RIYADH. Saudi Arabia has solidified its position as the Middle East and North Africa’s (MENA) leading digital economy, with a market value surpassing SR495 billion ($131.9 billion) in 2024, accounting for 15% of the nation’s GDP. This milestone, highlighted by the Ministry of Communications and Information Technology during World Telecommunication and Information Society Day 2024, underscores the Kingdom’s rapid transformation into a global technology hub, as reported by the SPA.
In 2024, Saudi Arabia’s communications and IT market achieved remarkable growth, reaching over SR180 billion. This surge was fueled by robust private sector investments and a thriving innovation ecosystem, positioning the Kingdom as the largest technology market in the MENA region. Key drivers include advancements in artificial intelligence (AI), data infrastructure, and digital governance, aligning with the ambitious goals of Vision 2030.
AI and Data Centers: Pioneering the Future
Saudi Arabia’s investment in cutting-edge technologies is transforming its digital landscape. The Kingdom allocated over SR55 billion to AI and data center infrastructure in 2024, boosting national data center capacity by 42% to 290.5 megawatts. A flagship initiative is the launch of Humain, a state-supported AI company focused on developing advanced AI technologies, including Arabic-language models and large-scale data centers. This positions Saudi Arabia as a global contender in the AI arena.
Strategic partnerships with global tech giants further amplify these efforts. Notably, Nvidia will supply 18,000 advanced AI chips to support Humain’s initiatives, strengthening Saudi Arabia’s role as an AI innovation hub.
World-Class Digital Infrastructure
The Kingdom’s digital connectivity is among the best globally, with fiber-optic coverage reaching over 3.9 million households and an internet penetration rate of 99%. This robust infrastructure supports high-speed digital services, cloud computing, and smart applications, ensuring Saudi Arabia remains at the forefront of technological innovation.
A skilled workforce is central to Saudi Arabia’s digital strategy. The Kingdom boasts over 381,000 specialized tech jobs, the highest in the MENA region. Notably, women’s participation in the tech sector has soared from 7% in 2018 to 35% in 2024, outpacing G20 and EU averages. This commitment to inclusivity and talent development strengthens Saudi Arabia’s position as a leader in digital innovation.
Why Saudi Arabia’s Digital Economy Matters
Saudi Arabia excels in digital governance, securing top global rankings in 2024. The Kingdom ranked:
- 4th globally in the UN’s Online Services Index
- 6th in the E-Government Development Index
- 2nd among G20 nations for digital government services
- 1st worldwide in digital skills and open digital government
- 7th in e-participation
These achievements highlight Saudi Arabia’s dedication to transparent, efficient, and accessible digital services, making it a regional and global leader in e-governance. Saudi Arabia’s digital transformation is more than just numbers—it’s a testament to the Kingdom’s vision for a diversified, technology-driven future. By investing in AI, infrastructure, and human capital, Saudi Arabia is not only enhancing its economy but also setting a global benchmark for innovation.
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