| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 54.90 Billion |
| Market Size (2030) | USD 82.51 Billion |
| CAGR (2025 - 2030) | 8.49 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia ICT Market Analysis
The Saudi Arabia ICT Market size is estimated at USD 54.90 billion in 2025, and is expected to reach USD 82.51 billion by 2030, at a CAGR of 8.49% during the forecast period (2025-2030).
Saudi Arabia's ICT sector is experiencing transformative growth driven by comprehensive digital infrastructure development and regulatory reforms. According to the Communications and Information Technology Commission (CITC), the country has achieved remarkable progress in digital connectivity, with mobile internet speeds reaching 105.42 Mbps, positioning Saudi Arabia sixth globally and second among G20 nations. The liberalization of more than 1100 GHz spectrum has significantly enhanced network capabilities, outpacing the global average by approximately 250%. This robust infrastructure development has created a fertile ground for technological innovation and digital service adoption across various sectors, including manufacturing, healthcare, retail, and financial services.
The kingdom's commitment to technological advancement is evident through its strategic initiatives and regulatory frameworks. In June 2022, Saudi Arabia implemented a new information and communications technology (ICT) law that comprehensively covers telecommunications and information technology sectors, encompassing digital infrastructure, emerging technologies, e-government services, and enabling applications. The establishment of the Cloud Computing Special Economic Zone in 2023 further demonstrates the country's dedication to becoming a regional technology hub. These initiatives have attracted significant investments from global technology leaders and fostered the growth of local innovation ecosystems.
The data center landscape in Saudi Arabia is rapidly evolving, with approximately 30 colocation data center facilities currently operational across the country. According to the Ministry of Communications and Information Technology (MCIT), more than 400 data centers are leveraging cloud-based services, indicating the robust adoption of advanced computing infrastructure. This expansion is supported by various government initiatives aimed at enhancing digital sovereignty and data security, while simultaneously promoting the development of local technological capabilities and fostering innovation in emerging technologies such as artificial intelligence, blockchain, and quantum computing.
The transformation of traditional industries through digital transformation is creating new opportunities and challenges in the Saudi ICT market. The country's high internet penetration rate of 97.8% has enabled widespread adoption of digital solutions across various sectors. Financial institutions are increasingly embracing digital transformation, with many banks and financial services providers implementing advanced technologies such as artificial intelligence, machine learning, and cloud services to enhance operational efficiency and customer experience. The manufacturing sector is witnessing significant digitalization through the adoption of Industry 4.0 technologies, including robotics, automation, and smart factory solutions, leading to improved productivity and competitive advantages in the global market.
Saudi Arabia ICT Market Trends
GROWTH OF THE DIGITAL ECONOMY
Saudi Arabia's digital transformation has gained significant momentum, driven by substantial investments across multiple technological domains, including 5G infrastructure, smart cities development, and advanced technologies such as cloud computing, artificial intelligence, cybersecurity, and IoT. The Kingdom's commitment to digital excellence is evident in its impressive score of 76.99 in the 2023 IMD World Digital Competitiveness Rankings, significantly outperforming the global average. The Digital Content Council (DCC) has launched 36 initiatives with funding of USD 1.1 billion to develop digital services, demonstrating the government's commitment to stimulating the digital content market through partnerships between various ministries and authorities.
The Ministry of Communications and Information Technology (MCIT) has established itself as a cornerstone in creating a thriving ICT sector by strategically attracting leading international technology providers to Saudi Arabia. This initiative has been complemented by the establishment of four special economic zones (SEZ) in 2023, focusing on high-growth industries like cloud computing and advanced manufacturing. The Kingdom's digital infrastructure development is further evidenced by its comprehensive digitization strategy, which includes plans to build 1300MW of data center capacities by 2030. These developments are supported by various government programs such as the National Digital Transformation Program (NDTP), which aims to improve e-commerce, digitize public services, and develop innovation ecosystems across major cities, including Mecca and Jeddah.
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ROBUST ADOPTION OF 5G NETWORKS ACROSS THE COUNTRY
The Kingdom of Saudi Arabia is experiencing unprecedented growth in 5G network adoption, with the GCC Arab states projected to achieve 95% 5G penetration by 2030. This rapid expansion is supported by significant infrastructure investments, with mobile connections already reaching 115.9% of the total population as of January 2023. The country's commitment to 5G development is further demonstrated through strategic partnerships between major telecommunications operators and global technology leaders. For instance, in October 2023, STC Group announced its most significant 5G network expansion project, which will cover more than 75 cities and governorates across Saudi Arabia.
The advancement of 5G infrastructure is being complemented by innovative solutions in network efficiency and sustainability. A notable example is the October 2023 partnership between Zain Saudi Arabia and Huawei Technologies, focusing on green energy solutions for 5G networks. Through the implementation of Huawei's iPowerStar intelligent energy-saving solution, Zain has already achieved a remarkable 28% reduction in electricity usage across its mobile networks in 2022. The contribution of 5G and Wi-Fi 6E to the country's GDP is expected to grow from USD 4.7 billion in 2021 to more than USD 18 billion by 2030, according to the Saudi Communications and Information Technology Commission (CITC).
INCREASING USAGE OF THE INTERNET OF THINGS (IOT) AND CLOUD SERVICES
Saudi Arabia is witnessing a substantial increase in the adoption of IoT and cloud services, with over 400 data centers currently benefiting from cloud-based service requirements, according to the Ministry of Communications and Information Technology (MCIT). The growth is particularly evident in the energy and utilities sector, where cloud computing technology is creating lucrative opportunities for digital transformation. Major cloud service providers like Amazon Web Services (AWS) are actively investing in the region to serve the growing customer base, while telecommunications companies are forming strategic partnerships to expand IoT capabilities across various sectors.
The integration of IoT and cloud services is driving innovation across multiple industries, particularly in sustainable energy and smart infrastructure development. This is exemplified by recent major projects such as ACWA Power's USD 14 billion investment announced in February 2024, which includes NEOM's USD 8.5 billion green hydrogen facility and multiple solar projects. Additionally, the November 2023 agreement to construct a 1.1GW solar plant in Al Madinah province demonstrates how IoT and cloud technologies are enabling more efficient management and operation of large-scale energy projects. These technologies are proving instrumental in helping organizations achieve their sustainability goals while optimizing operational efficiency, as evidenced by the growing number of companies adopting cloud-based digital solutions for their digital transformation initiatives.
Segment Analysis: By Type
Telecommunication Services Segment in Saudi Arabia ICT Market
The telecommunication services segment maintains its dominant position in Saudi Arabia's ICT market, commanding approximately 36% market share in 2024. This segment's leadership is driven by the country's robust telecommunications infrastructure and extensive 5G network deployment across major cities. Saudi Arabia proudly maintains an outstanding internet penetration rate of 98%, positioning itself as one of the most digitally connected populations worldwide. The segment's strength is further reinforced by the continuous implementation of 5G networks, expansion of fiber-to-the-home (FTTH) services, and investments in emerging sectors of the IT industry. Major telecom operators in the country are actively expanding their service portfolios beyond traditional connectivity to include advanced digital services, managed infrastructure services, data center/co-location services, and cloud services to maintain their market leadership.
IT Services Segment in Saudi Arabia ICT Market
The IT services segment is experiencing remarkable growth, projected to expand at approximately 12% CAGR from 2024 to 2029, emerging as the fastest-growing segment in the Saudi Arabian ICT market. This exceptional growth is primarily driven by the increasing adoption of cloud computing, artificial intelligence, and digital transformation initiatives across various sectors. The segment's expansion is further supported by significant investments in data centers and rapid industry growth due to advancements in AI, 5G, Internet of Things, virtual reality, and commercial applications of these technologies. The Saudi government's commitment to digital transformation, exemplified through initiatives like Vision 2030, is creating substantial opportunities for IT service providers. Additionally, the growing demand for managed services, cybersecurity solutions, and digital platform development is contributing to the segment's accelerated growth trajectory.
Remaining Segments in Saudi Arabia ICT Market by Type
The hardware and software segments play crucial complementary roles in Saudi Arabia's ICT market evolution. The hardware segment focuses on providing essential infrastructure components, including personal computers, servers, networking devices, and data center infrastructure, supporting the country's digital transformation initiatives. Meanwhile, the software segment is experiencing significant transformation with the evolution of cybersecurity, data protection, application platforms, big data analytics, and cloud computing solutions. Both segments are witnessing increased adoption driven by the government's digital initiatives, the growing demand for advanced technology solutions, and the expansion of smart city projects across the kingdom. These segments are essential enablers for the overall digital ecosystem, supporting both telecommunication services and IT services in delivering comprehensive digital solutions to end-users.
Segment Analysis: By Size of Enterprise
Large Enterprises Segment in Saudi Arabia ICT Market
Large enterprises continue to dominate the Saudi Arabia ICT market, holding approximately 66% market share in 2024. This dominance is primarily driven by substantial investments in digital transformation initiatives, cloud computing adoption, and advanced technologies like AI and IoT. The segment's strong position is further reinforced by government initiatives under Vision 2030, which has attracted numerous international technology companies to establish their regional headquarters in the Kingdom. Major developments include the establishment of data centers by global tech giants, implementation of cloud infrastructure, and deployment of 5G networks. The segment's growth is particularly notable in sectors such as telecommunications, banking, oil & gas, and government services, where large enterprises are actively investing in modernizing their enterprise IT infrastructure and digital capabilities to enhance operational efficiency and customer experience.
Small and Medium Enterprises (SMEs) Segment in Saudi Arabia ICT Market
The SME segment is experiencing remarkable growth in the Saudi Arabian ICT market, with a projected CAGR of approximately 11% during 2024-2029. This accelerated growth is driven by increasing digital adoption among smaller businesses, supported by government initiatives aimed at SME digitalization. The segment's expansion is particularly evident in areas such as cloud services, digital payment solutions, and e-commerce platforms. The Saudi government's emphasis on supporting SMEs through various digital transformation programs, including technical training and consultation services, has been instrumental in driving this growth. Additionally, the emergence of specialized ICT solutions tailored for SMEs, combined with more accessible financing options and technical support, has created a favorable environment for digital adoption among smaller businesses. The trend is further supported by partnerships between local SMEs and international technology providers, enabling access to advanced digital solutions and expertise.
Segment Analysis: By Industry Vertical
Government Segment in Saudi Arabia ICT Market
The government segment maintains its dominant position in the Saudi Arabia ICT market, commanding approximately 31% market share in 2024. This leadership position is driven by substantial investments in AI, IoT, cybersecurity, and big data analytics as part of Saudi Arabia's Vision 2030 digital transformation initiatives. The government's commitment to digitalizing processes and services has led to the implementation of cloud-first policies and the establishment of various digital infrastructure projects. The segment's growth is further supported by strategic collaborations with global technology leaders, such as IBM's regional headquarters in Riyadh, which aims to enhance the Kingdom's tech landscape through hybrid cloud, artificial intelligence, and quantum computing solutions. The government's robust ICT infrastructure and reliable services directly contribute to the development of the national digital economy, positioning the Kingdom as a regional tech powerhouse.
Energy and Utilities Segment in Saudi Arabia ICT Market
The energy and utilities segment is emerging as one of the fastest-growing sectors in the Saudi Arabian ICT market, with a projected growth rate of approximately 9% during 2024-2029. This remarkable growth is driven by the increasing adoption of digital technologies to enhance operational efficiency, optimize resource utilization, and improve safety across the industry value chain. The segment is witnessing significant developments in cloud technology adoption, particularly in the oil and gas sector, where customers are accelerating their journey to cloud services. Major projects such as NEOM's green hydrogen facility and various solar power initiatives are creating substantial opportunities for ICT implementation. The sector's digital transformation is further enhanced by partnerships between telecom operators and technology providers to implement energy-efficient solutions and reduce carbon emissions, aligning with Saudi Arabia's sustainability goals and Vision 2030 objectives.
Remaining Segments in Industry Vertical
The Saudi Arabia ICT market encompasses several other vital segments including IT and Telecom, Manufacturing, BFSI, and Retail and E-commerce, each contributing uniquely to the market's dynamics. The IT and Telecom segment is driving technological innovation through 5G implementation and digital service expansion. The manufacturing sector is embracing Industry 4.0 technologies and smart factory solutions, while the BFSI segment is leading in artificial intelligence adoption and digital banking transformation. The retail and e-commerce sector is revolutionizing customer experiences through advanced technologies and digital payment solutions. These segments collectively represent the diverse digital transformation landscape in Saudi Arabia, with each sector implementing specialized ICT solutions to enhance operational efficiency and customer experience while supporting the kingdom's broader digital transformation goals.
Saudi Arabia ICT Industry Overview
Top Companies in Saudi Arabia ICT Market
The Saudi Arabia ICT market features a mix of global technology leaders and regional specialists, including IBM Corporation, Dell Technologies, Palo Alto Networks, AWS, nybl, Global Knowledge, Cisco Systems, Lockheed Martin, Trend Micro, Al Moammar Information Systems, HPE, Accenture, and major telecom providers like Virgin Mobile Saudi, ITC, GO Telecom, Zain, Mobily, and STC. These companies are driving innovation through cloud computing, artificial intelligence, and cybersecurity solutions while expanding their service portfolios. The market is characterized by strategic partnerships and collaborations to enhance digital transformation capabilities, with companies investing in research and development to create cutting-edge digital solutions. Companies are focusing on developing local talent, establishing regional headquarters, and creating specialized solutions for key sectors like government, financial services, and telecommunications. There is also a strong emphasis on operational agility through the adoption of as-a-service models and integrated digital platforms.
Dynamic Market with Strong Growth Potential
The Saudi Arabia ICT market demonstrates a balanced mix of global technology conglomerates and local specialists, with international players establishing a strong regional presence through partnerships and local offices. The market structure shows moderate consolidation, with larger players maintaining significant market share while specialized providers carve out niches in areas like cloud services, cybersecurity, and digital transformation. The competitive landscape is evolving through strategic alliances between global and local players, creating an ecosystem that combines international expertise with local market knowledge. The market is witnessing increased collaboration between public and private sectors, particularly in implementing Vision 2030 initiatives, which has created new opportunities for both established players and emerging companies.
The market is characterized by active merger and acquisition activities, as companies seek to expand their capabilities and market presence. Global technology companies are increasingly investing in local partnerships and establishing regional headquarters in Saudi Arabia, driven by government initiatives requiring local presence for public sector contracts. The competitive dynamics are shaped by the need to provide integrated solutions that address the specific requirements of Saudi Arabia's digital transformation journey. Companies are focusing on building strong local teams and developing Arabic-language solutions to better serve the market, while also maintaining connections with global innovation networks.
Innovation and Localization Drive Market Success
Success in the Saudi Arabia ICT market increasingly depends on companies' ability to combine technological innovation with local market understanding. Incumbent players are strengthening their position by investing in emerging technologies like artificial intelligence, cloud computing, and cybersecurity while building strong relationships with government entities and key industry sectors. Market leaders are focusing on developing comprehensive solution portfolios that address specific industry needs, particularly in priority sectors like government services, financial services, and healthcare. Companies are also emphasizing the development of local talent and establishing innovation centers to demonstrate long-term commitment to the market and align with national development goals.
For contenders looking to gain market share, success factors include developing specialized solutions for underserved market segments, building strong local partnerships, and demonstrating clear value propositions aligned with Saudi Vision 2030 objectives. The market shows moderate end-user concentration, with government and large enterprises being key customers, making relationship building and track record crucial for success. While substitution risk is relatively low due to the essential nature of ICT services, companies must stay ahead of technological changes and maintain high service quality standards. The regulatory environment is supportive but requires careful navigation, particularly regarding data localization requirements and cybersecurity standards, making compliance capabilities a critical success factor.
Saudi Arabia ICT Market Leaders
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IBM Corporation
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DELL Technologies INC.
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Palo Alto Networks Inc.
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Amazon Web Services Inc. (AMAZON.COM INC.)
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nybl
- *Disclaimer: Major Players sorted in no particular order
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Saudi Arabia ICT Market News
- December 2023 - Alliance Networks, a digital infrastructure service provider, and Salam partnered to offer seamless, high-capacity connectivity to businesses in the Gulf Cooperation Council (GCC) region and beyond. They will integrate Salam’s network infrastructure, including data centers and international subsea cables, with Alliance Networks’ regional presence and commercial partnerships.
- November 2023 - Trend Micro Incorporated, capitalizing on its partnership with Saudi Cloud Computing Company (SCCC) Alibaba Cloud, to introduce the Trend Vision One SOCaas (Security Operation Centre as a service), Advanced MXDR in the Kingdom of Saudi Arabia. This new phase marks a continuation of the companies’ commitment to providing comprehensive, vendor-direct cybersecurity services in the Kingdom of Saudi Arabia.
Saudi Arabia ICT Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Stakeholder Analysis
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Consumers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitutes
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Growth of the Digital Economy
- 5.1.2 Robust Adoption of 5G Networks Across the Country
- 5.1.3 Increasing Usage of the Internet of Things (IoT) and Cloud Services
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5.2 Market Restraints
- 5.2.1 Lack of Skilled Workforce in the Country
- 5.3 Impact of COVID-19 on the IT Spending
6. KEY TECHNOLOGY INVESTMENTS
- 6.1 Cloud Technology
- 6.2 Artificial Intelligence
- 6.3 Cyber Security
- 6.4 Digital Services
7. MARKET SEGMENTATION
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7.1 By Type
- 7.1.1 Hardware
- 7.1.2 Software
- 7.1.3 IT Services
- 7.1.4 Telecommunication Services
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7.2 By Size of Enterprise
- 7.2.1 Small and Medium Enterprises
- 7.2.2 Large Enterprises
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7.3 By Industry Vertical
- 7.3.1 BFSI
- 7.3.2 IT and Telecom
- 7.3.3 Government
- 7.3.4 Retail and E-commerce
- 7.3.5 Manufacturing
- 7.3.6 Energy and Utilities
- 7.3.7 Other Industry Verticals
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7.4 By Geography
- 7.4.1 North
- 7.4.2 East
- 7.4.3 West
- 7.4.4 South
8. COMPETITIVE LANDSCAPE
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8.1 Company Profiles*
- 8.1.1 IBM Corporation
- 8.1.2 DELL Technologies INC.
- 8.1.3 Palo Alto Networks Inc.
- 8.1.4 Amazon Web Services Inc. (AMAZON.COM INC.)
- 8.1.5 nybl
- 8.1.6 Global Knowledge (Skillsoft Corp.)
- 8.1.7 Cisco Systems Inc.
- 8.1.8 Lockheed Martin Corporation
- 8.1.9 Trend Micro Incorporated
- 8.1.10 Al Moammar Information Systems Co.
- 8.1.11 Hewlett Packard Enterprise Company
- 8.1.12 Accenture PLC
- 8.1.13 Virgin Mobile Saudi Consortium LLC
- 8.1.14 Integrated Telecom Company (ITC)
- 8.1.15 GO Telecom Company
- 8.1.16 Zain
- 8.1.17 Etihad Etisalat Company (Mobily)
- 8.1.18 Saudi Telecommunication Company (STC)
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
**Subject to Availability
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Saudi Arabia ICT Industry Segmentation
Information and Communication Technologies or ICT is a broader term for Information Technology (IT). It refers to all communication technologies, such as wireless networks, the internet, computers, cell phones, software, videoconferencing, middleware, social networking, and other media applications and services enabling users to store, access, transmit, retrieve, and manipulate information in a digital form.
The Saudi Arabia ICT market is segmented by type (hardware, software, IT services, and telecommunication services), size of the enterprise (small and medium Enterprise and large enterprises), industry vertical (BFSI, IT and telecom, government, retail and E-commerce, manufacturing, and energy and utilities), and geography (North, East, West, South). The market size and forecasts regarding value (USD) are provided for all the above segments.
| By Type | Hardware |
| Software | |
| IT Services | |
| Telecommunication Services | |
| By Size of Enterprise | Small and Medium Enterprises |
| Large Enterprises | |
| By Industry Vertical | BFSI |
| IT and Telecom | |
| Government | |
| Retail and E-commerce | |
| Manufacturing | |
| Energy and Utilities | |
| Other Industry Verticals | |
| By Geography | North |
| East | |
| West | |
| South |
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Saudi Arabia ICT Market Research FAQs
How big is the Saudi Arabia ICT Market?
The Saudi Arabia ICT Market size is expected to reach USD 54.90 billion in 2025 and grow at a CAGR of 8.49% to reach USD 82.51 billion by 2030.
What is the current Saudi Arabia ICT Market size?
In 2025, the Saudi Arabia ICT Market size is expected to reach USD 54.90 billion.
Who are the key players in Saudi Arabia ICT Market?
IBM Corporation, DELL Technologies INC., Palo Alto Networks Inc., Amazon Web Services Inc. (AMAZON.COM INC.) and nybl are the major companies operating in the Saudi Arabia ICT Market.
What years does this Saudi Arabia ICT Market cover, and what was the market size in 2024?
In 2024, the Saudi Arabia ICT Market size was estimated at USD 50.24 billion. The report covers the Saudi Arabia ICT Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Saudi Arabia ICT Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Saudi Arabia ICT Market Research
Mordor Intelligence offers a comprehensive analysis of the information & communications technology sector in Saudi Arabia. We leverage our extensive expertise in telecommunications and information technology consulting. Our detailed research covers the evolution of digital transformation across the kingdom's IT infrastructure. This includes areas such as cloud computing, enterprise software, and the adoption of digital technology. The report provides in-depth insights into business technology trends, managed services, and network infrastructure developments. It offers stakeholders a complete view of Saudi Arabia's rapidly evolving ICT landscape.
Our expertly crafted report PDF, available for immediate download, delivers actionable insights for stakeholders in the business communications and technology services sectors. The analysis covers crucial aspects of digital infrastructure, enterprise computing, and the implementation of digital solutions. Stakeholders benefit from a detailed examination of communications technology trends, advances in networking technology, and enterprise IT strategies. The report also explores the adoption of digital services, integration of computer systems, and frameworks for enterprise communications. It provides valuable intelligence for decision-makers investing in Saudi Arabia's enterprise technology ecosystem.
