The Kingdom's tech sector thrives with boosted software expenditure
Riyadh, October 23, 2023, The Kingdom's technology sector is experiencing robust growth, primarily fueled by increased software spending. The software market has seen a remarkable compound annual growth rate (CAGR) of 11%. Notably, the local market for application development and dissemination has reached $651 million, with the applications market at $1.114 million, and system infrastructure programs amounting to $817 million this year.
Speaking at the Digital Technology Forum 2023, hosted by the Communications, Space, and Technology Commission (CST), Jyoti Lalchandan, IDC's Group Vice President and Regional Managing Director, highlighted the Kingdom's significant progress in digital transformation. In 2023, this transformation has led to an eight-fold surge in the number of institutions and digital technology spending, driving them toward operational efficiency, competitiveness, and long-term growth.
Lalchandan also noted that by 2026, a substantial 40% of global organizations' total revenues will be generated through digital products, services, and expertise. He underlined that the key areas attracting investments in 2023 for software innovators are closely tied to the rapid development of software tools, the automation of testing, the adoption of agile methodologies in project portfolio management, and the integration of artificial intelligence to support development efforts. These advancements are indicative of the Kingdom's evolving technological landscape and its commitment to digital progress.