The IT and emerging technologies market in Saudi Arabia is experiencing robust growth, with a value of approximately SAR 81 billion ($21.6 billion) in 2022. It is projected to increase to SAR 103 billion ($27.4 billion) by 2025.
This announcement was made at the Digital Technology Forum 2023, which took place in Riyadh on Wednesday. The event was held under Eng. Abdullah Al-Sawaha, the Saudi Minister of Communications and Information Technology, and Chairman of the Board of Directors of the Communications, Space, and Technology Commission (CST).
The third edition of the forum, themed “Pioneering Software for a Thriving Digital Economy,” spotlighted crucial subjects within the technology sector. This included discussions on advancing promising software, market prospects, and their beneficial role in driving digital transformation and facilitating business models for the digital economy.
According to the CST, there are currently 18 IT companies listed on the financial market, and software is considered one of the most promising global markets, with a compound annual growth rate of up to 11%.
Various factors propel the expansion of Saudi Arabia’s IT sector, notably the government’s Vision 2030 economic diversification plan. This initiative places significant emphasis on the significance of technology and innovation.
The Saudi government has committed to an annual investment of 2.5% of GDP in research and development by 2040, and businesses are also contributing. The SDAIA supports Saudi startups and enterprises delivering high-quality products, solutions, and services.
The government is also investing heavily in education and training to create a skilled workforce for the IT sector.