Saudi Arabia’s ICT and artificial intelligence (AI) sectors have emerged as central pillars of the Kingdom’s economic transformation agenda, reflecting the growing strategic importance of digital infrastructure, advanced technologies and data-driven growth under Vision 2030. Public investment and regulatory reform as well as e-government initiatives over the last decade have laid the foundations for a rapidly expanding digital ecosystem that now spans telecommunications, cloud computing, data centres and AI.
A clearly defined governance framework, led by the Ministry of Communications and Information Technology (MCIT) and supported by specialised regulators and sub-authorities, has provided policy coherence while also encouraging private sector participation in line with Vision 2030. Meanwhile, universal internet penetration, high mobile usage and strong network performance have created favourable conditions for digital services and innovation. As a result, ICT represents a growing contributor to GDP and AI is transitioning from a policy ambition to a deployment phase, supported by rising adoption across businesses, government entities and consumers alike.
Structure & Oversight
The MCIT is the primary government ministry responsible for national ICT policy, infrastructure development, digital transformation and enabling tech growth aligned with the goals laid out in Vision 2030. The minister of communications and IT is Abdullah Alswaha, who has held the position since 2017. The Communications, Space and Technology Commission (CST), which sits under the MCIT, is an independent regulator for telecom, information technology and space sectors. It is responsible for issuing licences and for ensuring competitive markets, quality standards and security frameworks for ICT services. The CST is headed by Mohammed Altamimi, who has held the role of Governor since 2019. Also under the MCIT is the Saudi Data and AI Authority (SDAIA), which, along with its sub-agencies – the National Centre for AI (NCAI), the National Data Management Office (NDMO) and the National Information Centre (NIC) – is responsible for Saudi Arabia’s data governance and AI agenda. Together they set strategy, standards, ethical principles and promote adoption across public and private sectors. A key aim for the authority is to develop and cement the Kingdom’s position as a leading centre in the region for AI research, innovation and capacity building. The SDAIA Academy, for example, is committed to nurturing the next generation of the country’s data scientists. In 2025, HUMAIN, the national AI company, was formally launched, taking the Kingdom’s AI journey from the policy framework prepared by SDAIA to large-scale implementation. Also in 2025 SDAIA announced it would host the Fourth Global AI Summit in September 2026, underscoring the country’s emerging role in this sphere. SDAIA’s president is Abdullah bin Sharif Alghamdi, who holds the rank of minister and oversees all operations and initiatives. Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud serves as chairman of the authority’s board.
The Digital Governance Authority (DGA) was established in 2021. Reporting directly to the prime minister, Crown Prince Mohammed bin Salman, the DGA is tasked with modernising Saudi Arabia’s digital infrastructure and facilitating the digital government transformation laid out in Vision 2030. In 2025, Saudi Arabia ranked second globally in the World Bank’s GovTech Maturity Index, underlining the success the authority has had reaching its targets.
Another important institution influencing ICT and AI oversight is the National Cybersecurity Authority (NCA). The NCA reports directly to the Royal Court and has both regulatory and operational functions related to cybersecurity in the Kingdom. It works with public and private entities to improve the cybersecurity environment, thereby safeguarding vital interests, national security, critical infrastructure and high-priority sectors, as well as government services and activities that support the aims of Vision 2030.
Strategic Direction
Saudi Arabia’s ICT and AI sector strategies are guided by the goals set out under Vision 2030 to develop and deploy ICT and advanced digital capabilities across the economy as the country works to reduce reliance on hydrocarbons and fuel economic diversification. The sector is crucial to strengthening the Kingdom’s high-value and light manufacturing industries, as well as growing productivity across non-oil sectors and enabling public sector reform. Sectoral development is guided by the ICT Sector Strategy 2023 and overseen by the MCIT, which focuses on expanding digital infrastructure, deepening private sector participation and maximising the contribution of ICT to GDP. The strategy aims to increase the sector’s contribution to GDP by SR50bn ($13.3bn) over the next five years; create over 25,000 jobs in the ICT sector; increase women’s participation by 50%; increase Saudiisation rate in the sector to 50%; and increase the market size of IT as well as emerging technologies by 50%.
In June 2025 the MCIT, in collaboration with SDAIA, officially unveiled the National Data Centre Strategy, an important blueprint designed to accelerate the build out of large-scale data centre capacity across the Kingdom. The strategy sets the goal of building up to 1.5 GW of data centre capacity by 2030, mandates compliance with international standards and encourages the adoption of green and energy-efficient technologies. The regulatory framework laid out in the plan, meanwhile, prioritises foreign investment, localisation partnerships and operational alignment with Saudi data classification and localisation laws.
The launch of the strategy comes as the Saudi government dials down the emphasis on long-term giga-projects associated with Vision 2030 in favour of data centre, AI and technology spending and investment. On January 1, 2026 ground was officially broken on the $2.7bn Hexagon Data Centre in Riyadh. The project is expected to be the largest government data centre in the world when complete and will become a cornerstone project of the National Data Centre Strategy and the Kingdom’s Vision 2030 technology ambitions. With a total footprint of over 30m sq feet and a capacity of 480 MW, Hexagon will play a key role in helping the Kingdom fulfil its ambitions to become a global centre for digital infrastructure.
Meanwhile, AI strategy is governed through the National Strategy for Data and AI led by SDAIA. The strategy sets a clear roadmap to 2030 and aims to embed AI across priority sectors such as government services, health care, education, energy and mobility. Among its central targets are to have Saudi Arabia rank among the top 15 AI countries globally by 2030, enter the top-10 countries in open data rankings by 2030, achieve a top-20 position in AI research output, train 20,000 data and AI specialists by 2030, attract SR75bn ($20bn) worth of AI investments by 2030, and grow the Kingdom’s data and AI start-up ecosystem with 300 active companies by 2030.
Size & Performance
While estimates on the size and growth rate of Saudi Arabia’s ICT sector vary, all figures point to significant expansion in recent years, with momentum set to continue over the next decade. Growth is being fuelled by the increasing adoption of AI, the roll out of high-performance computing infrastructure and the acceleration of digital transformation initiatives associated with Vision 2030. As a result, demand is rising across the board for advanced computing solutions, cloud platforms and AI analytics across industries such as energy, finance and public services. Market researcher IMARC Group valued Saudi Arabia’s ICT market at approximately $43.7bn in 2024 and expects the market to reach $71.6bn by 2033, expanding at a compound annual growth rate (CAGR) of 5.3% between 2025 and 2033. Claight Research valued the Kingdom’s ICT sector at $48.8bn in 2025, with an anticipated CAGR of 9.1% over the period 2026-35, when it expects total value to reach $116.5bn. Indian research firm Mordor Intelligence valued Saudi Arabia’s ICT sector at $60bn in 2025, and forecasts a CAGR of 9.2% through to 2030, when it anticipates that the sector could be worth approximately $93.2bn in a high-growth scenario.
The latest government statistics indicate that the digital economy contributed 15.6%, or SR495bn ($132bn), to the Kingdom’s GDP in 2024, while the ICT segment was worth SR180bn ($48bn) that year, representing a CAGR of 7.5% over the previous five years. The government breaks down the digital economy into three areas: the core digital economy, which accounted for 2.7% of GDP and includes activities related to the production of ICT goods and services; the narrow digital economy, which contributed 2.4% and includes establishments that rely on digital inputs; and the broad digital economy, which accounted for 10.9% of GDP and includes establishments whose products and services are significantly enhanced as a result of using digital inputs. The value of operating revenues is estimated to have reached SR249.8bn ($66.6bn) in 2024, with wired and wireless telecommunications recording the highest revenues of SR133.9bn ($35.7bn), followed by computer programming activities which recorded revenues of SR31.1bn ($8.3bn). The value of imported ICT goods is estimated to have reached SR67.9bn ($18.1bn) in 2024, representing a growth rate of 23.5%. Telecommunications equipment accounted for the highest import value at SR36.8bn ($9.8bn), followed by computers and peripheral equipment at SR14.9bn ($4bn). The value of exports and re-exports totalled SR25.8bn ($6.9bn) in 2024, surging 118% over the SR11.8bn ($3.1bn) recorded the previous year. Telecommunications equipment accounted for the highest value of exports and re-exports at SR24.9bn ($6.6bn). This is followed by computers and peripheral equipment, valued at SR579.5m ($154.5m).
Telecommunications
Research by Mordor Intelligence indicates the Saudi telecoms market was valued at around $25bn-27bn in 2025 and is forecast to grow at a CAGR of around 6.5% between 2025 and 2030. Mobile data services are the largest revenue contributor in the segment and will continue to dominate the market over the next 10 years as widespread smartphone adoption and usage continue to fuel consumption of internet browsing services, social media usage, video streaming and mobile gaming. According to data from GSMA Intelligence, there were 48.1m cellular mobile connections in Saudi Arabia at the start of 2025, an increase of 4% year-on-year (y-o-y). The figure for 2025 indicates a mobile penetration rate of 140%, with many users owning multiple phones and holding multiple subscriptions. 99.2% of mobile connections in the Kingdom support broadband connectivity via 3G, 4G or 5G networks.
Saudi Arabia’s telecoms market is dominated by three main players: stc; Mobily and Zain Saudi Arabia. stc is the market leader with a 55% market share and offers services including mobile, fixed broadband, ICT services, cloud, and internet of things (IoT) and digital solutions. In 2024 stc recorded total revenue of SR75.9bn ($20.2bn), up 5.7% on 2023 figures. Net profit was recorded at SR24.7bn ($6.6bn), with a large chunk of this coming from stc’s sale of its controlling interests in two of its subsidiaries, Telecommunications Towers Company and Digital Infrastructure Company for SR12.9bn ($3.4bn). As a result, stc’s y-o-y net profit increased by 85.7%.
Mobily is the Kingdom’s second-largest operator with a 30% market share. In 2024 the company recorded total revenue of SR18.2bn ($4.9bn), up 8.6% from SR16.8bn ($4.5bn) the previous year. Net profit in 2024 was SR3.1bn ($826.4m), surging 39.2% on 2023 figures as a result of several factors, including revenue growth of 8.6%, earnings before interest, taxes, depreciation and amortisation (EBITDA) expansion of 8.6% as well as a tax reversal decision of SR284m ($75.7m). Zain Saudi Arabia is the third major operator in the Saudi telecoms market holding a roughly 15% market share. In 2024 the company posted record revenues of SR10.4bn ($2.8bn), up 5% from 2023 figures. This was largely driven by growth in 5G services, wholesale business, business-to-business (B2B) enterprise solutions and growth in the organisation’s fintech arm Tamam Finance. Zain Saudi Arabia’s net profit of SR596m ($158.9m) was down compared to 2023 figures, largely because 2023 included a one-off gain from the sale and leaseback of the telecom towers worth SR1.1bn ($293.2m).
Internet
According to the “Saudi Internet Report 2024” published by the CST, Saudi Arabia’s internet penetration reached 99% of the population in 2024, indicating near-universal adoption. This aligns with figures from DataReportal, which reported a total of 33.9m internet users in Saudi Arabia as of January 2025. As elsewhere in the region, mobile phones dominate internet access with 99.4% of internet usage occurring via mobile devices, according to the CST report, reflecting high smartphone penetration and a strong network infrastructure. According to figures from Ookla, at the beginning of 2025 users in Saudi Arabia enjoyed a median mobile (3G, 4G and 5G connections) internet download speed of 124.61 Mbps, ranking it within the top-five countries in the G20 for mobile internet speeds. Meanwhile, the median fixed internet download speed at the start of 2025 was 116.96 Mbps, an increase of 12.6% y-o-y, and well above the global average of 104.43 Mbps.
Digital Content & Platforms
Alongside core connectivity and infrastructure, Saudi Arabia’s digital ecosystem is increasingly shaped by the rapid growth of content platforms, immersive technologies and a creator-led digital economy. High mobile penetration, strong network performance and a young, digitally native population have helped position the Kingdom as one of the region’s most dynamic markets for social media, short-form video and augmented reality (AR)-enabled services. These trends are reinforcing Vision 2030 objectives by supporting new forms of cultural expression, digital entrepreneurship and consumer engagement. “Saudi Arabia’s rapid investment in digital infrastructure is laying the groundwork for world-class innovation in content and connectivity,” Abdulla Alhammadi, regional business director of Snapchat in Saudi Arabia, told OBG. “When strong networks are paired with creative communities, technology can scale the reach of culture and creativity rather than replace them.” According to industry observers, this convergence of infrastructure and creativity is enabling platforms to localise digital experiences in ways that resonate strongly with Saudi users, while also creating monetisation opportunities for creators, brands and small and medium-sized enterprises (SMEs).
Demographics
Saudi Arabia’s demographic profile plays a central role in this evolution. With the median age of the population being 29, young users are shaping how digital services are consumed, shared and commercialised. “The Kingdom’s scale, connectivity and young population are actively shaping how digital engagement is adopted and adapted,” Alhammadi told OBG. “For social media platforms, this results in high-frequency usage and creator participation that inform how culturally relevant and commercially sustainable experiences are developed.” This has positioned the Kingdom not only as a major consumer market but also as an early adopter environment where new digital formats can be piloted and scaled.
AR is emerging as a particularly important layer of this ecosystem, supported by growing 5G coverage and rising smartphone capabilities. Applications range from branded AR lenses and virtual try-on tools to generating educational content and location-based experiences linked to tourism and retail. “AR is helping bridge the physical and digital world in ways that align with Saudi Arabia’s Vision 2030,” Alhammadi said. “As AI continues to accelerate how AR is developed and scaled, localising experiences around cultural expression, commercial engagement and skills development is enabling AR to become a practical tool for creative storytelling, economic opportunity and talent empowerment.” With AR adoption increasing, it is expected to stimulate growing demand for advanced cloud, AI and data processing capabilities.
AI
AI usage in the Kingdom has surged recently as businesses and consumers alike adopt the technology and begin to embed it into their everyday operations. According to the General Authority for Statistics, AI adoption among Saudi businesses reached 27.6% in 2024, as establishments are utilising AI tools in at least some capacity. Uptake is highest in the ICT sector, with some 52.8% of businesses using AI. This is followed by finance and insurance (44.7%), education (42.1%) and professional services (39.2%). The arts, entertainment and recreation sector recorded the lowest AI adoption rate at 20%, which, while the lowest, still indicates that a significant proportion of the sector is using AI technologies.
Meanwhile, usage among the general population is on the rise with figures reflecting different types of usage. A September 2025 Deloitte report on AI usage patterns across Saudi Arabia and the UAE found that 58% of respondents had used AI tools such as ChatGPT or Google Gemini. Of these, 55% are embracing AI-powered tools at an accelerated pace, engaging with the platforms on a weekly or daily basis. 20% of overall respondents, meanwhile, were still unfamiliar with AI tools. Research conducted by the Saudi Centre for Public Opinion Polls in February 2025 found that 49% of Saudi society used AI on a regular basis, with ChatGPT leading as the most used tool at 41%.
AI use for specific tasks or research purposes is on the rise. According to research conducted by global insights provider Toluna in July 2025, 43% of Saudi travellers used AI to find the best deals, 31% used AI tools to optimise their itineraries and 38% used them for restaurant suggestions. IMARC Group research suggests that the Saudi market was worth $1.2bn in 2025, and would achieve a CAGR of 15% to 2034. Statista puts the value of the Kingdom’s AI market at $2.3bn in 2025 and forecasts a CAGR of 37.3% between 2025-31. Meanwhile, Grand View Research is much more bullish, valuing the AI market at $6.8bn in 2024 and forecasting a CAGR of 43.1% from 2025-30, reaching $60bn by 2030.
Market size estimates and growth trajectories of nascent sectors like AI often vary considerably given different methodological research approaches and differing definitions for what the sector comprises. For example, while cloud infrastructure and data centre capacity are included in some market size estimates, they are excluded from others.
A major milestone in the AI journey was reached in May 2025 with the launch of HUMAIN, the Kingdom’s fully owned AI company. HUMAIN is backed by the Public Investment Fund and it was announced by Saudi Arabia’s leadership as a cornerstone of the Kingdom’s AI and digital strategy as it works to position itself as a global AI leader. The company aims to operate across the full AI value chain, including data centre infrastructure, cloud platforms, AI models and applications (see analysis).
Innovation & Policy
As AI adoption accelerates across the Saudi economy, policymakers are placing increasing emphasis on governance, ethics and long-term societal impact. The Kingdom’s approach reflects an understanding that sustainable technological leadership depends on scale, speed, and trust, as well as institutional capacity and alignment with national values. This perspective has informed the work of entities such as the Centre for the Fourth Industrial Revolution (C4IR) Saudi Arabia, which operates at the intersection of policy, technology and global collaboration. “The next phase of technological progress will not be defined by speed alone, but by who sets the rules for its use,” Basma Al Buhairan, managing director of C4IR Saudi Arabia, told OBG. “The Kingdom is demonstrating that innovation can scale responsibly, strengthening institutions, protecting societal values and delivering lasting impact.” This framing aligns closely with Saudi Arabia’s broader digital governance agenda, which seeks to balance innovation with safeguards around data protection, algorithmic transparency and ethical AI deployment.
AI’s cross-sectoral reach is already reshaping decision-making and operational models across health care, finance and government services. “As AI reshapes economies and governance systems, the real challenge is no longer adoption, it is alignment,” Al Buhairan said. “Our role is to help build governance frameworks that align technology adoption with national priorities and are designed to be scaleable.” This has translated into efforts to embed governance principles at early stages of AI development, rather than retrofitting oversight once systems are deployed.
Collaboration is a central pillar of this approach. Saudi Arabia has increasingly positioned itself as a convening platform for global dialogue on AI governance, standards and best practices, reflecting its ambition to move from technology adoption to norm setting. “Saudi Arabia is investing in policy, talent and cross-sector collaboration to demonstrate that competitiveness and inclusion are not trade-offs, but mutually reinforcing,” Al Buhairan told OBG.
These priorities are reflected in partnerships with international organisations, academia and private-sector technology leaders, as well as in the Kingdom’s hosting of global technology forums and summits. These developments suggest that the ICT and AI trajectory is evolving beyond infrastructure build-out towards ecosystem maturity. As digital platforms, immersive technologies and AI-enabled services become more deeply embedded in economic and social life, the emphasis is shifting towards governance, skills and innovation.
Outlook
Looking ahead, the ICT and AI sectors are expected to remain among the strongest-performing segments, underpinned by infrastructure build-out, rising data consumption and the scaling of advanced digital applications. The government’s emphasis on data centres, cloud capacity and AI-ready infrastructure comes as authorities shift focus from large-scale physical projects towards technology-led investments that tie in with Vision 2030 ambitions.
Over the medium term, the successful implementation of the National Data Centre Strategy and the National Strategy for Data and AI is likely to deepen localisation in the sector and attract foreign technology partners who can help cement the Kingdom’s ambitions to become a regional digital centre. While market size projections for AI vary, a number of aspects point to rapid expansion as adoption broadens across priority sectors such as government services, health care, finance and energy. The launch of HUMAIN reinforces this trajectory, marking a transition from strategy formulation to large-scale execution and positioning the Kingdom as a future global leader in the field over the medium term.
Read More from OBG
