Saudi arabia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in saudi arabia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Information and Communications Technology
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Overview

Valued at nearly $48 billion, Saudi Arabia’s Information and Communications Technology (ICT) market remains the largest and fastest growing in the Middle East and North Africa. Saudi Arabia is well-positioned to become a technology service and cloud hub with access to international connectivity through the Red Sea and the Gulf, and has the potential to serve the European, Asian, and African markets.

Key Players in the Saudi Arabia ICT Sector

  • Ministry of Communications and Information Technology (MCIT): MCIT is responsible for the development of policies that govern the communication and information technology sector.
  • Communications, Space, and Technology Commission (CST): Under the MCIT, CST is responsible for regulating the ICT and space sectors in Saudi Arabia.
  • Saudi Data and AI Authority (SDAIA): Under the MCIT, SDAIA and its subagencies – the National Centre for Artificial Intelligence (NCAI), the National Data Management Office (NDMO), and the National Information Center (NIC) – are responsible for Saudi Arabia’s national data and AI agenda.
  • National Cybersecurity Authority (NCA): Reporting directly to the Royal Court, the NCA has both regulatory and operational functions related to cybersecurity, and it works closely with public and private entities to improve the cybersecurity posture of the country in order to safeguard its vital interests, national security, critical infrastructure, high-priority sectors, and government services and activities in alignment with Vision 2030.
  • Digital Government Authority (DGA): The DGA regulates e-government services across all government entities and is responsible for digitizing government services and ensuring efficiency and integration in digital governance in alignment with Vision 2030 goals.

Doing Business in the Saudi Arabian ICT Sector

Although U.S. exporters are not required to appoint a local Saudi agent or distributor to sell to Saudi companies, it is strongly recommended that companies consider partnering with a local company to best monitor business opportunities, navigate import and standard testing regulations, and identify public sector sales and contract opportunities.

Saudi Arabia’s Procurement Law regulates all government procurement – including MCIT tenders. The Ministry of Finance is the overarching authority for the law and its implementation, and administers the procurement portal, Etimad, which serves as a centralized repository for all government tenders.

Since ICT is a cross-cutting sector, U.S. companies might also find ICT-related tenders on a number of other government and non-government procurement portals and websites including those of:

  • Saudi Telecom Company (STC)
  • National Unified Procurement Company (NUPCO)
  • Ministry of Energy
  • Saudi Power Procurement Company
  • Saudi Electric Company (SEC)
  • Saudi Aramco
  • General Authority for Military Industries (GAMI)

Opportunities

In 2025, Saudi Arabia maintained ranked first among the 164 countries on the UN International Telecommunication Union’s ICT Development Index (IDI). This reflects the Kingdom’s robust ICT infrastructure which contributes to the development of the digital economy, attracts investments, and increases the size of the ICT market.

Concurrently, the Saudi Ministry of Communications and Information Technology (MCIT) continued to introduce initiatives aimed at enhancing a robust and cutting-edge digital architecture to support Vision 2030’s goal of digital transformation through e-commerce, digital education, digital health, smart cities, national data, and e-government. One such initiative is “Fuel”, a training program launched in August 2023, which reportedly equipped over 98,000 Saudi citizens with skills and credentials tailored to in-demand digital jobs within its first year of operation. Several other initiatives were also launched to attract foreign investments and to support the participation of women in this sector.

According to the International Data Corporation (IDC), ICT spending in Saudi Arabia is set to reach $39.6 billion in 2025. Growth is primarily being driven by continued investment in smart cities, giga-projects, and digitization in key sectors. Investments announced at the 2025 LEAP Conference in Riyadh exceeded $11.3 billion, with strong participation from international firms. Key opportunities include cybersecurity, cloud, artificial intelligence, and internet of things (IoT).

Leading Sub-sectors

  • Cybersecurity: Saudi Arabia retained its second place ranking in the Swiss-based International Institute for Management Development (IMD)’s Global Cybersecurity Index and rose to 14th overall in global competitiveness ranking. According to IDC, spending on cybersecurity will reach the $1.8 billion mark in 2027, up from over $1.1 billion in 2025. Saudi sectors that are most heavily targeted by cyber threats include government, education, finance, energy, and healthcare. The most common attacks involve ransomware, DdoS, and malware. Key areas of opportunity include application security, cloud security, consumer security software, data security, identity access management, infrastructure protection, integrated risk management, network security equipment, and security services.
     
  • Internet of Things (IoT) & Smart Cities: Saudi Arabia is currently building several smart cities (including NEOM, Red Sea, Qiddiya, Waad Alshamal, and SPARK, among others) and aims to be the world’s most connected and digitized nation by 2030. According to the International Data Corporation (IDC), Saudi Arabia’s IoT market is projected to reach $3.1 billion by 2025 with an annual growth rate of 13 percent. Specific areas of focus include industrialized IoT, AI, cloud computing, and data centers. In addition, Saudi Arabia aims to equip five existing cities with smart infrastructure to rank among the top 100 cities worldwide. Opportunities also exist for international companies to develop industrial IoT solutions tailored to local business specifications and higher levels of operational effectiveness. Specific opportunities include predictive maintenance, asset tracking, fleet management, and warehouse optimization.
     
  • Cloud Computing: Saudi Arabia is actively promoting the adoption of cloud computing, with annual spending on public cloud services forecasted to exceed $2.7 billion in 2025 and to reach $5 billion in 2027, according to IDC. In May 2023, the Economic Cities and Special Zones Authority announced the launch of a new Cloud Computing Special Economic Zone. Considered the first in the region, this special zone continues to attract hyperscale investment. Notably, Google’s Saudi cloud region went live in Q4 2024, expanding cloud infrastructure nationwide. Saudi Arabia’s “Cloud First” policy and $18 billion data center initiative position the Kingdom as a regional cloud hub.
     
  •  Artificial Intelligence (AI): Saudi Arabia remains #1 in Tortoise Media’s Government Strategy Index for Artificial Intelligence, which evaluates more than 60 countries in the world. According to a report from global consultancy firm PwC, AI is set to contribute $135 billion to the Saudi economy in 2030, making the Kingdom the biggest beneficiary of technology in the Middle East. Opportunities exist for cutting-edge AI companies specialized in manufacturing oil and gas to tailor their solutions to fit the local market. These include truck hauling optimization, equipment lifetime analytics, supplier delivery date prediction and asset tracking, shipping optimization, satellite/aerial image analytics, and asset failure predictors.
     
  • 5G: Saudi Arabia was among the first countries in the MENA region to launch 5G networks in 2019. Saudi Arabia’s 5G coverage has expanded to over 80 percent nationally with near-total coverage in urban centers like Riyadh. Internet penetration remains at 99 percent, and mobile internet speeds average 218 Mbps, placing the Kingdom among global leaders. Mobile subscriptions exceed 200 percent of the population, reflecting multiple-device usage.
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  • E-Commerce: According to the global consultancy firm Deloitte, e-commerce revenues are projected to reach $24.7 billion by 2027, with user penetration expected to surpass 75 percent. With Vision 2030 aiming to achieve 70 percent cashless transactions by 2030, the market is expected to see more investment by start-ups and telecoms service providers in the digital payments sector.
     

Resources

  • Saudi Information Technology Company
  • Ministry of Communications and Information Technology (MCIT)
  • Communications, Space, and Technology Commission (CST)
  • Saudi Data and AI Authority (SDAIA)
  • National Cybersecurity Authority (NCA)
  • International Data Corporation (IDC)

Events

  • GITEX Technology Week
  • Consumer Electronics Show
  • LEAP Tech Conference (Riyadh) 
     

For more information, contact: Tareq.Ghazal@trade.gov

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