Saudi Tech Sector Sees Revenue Surge Driven by AI and Digital Infrastructure Investment

Saudi technology firms are capitalizing on a new wave of investment in artificial intelligence and digital infrastructure, leading to a substantial revenue increase in the first half of 2026. Companies listed on the Saudi Exchange's software and services sector saw their combined revenue climb 14.7% year-on-year to 12.99 billion riyals ($3.46 billion). Net profit for the sector also grew, albeit at a slower pace, by 4.73% to 2.14 billion riyals ($570 million).

This financial performance underscores a significant structural shift within the Saudi economy, moving beyond basic digital transformation towards advanced technologies. Mohamed Hamdy Omar, Chief Executive of G.WORLD, highlighted that the revenue growth reflects this ongoing transition. While the reported figures cover seven listed companies, they serve as a key indicator of the sector's trajectory, aligning with broader market trends that show the Saudi communications and information technology sector reaching approximately 199 billion riyals with an 8% compound annual growth rate over the past five years.

Several factors are driving this expansion. Continued government and corporate spending on digital transformation, encompassing technology infrastructure, managed services, cloud computing, cybersecurity, and digital platform development, remains a primary driver. This is evident in the revenue growth reported by key players like Solutions, whose core communications and IT services revenue increased by 19.6%, and Elm, which saw its digital business revenue grow by 22.31%.

Furthermore, the increasing adoption of digital services and platforms by government agencies, businesses, and individuals is boosting demand for robust digital systems and continuous operational services. This trend strengthens recurring revenue models for technology providers. The widening use of digital services is also a significant factor, contributing to the sector's overall expansion and indicating a sustained demand for advanced technological solutions within the Kingdom.

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The 14.7% revenue increase underscored the Saudi economy’s continued structural shift toward technology, data and digital services.