IDC expects Saudi Arabia's ICT spending to hit $37.4B by 2024-end

Hamza Naqshabandi. Vice President for Custom Solutions in the Middle East, Turkey, and Africa (META) at International Data Corporation (IDC)

Spending on the information and communication technology (ICT) market in Saudi Arabia is expected to reach about $37.4 billion by the end of 2024, showing a growth of 3.3% year-on-year, said Hamza Naqshabandi. Vice President for Custom Solutions in the Middle East, Turkey, and Africa (META) at International Data Corporation (IDC).

On the sidelines of the ICT Indicators Forum, Naqshabandi told Argaam that the main factors driving this growth include the emergence of pioneering and emerging digital sectors such as e-tourism, entertainment, and e-sports.

For more exclusive interviews

This is in addition to continued investments in the infrastructure of mega projects and the great move in Saudi Arabia to adopt emerging technologies such as artificial intelligence (AI) and the Internet of Things (IoT), as well as the venture of international companies into the Saudi market, he added.

Naqshabandi went on to say that the digital gap in the Kingdom has narrowed through gradual reforms to regulations, as well as enabling the thriving ecosystem to place digital technologies within the goals of economic diversification to achieve the goals of Vision 2030.

The IT market is one of the fastest-growing in the Middle East, Turkey, and Africa, with a growth rate of 10%. Spending in this market is expected to reach $18.4 billion in 2024, while spending on cloud services will likely grow at a rate exceeding double digits in the next four years, according to the official.

He further explained that public sector spending on the sector is likely to reach $1.9 billion, with $730 million allocated to emerging technologies in 2024, which will contribute to forming a knowledge-based economy in the Kingdom and further enhance the infrastructure necessary to benefit from AI technologies, which is expected to grow by up to 40%, thus contributing to achieving Vision 2030 goals.

Naqshabandi also highlighted Saudi Arabia’s determination towards transformation, as the IT market in the Kingdom has witnessed remarkable growth during the year 2023, reaching 10% YoY, which comes despite the global economic slowdown and the risks that may result from such investments.

He believes that Riyadh is becoming a hub for digital technology, thanks to the government initiative to attract regional headquarters, as it works to empower local service providers to raise the level of maturity of the IT ecosystem.