Saudi Arabia’s Digital Economy & Technology 2026: A Comprehensive Report in Numbers

Table of Contents

Executive summary and key figures

This report charts an integrated digital ecosystem that has come a remarkably long way in less than a decade. The digital economy is approaching SAR 495 billion, contributing 15% of GDP; the infrastructure is among the strongest in the world, with 99% internet penetration and 5G coverage exceeding 80%; financial technology firms have multiplied from 17 to 261; and the sector has created some 381,000 high-quality jobs. The Kingdom is attracting major global investment in artificial intelligence and cloud computing, and it leads global indices in digital government, cybersecurity, and technology adoption.

Report source and research criteria

This report draws on official data and indicators issued by the national bodies responsible for the digital sector, most notably the Saudi Data and Artificial Intelligence Authority (SDAIA), the Communications, Space and Technology Commission, and the Vision 2030 Annual Report, in addition to announcements from the Public Investment Fund and major technology companies, and specialized market reports on e-commerce and the digital economy.

The figures were compiled from the latest data available through 2025 and early 2026, with a focus on measurable indicators: the size of the digital economy and its contribution, infrastructure indicators, e-commerce and payments figures, artificial intelligence and cloud computing investments, and indicators of talent and global competitiveness.

Who this report is for

This report is designed for business owners, entrepreneurs, and small and medium enterprises building their businesses within a fast-evolving digital ecosystem. Understanding the size, structure, and opportunities of the digital economy is an essential step in shaping growth and expansion strategies. The report also serves those interested in economic policy and investors seeking a comprehensive read of one of the Kingdom’s fastest-growing sectors.

Size of the digital economy and its contribution

The size of Saudi Arabia’s digital economy has surged to around SAR 495 billion, contributing about 15% of GDP, one of the highest digital contribution rates in the world. This growth reflects the success of systematic investment in infrastructure, skills, and innovation under Vision 2030, and the digital sector’s emergence as a key engine of non-oil growth and high-quality job creation.

The impact of the digital economy is not limited to the technology sector alone; it extends to raising productivity across every sector, from trade and financial services to industry and government services. Digitization has become a foundational layer on which the rest of the sectors operate, multiplying its overall economic impact.

Digital infrastructure: among the strongest in the world

This leap rests on advanced digital infrastructure. Internet penetration has reached 99% of the population, and more than 3.9 million homes have been covered with fiber-optic service. Fifth-generation (5G) network coverage exceeds 80% across the Kingdom and has surpassed 95% in Riyadh.

On performance, mobile internet speed has reached around 218 megabits per second, placing the Kingdom among the world’s top 10 countries for mobile internet speed, a solid foundation for the growth of e-commerce, cloud services, and data-intensive applications.

Telecom sector and 5G

The telecom sector forms the backbone of the digital economy. It is led by major national companies such as stc, Mobily, and Zain, which have invested heavily in expanding 5G networks, fiber optics, and data centers. This expansion has made the Kingdom one of the global leaders in 5G penetration and service quality.

These investments align with the transformation of telecom companies from connectivity providers into integrated technology groups offering cloud computing, digital payments, and artificial intelligence services, deepening their impact within the digital economy ecosystem.

E-commerce: accelerating growth

The e-commerce sector is experiencing accelerating growth, supported by internet penetration, digital payments, and growing consumer confidence. The market is expected to reach around SAR 84.6 billion in 2025, with annual growth of nearly 11%, and the number of online shoppers reaching about 34.5 million users.

The rate of online shopping adoption among the population is rising from 66.7% in 2023 to nearly 74.7% by 2027, driven by the maturity of local commerce platforms, the expansion of social commerce, and the integration of digital payment into the buying experience.

Digital payments: a shift away from cash

Digital payments are among the standout success stories of the digital economy. The share of cash withdrawals fell from 71% of total spending in 2019 to just 39% in 2024, while non-cash payments exceeded 61%. Point-of-sale sales reached SAR 668 billion in 2024, and e-commerce sales via “mada” cards multiplied more than 19 times between 2019 and 2024.

This shift rests on advanced national payment infrastructure that includes the “mada” network and the “sarie” instant payment system, in addition to digital wallets and local payment platforms that have grown into some of the most prominent technology companies in the region.

Financial technology (FinTech): a major leap

Financial technology has emerged as one of the most successful sectors of the digital economy. The number of FinTech firms in the Kingdom multiplied from just 17 in 2019 to 261 in 2024, supported by enabling regulatory programs such as the Central Bank’s Regulatory Sandbox and the “Fintech Saudi” program, and an attractive investment environment.

This environment has produced prominent pioneering companies in digital wallets, buy-now-pay-later, and payments, some of which have become among the leading technology companies in the region. On the funding front, the Kingdom led the Middle East and North Africa region in venture capital, attracting around USD 1.72 billion in 2025.

Artificial intelligence: global investment and leadership

Saudi Arabia is positioning itself at the forefront of nations in artificial intelligence. In May 2025, the Public Investment Fund launched “HUMAIN” to invest in and operate across the AI value chain, building AI factories with capacity of up to 500 megawatts powered by hundreds of thousands of NVIDIA processors, within a framework to deploy up to 600,000 processors over three years.

The Saudi Data and Artificial Intelligence Authority (SDAIA) leads the national ecosystem with investments exceeding USD 5 billion in infrastructure, has developed advanced Arabic language models such as “ALLaM,” and hosts the Global AI Summit. It has also forged major global partnerships, most notably a partnership with Google Cloud to establish a global AI hub, and an agreement with AWS to deploy up to 150,000 AI accelerators in an “AI Zone” in Riyadh.

Cloud computing and data centers

The largest cloud computing companies have established their presence in the Kingdom, strengthening digital sovereignty and reducing latency for services. Google Cloud launched its cloud region in Dammam, Oracle opened a cloud region in Jeddah, and AWS established a cloud presence in Riyadh, alongside investments from Microsoft, Huawei, and other giants.

The National Data Center Strategy targets building capacity of up to 1.5 gigawatts by 2030, making it one of the largest national projects in the region and providing the computing foundation needed for the artificial intelligence boom and cloud services.

Cybersecurity: global leadership

The digital transformation has been accompanied by the building of an advanced cybersecurity ecosystem led by the National Cybersecurity Authority, which issued the Essential Cybersecurity Controls (ECC) binding on government entities and operators of critical infrastructure, and built a national protection and response system.

The Saudi Data and Artificial Intelligence Authority obtained accreditation from the global CREST organization, becoming the first government entity in the Middle East to achieve this. The Kingdom has secured advanced positions within Tier 1 globally in the Global Cybersecurity Index, reflecting the maturity of its digital environment and investor confidence in it.

Digital government: among the world’s leaders

Digital government is one of the standout achievements of the transformation, led by the Digital Government Authority. The Kingdom ranked first regionally in digital government indices, second in the G20 in government digitization, and fourth globally in the government digital services index.

Platforms such as “Absher,” “Tawakkalna,” “Nafath,” and “Tam” embody the maturity of government digital services and their integration into the lives of citizens and businesses, completing millions of transactions electronically without the need to visit branches, raising efficiency and reducing cost.

Major digital projects

The Kingdom’s digital ambitions are embodied in major projects built on the latest technologies. The NEOM project and “THE LINE” city are designed as smart cities built on artificial intelligence, the Internet of Things, and data, while “Oxagon” focuses on advanced industry and digital production. Projects such as Qiddiya and New Murabba integrate smart technologies into the visitor and resident experience.

These projects form testing and application platforms for emerging technologies at scale, and generate growing demand for technical talent and local digital solutions, strengthening the national innovation ecosystem.

Tech entrepreneurship and startups

The tech entrepreneurship ecosystem has flourished with support from the Saudi Venture Capital Company, business incubators and accelerators, and programs such as “Garage.” The Kingdom led the Middle East and North Africa region in venture capital in 2025, with the emergence of startups, some valued at a billion dollars, in financial technology, e-commerce, and logistics.

This momentum is fueled by integration between funding, infrastructure, talent, and regulation, making the Kingdom a growing destination for founding technology companies and attracting regional and global talent.

Digital entertainment and gaming

Saudi Arabia has become a global player in the gaming and esports industry within an ambitious national strategy. The Public Investment Fund launched the “Savvy Games” group with investments exceeding SAR 142 billion to make the Kingdom a global hub for game development and publishing, while Riyadh hosts the “Esports World Cup” with the largest prizes in the sector’s history.

This integrates with Qiddiya city, being built as a global destination for entertainment and gaming, creating a complete ecosystem of studios, developers, and local talent, and strengthening the global presence of Arabic digital content.

Digital health

The digital health sector has seen rapid development, as national platforms and apps such as “Sehhaty,” “Mawid,” and “Anat” enable citizens to book appointments, hold remote consultations, and access their health records electronically. Digitization has helped raise the efficiency of health services and reduce the need for in-person visits.

Artificial intelligence and data technologies are being used in early diagnosis and the management of health facilities, within a transformation that makes healthcare easier and more efficient for beneficiaries across the Kingdom’s regions.

Digital education

The Kingdom has established digital education as a pillar of its educational system, through national e-learning platforms that provided content and virtual classrooms to millions of students. Programs for developing digital skills, programming, and artificial intelligence are expanding to prepare a generation capable of leading the digital economy.

These efforts integrate with national talent-training programs in advanced technologies, bridging the gap between educational outcomes and the needs of the digital labor market.

Smart transport and logistics

The transport and logistics ecosystem is adopting advanced digital solutions, from smart mobility and delivery apps to the digitization of supply chains and shipment-tracking systems. This comes within the National Transport and Logistics Strategy, which aims to make the Kingdom a global logistics platform connecting three continents.

The growth of e-commerce has driven demand for digital delivery solutions and smart warehouse management, creating broad opportunities for technology companies in this field.

The data-driven economy

The Kingdom treats data as a strategic asset. It has established a national data ecosystem led by the Saudi Data and Artificial Intelligence Authority, encompassing open data and the governance and protection of data through the Personal Data Protection Law. This enables businesses and developers to build innovative data-driven solutions and services.

Data is the essential fuel for artificial intelligence and digital services, making investment in its governance and secure availability a lever for the growth of the entire digital economy.

Talent and digital jobs

The transformation was not limited to infrastructure and investment; it extended to talent. The technology sector has provided some 381,000 high-quality jobs, and more than 15,000 national talents have been trained in artificial intelligence and data through specialized national programs.

Most notably, women’s participation in the tech sector has jumped to 35%, compared with just 7% in 2017, a remarkable shift that enhances the diversity of talent and places the Kingdom at the forefront of nations in the technical empowerment of women.

Digital compliance and e-invoicing

The digital transformation extends to the tax system, where e-invoicing (“Fatoora”) is expanding to cover every business registered for VAT by mid-2026, in the Gulf’s largest mandatory e-invoicing rollout. This makes a compliant cloud accounting system a pillar of businesses’ digital readiness and efficiency.

Global digital competitiveness

These efforts are crowned with advanced positions globally. The Kingdom ranked first globally in the index for the number of internet users, second globally in the index for digital transformation in companies, and second globally in the index for technology development and application. These rankings confirm that the Kingdom has joined the ranks of the world’s leading nations in adopting and developing modern technologies, not merely a regional player.

What does this mean for businesses?

In a digital economy this mature, financial digitization is no longer an option but a competitive necessity. A business that runs its operations on a cloud accounting system compliant with e-invoicing benefits from digital infrastructure among the strongest in the world, widely available digital payments, and streamlined digital tax compliance.

These elements combine to give businesses higher efficiency, real-time visibility into their performance, and full readiness for the digital future. Connecting the point of sale with invoicing and accounting in a single system turns scattered data into accurate, fast decisions.

Conclusion

The Saudi digital economy is writing a bright chapter in the success story of Vision 2030: a digital economy approaching SAR 495 billion that contributes about 15% of GDP, infrastructure among the strongest in the world, major leaps in e-commerce, payments, financial technology, artificial intelligence, and cloud computing, leadership in cybersecurity and digital government, growing national talent, and major projects built on the latest technologies. This transformation not only strengthens economic diversification, but also gives every business an enabling digital environment. Businesses that adopt financial digitization early are best positioned to seize the opportunities of this promising economy and continue to grow.