Saudi Arabia ICT Market Size to Hit USD 72.2 Billion by 2034 at CAGR of 5.04% | Latest Data & Insights

Saudi Arabia ICT Market Overview

Market Size in 2025: USD 45.7 Billion

Market Forecast in 2034: USD 72.2 Billion

Market Growth Rate 2026-2034: 5.04%

According to IMARC Group's latest research publication, "Saudi Arabia ICT Market Size, Share, Trends and Forecast by Type, Size of Enterprise, Industry Vertical, and Region, 2026-2034", The Saudi Arabia ICT market size was valued at USD 45.7 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 72.2 Billion by 2034, exhibiting a CAGR of 5.04% during 2026-2034.

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How AI is Reshaping the Future of Saudi Arabia ICT Market

● The Saudi Cabinet officially designated 2026 as the "Year of Artificial Intelligence," marking a massive shift where over 664 specialized companies now drive the local ecosystem.

● Government spending on emerging tech recently surged by 56%, supporting the new Hexagon data center, the world's largest government facility with a 480-megawatt capacity.

● With $9.1 billion in private funding secured, AI firms are integrating into the National Data Lake, which now unifies data from 430 government systems.

● The SAMAI initiative has successfully trained over one million participants, ensuring the workforce is ready for a landscape where 98% of public servants use AI.

● Telecom giants like Zain KSA are deploying 5G Standalone networks, enabling AI-native cloud platforms to improve industrial project turnaround times by over 50%.

How Vision 2030 is Transforming the Saudi Arabia ICT Industry

Saudi Arabia's Vision 2030 is reshaping the ICT industry by accelerating digital transformation, fostering innovation, and expanding smart infrastructure. Government initiatives are driving cloud adoption, AI integration, and cybersecurity advancements, while encouraging public-private partnerships and foreign investments. The focus on smart cities, e-government services, and digital skills development is enhancing efficiency and connectivity. As a result, the ICT sector is becoming a key enabler of economic diversification, supporting new business models and improving overall technological competitiveness.

Saudi Arabia ICT Market Trends & Drivers:

Saudi Arabia's ICT market is surging ahead, powered by Vision 2030 and smart government moves like the National Data Center Strategy from MCIT and SDAIA, aiming for 1.5 gigawatts of capacity to lead in cloud and AI regionally. The sector already contributes around 4% to GDP at SR166 billion, with telecom services grabbing 31.78% share and cloud hitting 43.43% in deployment. Expleo just opened Expleo Solutions Arabia in Riyadh to push AI, cybersecurity, and cloud for banks and more, while Cisco named Bader Almadi as VP to ramp up AI infrastructure in finance, sports, and energy. Salam teamed with GreySkies on an AIOps platform for real-time network smarts, making services super reliable. Large enterprises dominate 70.62% of spending, but SMEs are jumping in with easy SaaS tools. It's creating a buzzing ecosystem where tech fuels everything from e-gov to daily life.

Digital transformation across industries is a big driver in Saudi Arabia's ICT world, with government and public sectors taking 24.36% of the pie through e-governance and smart cities. Healthcare is leaning hard into IT for better patient care, while finance goes digital with cloud and analytics. The Cloud First Policy and Cloud Computing SEZ make it simple for everyone to shift online, boosting services like payments and education. Sovereign cloud setups speed data access by up to 30% for locals, keeping info secure and compliant. NEOM and Qiddiya projects embed data centers into smart urban plans, handling massive IoT flows from 5G rollouts. SMEs, backed by Saudi SME Bank and Monsha'at programs, are adopting fintech and e-commerce tools to compete. This wave is making businesses nimbler, cutting costs, and opening doors for innovation everywhere you look.

Emerging tech like AI, 5G, and IoT is reshaping Saudi Arabia's ICT landscape, with hyperscalers like AWS, Microsoft, and Google building local cloud regions. The ICT strategy pushes local content and emerging tech growth, fueling startups via tech parks and funding. 5G pairs with edge computing for low-latency apps in smart cities, supporting Vision 2030's diversification. Google set up an AI hub near Dammam for Arabic-tailored models, helping SMEs go digital fast. Investments target raising tech's GDP slice from 1% to 5%, drawing global partners. Real-world wins include AI in networks for autonomous ops and blockchain for secure trades. It's an exciting shift where everyday tools get smarter, from traffic management to personalized services, positioning the Kingdom as a MENA tech hub.

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Saudi Arabia ICT Industry Segmentation:

The report has segmented the market into the following categories:

Analysis by Type:

● Hardware
● Software
● IT Services
● Telecommunication Services

Analysis by Size of Enterprise:

● Small and Medium Enterprises
● Large Enterprises

Analysis by Industry Vertical:

● BFSI
● IT and Telecom
● Government
● Retail and E-commerce
● Manufacturing
● Energy and Utilities
● Others

Regional Insights:

● Northern and Central Region
● Western Region
● Eastern Region
● Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia ICT Market

● March 2026: Saudi Arabia designates 2026 as the Year of Artificial Intelligence, advancing national AI infrastructure with HUMAIN partnerships and large-scale data centre builds for global tech leadership.

● February 2026: Groundbreaking of the $2.7 billion Hexagon Data Centre in Riyadh, featuring 480 MW capacity and over 30 million sq feet, as the world's largest government data centre under National Data Centre Strategy.

● January 2026: Saudi enterprises accelerate AI-powered IT operations and hybrid multi-cloud strategies, enabling predictive maintenance and intelligent automation across critical infrastructure.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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