BrazilSaudi Arabia's booming ICT sector rife with opportunities
Saudi Arabia’s booming ICT sector is rife with opportunities, both for business from within the Kingdom and international investors. Anas Haj Kasem, Associate Director at Frost & Sullivan, share his insights.
“Saudi Arabia has been investing massively in its ICT infrastructure over the past few years,” said Haj Kasem, who works in the ICT practice of Frost & Sullivan.
Indeed, according to the Communications, Space and Technology Commission (CST) department, the Saudi ICT market reached an impressive $40 billion by the end of 2022, solidifying its position as the largest in the MENA region. With digitisation one of the key enablers of Vision 2030, further growth is anticipated on the horizon.
Haj Kasem said that the growth is the result of the government’s commitment to digital transformation and calculated efforts in reshaping policies and regulations.
“One of the driving forces behind the growth is the emergence of giga projects – ambitious endeavours aligning with Saudi Arabia’s vision for the future (such as Neom or the Red Sea Project, among others). These projects not only exemplify ambition but also catalyse significant ICT investment and innovation, presenting an extraordinary opportunity for international players,” Haj Kasem said.
The market’s growing attractiveness and outlook, coupled with the emergence of giga projects, has placed Saudi Arabia firmly on the investor map. Over the last six years, foreign investors pumped a total investment of $25 billion into the Kingdom’s digital infrastructure.
Investors are also investing in so-called ‘special economic zones’. Saudi Arabia has established four special economic zones, with one exclusively dedicated to cloud computing. This zone aims to attract $13 billion in investments (foreign and domestic direct investment) by 2030, with a particular focus on the data and artificial intelligence segments.
Building on its 60-plus-year heritage, Frost & Sullivan’s team in the Middle East (offices in Riyadh and Dubai) is well-positioned to advise Saudi ministries on expansive policies, and international investors seeking to play a role in Saudi’s’ booming ICT sector. “We assist our clients in identifying and realising commercial opportunities,” said Haj Kasem.
“Frost & Sullivan provides comprehensive market understanding to drive informed decision-making, from growth opportunity assessment to go-to-market strategies.”
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