In recent years, the growth of Saudi Arabia’s cybersecurity sector has become a top priority both on the governmental and enterprise levels, positioning the Kingdom as a global frontrunner in the Middle East cybersecurity infrastructure market.
According to recent market reports, the Saudi cybersecurity space is set to reach $13.4 billion in 2029, up from $4.85 billion in 2023, posting a compound annual growth rate of 18.3%.
This projected growth is due to the continued digitization of public and governmental services, a thriving IT industry that paved the way for advancements in industrialized 5G technology, AI, machine learning, cloud computing, and the Internet of Things (IoT).
As it accelerates the transition toward a digital economy, the Saudi cybersecurity sector is poised for rapid growth. In fact, the sector has proven advantageous to Saudi Arabia’s economic growth by contributing 0.39% to its GDP.
This progress is demonstrated by the county’s strengthened position on the global cybersecurity map. Just a few weeks ago, Saudi Arabia secured the highest ranking in the UN Global Cybersecurity Index and was named among role-modeling nations, setting a new benchmark for the region and globally.
By building robust policy frameworks, fostering partnerships with global cybersecurity leaders, and investing in workforce development, the country is well-positioned to pursue its vision of a digital economy, push the boundaries of innovation, and lead the way toward a more secure digital future.
Strengthening Cybersecurity Infrastructure in Saudi Arabia to Enhance Global Security Posture
This multifaceted approach to creating symmetrical defense systems against cyber threats has created a heightened demand for innovative solutions to match the pace of innovation in industries across Saudi Arabia.
Consequently, the Kingdom has increasingly been viewed as a prime destination for companies like Nagarro to operate. “Enterprises now are increasingly on the lookout for new tech, seeking to modernize their data centers and use advanced cloud solutions, either built by others or with their capabilities,” noted Mohammed Albazli, country manager at Nagarro KSA, in previous statements shared with AstroLabs.
Amidst the country’s economic progress and technological growth, Saudi Arabia’s government has taken several steps to ensure effective threat detection and risk management. This includes establishing a National Cybersecurity Authority (NCA) and creating a National Cybersecurity Strategy.
In this rapidly evolving cybersecurity policy landscape, strengthening cyber resilience becomes an ongoing effort that requires collaboration and commitment to continuous improvement.
To bolster the growth of Saudi Arabia’s cybersecurity sector, the nation has been ramping up its cybersecurity investments; in 2023, the Kingdom invested SR13.3 billion ($3.55 billion) in cybersecurity products and solutions, marking a 10.83% surge from the preceding year.
The country’s proactive measures and resilient frameworks have vehemently improved the country’s security posture and boosted its capabilities to mitigate any potential risks. This was demonstrated during the global cyber attack that occurred in July of this year, with the Kingdom reporting minimal impact.
Following the incident, key Saudi authorities have confirmed uninterrupted operations. These include the Ministry of Health, which stated that its information systems were not affected, along with the Saudi Data and Artificial Intelligence Authority (SDAIA), whose technical systems and the government systems were operating normally amid the global outage.
That said, the Saudi airlines experienced a varied impact—FlyNas reported disruptions to its operations, while Saudia Airlines remained unaffected.
“There’s a protocol for cybersecurity in place, which is implemented through the regulators that emphasize patch management policies. The holistic approach adopted by the Kingdom to enhance its cyber resilience includes leveraging data centers’ capabilities and cloud computing,” Albazli added.
As the digital market proliferates significantly, Saudi Arabia emerges as a preferred location for cybersecurity investors and innovators seeking to tap into a steadily growing talent pool and conducive regulatory environment that supports Vision 2030’s push for a digitized economy.
Digital Transformation Fuels the Growth of the Cybersecurity Sector in Saudi Arabia
The sustained growth of the Saudi cybersecurity sector comes on the back of a “dual transformation” that involves redefining traditional industries while creating new ones, a core foundation of Vision 2030.
Sharing his thoughts with AstroLabs, Imran Akhtar, business director of business development and cybersecurity at Pakistan-based Arwen Tech, an enterprise IT solutions provider, shed light on the ascendancy of the Kingdom as a global expansion destination for global innovators, including cybersecurity firms.
“There are a lot of activities that are coming out of Saudi Arabia right now amid rapid infrastructure development, adding to the market’s overall optimistic outlook,” he added. Akhtar emphasized the increased awareness and investments in cybersecurity nationwide, which makes Saudi Arabia an appealing market for international industry players.
On the significance of maintaining cybersecurity readiness, he added: “Companies used to spend an equal amount of time and effort to secure that automation, which is equally challenging. Every company that is focusing on automating its operations should equally focus on protecting itself from cyber threats,” Akhtar explained.
Saudi Arabia is believed to be home to 353 registered cybersecurity solutions providers, bringing their cutting-edge technologies and expertise to the market. The figure is only set to increase, considering the market need for locally grown cyber risk management solutions.
Major market players include IBM, Cisco, Fortinet, and Exabeam. The latter has recently launched its cloud-native new-scale security operations platform in Saudi Arabia. Another recent addition to the Saudi market is Nagarro, which is a global digital engineering leader with a presence in 37 global markets. Nagarro expanded its footprint to Saudi Arabia back in 2022 via AstroLabs, with plans to establish its Riyadh headquarters in the foreseeable future.
The company serves an ever-growing client base of governments and semi-governmental entities across a wide variety of verticals. Its client roster includes some of the leading names in banking, insurance, Saudi electric vehicle (EV), telecommunications, food industry leaders, retail companies, and many more.
Nagarro is among a growing list of companies seeking to benefit from the Kingdom’s continuous efforts to fortify its security infrastructure. The Kingdom will further ramp up cybersecurity investments as it prepares to host global events such as Riyadh Expo 2030 and FIFA World Cup 2034.