COUNTRY FOCUS : SAUDI ARABIA
the participation of numerous government entities and key international companies in the industry .
In July 2021 , MCIT launched an $ 18 billion plan to build a network of large-scale datacentres across Saudi Arabia .
TECHXAGON ' s inauguration symbolizes a strategic achievement for SBM , exemplifying focus on innovation , research and development . The facility is situated in SBM ' s building in Riyadh ' s Digital City . The centre boasts numerous international certifications in datacentres , cloud computing , cybersecurity , and interior design , illustrating the centre ’ s commitment to global best practices in technology .
Market sectors
Saudi Arabia ’ s ICT Strategy 2023 outlines the creation of more than 25,000 jobs in the sector , increasing the size of the IT market and emerging technologies by 50 %, and raising the sector ’ s contribution to GDP by $ 13.3 billion . It also aims to attract foreign investments and to support the participation of women in this sector .
Saudi Arabia currently has the largest cybersecurity industry in the Middle East . The Saudi Arabian cybersecurity market was valued at $ 3.6 billion in 2020 and is expected to grow at a CAGR of 17.98 % to reach $ 9.8 billion by 2026 . Cyber threats in Saudi Arabia continue to be a major challenge .
Sectors that are most heavily targeted include government , education , finance , energy , and healthcare . Increasing cyberattacks have spurred the government to launch significant initiatives to fight cybercrimes .
Saudi Arabia is currently building several smart cities , including NEOM , Red Sea , Qiddiya , Waad Alshamal , and SPARK , and aims to be the world ’ s most connected and digitised nation by 2030 . According to IDC , Saudi Arabia ’ s IoT market is estimated to reach $ 2.9 billion by 2025 with an annual growth rate of 12.8 %.
Specific areas of focus include industrialised IoT , AI , cloud computing , and datacentres . 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 optimisation .
The purpose of the initiative is to transform Saudi Arabia into the main datacentre hub for the region , by working closely with the private sector , including local and international investors , to achieve this goal . Saudi Arabia ’ s strategic location allows global cloud service providers , CSPs to serve the MENA region .
Current data shows that local cloud providers are offering Infrastructure as a Service , IaaS with limited Software as a Service availability , creating an opportunity for CSPs to build critical SaaS and full stack cloud solutions . In February 2022 , Saudi Telecom Company , STC announced that it would set up a new entity with an initial capital of $ 26.66 million to which it would transfer its datacentres , international submarine cables and points of presence assets .
Saudi Arabia was among the first countries in the MENA region to launch 5G networks in 2019 . According to Saudi Arabia ’ s Communications and Information Technology Commission , the total number of governorates covered by 5G at the end of the second quarter was 60 out of 118 , up by seven from the first quarter of 2021 . The fixed-line Internet market has grown strongly in recent years , boosted by the growing popularity of social media , video downloads , and a pandemic-led surge in online streaming and gaming .
Saudi Arabia is one of the largest consumer electronics markets in the GCC region . Growth in this segment is attributed to favourable demographics and will benefit from the country ’ s early adoption of 5G and the subsequent rollout of new devices . According to the Saudi Central Bank , the share of electronic payments in retail business was almost 57 % of total transactions in 2021 , exceeding the 55 % target set out by the Financial Sector Development Programme .
With Vision 2030 aiming to achieve 70 % cashless transactions by 2030 , the market is expected to see more investment by start-ups and telecoms service providers in the digital payments sector . p
Saudi Arabia requires government entities to prioritise cloud-based solutions . The introduction of its Cloud First Policy in 2019 signalled the government ’ s intent to push widespread cloud adoption across its public and private sectors , evidenced by the 16 % growth rate of cloud services , the fastest growing cloud segment in-market .
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