Saudi Arabia Becomes Largest Digital Economy in MENA, Valued at Over $131 Billion

Saudi Arabia has solidified its position as the largest digital economy in the Middle East and North Africa (MENA) region, with its digital market valued at more than SR495 billion ($131.9 billion) in 2024. This figure represents 15 percent of the country’s gross domestic product (GDP), according to the Ministry of Communications and Information Technology.

The announcement was made on World Telecommunication and Information Society Day and reported by the Saudi Press Agency (SPA), highlighting the Kingdom’s rapid progress in technology sectors such as artificial intelligence (AI), data centers, e-government services, and workforce development.

The communications and information technology sector in Saudi Arabia recorded a record growth, surpassing SR180 billion in 2024. This surge was driven by expanding private sector investments and heightened innovation, reinforcing Saudi Arabia’s position as the leading technology market in the region.

Significant investments have been made in AI and data center infrastructure, totaling over SR55 billion. This investment led to a 42 percent increase in national data center capacity, which now stands at 290.5 megawatts. Central to these efforts is Humain, a state-backed AI company launched to develop AI technologies and infrastructure, including large data centers and Arabic-language AI models. Humain’s mission is to establish Saudi Arabia as a global hub for artificial intelligence.

The Kingdom has also forged key partnerships with major international technology firms. A notable example is the strategic collaboration with Nvidia, which will supply 18,000 advanced AI chips to Saudi Arabia through its alliance with Humain.

Infrastructure improvements have been substantial, with fiber-optic networks now reaching over 3.9 million homes. Internet penetration has climbed to 99 percent, placing Saudi Arabia among the most connected countries globally. This extensive infrastructure supports advanced digital services and underpins the country’s readiness for cloud computing and smart applications.

Human capital development remains a critical component of the Kingdom’s digital transformation. Saudi Arabia hosts the largest pool of digital talent in the Middle East, with over 381,000 specialized technology jobs. Notably, women’s participation in the tech sector has surged from 7 percent in 2018 to 35 percent in 2024, the highest rate in the region and surpassing averages in both the G20 and the European Union.

Saudi Arabia’s achievements in digital governance have earned it high global rankings. The Kingdom is fourth worldwide in the UN’s Online Services Index, sixth in the E-Government Development Index, and second among G20 nations. Regionally, it leads in digital government services, while globally, it ranks first in digital skills and open digital government, and seventh in e-participation.

These milestones reflect Saudi Arabia’s ambition to become a dominant player in the global digital economy and showcase the country’s ongoing commitment to innovation and technology-driven growth.