Saudi Arabia Doubles Tech Sector Growth, Emerges as Regional Hub for Future Technologies

RIYADH, SAUDI ARABIA, September 2, 2025 /EINPresswire.com/ -- Amid rapid global digital transformations, Saudi Arabia is cementing its position as a key driver of the regional digital economy. With plans to grow its technology sector by more than 150% in the coming years, the Kingdom is advancing a broader strategy to diversify its economy and make technology a cornerstone of sustainable development.

Saudi Arabia no longer views technology as merely a tool, but as a strategic force powering sustainable growth. This vision is reflected in concrete steps such as launching initiatives to support startups and innovators, establishing specialized investment funds to accelerate growth in high-potential sectors, and hosting global events like LEAP — now one of the world’s leading technology gatherings attracting thousands of investors, entrepreneurs, and companies.

Official data shows the Kingdom’s ICT market is the largest and fastest-growing in the Middle East and North Africa, valued at SAR180 billion in 2024.

Massive Investments in Infrastructure and Talent

Saudi Arabia has been among the first nations to deploy 5G networks at scale, ranking in the world’s top 10 for mobile internet speed. It has also expanded its data center and cloud computing capabilities through partnerships with global players such as Google Cloud and Oracle, drawing investments of more than $4.4 billion in 2024. The Kingdom now hosts 31 registered cloud service providers, including five global and 26 local operators.

International companies are also investing directly: HONOR committed $100 million, while Zoom allocated $75 million to establish a data center serving Saudi Arabia and the wider region.

On the talent front, Saudi Arabia has rolled out large-scale programs to train more than 100,000 young people in programming and artificial intelligence. Female participation in the tech sector has reached 30% — surpassing the global average.

Regulatory Reforms and Innovation

The Kingdom has introduced regulatory reforms to ease the establishment of startups and frameworks for emerging technologies such as e-commerce and digital payments. A key milestone was the rollout of the RPKI framework, which boosted adoption rates from 15% to 95% — the highest among G20 countries.

Saudi Arabia is also pushing into future technologies with initiatives such as spectrum allocation for Vehicle-to-Everything (V2X) communications, licensing of non-terrestrial networks for satellite and space innovation, and specialized wireless licenses for industrial applications, including Aramco Digital. Large-scale spectrum auctions in strategic bands are further strengthening telecom operators’ ability to deliver next-generation services.

A Digital Economy Leader

These advances reflect Saudi Arabia’s transition from being a consumer of advanced technologies to becoming a producer and developer. Today, the Kingdom accounts for 50% of regional digital economy growth, with the sector valued at SAR495 billion — contributing around 15% to national GDP.

Sheikha Aldosary
Richard Attias & Associates
sheikha.Aldosary@richardattiasassociates.com

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