October 10, 2024

Saudi Arabia’s Digital Infrastructure Pushes Technology Market to Record SR91 Billion in 2023 📈

Saudi Arabia’s thriving digital infrastructure has propelled its technology market to a record-breaking SR91 billion ($24.2 billion) in 2023, marking a year-on-year growth of 12.3 percent, according to officials. Speaking at the fourth edition of the Digital Technology Forum in Riyadh on Oct. 9, Raed Al-Fayez, deputy governor for Information Technology and Emerging Technologies at the Communications, Space, and Technology Commission (CST), highlighted the increasing interest from tech companies in listing on the Saudi stock market.

This upward trend is aligned with CST’s projection that the technology market could reach SR103 billion by 2025. Under Vision 2030, the Kingdom aims to raise the technology sector’s contribution to its GDP from 1 percent to 5 percent by 2030.

“Today, the Kingdom’s market is worth SR91 billion, making it the largest in the region,” Al-Fayez said. He also emphasized the rise in the number of tech companies listed on the Saudi stock market, which has grown from just two in 2020 to 20, collectively valued at SR148 billion.

He also spoke about the National Technology Development Program, which was launched with a budget of SR2.5 billion to support innovation-driven companies. The program offers 18 services that assist businesses throughout their investment journeys, and it has partnerships with 45 different entities to foster collaboration.

During the forum, a panel discussion titled “Regulatory Collaboration to Enhance Technology” featured Anas Al-Oqalaa, vice governor for Legal and Enforcement at the Zakat, Tax, and Customs Authority, who underscored the significant role technology plays in improving taxpayer compliance. Al-Oqalaa highlighted the introduction of electronic invoicing, a process that has streamlined operations for businesses by allowing real-time tracking and automatic tax reporting.

The forum seeks to explore potential synergies between government and private entities, focusing on major technological advancements and regulatory frameworks.

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