of 0 indicates the opposite.Rule of Law reflects the extent to which a country's legal system protects investors and property rights to support and enhancebusiness investment. A value of 10 indicatescommitment to the rule of law, while a value of 0 indicates the opposite.
* Conclusions are based on cross-country comparisons among Bahrain, Egypt, Jordan, KSA,Kuwait, Morocco, Nigeria, Oman, Qatar, South Africa and UAE
Key to table Attractivefactor
Neutral factor
Discouraging factor
KSA is among six the most attractive countries in terms of globalopportunity index in the Gulf & Africa. *
Economics, Society & Technology
Economics, Society & Technology
Country Opportunities
Economic factors
• Weakening economies of other oil producing countries will allow KSA to strengthen its dominating positions in the global oil market. This way KSA will strengthen its global economic positions and growth of its markets.
• State policies will keep the markets running for a while generating demand for business development e.g. marketing and advertising
• Activation of equity market, broadening of investor base• The Saudi Riyal is pegged to the US dollar, it is an attractive aspect for foreign investors considering
the stability of currency, trade and income flows
Social factors
• Average size of consumer markets• High demand for luxury goods and premium trademarks• Relative variety of ethnic groups and niche demand, need of targeted marketing strategies • Business opportunities for businesses targeting youth and parents of young children• Multinational companies need expert support in marketing their products due to cultural and legal
limits
Technologicalfactors
• Development of smart telecoms, smart industries, smart governments and smart cities all running on smart infrastructure, hence new jobs opening & establishing of new businesses
• New employment opportunities & establishing of new businesses• New digital ways of doing business, demand for digital marketing and advertising
Key to table More opportunitiesthan threats
Opportunities and threats are balanced
More threats than opportunities
KSA is among six the most attractive countries according to results of EST analysis. *
* Conclusions are based on cross-country comparisons among 11 countries: Bahrain, Egypt, Jordan, KSA, Kuwait, Morocco, Nigeria, Oman, Qatar, South Africa and UAE
All the sources and detailed factors are available upon request. Email us: [email protected]
Source: We are social
KSA Digital Landscape – 2016
Social Media Use
Source: We are social
Mobile Users & Connections
Source: We are social
E-commerce by Device
Source: We are social
Conclusions• Corporates will at least maintain same marketing budgets and will
even increase it in order to rectify any possible recession caused by the drop of oil prices.
• The competition will be very aggressive due to the above conclusion.
• People in KSA are spending 2 hours daily on TV and 8 hours on internet (4 times more). Corporates should consider this ratio while allocating budgets.
• KSA Digital landscape is very rich and powerful, empowered by the percentage of the young generations as well as the dominance of smart phones.
• In digital & e-commerce, corporates should pay more attention to the mobile optimization of their digital assets and services.
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