The Saudi Digital Services Market is entering a new phase of rapid growth. Valued at USD 10.9 billion in 2024, it is projected to expand to USD 82 billion by 2033. This growth, at a compound annual rate of 23.1% from 2025 to 2033, shows how digital transformation is reshaping the Kingdom’s services sector.
Government spending and Vision 2030 reforms are the main drivers. In 2024, Saudi Arabia allocated more than USD 10 billion to ICT, an 18.75% increase from the previous year. These investments support artificial intelligence (AI), cloud adoption, and other emerging technologies that make governance and services more efficient.
Government Programs Fueling Digital Growth
Saudi Arabia has digitized over 97% of government services. Education, health, and justice are among the many areas benefiting from this shift. The impact is visible in global rankings too—the Kingdom climbed 25 places in the UN E-Government Development Index 2024, now standing 4th worldwide for digital service maturity.
The introduction of open data regulations and 100% digital government processes has set a high benchmark for service efficiency. These steps not only improve governance but also create fertile ground for private companies to thrive in digital service delivery.
Expanding IT Services and Sector Adoption
The IT services market in Saudi Arabia reflects this momentum. Reports value it at USD 5.58 billion in 2024, with forecasts ranging from USD 9.39 billion to as high as USD 45.77 billion by 2030, depending on service categories. Growth is driven by areas such as cloud platforms, cybersecurity, and smart technologies.
Healthcare, finance, education, and oil & gas are the main adopters. These sectors use IT services to enhance security, improve customer experience, and streamline operations. Local players such as Elm Company, Sahara Net, and Ejada Systems are leading efforts in cloud migration, cybersecurity, and AI integration.
AI, Cloud, and Cybersecurity Lead the Way
Cloud computing and AI-powered cybersecurity are at the core of the Saudi digital agenda. Demand for sovereign cloud solutions is growing due to strict data residency and cybersecurity rules. Meanwhile, the National Cybersecurity Authority is enforcing advanced policies to ensure secure digital growth.
AI is also transforming service delivery. Real-time threat detection, predictive analytics, and automated responses are now standard in both public and private organizations. These tools help address rising cyberattacks while building trust in digital systems.
Read also: Saudi AI Infrastructure Scaling at 30.5% CAGR by 2030
Future Investment and Opportunities
Vision 2030 continues to shape the investment landscape. Major projects like NEOM are creating demand for advanced digital services, including smart city solutions and large-scale data centers. Cloud and platform services are expanding at nearly 20% CAGR, supported by government mandates such as e-invoicing (FATOORA).
Small and medium-sized enterprises (SMEs) also play a key role. They are increasingly adopting digital services to comply with regulations and stay competitive in a fast-changing market. Together, these developments ensure that the Saudi Digital Services Market will remain a cornerstone of economic transformation in the coming decade.
