Saudi Arabia’s Information and Communication Technology (ICT) sector is currently the largest and fastest-growing in the Middle East and North Africa, valued at over $40.9 billion and contributing 4.1% to the nation’s GDP, according to the Saudi Arabian Ministry of Commerce. In 2023, government ICT spending rose by 20% year-on-year, reaching SR 41.87 billion ($11.16 billion). The same period saw a 40% increase in cloud computing permits, totaling 1,759.
Within the ICT market, industry segments include:
- Banking and financial services
- IT and telecom
- Government
- Retail and e-commerce
- Manufacturing
- Energy
The banking sector is expected to see a CAGR of 9.4% from 2025 to 2034, as ICT becomes increasingly vital for efficient and competitive financial operations.
The telecommunications industry forms a critical part of the Kingdom’s economic framework, with forecasts indicating a compound annual growth rate (CAGR) of 3.92% through 2029. The expansion is fueled by government initiatives and rising demand for high-speed internet, alongside rapid 5G adoption. As reported by GSMA Intelligence, 5G coverage reached 78% of the population by April 2022, a significant jump from 43% two years earlier.
Looking ahead, the Saudi ICT market is projected to reach $44.69 billion in 2025 and grow to $106.77 billion by 2034, with an overall CAGR of 9.1%. The sector’s momentum is driven by ongoing investment, technological upgrades, and robust government support, positioning Saudi Arabia as a regional leader in digital transformation.
