IT and Software Sector Growth Saudi Arabia
The IT sector in Saudi Arabia is the largest and fastest growing in the Middle East and North Africa (MENA Region). Some trends and statistics about the country’s IT sector are indicated in this blog.
The IT and Software sector in Saudi Arabia has entered a dynamic transformational phase driven by government initiatives and rapid growth of the e-commerce sector. The Saudi Vision 2030 has set definite objectives to achieve new milestones and advance its ranking in the Global IT Hub in the coming years.
The IT industry in Saudi Arabia is estimated at US $ 50.60 Billion in 2024 and is expected to reach US $ 76.05 Billion in 2029.
The IT sector has contributed 4.1% to the country’s GDP in 2023, reflecting its significant contribution to the national economy. The IT services market is projected to reach $2.49 billion in 2024, with IT Outsourcing dominating the market.
National Digital Transformation Program (NDTP)
One of the prime initiatives in the IT sector is the National Digital Transformation Program (NDTP), launched in 2016, aimed at digitizing public services, developing innovation ecosystems in key cities, and fostering growth and performance in the country’s e-commerce sector.
With increased emphasis on digitization, Saudi organizations in private and public sectors have been spending heavily on ICT. The spending on computers, enterprise networks, servers and storage systems, and software applications has seen significant growth over the past years.
This has also led to increased adoption and use of IT in homes, businesses, government organizations and other services in the country.
The Saudi Arabia’s IT Industry Trends
The country’s IT sector has recently grown significantly in areas like data analytics, artificial intelligence, and cloud computing. The government initiatives taken by the Saudi Arabian government have boosted the development of the IT sector.
An ever-growing demand marks the IT and Software Sector growth in Saudi Arabia for services related to the relevant systems’ design, installation and maintenance. This creates more job opportunities, especially for foreigners with expertise in the field.
Saudi Arabia’s IT Industry Trends point towards 5G, smart cities, start-ups, and advanced technologies like cloud computing, AI, cyber-security and IoT (Internet of Things).
Saudi Arabia is making significant strides in artificial intelligence (AI) and robotics. The country has launched several AI-driven initiatives to improve various sectors, including healthcare, finance, and logistics.
Such initiatives and many more have opened up many IT sector opportunities in Saudi Arabia.
Special Economic Zones and IT
The country has established many Special Economic Zones (SEZs) to benefit the business sector and expand its scope, with some focusing on the IT sector.
These SEZs provide numerous business advantages, including tax incentives, state-of-the-art infrastructure, and simplified business regulations.
Special Economic Zones like King Abdullah Economic City and Cloud Computing Zone in King Abdulaziz City for Science and Technology provide for expansion and growth in the IT and business sectors.
Rising demand for IT workforce
Many enterprises in SEZ require people skilled and experienced in IT and allied fields to prosper and make a mark in their respective areas.
With the demand for digital services increasing across all industries, software engineers have an essential role in shaping the future of technological services in Saudi Arabia.
Consequently, jobs like Digital Marketing Specialists, Data Analyst, Scientists, and Software Developers are in great demand. The companies also seek cyber security, data science, cloud engineering, AI, and machine learning experts.
Saudi Arabia has a significant shortage of experienced national IT workforce, forcing it to rely on foreign workers and increasing costs for providers and consumers of information and communication technological services. Therefore, there is an imperative need to develop a trained workforce in the IT field, especially in AI and Cyber Security.
Thus, the future of IT in Saudi Arabia is quite promising, with special attention paid to the digital transformation of the country’s public services. This remarkable growth in the IT field has resulted in a higher rank for the country, along with brighter prospects for businesses in Saudi Arabia.
Role of Helpline Group in IT Business Growth in Saudi Arabia
If you want expert guidance and mentorship on launching your IT company in Saudi Arabia, the Helpline Group can help. Helpline Group, backed by a strong and experienced team, brings over 25 years of expertise in company formation, offering a seamless, hassle-free experience for clients, including foreigners.
Our seasoned professionals, possessing in-depth knowledge of the latest rules and regulations, ensure that your business setup in the IT sector is handled with precision and professionalism, ensuring compliance and efficiency.
