Saudi IT Exports Surpass SAR6 Billion in 2023

Saudi Arabia’s communications and information technology exports exceeded SAR6.3 billion in 2023, according to preliminary data released by the Saudi Export Development Authority (Saudi Exports), marking a significant milestone in the Kingdom’s efforts to diversify its economy beyond oil. The performance underscores the rapid growth of Saudi Arabia’s digital services sector and its increasing competitiveness in global markets, supported by a comprehensive package of programs and capabilities designed to empower national technology companies.

Context and Background

The services export sector has emerged as a key driver of Saudi Arabia’s non-oil export growth. Services exports refer to the value of services exchanged between residents and non-residents, encompassing cross-border trade, consumption by visitors abroad, commercial presence in foreign markets, and the movement of natural persons. In 2023, Saudi services exports reached SAR182 billion, a 40 percent increase from the previous year, according to preliminary data from Saudi Exports.

This surge was largely driven by the travel sector, which grew by 43 percent and accounted for 74 percent of total services exports at SAR135 billion. The transport sector followed with SAR24.2 billion, while telecommunications and information technology services contributed SAR6.3 billion. The strong performance reflects the Kingdom’s strategic focus on expanding non-oil exports as part of Vision 2030.

Key Details

Saudi Arabia’s telecommunications and information technology market is among the largest and fastest-growing in the region. The information technology market exceeded SAR91 billion in 2022, with a 13 percent increase in the number of digital startups. The local content ratio in the technology sector surpassed 28 percent, signaling robust domestic capacity.

To further boost technology exports, Saudi Exports launched the “Saudi Technology” label in 2023 as a sub-brand of the “Saudi Made” program. This initiative supports national technological products and companies, expands their reach, and promotes them locally and globally. More than 54 national technology companies have registered under the label, enhancing the position of Saudi technological companies and products and increasing the percentage of technological product exports to priority markets.

Saudi Exports offers a comprehensive package of services to help service exporters reach international importers. These include participation in international exhibitions and trade missions, such as the GITEX Technology exhibitions. Notably, Saudi Exports participated in GITEX Africa 2024 in Morocco from May 29 to 31, 2024, with 25 national companies specializing in communications and information technology under the “Saudi Made” pavilion. The event aimed to highlight global market opportunities, promote Saudi technological products and services, and open new export channels.

In addition, Saudi Exports is working to activate partnerships with government entities to develop the sector and improve the export environment. It contributes to the development of the “BRIDGE” initiative in collaboration with the Ministry of Communications and Information Technology to support rapidly growing technology companies in expanding internationally and increasing their technological exports.

Several Saudi technology companies have already achieved notable success in international markets. Foodics entered the Japanese market and signed an agreement with Interlink to support accessibility of its services in East Asia. The smart platform Mrsool expanded into Egypt, with over 3 million app installations, more than 2,000 partners and merchants, and over 10 million monthly browsing operations. Renad Al Majd Group, specializing in information technology, offers digital transformation solutions, cybersecurity, and data management in eight countries. Naseej provided technical support for student affairs management systems to prestigious universities in Egypt. Labayh medical care company acquired the Emirati app Nafas to expand its customer base.

Implications and Impact

The growth of Saudi communications and IT exports has significant implications for the Kingdom’s economic diversification and global competitiveness. By supporting service exporters, Saudi Arabia is not only increasing non-oil export revenues but also enhancing its reputation as a hub for technology and innovation. The success of Saudi tech companies abroad demonstrates the quality and competitiveness of Saudi products and services, paving the way for further expansion into new regional and global markets.

Moreover, the focus on technology exports aligns with global trends toward digital transformation and knowledge-based economies. Saudi Arabia’s efforts to promote its technological capabilities at international events like GITEX Africa strengthen its diplomatic and economic ties, particularly with African and Asian markets. This contributes to the Kingdom’s broader goal of becoming a leading player in the global digital economy.

Vision 2030 Alignment

The surge in communications and IT exports is a direct reflection of Saudi Vision 2030’s objectives to diversify income sources and reduce dependence on oil. By empowering national technology companies and facilitating their access to international markets, Saudi Exports is translating the leadership’s aspirations into tangible economic outcomes. As the Kingdom continues to invest in digital infrastructure, innovation, and human capital, the technology sector is poised to play an increasingly vital role in driving sustainable non-oil export growth and solidifying Saudi Arabia’s position as a global technology leader.

20 Questions

Q1. What was the value of Saudi communications and IT exports in 2023?

A1. Saudi communications and information technology exports surpassed SAR6.3 billion in 2023, according to preliminary data from the Saudi Export Development Authority.

Q2. How much did Saudi services exports grow in 2023?

A2. Saudi services exports grew by 40 percent in 2023, reaching SAR182 billion, marking their best performance compared to previous years.

Q3. Which sector drove the growth in services exports?

A3. The travel sector drove growth, increasing by 43 percent and accounting for 74 percent of total services exports at SAR135 billion.

Q4. What is the size of Saudi Arabia’s information technology market?

A4. The Saudi information technology market exceeded SAR91 billion in 2022, with a 13 percent increase in digital startups.

Q5. What is the “Saudi Technology” label?

A5. The “Saudi Technology” label is a sub-brand of the “Saudi Made” program launched in 2023 to support national technological products and companies globally.

Q6. How many national technology companies are registered under the Saudi Technology label?

A6. More than 54 national technology companies have registered under the Saudi Technology label to enhance their global reach.

Q7. What is the local content ratio in Saudi Arabia’s technology sector?

A7. The local content ratio in the technology sector surpassed 28 percent, indicating strong domestic capacity and growth.

Q8. What is the BRIDGE initiative?

A8. The BRIDGE initiative is a collaboration between Saudi Exports and the Ministry of Communications and Information Technology to support tech companies in expanding internationally.

Q9. Which international exhibition did Saudi Exports participate in recently?

A9. Saudi Exports participated in GITEX Africa 2024 in Morocco from May 29 to 31, 2024, with 25 national companies.

Q10. What was the purpose of Saudi Exports’ participation in GITEX Africa 2024?

A10. The participation aimed to highlight global market opportunities, promote Saudi technological products and services, and open new export channels.

Q11. Which Saudi company entered the Japanese market?

A11. Foodics entered the Japanese market and signed an agreement with Interlink to support accessibility of its services in East Asia.

Q12. How has Mrsool expanded internationally?

A12. Mrsool expanded into Egypt with over 3 million app installations, more than 2,000 partners, and over 10 million monthly browsing operations.

Q13. What services does Renad Al Majd Group offer?

A13. Renad Al Majd Group offers digital transformation solutions, cybersecurity, and efficient data management in eight different countries.

Q14. Which company acquired the Emirati app Nafas?

A14. Labayh medical care company acquired the Emirati app Nafas to expand its customer base and reach new beneficiaries.

Q15. What support did Naseej provide in Egypt?

A15. Naseej provided technical support for student affairs management systems to several prestigious universities in Egypt as part of its global expansion efforts.

Q16. What are the four mechanisms of services exports according to the WTO?

A16. The four mechanisms are cross-border trade, consumption abroad, commercial presence abroad, and movement of natural persons.

Q17. How does Saudi Exports support service exporters?

A17. Saudi Exports offers services to help exporters reach importers, including participation in international exhibitions and trade missions like GITEX.

Q18. What is the goal of Saudi Exports’ efforts in the technology sector?

A18. The goal is to enhance the contribution of the telecommunications sector to non-oil GDP and increase technological exports to priority markets.

Q19. What was the value of transport services exports in 2023?

A19. Transport services exports were valued at SAR24.2 billion in 2023, following the travel sector in contributing to services exports.

Q20. How does this align with Vision 2030?

A20. It aligns with Vision 2030 by diversifying income sources, reducing oil dependence, and promoting sustainable non-oil export growth through technology and innovation.

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