Saudi Arabia’s Cybersecurity Market Grows 10.7% to $4.35 Billion in 2025

Saudi Arabia’s cybersecurity market expanded by 10.7% annually to SR16.3 billion ($4.35 billion) in 2025, driven by rising investment from businesses and government entities as the Kingdom accelerates its digital transformation.

Private-sector spending accounted for 69% of the market, reaching SR11.2 billion, while government entities contributed SR5.1 billion, or 31%, according to the National Cybersecurity Authority’s Key Economic Indicators in the Cybersecurity Sector 2026 report.

The growth comes as Saudi Arabia expands digital government services under Vision 2030. The Kingdom’s Digital Government Strategy for 2025-2030 aims to generate a cumulative SR11.4 billion contribution to gross domestic product and create more than 26,000 jobs by 2030.

As public services and infrastructure become increasingly digital, protecting government systems, business networks and sensitive information has become a growing priority.

The National Cybersecurity Authority said the sector contributed approximately SR20 billion to Saudi Arabia’s GDP in 2025, recording a compound annual growth rate of 13.2% between 2023 and 2025.

Cybersecurity product and service providers generated SR9.7 billion directly, while indirect contributions reached SR10.3 billion. Together, these represented 0.42% of the Kingdom’s total GDP and 0.71% of GDP from non-oil activities.

The authority launched its CyberIC programme in 2022 to develop national capabilities, localise technology and training, and support domestic cybersecurity companies. Saudi Arabia has also maintained its leading position in the cybersecurity index of the IMD World Competitiveness Yearbook for three consecutive years, according to the authority.

Cybersecurity workforce exceeds 22,000

Saudi Arabia’s cybersecurity workforce surpassed 22,000 professionals in 2025, growing at an annual compound rate of approximately 5.9% between 2023 and 2025.

Women represented 33% of the workforce, exceeding the global average of around 22%, the report said.

Cybersecurity products accounted for SR8.3 billion, or 51% of market activity, while services generated SR7.9 billion, representing the remaining 49%.

The most sought-after areas included endpoint security and management, network protection, cybersecurity operations, systems integration and data security.

Mohamad Hashem, Kaspersky’s general manager for Saudi Arabia and Bahrain, said the growing sophistication of cyberattacks was pushing organisations to invest more in security as they adopted artificial intelligence, cloud computing and automation.

He said stronger protection could help businesses detect threats earlier, respond more quickly and maintain operations during disruptions.

Economist Ahmad Chreim said cybersecurity had become a strategic investment, with global security spending projected to reach between $240 billion and $308 billion in 2026. He noted that artificial intelligence was increasing cyber risks while also improving defensive capabilities.

New opportunities for cybersecurity firms

Chreim identified AI-based threat detection, cloud security and identity and access management as promising areas for investment, particularly as automated systems increase the number of digital identities that organisations must protect.

Hashem said Saudi Arabia’s focus on critical infrastructure, local talent and cooperation between sectors was strengthening its cybersecurity ecosystem.

He added that embedding security into new technology from the design stage could reduce downtime, protect supply chains and give businesses greater confidence to introduce digital services.

The National Cybersecurity Authority attributed the market’s expansion to policies supporting innovation, investment and stronger public-private cooperation. Its report draws on research involving government bodies, businesses, academic institutions and cybersecurity professionals.