Arab News, Wed, Apr 24, 2024 | Shawwal 15, 1445
Saudi Arabia fastest-growing IT market in region, ICT spending to hit $37.5bn in 2024
Saudi Arabia:
Saudi Arabia is the fastest-growing information technology market in the Middle
East, Turkey, and the African region, with double-digit growth in technology
spending, according to analysts.
Jyoti Lalchandani, regional managing director of
research firm IDC, said wider information and communication technology market
spending is expected to reach $37.5 billion by the end of 2024.
The comments were made during the ICT Indicators
Forum, which was hosted by the Ministry of Communication and Information
Technology alongside the Communications, Space, and Technology Commission in
Riyadh on April 24.
It was further noted that spending in this
area across the Saudi government sector would exceed $752 million by the end of
2024 as innovative technologies become foundational to building an “experience
economy.”
“AI, big data analytics, IoT, and cybersecurity
spending is poised for tremendous growth and will account for almost one-third
of overall IT spending in Saudi Arabia in 2024. Spending on AI in Saudi Arabia
will surpass $720 million in 2024, reaching $1.9 billion by 2027 at a CAGR
(compound annual growth rate) of 40 percent—half of that will be on
interpretative AI,” Lalchandani said.
“We have seen Saudi Arabia emerge as a hub for the
cloud,” he added, with spending on public cloud forecasted to surpass $2.4
billion in 2024 and reach $4.7 billion by 2027.
Software-as-a-Service will account for more than
50 percent of the 2024 spending.
IDP further highlighted that spending on
cybersecurity alone will surpass the $1 billion mark in 2024 and reach $1.6
billion in 2027.
“I do remember a few years ago, the cybersecurity
market was estimated at about $500 million. Today, we’re talking about literally
double that. We’re talking about $1 billion in the cybersecurity industry, and
to hear it be called the fastest growing market in the region is really a
testament to our beloved nation,” Salman Faqeeh, CEO of Cisco Saudi Arabia, said
while speaking on a panel during the forum.