Saudi tech sector surges on AI and digital infrastructure investment

Saudi Arabia's technology sector is demonstrating robust growth, fueled by a strategic pivot towards artificial intelligence, data centers, and digital infrastructure. Listed companies in the Saudi Exchange's software and services sector collectively generated 12.99 billion riyals ($3.46 billion) in revenue during the first half of 2026, marking a 14.7% increase from the previous year. Net profit also saw a healthy rise of 4.73%, reaching 2.14 billion riyals ($570 million).

This expansion is largely attributed to two primary factors. Firstly, sustained government and corporate investment in digital transformation initiatives, encompassing technology infrastructure, managed services, cloud computing, cybersecurity, and digital platform development. Secondly, the increasing adoption of digital services and platforms by government agencies, businesses, and individuals is driving demand for digital systems and recurring revenue models.

Companies like Solutions and Elm have reported significant gains. Solutions led in revenue with approximately 6.24 billion riyals, up 9%, while Elm saw its revenue climb 21.1% to 4.99 billion riyals, with net profit exceeding 1.17 billion riyals. Although MIS experienced a revenue jump of 28.2%, its net profit declined by 15.85%.

Mohamed Hamdy Omar, CEO of G.WORLD, highlighted that these results underscore Saudi Arabia's ongoing structural economic shift towards technology and digital services. While these figures represent seven listed companies with standard fiscal years, they offer a crucial indicator of the sector's trajectory, aligning with broader market trends and Saudi Arabia's vision for a diversified digital economy.

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