Cyber-security Fastest Growing Sector in Saudi Arabia
Cyber-security is expected to be among the fastest growing sectors in Saudi Arabia – its market value is anticipated to reach SAR19.12 billion (USD5 billion) by 2022, revealed a new report by the US-Saudi Arabian Business Council.
The Saudi defense sector is expected to contribute SAR231.27 billion to the Kingdom’s GDP by 2020.
According to the Council’s “Defense, Security, and Aerospace” report, demand in the Saudi defense and security sector will expand at a compound annual growth rate (CAGR) of 1.48 percent through 2020 and at a CAGR of 1.71 percent over the next decade.
The report further indicated that opportunities have emerged in the market for personal and perimeter security products. Key areas for capital investment in surveillance include construction, power, and transportation sectors.
Saudi Arabia’s labor productivity for manufacturing is anticipated to grow at one of the greatest long-term rates among industries, with a CAGR of 1.83 percent through 2030.
According to the latest figures, Saudi Arabia was the third largest defense spender globally following the United States and China. In 2019, the kingdom announced a military budget of SAR191 billion (USD50.9 billion), with defense and military accounting for 17.3 percent of the Kingdom’s total SAR1.11 trillion (USD296 billion) spending plans.
Abdullah Jumaah, Saudi Co-Chairman of the Business Council, told Asharq Al-Awsat newspaper that by 2028, the public administration and defense sector will generate 2.52 million private sector jobs within the Kingdom.
“Historically, the Saudi Arabian defense sector has proven lucrative for foreign defense contractors given that the country is among the leading arms importers with growing domestic capabilities. In the coming years, we expect the Kingdom to progress toward the localization objectives of Vision 2030 while still expanding opportunities for the private sector across the training services, cyber-security, MRO activities, and command and control segments,” he added.