The IT sector of Saudi Arabia is ever-growing, and so are the opportunities as well! The IT sector of Saudi Arabia is the largest one in the region with a market size that is expected to reach $50.60 billion in 2024 and $76.05 billion by 2029. With a contribution of 4.1% to the GDP of the country, the IT sector in Saudi Arabia is a major player in driving revenue to the country. These figures signify large-scale market opportunities and promising talents for tech businesses in the country, helping the Kingdom to achieve its Vision 2030 goals and establish itself as a global hub of tech businesses.
The IT sector is an ideal entry point for both local and international companies looking to enter and establish their business in the country. A lot of initiatives taken by the government of Saudi Arabia also boost and strengthen this sector. The major among these is the National Digital Transformation Program (NDTP) launched in 2016 to digitize public services, develop innovation ecosystems in key cities, and foster the growth and performance of the e-commerce sector of the country. The development of Special Economic Zones (SEZs) has a tremendous role in the advancement and expansion of the IT sector in the country with a focus on innovation and development initiatives.
These Special Economic Zones provide a lot of benefits for businesses like tax incentives, state-of-the-art infrastructure, and simplified business regulations, making them an ideal place for global IT firms eyeing the market of Saudi Arabia. The Special Economic Zones like King Abdullah Economic City (KAEC) and the Cloud Computing Zone in King Abdulaziz City for Science and Technology (KACST) provide a favorable environment for growth and expansion in IT and its related sectors.
The SEZs are being used as an ideal springboard for international tech companies like Apple Inc., with its regional distribution center in the Special Integrated Logistics Zone. As the Kingdom is on its path towards economic diversion, sectors like Information Technology are already contributing to the country and have established themselves in Saudi Arabia, boosting the business environment of the country.
So now let’s look in detail at what are the future opportunities available for tech businesses in Saudi Arabia. Let’s dive in!
Future Opportunities for Global Tech Companies in Saudi Arabia
The IT sector is expected to grow to great heights as the Kingdom now gives huge attention to the digital transformation of the country’s public services aiming for a digitally enabled and knowledge-based economic transformation.
One of the economic goals of Saudi Arabia, as outlined in Vision 2030 is to boost the technology sector of the country by giving importance to the tech companies with the greatest multiplier effect. The country has strengthened its position by securing the 12th rank internationally in venture capital availability.
The growth of tech companies in Saudi Arabia is visible from the report that the Saudi Arabia-based startup has secured $412 million in the first half of the year 2024, which accounts for more than 54% of the VC investment of the region, which was 38% last year. This growth is inspiring the broader trend of a slowdown in funding, making Saudi Arabia a promising land for tech companies eyeing business expansion opportunities and long-term scalability prospects.
The growth and prospects of the IT sector of Saudi Arabia are visible from the second position of the country in the UN ICT Development Index, which is proof of the digital infrastructure of the Kingdom. This is one of the milestones achieved as part of Vision 2030 goals to increase the contribution of small businesses to the GDP of the country from 20 to 35%.
The welcoming approach of Saudi Arabia to foreign businesses and investments also makes the country an ideal destination for international companies planning to establish their business in the Kingdom. The top businesses in Saudi Arabia like Zenda, Artefact, Bespin Global, Holo, and Systems Limited are evidence of the success of business in the land and act as proof of the potential of the Kingdom as a global hub of businesses.
Propel Your IT Business in Saudi Arabia With the Help of Analytix
Planning to start an IT business in Saudi Arabia? Looking for expert guidance and mentorship to launch your IT company in this Arab Kingdom? Look no further! Analytix is here to help you! As top business consultants in the country with a decade of experience, we are experts in the field of business setup in Saudi Arabia. Our experience in the field has enabled us to be an authority to guide you about the IT sector in Saudi Arabia. Having helped more than hundreds of IT businesses in the country to set up their business in the Kingdom, we are well aware of the legal complications and other procedures involved in starting an IT business in Saudi Arabia. From the paperwork to the establishment of business, our experts would be there beside you to guide you through the complex process involved.
Conclusion
Having discussed the various aspects of the IT sector in Saudi Arabia and the opportunities offered and expected, it’s time for us to conclude this blog. Are you now clear about the scope of the IT sector in Saudi Arabia? Hope this blog provided you with a clear and concise view of the role of the IT sector in Saudi Arabia. Ready to take your IT business to this promising land of opportunities? For expert assistance in business setup in Saudi Arabia, look no further, contact Analytix and let us discuss your IT business plan in detail so that our professionals can guide you.
