04 — Sector
Technology & Digital
A SAR 199bn ICT market, fast-growing data-centre capacity and new hyperscale cloud regions make the Kingdom one of the region’s most active technology markets.
Key figures
- ICT market size in 2025, growing about 8% a year
- SAR 199bn1
- Operational data-centre capacity in the first quarter of 2026, up from 68 MW in 2021
- 467 MW2
- Hyperscale cloud regions live or launching by end-2026 (Google, Microsoft, AWS)
- 33
- Communications, Space & Technology Commission, July 2026
- Ministry of Communications and IT, May 2026
- Microsoft; Amazon, 2026
What is driving demand
- Government and enterprise digital transformation
- AI infrastructure, with HUMAIN targeting 1.9 GW of capacity by 2030
- Data-residency expectations that favour hosting in the Kingdom
- Cybersecurity, driven by the National Cybersecurity Authority’s mandatory controls for government and critical infrastructure
- Cloud migration to in-Kingdom regions
Who buys
- Government entities through Etimad, with local-content weighting in IT services tenders from April 2027
- Banks, telecom operators and state-owned enterprises
- System integrators and resellers as channel partners
Typical entry route
Software and services firms often start with a channel or system-integrator partner, then add local delivery and hosting as contracts grow and data-residency or local-content rules apply.
Request a sector briefingWatch for
- NCA Essential Cybersecurity Controls (ECC-2:2024), mandatory for government and critical infrastructure and passed down to their vendors; SAMA’s Cyber Security Framework for banking clients
- Personal Data Protection Law and data-residency requirements
- Local-content weighting in government IT services tenders of SAR 10m+ from April 2027
- 40% Saudization of consulting roles for advisory-heavy offers
FAQ
Common questions
Does our product need certification to sell to government?
There is no single certificate for software. But government entities and critical-infrastructure operators must meet the NCA’s Essential Cybersecurity Controls and pass them on to vendors; cloud services need registration with the Communications, Space and Technology Commission at the right data level; cybersecurity providers register with the NCA; and banks apply SAMA’s Cyber Security Framework to their suppliers.
Do we need to host data in Saudi Arabia?
Often, for government and regulated-sector clients. The Personal Data Protection Law and sector rules shape where and how you can host data.
What changes for IT tenders from 2027?
Local content becomes a weighted criterion in government IT services tenders of SAR 10m or more from 1 April 2027.
How do foreign technology firms usually sell?
Through system integrators, resellers or a local partner first, then directly once there is a pipeline to support a local team.
Sources for this page: Communications, Space & Technology Commission (July 2026) and its Cloud Computing Regulatory Framework; National Cybersecurity Authority, ECC-2:2024 and CCC-2:2024; SAMA Cyber Security Framework; Ministry of Communications and IT (May 2026).
Reference guides
The detail behind the decision.
Local content and local manufacturing: how the numbers work
Local content can outweigh a 10% price gap in a Saudi tender. How it is measured, the exact evaluation formula with a calculator, and the incentives that make manufacturing in the Kingdom pay.
10 min readReadSaudi Arabia’s industrial zones: a map and a guide to choosing one
More than fifty industrial cities, special economic zones and hubs, run by four different authorities with four different rulebooks. Where they are, what each offers, and how to choose.
9 min readReadSaudi Arabia’s trade agreements: where a Saudi-made product goes duty-free
Saudi Arabia negotiates trade deals through the GCC. What is in force, what has just been concluded, including the UK deal of May 2026, and the rules of origin that decide whether you benefit.
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