Saudi Arabia ICT Market Size Projected to Reach USD 72.20 Billion by 2034 | CAGR is 5.04%

Saudi Arabia ICT Market Overview

Market Size in 2025: USD 45.74 Billion

Market Forecast in 2034: USD 72.20 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 reached USD 45.74 Billion in 2025 and is projected to reach USD 72.20 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

● Saudi Arabia is powering its ICT growth through massive AI infrastructure builds, like the National Data Center Strategy aiming for 1.5 gigawatts of capacity, backed by partnerships with NVIDIA and HUMAIN to create smart AI factories across NEOM.

● Government schemes such as Vision 2030 and SDAIA's National AI Strategy are driving adoption, training thousands of specialists while attracting billions in investments from global players like AWS and Microsoft for sovereign cloud and Arabic AI models.

● AI is transforming enterprise operations with 27.6 percent of Saudi businesses already using it, especially in finance and ICT, helping streamline everything from government services to energy management through smart tools and data platforms.

● Big company moves, including DataVolt's huge net-zero AI campus in NEOM and major chip deals with NVIDIA and AMD, are expanding high-performance computing and positioning the Kingdom as a regional hub for advanced AI workloads.

● Public-private collaborations are boosting the digital economy, which now makes up a solid share of GDP, with heavy focus on local data centers, cybersecurity, and AI-powered e-government to deliver faster, smarter public services for everyone.

Saudi Arabia ICT Market Trends & Drivers:

Saudi Arabia's ICT market is being pushed forward by a simple but powerful mix: more digital demand, more government backing, and more real infrastructure to support it. The KSA ICT sector is already the largest in the MENA region at SR166 billion and contributes about 4% to GDP, which shows how central it has become to the economy. A big reason is connectivity: Saudi Arabia leads the GCC in 5G, with around 90% urban coverage and average speeds near 370 Mbps, while supporting about 45 million IoT devices across smart-city, enterprise, and industrial use cases. That kind of base makes ICT spending feel less optional and more like everyday business infrastructure.

A second major driver is the government's aggressive push into cloud, data centers, and AI. The National Data Center Strategy aims to build up to 1.5 gigawatts of data center capacity by 2030, and the broader policy stack includes the Cloud First Policy, Cloud Computing SEZ, and cloud cybersecurity controls. Company activity is reinforcing that momentum: new partnerships for carrier-neutral data centers are being launched with support from the Saudi Investment Promotion Authority, targeting AI and cloud workloads at hyperscale-ready sites of 40 to 50 MW each. There is also strong funding behind the ecosystem, with recent reporting showing more than $4.26 billion in data center investment and Humain's launch under the Public Investment Fund to build a full AI stack.

The third factor is rising demand for cybersecurity and digital public services as daily life and business move online. Saudi Arabia recorded 110 million cyber threats in one reporting year, which helps explain why security spending keeps climbing and why regulatory compliance is tightening across government and enterprise. The cybersecurity market was valued at $3.6 billion and is expected to expand sharply as organizations adopt SOC, SIEM, and AI-led threat detection tools. On the services side, AI-powered e-government is already a meaningful segment at $1.5 billion, and more than 70% of citizens prefer digital interactions with public entities, which keeps demand strong for apps, portals, and secure cloud systems.

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.

What is the Future Outlook and Growth Opportunity in the Saudi Arabia ICT Sector?

Saudi Arabia's ICT sector shows strong future potential, driven by Vision 2030's digital-first strategy and heavy public-private investment in technology infrastructure. Expansion of AI, cloud computing, cybersecurity, and 5G networks is creating new opportunities across industries. Smart city projects like NEOM, growing e-government services, and digital economy policies are accelerating adoption. High government ICT spending and increasing private-sector participation further boost innovation. Additionally, rising demand from healthcare, fintech, and SMEs, along with international tech partnerships, positions the Kingdom as a regional digital hub with long-term investment opportunities.

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Recent News and Developments in Saudi Arabia ICT Market

● May 2026: Partnership with Amazon Web Services initiates a national AI cloud training program, targeting 20,000 professionals to master machine learning and generative AI technologies.

● April 2026: Digital Government Authority introduces the Digital Transformation Index 2026, evaluating 249 government entities across 89 criteria to enhance public service efficiency and innovation.

● Feb 2026: Microsoft's new in-country cloud region and Huawei's first ICT training center show how AI, sovereign cloud, and local skills are becoming the market's newest growth engine.

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