Saudi Arabia’s digital economy is experiencing significant growth, now accounting for 16% of the nation’s Gross Domestic Product (GDP) in 2024. This represents a 0.4 percentage point increase from 15.6% in the previous year, according to the results of the recently published Digital Economy Survey bulletin. The expansion highlights the Kingdom’s ongoing efforts to diversify its economy away from oil and toward technology-driven sectors.
The growth in the digital economy, as reported by Saudi Arabia’s statistical authorities, occurred throughout the year 2024, with data collection and analysis completed and released in early 2025. The statistics detail the performance of the information and communications technology (ICT) sector and its contribution to the Saudi economic landscape. This increasing share underscores the success of Vision 2030 initiatives focused on technological advancement.
The Expanding Scope of Saudi Arabia’s Digital Economy
The Digital Economy Survey categorized the sector into three components: core, narrow, and broad. The core digital economy, comprising ICT manufacturing and services, contributed 2.7% to GDP. The narrow digital economy, including digitally-enabled services, accounted for 2.4%. However, the broad digital economy, encompassing all industries benefiting from digital technologies, made up the substantial majority at 10.9%.
ICT Sector Performance
Operating revenues within the ICT sector reached SR249.8 billion (approximately $66.5 billion USD) in 2024. Wired and wireless telecommunications dominated revenue generation, bringing in SR133.9 billion. Following closely was computer programming, generating SR31.1 billion in revenue, indicating a strengthening software and IT services industry.
While revenues increased significantly, operating expenditures also rose, reaching SR122.2 billion. Compensation for employees in the ICT sector totaled SR29.2 billion, with telecommunications again leading, accounting for SR16.1 billion of that figure. These figures suggest continued investment and job creation within the industry.
Foreign Trade Dynamics & Technological Investment
Significant shifts occurred in Saudi Arabia’s foreign trade related to ICT goods. Imports of these goods increased by 23.5%, rising from SR54.9 billion in 2023 to SR67.9 billion in 2024. This growth was largely driven by communications equipment, valued at SR36.8 billion, revealing reliance on foreign technology for infrastructure development.
Exports and re-exports of ICT goods saw an even more substantial leap, increasing by 118% from SR11.8 billion in 2023 to SR25.8 billion in 2024. This surge could be attributed to an expansion of domestic manufacturing capabilities and increased regional trade, although the details of exported goods were not specified in the initial report. This growth is a key indicator of the Kingdom’s maturing technological infrastructure.
The Ministry of Communications and Information Technology (MCIT) has been actively promoting foreign investment in the Saudi tech sector. These efforts have included regulatory reforms, the establishment of special economic zones, and financial incentives for companies operating in the Kingdom. The growth in both imports and exports of ICT goods likely reflects the effectiveness of these policies.
The broadening of the digital economy relies on significant investment in areas like cloud computing, artificial intelligence, and cybersecurity. The report indicates these are areas of growing focus for both public and private sector spending, though precise figures were not included in the bulletin’s initial release. These investments are expected to further increase the sector’s contribution to GDP.
Furthermore, Saudi Arabia is focused on developing a strong domestic ICT talent pool. Initiatives aimed at upskilling the workforce and attracting skilled foreign workers are crucial for sustaining the current growth trajectory and fostering innovation. The SR29.2 billion in employee compensation suggests growing demand for qualified professionals in this field.
The government recognizes the importance of digital transformation across all sectors of the economy. From healthcare and education to finance and transportation, the integration of digital technologies is seen as a key driver of efficiency and economic diversification. This is reflected in the dominance of the broad digital economy figures published in the report.
The increasing share of the digital economy in Saudi Arabia’s GDP represents a significant success story for the nation’s economic reform agenda. It demonstrates the effectiveness of Vision 2030 in diversifying revenue streams and promoting sustainable economic growth. However, continued investment and strategic policy decisions are vital to maintain this momentum.
Looking forward, the MCIT is expected to release more detailed analyses of the Digital Economy Survey in the coming months. Further data will shed light on the specific sub-sectors driving growth and the challenges that remain. The Kingdom’s ability to continue attracting foreign investment, develop a skilled workforce, and foster innovation will be crucial for realizing its digital transformation goals and achieving a substantial, sustainable digital economy in the future. Analysts are also carefully monitoring the impact of global economic conditions on the sector’s continued expansion.
