Moreover, the research firm expects the market to grow at an annual average rate of 7 percent between 2010 and 2014. In 2012 alone, BMI expects the size of the market to hit $300 million.

In its recent “Lebanon Information technology report 2010,” BMI said that the IT market still has a great room for untapped investment opportunities. However, “much will depend on the political stabilization necessary to implement economic reforms.”

BMI forecasts the computer market to grow at a CAGR of 7 percent per year between 2010 and 2014.In 2014, it is expected to hit $185 million. The factors that will fuel the positive growth in the PC market are “the economic growth, the development of the broadband infrastructure and government programs.”

The computer market, according to BMI, is still far from being saturated. It has a low penetration rate of only 12 percent. This will lead to a growth in the size of computer sales, which is expected” to reach $141million in 2010, up from $135 million in 2009,” according to BMI’s estimates.

Over the 2010-2014, BMI estimates the growth of the software market to be relatively slow due to increasing piracy. It  forecasts the "legal" software market to grow at an annual CAGR of 7 percent over the period, and estimates its size to reach $37 million in 2010.

Regarding the IT services market, BMI forecasts its total size to reach $66 million in 2010. The factors that will drive the positive growth in the services IT market are “the increasing spending on modernization by government agencies, telecom companies, banks and other customers,” it said. 

In 2009, “the IT market reported five to seven percent growth,” said Patrick Antoun, Manager of Mindware Lebanon in an interview.

Antoun said that the growth was fuelled by several factors that indicate a strong activity in the IT industry.

“The incorporation of the Digital Subscriber Line (DSL) service in all regions which led to an increase in the number of DSL users was the main contributor to the expansion in the domestic IT market,” he said.

Also, the reforms that were implemented in key sectors, mainly in the telecom, media, government, and banking services also contributed to the industry’s expansion and profitability, according to Anotun.

Antoun said that the growth in the IT market could be at a higher pace if “the proper infrastructure is installed.” 

He called for a better cooperation between the private sector and the government.

Mindware Lebanon is an importer and distributor of IT products. It is a subsidiary of UAE-based, Mindware.