The digital economy in Saudi Arabia is projected to account for 16% of GDP by 2024
The latest official statistical data revealed a remarkable development in the economic transformation path of the Kingdom of Saudi Arabia, as the results of the Digital Economy Survey for 2024 showed an increase in the share of the digital economy in Saudi Arabia’s total GDP to reach (16.0%), compared to (15.6%) in 2023. This growth, which increased by (0.4) percentage points, reflects the success of national strategies aimed at diversifying sources of income and reducing dependence on oil.
Details of the levels of the digital economy
According to the results, the contribution rates varied between different levels of the digital economy, as recorded:
- The broad digital economy: the largest share (10.9%) of the GDP, indicating the penetration of technology into various economic sectors.
- Core digital economy: Contribution of (2.7%).
- The narrow digital economy: a contribution of (2.4%).
Performance of the telecommunications and information technology sector
In terms of financial performance, the information and communications technology (ICT) sector achieved significant growth, with operating revenues reaching SAR 249.8 billion in 2024. Telecommunications activities led the way with revenues of SAR 133.9 billion, followed by computer programming activities, which generated SAR 31.1 billion. Meanwhile, the sector's operating expenses amounted to SAR 122.2 billion, while employee compensation reached SAR 29.2 billion, reflecting the sector's vital role in creating quality jobs and raising income levels.
A historic leap in technology exports
In a strong indication of the Kingdom's transformation from a consumer of technology to a producer and exporter, foreign trade data revealed exceptional growth in exports. The value of exports and re-exports of information and communication technology (ICT) goods surged by a remarkable 118%, reaching SAR 25.8 billion in 2024 compared to just SAR 11.8 billion in 2023. Concurrently, imports of technology goods increased by 23.5% to reach SAR 67.9 billion, with telecommunications equipment leading the way.
Economic context and Vision 2030
These figures cannot be viewed in isolation from the broader context of Saudi Vision 2030 , which has established digital transformation as a cornerstone of development. This growth is a direct result of substantial investments in digital infrastructure, the development of e-government, and support for innovation and technology entrepreneurship. Experts affirm that exceeding the 16% mark reinforces the Kingdom's position as a leading regional hub for technology and the digital economy in the Middle East and North Africa.
Measurement methodology and international standards
It is worth noting that these statistics are based on a rigorous and standardized methodology that adheres to international standards outlined in the UNCTAD 2020 Guide to Producing Statistics in the Digital Economy, as well as the G20's International Roadmap for Measuring the Digital Economy. This commitment ensures the accuracy and international comparability of the data, thereby enhancing foreign investor confidence in the Saudi market.
