Tech Companies in Saudi Arabia: Transformations, Data, and Future Prospects

Tech companies in Saudi Arabia are those entities focused on developing and providing digital solutions, including software, hardware, cloud services, artificial intelligence, digital services, and information security, alongside telecommunications companies that are an integral part of the tech landscape. This sector encompasses large entities such as Saudi Telecom Company (STC), specialized consulting and training firms like CIT Group, as well as startups focused on artificial intelligence, the Internet of Things, and financial technologies. These companies are officially classified within the telecommunications and information technology sector according to the Saudi Capital Market Authority (Tadawul) classifications, often falling under sub-sectors such as cloud computing, software development, or cybersecurity based on their primary activity. The structure of the Saudi sector is characterized by the presence of large local companies with government assets or sovereign partnerships, alongside rapid growth in the number of startups supported by business incubators and national innovation programs. The sector also benefits from clear government support in infrastructure (5G networks, massive data centers), as well as in legislation aimed at attracting local and global investments. The importance of this structure lies in its ability to connect the Saudi economy with global supply chains, especially with recent initiatives like the semiconductor factory established by Alat in collaboration with international companies. This diversity in activities and fields allows Saudi tech companies to play new roles not only as local suppliers but also as export centers for modern technologies to regional and international markets.

Tech companies in Saudi Arabia hold a pivotal position within Vision 2030 and national digital transformation programs, as these companies form the backbone for achieving economic diversification goals and reducing dependence on oil. The national vision focuses on enhancing technological innovation, supporting research and development, and fostering entrepreneurship in digital fields. This has been manifested in the launch of strategic projects such as NEOM City, the digital city in Riyadh, and the Saudi Data and Artificial Intelligence Authority (SDAIA), which aim to empower the private sector and provide a stimulating environment for tech company growth. The state has also provided numerous incentives, including facilitation for establishing startups, financial support through sovereign investment funds like the Public Investment Fund (PIF), and national business accelerator programs. Additionally, initiatives have been adopted to develop digital infrastructure, such as expanding 5G networks, establishing massive data centers, and localizing tech industries. The role of tech companies extends beyond the economic aspect; it also solidifies the Kingdom's position as a regional hub for technological innovation, as these companies collaborate with global partners to localize advanced technologies and apply AI solutions in health, transportation, energy, and education sectors. The integration of digital transformation in government and private services, such as e-commerce and digital payments, reflects the success of tech companies in supporting the vision's objectives. In summary, these companies have become a key driver in pushing the wheel of change and transformation towards a competitive knowledge-based economy on an international level.

The tech sector in Saudi Arabia is divided into several main sub-sectors, each with its own dynamics. The telecommunications sector, represented by companies like STC and Mobily, provides the essential infrastructure for data transmission and supports advanced solutions such as 5G networks and IoT services. The software and application development sector is witnessing rapid growth with the entry of startups focusing on digital services, e-commerce, and cloud business solutions. Artificial intelligence stands out as one of the most developed sectors, driven by government initiatives like SDAIA and investments in startups seeking to expand their local and international presence, such as Humain. Meanwhile, the fintech sector is experiencing notable expansion due to regulatory support and government initiatives, with companies offering electronic payment solutions, digital financing, and tech insurance. The importance of these sub-sectors lies in their formation of an integrated ecosystem, as software companies rely on the infrastructure provided by telecommunications companies, while AI and data analysis companies employ software solutions to innovate new services. Fintech also contributes to enhancing financial inclusion and facilitating electronic transactions in the local market. All these sectors compete with regional and global companies, driving them to adopt the latest innovations and invest in developing human and technical capabilities to ensure excellence and sustainability.

Investments in Saudi tech companies have witnessed exceptional growth in recent years, driven by a clear national vision to make the Kingdom a regional hub for innovation. Sovereign investment funds like the Public Investment Fund (PIF) have played an active role in financing massive tech projects, participating in initiatives such as establishing a semiconductor factory in partnership with global companies (SoftBank, Dahua). Startups like Rasan for Informatics have seen a significant influx of investments, having been offered for public subscription in May 2024, attracting attention from local and international investors. Data from the Saudi financial market indicates that the volume of investments in tech companies has doubled in a short period, with foreign capital entering following potential regulatory changes (such as studying raising the foreign ownership cap). Additionally, partnerships with global companies (such as Alat and Aramco Digital projects) have contributed to attracting substantial funding and transferring technical knowledge. This trend is supported by government programs facilitating the establishment of startups, providing tax incentives, and procedural facilitation for investors. According to international reports, the size of the digital services and e-commerce market exceeds tens of billions of riyals and is expected to continue growing as investments in AI, cloud computing, and cybersecurity expand. These indicators confirm that the Saudi market has become an attractive environment for capital seeking opportunities in the tech sector, with increasing opportunities for local companies to expand their operations domestically and internationally.

Saudi Arabia has become one of the most prominent nurturing environments for tech startups in the region, driven by a national trend to enhance digital entrepreneurship. In recent years, hundreds of startups have been established in fields such as artificial intelligence, the Internet of Things, fintech, and software solutions, benefiting from business incubator and growth accelerator programs launched by both governmental and private entities. These incubators vary from government initiatives like the National Technology Accelerators Program to university or sector-specific incubators focused on supporting innovative ideas and transforming them into viable and sustainable business projects. These incubators provide startups with opportunities for initial funding, technical guidance, legal and marketing support, and networking with local and international investors. They also contribute to enhancing the efficiency of Saudi human resources through specialized training programs and facilitating collaboration with universities and research centers. This environment has played a vital role in increasing the number of companies listed in the financial market, as recent years have seen the listing of startups like Rasan, with plans for other companies like Humain to list in local and global markets. The importance of startups lies in their ability to innovate new solutions and fill technological gaps in the local market, in addition to preparing national cadres capable of leading digital transformation, with a continuous trend towards supporting more initiatives in this field in the coming years.

The financial indicators of listed tech companies in the Saudi financial market reflect varied performance influenced by several factors such as activity type, investment size, and government policies. For example, Saudi Telecom Company (STC) recorded a market value of approximately 300 billion riyals in 2024, with a price-to-earnings (P/E) ratio ranging between 15 and 18, and a dividend yield exceeding 15%. These figures indicate high stability and profitability, supported by a massive customer base and expansion in digital services. Meanwhile, Mobily's stock price reached about 35 riyals, with a market value exceeding 20 billion riyals, and a P/E ratio ranging between 20 and 25, reflecting moderate growth and stability in profits. Indicators differ in smaller tech companies like CIT Group, where the P/E ratio was around 20 with lower dividend yields, due to limited expansion plans and the nature of its specialized business. Some startups also experience fluctuations in financial performance following their IPOs, such as Rasan for Informatics, which offered its shares at a price of 37 riyals per share. The importance of monitoring these indicators lies in understanding companies' abilities to distribute profits, their growth rates, and the sustainability of their operations, especially with foreign investments entering and increasing competition in the market. It is always recommended to refer to the official financial reports of companies to track any changes in financial performance or future forecasts.

The Saudi tech sector faces high competitiveness on both local and international levels, with major players like STC, Mobily, and Aramco Digital competing against regional and global companies. Locally, major companies compete to expand 5G network coverage and provide advanced digital services, while startups race to develop innovative solutions for e-commerce, AI, and fintech. Partnerships with global companies like SoftBank and Dahua are part of Saudi Arabia's strategy to enhance its position in global tech supply chains, as seen in the Alat project for semiconductor manufacturing. Regionally, Saudi companies face competition from Gulf telecommunications companies like "Etisalat" and "du", while on a global scale, they compete with tech giants like IBM, Microsoft, and Google, especially in providing cloud business solutions and cybersecurity. Government policies supporting local partnerships with these global companies give Saudi firms a relative advantage, focusing on knowledge transfer and technology localization. However, the biggest challenge lies in the rapid pace of technological changes, requiring Saudi companies to continuously keep up with global innovations and develop human resources. This competition drives the adoption of more advanced business models and increased investments in research and development to ensure sustainability and superiority in a rapidly evolving market.

The regulatory environment in the Saudi financial market has witnessed significant developments in 2024 and 2025, directly affecting the tech companies sector. One of the most notable developments is the Capital Market Authority's study to abolish the foreign ownership cap in stocks, previously set at 49%. This news led to a 5.1% increase in the Tadawul index in September 2025, marking the largest single-session rise in five years. Such openness contributes to the influx of new foreign capital into the market, increasing the liquidity of listed tech companies and enhancing their market valuations. New policies have also been adopted to facilitate the listing of startups and simplify procedures related to public offerings, encouraging companies like Rasan for Informatics to enter the market. This was accompanied by updates in governance, financial disclosure, and investor protection regulations aimed at enhancing transparency and market attractiveness. Additionally, regulatory authorities launched programs to enhance cybersecurity and digital compliance requirements, especially with the proliferation of cloud services and AI solutions. These regulatory developments reflect increased investor confidence, the expansion of the base of listed companies, and increased funding opportunities for tech companies. However, it remains important to monitor the impact of these changes on market dynamics and the level of competition between local and international companies.

The Saudi financial market includes several prominent listed tech companies, led by Saudi Telecom Company (STC), which is one of the largest companies in terms of market value and business volume. STC provides advanced telecommunications services and includes a portfolio of tech solutions such as 5G services, IoT, and cloud computing. Following STC is Mobily, which focuses on enhancing internet and digital communication services, with expansion into cloud business solutions and IoT applications. The CIT Group participates in the sector by providing technical and training solutions for companies, with a special focus on technical consulting. Recently, the market has seen the listing of startups like Rasan for Informatics, specializing in digital financial services, representing an expansion in the number of listed tech companies. Other startups like Humain, specializing in artificial intelligence, are preparing for dual listings in the Saudi market and NASDAQ in the coming years. These companies play a pivotal role in supporting digital transformation and providing innovative solutions to the local market, with a clear contribution to achieving the goals of Vision 2030. It is always advisable to follow the official financial reports of these companies to monitor their performance and future developments.

Recent data indicates that the Saudi tech sector is experiencing a phase of accelerated growth supported by government and private investments. In 2024, the sector witnessed the IPO of Rasan for Informatics with an offering size of 22.74 million shares, approximately 30% of the company's shares, attracting significant interest from local and international investors. According to regional and international reports, the size of the e-commerce and digital services market in the Kingdom exceeds tens of billions of riyals, with expectations to double this figure in the coming years supported by government initiatives promoting digital transformation. Stock market indicators have shown that the telecommunications and information technology sector experienced fluctuating but strong performance, with the Tadawul index rising by 5.1% in September 2025 following reports of raising the foreign ownership cap. Experts estimate that the digital economy could represent an increasing share of GDP by mid-decade, with a noticeable increase in the number of workers in the tech sector. These figures demonstrate that the Saudi market is undergoing qualitative transformations in the tech field, with significant growth opportunities and the potential to innovate new digital solutions that meet the needs of the local and regional market.

Saudi Arabia has taken strategic steps to enhance its position in the tech sector by launching massive initiatives and partnerships with global companies. Among the most prominent of these initiatives is the Alat project, backed by the Public Investment Fund, which has established partnerships with international companies such as SoftBank, Carrier Corp, and Dahua Technology to develop a semiconductor factory in the Kingdom. The sector has also seen substantial investments from Aramco Digital, which negotiated in late 2024 to invest $1 billion in the American company Mavenir, specializing in communication software. These partnerships support knowledge transfer and the localization of advanced tech industries, in addition to creating new job opportunities and developing specialized Saudi cadres. On the other hand, the government has launched programs such as the National Technology Accelerators Program and AI incubators to support startups, along with establishing the digital city and innovation labs in projects like NEOM. These initiatives contribute to enhancing cooperation between the public and private sectors, attracting foreign capital, and solidifying Saudi Arabia's position as a regional hub for technological innovation. These partnerships also open new horizons for local companies to compete globally and develop high-value-added tech products and services.

Despite the rapid progress in the tech sector in Saudi Arabia, companies operating within it face a range of fundamental challenges. Perhaps the most prominent of these challenges is the shortage of specialized human resources in advanced technologies such as artificial intelligence, cybersecurity, and electronic manufacturing, which drives companies to invest in training or attract international experts. The Kingdom also suffers from limited manufacturing infrastructure, as it still heavily relies on importing electronic devices and components from abroad, affecting its competitiveness in advanced tech industries. The rapid pace of technological changes poses an additional challenge, as companies must continuously keep up with global innovations to avoid falling behind. Companies also face fluctuations in the financial market, where stock prices and company profits are influenced by factors such as oil prices and global economic developments. Moreover, regulatory challenges related to cybersecurity and data protection emerge, especially with the expansion of cloud services and digital applications. Nevertheless, the Saudi government is seeking to address these challenges by supporting research and development, improving the regulatory environment, and enhancing collaboration with universities and research centers, which bodes well for overcoming obstacles and achieving sustainable growth in the sector.

Tech companies in Saudi Arabia are expected to have a promising future supported by a clear strategic vision and growing investment levels. With the continued implementation of Vision 2030 and digital transformation programs, the sector is anticipated to witness a surge in digital innovation and expansion in activities related to artificial intelligence, fintech, and cloud computing. Partnerships with global companies are likely to increase for the localization and transfer of advanced technologies, particularly in electronic manufacturing and smart chip development. The base of startups is also expected to expand, with increased opportunities for listings in local and international financial markets, supported by national incubator and accelerator programs. On the regulatory front, anticipated changes such as raising the foreign ownership cap may attract more international investments and stimulate market competitiveness. Furthermore, investing in human capital and developing technical competencies will remain a critical element for ensuring sustainable growth. There is a clear need to focus on research and development and encourage the private sector to innovate locally valuable technological solutions. In light of these trends, Saudi tech companies are expected to continue their leading role in transforming the national economy and enhancing the Kingdom's position as a regional and international hub for technological innovation.