Saudi Arabia Emerges as MENA’s Largest Digital Economy, Valued at $131 Billion

Saudi Arabia has officially cemented its status as the largest digital economy in the Middle East and North Africa (MENA), with its digital market reaching a valuation of over SAR 495 billion ($131.9 billion) in 2024.The milestone, representing 15% of the Kingdom’s GDP, was announced by the Ministry of Communications and Information Technology on World Telecommunication and Information Society Day.The achievement marks a major moment in Saudi Arabia’s digital transformation journey, highlighting the Kingdom’s growing influence in emerging technologies such as artificial intelligence, data infrastructure, and e-government services.According to the Saudi Press Agency, the Kingdom’s communications and information technology sector recorded unprecedented growth this year, surpassing SAR 180 billion. This expansion has been fueled by robust private sector investment and a strategic national push toward innovation.Central to this growth is Saudi Arabia’s ambitious investment in artificial intelligence and data centers, which exceeded SAR 55 billion in 2024. These investments have led to a 42% increase in the country’s national data center capacity, now totaling 290.5 megawatts.One of the key drivers behind this effort is Humain, a government-backed AI company tasked with building Arabic-language AI models and large-scale infrastructure. Humain aims to position the Kingdom as a global hub for AI research and development.In a high-profile partnership, Humain teamed up with tech giant Nvidia to deliver 18,000 high-performance AI chips—strengthening the country’s capacity to power next-generation computing.Saudi Arabia’s digital infrastructure has seen major advancements as well. Fiber-optic networks now reach nearly 4 million homes, while internet penetration has climbed to 99%, placing the Kingdom among the most digitally connected nations in the world.This connectivity lays the foundation for smart applications, cloud computing, and advanced digital services—key components of the Vision 2030 economic diversification agenda.The Kingdom is also leading the region in digital talent development. With over 381,000 specialized tech jobs, Saudi Arabia now boasts the largest digital workforce in MENA. Women’s participation in the tech sector has seen a dramatic rise—from just 7% in 2018 to 35% in 2024—outpacing averages in both the G20 and the European Union.Saudi Arabia’s rapid digital progress has translated into strong international recognition. The Kingdom ranks fourth globally in the UN’s Online Services Index, sixth in the E-Government Development Index, and second among G20 countries. It also leads globally in digital skills and open digital government and ranks seventh in e-participation.These global rankings highlight Saudi Arabia’s commitment to digital excellence—not only in infrastructure but in governance, access, and innovation.With the Kingdom pushing forward with its Vision 2030 ambitions, its expanding digital economy is positioning it as a serious contender on the global technology stage.Through strategic investments, international partnerships, and a focus on human capital, Saudi Arabia is not only transforming its own economy but reshaping the digital landscape across the MENA region and beyond.