Saudi Arabia’s Space Economy Set to Nearly Quadruple to $31.6 Billion by 2035

Saudi Arabia’s space economy is expected to grow almost fourfold over the next decade, reaching $31.6 billion by 2035 from $8.7 billion in 2024 as the Kingdom expands its focus on space, digital technology and sustainable development.

The forecast was included in the Digital & Space Sustainability Report 2026, published by the Communications, Space and Technology Commission with support from the International Telecommunication Union.

The report highlights the growing importance of satellite technology in addressing environmental challenges. More than half of essential climate variables can be measured from space, making satellite systems increasingly important for climate monitoring, water management, agriculture, desertification control and disaster response.

Saudi Arabia’s space sector was previously projected to grow at an annual compound rate of 12% through 2035, according to the CST’s Space Market Report 2025.

The expansion is part of the Kingdom’s wider strategy to develop digital infrastructure and space-based services while using advanced technologies to support economic growth and environmental protection.

Abdullah Al-Swaha, Minister of Communications and Information Technology, said Saudi Arabia was committed to using artificial intelligence and digital innovation to support sustainable development.

The report also pointed to rapid progress in the Kingdom’s digital infrastructure. Internet penetration reached 99.6% in 2025, while fiber-optic networks covered more than 3.9 million homes.

Saudi Arabia scored 99.2 points in the International Telecommunication Union’s ICT Development Index 2025, the highest score recorded globally, according to the report.

Women’s participation in the digital sector has also increased sharply. Their share reached 35%, the highest in the Middle East and North Africa region and above the averages recorded across the G20 and European Union. The figure compares with only 7% in 2018.

Business use of artificial intelligence is also expanding. Data from Saudi Arabia’s General Authority for Statistics showed that AI adoption among businesses increased from 27.6% in 2024 to 33.1% in 2025.

The digital economy accounted for 15% of Saudi Arabia’s gross domestic product in 2024, equal to SR459 billion ($122.4 billion). The report described the Kingdom as having the largest information and communications technology market in the region.

Environmental programmes are also contributing to the country’s sustainability targets. Under the Saudi Green Initiative, more than 85 initiatives have been launched since 2021.

The Kingdom has rehabilitated 1 million hectares of land, connected more than 3.6 gigawatts of renewable energy to the national grid and planted more than 161 million trees.

Saudi Arabia has also protected 18.1% of its land and 16.1% of its marine areas. The country aims to achieve net-zero emissions by 2060 while reducing annual emissions by 278 million tonnes by 2030 and protecting 30% of its terrestrial and marine areas by the same year.