Saudi Arabia Dominates GCC Telecommunications And Information Technology Sector: A Deep Dive Into Market Share And Future Projections

Saudi Arabia has emerged as the powerhouse in the telecommunications and information technology sector in the Gulf Cooperation Council (GCC) region, capturing a remarkable 41% of total revenue and 37% of total assets. The Kingdom's listed companies in the Saudi market within the sector amassed approximately 119 billion riyals ($31.73 billion) in revenues in 2023, showcasing a growth rate of over 10% compared to the previous year.

By the end of 2023, Saudi Arabia held a significant 34% share of the sector's total assets, valued at 250 billion riyals ($66.66 billion), with a growth rate of approximately 12% compared to 2022.

According to the closing on April 21, the market value of companies listed in the telecommunications and information technology sector in Saudi Arabia reached an impressive 379.2 billion riyals ($101.12 billion).

Looking ahead, several key trends are expected in Saudi Arabia's telecommunications sector over the next two years:

- Revenues are projected to grow by 5.9% in 2024, reaching 105.8 billion riyals ($28.21 billion).

- The growth trend is expected to continue in 2025, with revenue predicted to increase by 4.6%, reaching a total of 110.6 billion riyals ($29.49 billion).

However, there are nuances when it comes to net profits:

- A decrease of approximately 5.3% in net profits is expected in 2024, dropping to 16.1 billion riyals ($4.29 billion).

- On a positive note, net profits are forecast to rebound and grow by more than 10% in 2025, reaching 17.8 billion riyals ($4.74 billion).

As Saudi Arabia solidifies its dominant position in the GCC telecommunications and information technology sector, these projections reflect a dynamic market that continues to evolve and shape the future of the industry.