The communications and information technology sectors recorded a 7% increase last year, with the IT market surpassing the communications market in size. The combined value of these sectors reached SAR 166 billion, of which SAR 91 billion was attributed to information technology and SAR 75 billion to communications. Local venture capital investments also saw substantial engagement, amounting to SAR 5.2 billion.
4% Increase in Digital Economy
The Ministry of Communications’ last year’s report revealed a 4% growth in the Kingdom’s digital economy, which amounted to SAR 462 billion. Investments in cloud computing attracted SAR 16 billion, while SAR 13.7 billion was injected into the technology sector, including public offerings of companies. Direct foreign investments in the technology sector reached SAR 4.2 billion, with the cloud services market size hitting SAR 9.8 billion. The Kingdom achieved 99% 4G coverage and 53% 5G coverage, with data center capacity reaching 204 megawatts and local internet traffic at 360 gigabits per second. The number of digital startups grew by 13%, local content in the technology sector was 28.7%, and the localization rate in professions reached 64%.
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Kingdom’s Majority Share in Venture Investments
The Kingdom secured 52% of venture investment deals in the Middle East and North Africa, totaling SAR 5.2 billion in startups. There were 125 commercial deals, 950 licenses issued for communication towers construction, and 42 investment opportunities listed on the ‘Invest in Saudi’ platform.
Technology Deployment Efforts
The Ministry of Communications has been actively promoting technology across various sectors, stimulating 100 establishments to adopt cloud solutions and digital enablers. They also collaborated with private sector partners to transition 526 small and medium-sized enterprises and 107 large companies to cloud usage and digital enablers. These initiatives resulted in a 15% cost reduction, up to 25% time savings in operations, a 65% increase in productivity rates, a 70% improvement in workplace collaboration, and training for over 300 employees in cloud solutions and digital enablers.
Significant Digital Entrepreneurship Investments
The total value of investments in the Digital Entrepreneurship Center reached SAR 100 million, with a market valuation of companies at SAR 300 million. The Kingdom attracted 10 startups, participated in 687 online and in-person events, held 7 local and international conferences, conducted 5 entrepreneurial sessions, hosted over 12 tech communities, created 1,584 job opportunities, and executed 50 investment rounds.
- 7% growth in the IT and communications market
- SAR 166 billion combined market size
- SAR 91 billion information technology market size
- SAR 75 billion communications market size
- SAR 5.2 billion in venture capital investments
- 4% growth in the digital economy
- SAR 16 billion in cloud computing investments
- 99% 4G coverage in the Kingdom
- 53% 5G coverage in the Kingdom
- 52% share in MENA’s venture investment deals by the Kingdom
- SAR 5.2 billion in startup investments
- 125 startup trade deals
- SAR 100 million in digital entrepreneurship center investments
- SAR 300 million market value of companies
- 13% growth in digital startups
- SAR 4.2 billion in direct foreign technology investments
- SAR 9.8 billion cloud services market size
