Top Opportunities for Global IT Companies in Saudi Arabia in 2026

Saudi Arabia’s IT sector is surging, creating major openings in AI, cloud, data centers, and cybersecurity for global tech companies.

The Kingdom's IT & Software sector is now the largest and fastest-growing in the MENA region, with its market size projected to grow to $76.05 billion by 2029, achieving a robust CAGR of 8.49%.

The accelerated digitalization and innovation are unlocking immense opportunities for technology innovators across the entire sector, evidenced by increased investment in emerging technologies such as AI, cloud computing, and cybersecurity.

Unlocking the Power of Localized AI and Data Centers

Saudi is making bold moves to boost its AI economy, with government-backed ventures like HUMAIN exemplifying the country’s evolution from an adopter to a leader in building localized AI solutions that are culturally aligned.

This leadership position aligns with a broader vision to spur deep-tech integration across all sectors and accelerate complementary technologies, including robotics, quantum computing, and the Internet of Things (IoT). Large capital commitments from both Saudi and international companies are directed toward building local data centers for AI, supported by investments in local AI talent.

Industries such as construction are increasingly using AI-powered robotics to perform complex, human-like tasks, improving efficiency and reducing costs. For example, NEOM, the sustainable giga-project in northwest Saudi Arabia, has signed a landmark investment agreement with GMT Robotics, a European innovator in advanced construction technology.

Another milestone came when NEOM partnered with Samsung C&T to implement the world’s largest automation in steel structure assembly. This $350 million investment (SAR 1.3 billion) is expected to cut manual labor time by up to 80% while reducing costs.

Looking ahead, opportunities stem mainly from the need for Arabic-native, culturally aligned AI models tailored to local dialects and compliance requirements.

International AI firms and consultancies with expertise in industry verticals are particularly needed as the market shifts toward larger commercial deployments, enabling them to drive the next wave of impact with enhanced intelligence.

Quick Market Facts:

• National Strategy for Data and AI (SDAIA) aims to train 20,000 AI specialists and foster 300 AI startups by 2030.
• Saudi Arabia targets ranking among the world’s top 15 AI powers by 2030.
• AI is expected to contribute $135 billion to the nation’s GDP by 2030.

Public-Private Partnerships Attract Global Investments in Cloud Computing

Enterprise demand for cloud adoption is rising as businesses seek scalable, secure, and compliant infrastructure to support digital transformation.

Major global cloud providers, including Google, Amazon, and Microsoft, are investing heavily in the Saudi market, expanding data center capacity and making cloud adoption more feasible. Ensuring compliance, security, and smooth migration to public cloud infrastructure remains a key priority.

Chinese cloud giants are also expanding in Saudi Arabia. Tencent Cloud, for instance, is investing $150 million to launch its first Middle East cloud region in Saudi by the end of 2025. This new region will feature two availability zones, enhancing digital infrastructure, lowering latency, and improving reliability for businesses in Saudi Arabia and the broader region.

Plus, Huawei has established multiple local cloud facilities in partnership with telecom providers like STC, while Alibaba Cloud has launched a data center in Saudi through its joint venture “Saudi Cloud Computing Company.”

Concentrated partnerships in the cloud computing sector are fueling a wave of investments and supply chain expansions, with local enterprises increasingly outsourcing IT infrastructure to the cloud for cost savings, flexibility, and scalability.

In particular, industry-specific cloud stacks for regulated sectors such as healthcare, finance, and energy, combined with edge computing and 5G integration, represent high-value opportunities.

Quick Market Facts:

• Saudi Arabia’s public cloud services market is expected to reach $4 billion by 2027, with 23% annual growth over the next two years.
• Significant investments of $15 billion are planned for data centers, targeting 1,300 MW of capacity by 2030.
• Cloud computing added $4.5 billion to Saudi Arabia’s GDP in 2024.

Continued Digitization is Driving Expansion of Cybersecurity Infrastructure

With rising digital threats, AI-driven cybersecurity systems are becoming essential for real-time cyber threat detection and prevention, and help businesses defend against increasingly complex attacks.

This sector’s growth is being driven by the digitization of government and private services, along with the widespread adoption of 5G, AI/ML, cloud computing, and IoT. The demand is particularly strong for managed detection and response, identity-centric security, cloud workload protection, and OT/ICS security in energy infrastructure.

The National Cybersecurity Authority (NCA) plays a pivotal role, regulating and overseeing the sector, issuing national frameworks and compliance standards, while continuing to position the country favorably in the international indices for 2025. Notably, the Kingdom was recognized as a Tier 1 "role-modeling" nation in the Global Cybersecurity Index 2024.

As digitalization accelerates across government, the private sector, and infrastructure, opportunities are rising in AI-enabled threat detection, workforce development, compliance services, localized technology, and public-private partnerships.

Quick Sector Facts:

• The Saudi cybersecurity market was valued at $4.85 billion in 2023 and is projected to reach $13.4 billion by 2029 (CAGR ~18.3%).
• In 2023 alone, Saudi Arabia invested SAR 13.3 billion ($3.55 billion) in cybersecurity solutions, up nearly 11% year-on-year.
• Saudi Arabia has 353 registered cybersecurity solution providers, including global leaders such as IBM, Cisco, and Fortinet.

• The workforce includes around 19,600 professionals, with women representing approximately 32% of the total in 2023.

Why the Saudi ICT Sector is the Perfect Launchpad for Companies

The IT industry offers an ideal entry point for companies seeking to establish a presence in the Kingdom. The sector is thriving thanks to its low market concentration, supportive government initiatives, and the development of Special Economic Zones (SEZs).

SEZs play a particularly important role in advancing the sector. They offer tax incentives, streamlined regulations, and world-class infrastructure, making them highly attractive to international IT firms. Key SEZs such as King Abdullah Economic City (KAEC) and the Cloud Computing Zone at King Abdulaziz City for Science and Technology (KACST) provide tailored environments to foster innovation and growth in IT and related industries.

In this environment, 100% foreign-owned businesses establishing operations in Saudi Arabia can tap into unmatched advantages.

Several global players have already succeeded in entering the Saudi market. For example, Zenda, a fintech company specializing in digital payments, has leveraged the country’s advanced infrastructure and supportive business environment to address the growing demand for cashless transactions.

Artefact, an AI and data consulting firm, has capitalized on Saudi Arabia’s expanding e-commerce and advertising ecosystem, while Systems Limited, a provider of advanced IT and business solutions, has taken advantage of the favorable regulatory framework to deliver services across banking, healthcare, and retail sectors.