11% IT Expenditure Rate in Saudi Arabia
Saudi Arabian organizations are projected to spend around 11 $billion on IT in 2021, focusing on emerging technologies.
This represents a 4.2% increase compared to the previous year.
3.6$ billion is the expected expenditure in government, finance and telecommunications sectors.
Role of Emerging Technologies
Emerging technologies are at the forefront of IT investments in Saudi Arabia.
These technologies play a critical role in the post-pandemic digital economy, enabling businesses to adapt and thrive.
Saudi Arabia’s strategic direction seeks to adopt smart economy and accelerates the adoption of emerging technologies.
Cloud Computing, SMEs
Cloud computing has gained significant traction among small and medium-sized enterprises (SMEs) in Saudi Arabia.
The COVID-19 pandemic has accelerated the adoption of cloud solutions.
More than 25% of enterprises planning to deploy a mix of on-premise/dedicated private clouds, multiple public clouds.
This shift towards cloud technologies reflects the increasing investment by SMEs in new IT capabilities.
Security Challenges , Investments
The pandemic has also posed security challenges for Saudi Arabian organizations, particularly with the rapid transition to remote work.
CEOs had to quickly adapt to the new security landscape and rewrite company security policies.
The Middle East region witnessed a significant uptick in cyber attacks during the pandemic.
Public Sector’s Dominance
The public sector remains the largest spender on IT and communications in Saudi Arabia.
According to IDC, the public sector will continue to lead in terms of IT spending through 2024, followed by the finance and communications sectors.
Saudi Arabia’s Vision 2030
Saudi Arabia’s Vision 2030 economic diversification plan has been a driving force behind the growth of the IT sector.
The government’s commitment to investing 2.5% of GDP in research and development by 2040.
This will create a favorable environment for technology and innovation.
Digital Technology Forum 2023
The Digital Technology Forum 2023, held in Riyadh, shed light on the robust growth of the IT and emerging technologies market in Saudi Arabia.
With a value of approximately SAR 81 billion ($21.6 billion) in 2022, the market is projected to reach SAR 103 billion ($27.4 billion) by 2025.
The forum emphasized the importance of software in driving digital transformation and facilitating business models for the thriving digital economy.
Promise of Software
Software represents one of the most promising global markets, with a compound annual growth rate of up to 11%.
Saudi Arabia recognizes the potential of software and its role in advancing the digital economy.
The government’s focus on technology and innovation sets the stage for further development and investment in software solutions.
Investing in Education, Training
To support the growth of the IT sector, Saudi Arabia is heavily investing in education and training to create a skilled workforce. By equipping individuals with the necessary skills and knowledge, the country aims to meet the increasing demand for IT professionals and facilitate ongoing digital transformation.
Saudi Arabia’s IT spending is driven by the adoption of emerging technologies, the government’s vision for a smart economy, and the need to diversify the economy.
The growth of cloud computing, the focus on security, and the dominance of the public sector in IT expenditure are notable trends.
With a commitment to technology and innovation, Saudi Arabia is poised to continue its upward trajectory in the digital economy, supported by investments in software, education, and training.
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