Saudi Communications, Tech Market Valued at $44 Billion in 2023

The Saudi Communications, Space and Technology Commission building in Riyadh (the Commission’s website)
The Saudi Communications, Space and Technology Commission building in Riyadh (the Commission’s website)
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Saudi Communications, Tech Market Valued at $44 Billion in 2023

The Saudi Communications, Space and Technology Commission building in Riyadh (the Commission’s website)
The Saudi Communications, Space and Technology Commission building in Riyadh (the Commission’s website)

The size of the communications and technology market in Saudi Arabia reached SAR166 billion ($44.2 billion) during 2023, which is equivalent to a compound annual growth of 8 percent over the past six years.

This was revealed by the Communications, Space and Technology Commission on Wednesday during the 10th edition of the ICT Indicators Forum in Riyadh in the presence of an elite group of experts, specialists and sector leaders.

The event featured four main presentations, and a discussion session on the sector’s future trends. Mufarreh Nahari, the Director General of Studies at the Commission, talked about the performance indicators of the communications and technology sector, noting that the Kingdom ranks second among the G20 countries in the 2023 Communications and Technology Development Index.

Indicators also show that the rate of access to mobile communications service subscriptions has reached 198 percent of the population, while the Internet of Things subscriptions amounted to 12.6 million subscriptions.

Another presentation entitled, “Navigating the Frontiers of Innovation: Information Technology Market Trends in the Kingdom,” featured discussions by Hamza Naqshbandi, Vice President of IDC for Custom Solutions in the Middle East, Türkiye and Africa and Regional Director in Saudi Arabia and Bahrain, and Group Vice President and Director Jyoti Lalchandani, Regional General Manager for the Middle East, Türkiye and Africa at IDC.

The presentation highlighted the Kingdom’s latest innovative technologies, as spending on technology is expected to reach $18.4 billion in 2024.

A session on “The Future of the Technical Scene in the Kingdom,” examined the future horizon through the insights of market experts, with the participation of Salman Faqih, CEO of Cisco in Saudi Arabia, Fahd Al-Turaif, Vice President of the Cloud Computing Sector for the Saudi, Middle East, and North Africa Markets at Oracle and Othman Al-Hokail, partner at Merak Capital.

The forum also reviewed the “Financial Performance of the Sector in Numbers,” presented by Jassim Al-Jubran, Head of Research Department at Aljazira Capital.

Al-Jubran explained that the size of the assets of companies listed in the communications and technology sector amounts to about SAR250 billion ($66.6 billion), noting that the Kingdom’s market constituted about 37 percent of the total assets in the sector in the Gulf region.



Saudi Public-Private Partnership Identifies 20 Challenges to Improving Business Environment

A meeting between a delegation from the Federation of Saudi Chambers and officials from the Asharqia Chamber (Asharqia Chamber)
A meeting between a delegation from the Federation of Saudi Chambers and officials from the Asharqia Chamber (Asharqia Chamber)
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Saudi Public-Private Partnership Identifies 20 Challenges to Improving Business Environment

A meeting between a delegation from the Federation of Saudi Chambers and officials from the Asharqia Chamber (Asharqia Chamber)
A meeting between a delegation from the Federation of Saudi Chambers and officials from the Asharqia Chamber (Asharqia Chamber)

Saudi Arabia's private sector has identified 20 obstacles to implementing the Kingdom's new commercial registration law, Asharq Al-Awsat has learned, highlighting efforts to streamline regulations and sharpen the business sector's competitiveness.

Authorities have resolved four of the challenges, while 12 are being addressed and another four remain under review.

The efforts reflect growing coordination between the public and private sectors to remove regulatory and procedural barriers, ease business operations and support enterprise growth, in line with Vision 2030's drive to make the private sector a key engine of economic growth.

The Ministry of Commerce brought the Commercial Registration and Trade Names laws, along with their implementing regulations, into force on April 3 last year. Related business services resumed after being upgraded to comply with the new legislative framework.

Regulatory hurdles under review

The Studies Department at the Federation of Saudi Chambers, working with the Saudi Labor Market Committee, cataloged the challenges businesses faced following the rollout of the new Commercial Registration Law.

It referred 20 challenges to the Licensing Committee at the Saudi Center for Competitiveness and Business. By the end of the third quarter of this year, four had been resolved, 12 remained under active review and resolution, and four were still being studied.

The two laws form part of Saudi Arabia's broader overhaul of its commercial regulatory framework, aimed at keeping pace with economic and technological developments and advancing the transformation envisioned under Vision 2030.

The Commercial Registration Law seeks to simplify business procedures while strengthening transparency and reliability through accurate, regularly updated registry data that can be easily searched and accessed.

One registration, nationwide

A central reform eliminates the need for multiple commercial registrations. Businesses now need just one registration covering all their activities across Saudi Arabia, replacing separate branch registrations for sole proprietorships and companies and reducing their financial burden.

The law also replaces the traditional renewal process with mandatory electronic confirmation of registration details every 12 months from the date of issuance.

Businesses that fail to confirm their details within 90 days of the deadline face suspension of their registration and related services.

If the suspension remains unresolved for a full year, the registration is automatically canceled unless the business owner applies to lift it, submits the annual confirmation and pays the required fees and penalties.

The law also requires businesses to open bank accounts linked to their commercial entities to strengthen their credibility.

Business owners must secure licenses for activities listed in their commercial registrations within 90 days, unless the relevant licensing authority allows more time.

Existing branch registrations must be brought into compliance within a five-year grace period.

The legislation also introduces alternatives to conventional penalties. These include warnings, orders to take preventive measures against future violations, requirements to remedy the effects of violations and decisions to correct information recorded in the commercial register.


Oman Signs 28 Investment Agreements Worth $790 Million

A scene from the signing of investment agreements in Oman's economic zones, free zones and industrial cities (Oman News Agency)
A scene from the signing of investment agreements in Oman's economic zones, free zones and industrial cities (Oman News Agency)
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Oman Signs 28 Investment Agreements Worth $790 Million

A scene from the signing of investment agreements in Oman's economic zones, free zones and industrial cities (Oman News Agency)
A scene from the signing of investment agreements in Oman's economic zones, free zones and industrial cities (Oman News Agency)

Oman signed 28 investment agreements worth more than 304 million Omani rials ($790 million) on Wednesday to develop industrial, food production, logistics and commercial projects and expand existing facilities across several economic zones, free zones and industrial cities, as the Sultanate seeks to diversify its economy and increase the contribution of non-oil sectors.

The Public Authority for Special Economic Zones and Free Zones (OPAZ) announced that the agreements cover more than two million square meters and span the Special Economic Zone at Duqm, the free zones in Sohar and Salalah, Khazaen Economic City, and the industrial cities of Sohar, Raysut, Ibri and Nizwa.

Industrial cities operated by the Public Establishment for Industrial Estates (Madayn) attracted the largest share of investment, totaling 147.6 million rials ($384 million), followed by Sohar Freezone with 58.5 million rials ($152 million) and the Special Economic Zone at Duqm with approximately 55.08 million rials ($143 million).

Agreements in Salalah Free Zone were valued at 32.95 million rials ($85.7 million), while Khazaen Economic City attracted investments exceeding 10.4 million rials ($27 million).

Steel and Automotive Projects

A steel and iron products plant in Sohar Industrial City topped the list of announced investments, with a value exceeding 112 million rials ($291 million). The project, to be developed by Atlas Steel, will cover an area of 440,000 square meters.

The agreements also included a 20 million rial ($52 million) ceramics factory to be developed by Fujian Mansheng Industry and Investment, alongside projects involving fertilizer, paper and metal products manufacturing, as well as the production, maintenance and servicing of equipment used in the oil and gas sector.

In Sohar Freezone, the agreements included the development of the Oman Automotive Manufacturing and Assembly Complex, with an investment of 38 million rials ($98.8 million).

The project, to be undertaken by Sohar Automotive and Advanced Industries, will cover 317,000 square meters.

It aims to attract automakers, component suppliers and businesses involved in light industries and advanced manufacturing, while developing the facilities and infrastructure needed to support these activities.

Other investments in Sohar included a 15 million rial ($39 million) plant by Voltamp to manufacture high-voltage and distribution transformers, a 1.5 million rial ($3.9 million) expansion of a medical devices factory, and warehousing and re-export projects.

Food Security Investments

In the Special Economic Zone at Duqm, a 40 million rial ($104 million) shrimp feed production plant was among the major projects announced, aimed at supporting aquaculture activities.

Another project, valued at 4 million rials ($10.4 million), will establish quarantine facilities for imported livestock and support the supply of red meat.

The agreements also included a fish canning plant with an investment of 5.36 million rials ($13.9 million) and a planned production capacity of 40 to 60 tons per day.

A separate tuna and squid processing and drying facility, valued at 3.6 million rials ($9.4 million), will have an annual processing capacity of up to 10,000 tons.

Duqm's projects also included a refinery for recycling used oils and petroleum waste, with an investment of 1.92 million rials ($5 million).

In Salalah Free Zone, agreements were signed to establish a steel structures factory worth 19.25 million rials ($50.1 million), a gypsum products plant with an investment of 7.7 million rials ($20 million), and a cheese and dairy products facility valued at 6 million rials ($15.6 million).

Electric Vehicle Chargers

In Khazaen Economic City, investments included a factory to manufacture electric vehicle chargers and their components, valued at more than 3.4 million rials ($8.8 million), and a plant producing precast concrete and construction components with an investment of 2.5 million rials ($6.5 million).

Other agreements covered building materials and ready-mix concrete production, as well as warehousing, logistics facilities and industrial units.

OPAZ also announced the launch of the free zone at Khazaen Economic City through the signing of its first two investment agreements.

Economic Diversification

OPAZ Chairman Qais Al Yousef said the agreements aim to expand the base of specialized industrial projects, attract investments that support economic diversification and create jobs, in line with the objectives of Oman Vision 2040.

He added that the authority is working to improve the regulatory environment, services and infrastructure to enable investors to capitalize on Oman's strategic location and connectivity to regional and global markets.

Madayn CEO Dawood Al Hadabi said the industrial projects would help expand local supply chains, create more opportunities for small and medium-sized enterprises to provide supporting products and services, and strengthen the ability of Omani industries to enter export markets.

The agreements form part of Oman's broader efforts to expand productive investment, strengthen links between industrial zones, ports and logistics services, and increase the value added by economic activities outside the oil sector.


Rising Bread Prices Add to Sudanese Struggles as Production Costs Soar

A worker oversees bread production at a bakery in Omdurman (Asharq Al-Awsat)
A worker oversees bread production at a bakery in Omdurman (Asharq Al-Awsat)
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Rising Bread Prices Add to Sudanese Struggles as Production Costs Soar

A worker oversees bread production at a bakery in Omdurman (Asharq Al-Awsat)
A worker oversees bread production at a bakery in Omdurman (Asharq Al-Awsat)

A 35% increase in the price of a loaf of bread to 500 Sudanese pounds has placed further pressure on households in Sudan, where purchasing power continues to decline and bakeries face soaring production costs driven by higher prices for flour, yeast and fuel, persistent power outages and the depreciation of the Sudanese pound against the dollar.

While residents are calling for government intervention to ease the burden of rising prices for this essential food staple, industry representatives warn that containing further increases will be difficult amid the ongoing war and deteriorating economic conditions.

Al-Tayeb al-Jaali, a bakery owner in Omdurman, attributed the latest increase in bread prices to rising production costs. He said a sack of flour now costs 190,000 Sudanese pounds, while a carton of yeast has reached 290,000 pounds. Daily labor costs have also risen by 25%.

Speaking to Asharq Al-Awsat, Jaali said 1,000 liters of gas now cost 4.7 million pounds, while electricity outages exceed 12 hours a day, forcing bakery owners to rely on diesel to keep their businesses running at a daily cost of up to 400,000 pounds.

He argued that curbing bread price increases and easing the burden on both bakery owners and consumers would require government measures to stabilize the exchange rate and contain inflation amid the continued depreciation of Sudan's currency.

Declining Purchasing Power

Higher bread prices are affecting households and businesses that rely on bread to serve meals, as consumers struggle with the rising cost of essential goods.

Suleiman Abdullah, a restaurant owner, said more expensive bread was adding to operating costs and limiting restaurants' ability to offer affordable meals.

He explained that serving dishes of fava beans, lentils or liver with two loaves of bread no longer satisfies some customers, particularly because the loaves are relatively small. Customers are therefore forced to buy additional bread, increasing the overall cost of their meals.

Issam al-Taj, a taxi driver, said rising prices for basic necessities amid the continuing war had made it increasingly difficult to provide for his family's daily needs.

He estimated that his household spends about 20,000 pounds a day on bread alone.

Taj added that he sometimes has to wait in fuel lines for as long as three days to refuel his taxi, while his earnings remain insufficient to cover his family's essential expenses.

The pressures are particularly severe for families returning to the capital after being displaced by the war.

Hussein Abdullah said he and his family had returned to Khartoum hoping that basic services, including electricity, water, bread and medicine, would be restored. Instead, they found themselves facing living expenses they could not afford.

Fatima Ahmed said she could no longer afford to provide bread for her children's breakfast before they leave for school.

She explained that her family was struggling to meet the children's needs despite its limited resources and called on authorities to support bakeries and ease the impact of rising prices on consumers.

Efforts to Secure Flour Supplies

In an attempt to address the crisis, Khartoum State Governor Ahmed Othman Hamza visited the Rotana flour mills in the Al-Jaili industrial area north of Bahri last Monday to assess production levels and explore ways to secure flour supplies and maintain deliveries to bakeries.

Hamza pointed to overlapping responsibilities among authorities that were disrupting distribution and ordered tighter oversight and measures to address the problems, with the aim of keeping bakeries operating and ensuring bread remains available to residents.

Rising Production Costs

Essam Okasha, head of the Bakers' Union, attributed the latest price increase to higher global wheat prices, the depreciation of the Sudanese pound and rising costs for fuel, gas and yeast.

The dollar has reached approximately 10,000 Sudanese pounds on the parallel market, driving up the cost of importing production supplies and adding to the pressure on bakeries.

Okasha said addressing the crisis would require importing wheat flour and providing financial support to bakeries. However, he acknowledged that sustainable solutions would be difficult to achieve while the war continues and economic conditions deteriorate.

He noted that Sudan's exports are largely limited to gold, with the proceeds, according to him, going toward financing the war.

Okasha expressed hope that bread prices would not rise beyond their current levels and that two loaves would continue to cost 1,000 pounds, given the difficult living conditions facing Sudanese citizens.

Calls for Strategic Wheat Reserves

Economist Haitham Mohammed Fathi said Sudan's bread crisis reflected structural weaknesses in the production system rather than a temporary surge in inflation.

He explained that flour accounts for approximately 70% of production costs, meaning any increase in its price is immediately reflected in the retail price of bread, particularly in the absence of stable subsidy mechanisms.

Fathi added that fuel price increases exceeding 100% during certain periods had driven up transportation and distribution costs, while higher electricity tariffs had further increased operating expenses.

These pressures, he said, have been compounded by the absence of a clear food security policy.

He called for bread to be treated as an essential commodity through the establishment of strategic wheat reserves and a stronger government role in importing and distributing wheat, rather than leaving the entire process to market forces.

Fathi also highlighted disagreements over the foreign exchange rates applied to wheat and flour imports and the gap between those rates and the parallel-market dollar rate used by private businesses to obtain the foreign currency they need.

Rising bread prices are adding to the hardships of Sudanese already exhausted by war, displacement, hunger and the erosion of their purchasing power.

As production costs continue to rise and household incomes decline, securing one of the most basic daily necessities has become a major challenge.

The authorities' ability to ensure adequate flour supplies and control production costs will remain critical to preventing the crisis from worsening.