Saudi Arabia to Lead Middle East Countries in Sustainable Space Sector Development

As the Saudi space strategy approaches its launch, expectations for investment in the space sector are growing, with an industry expert predicting that the anticipated budget may be comparable to major space economies.

Moreover, Riyadh is expected to lead the way in creating a competitive and regulatory environment with an innovative approach driven by the public sector, which will support the growth of the regional ecosystem.

Growth Predictions

Phil Malem, CEO of Serco Middle East, estimated the global space industry to be worth more than $400 billion, with expectations of it growing to over a trillion dollars by 2040.

Investments should support the entire value chain of the space ecosystem, from launch to satellite manufacturing within the country, operations, ground segment, and end data services, Malem emphasized.

Speaking to Asharq Al-Awsat, Malem stated that creating the full value chain for the space ecosystem will maximize all relevant industry sectors, such as space exploration, robotics, space science, Earth observation, Satcom, and space sustainability.

Saudi Leadership

According to Malem, Saudi Arabia’s ambitious plans for the country and the region will position it as a global player with a significant impact on space sustainability, leading the Middle East region in this field.

Malem expected that both public and private investments would back the formation of international partnerships in the region and create a local ecosystem. This includes the Saudi Space Accelerator Program, which was introduced by the Saudi Space Commission in 2023.

The program aims to aid startups and entrepreneurs in developing innovative space solutions within the Kingdom while simplifying knowledge transfer, technology, and training.

Malem stressed the importance of strengthening top training programs for operational services through various global space services for professionals in multiple locations, agencies, and public space institutions, such as engineers, operators, and analysts.

This is necessary to enhance the entire space value chain from satellite design and spacecraft operations to data processing and management, explained Malem.

Economic Diversification

Malem forecasted that Saudi Arabia would experience exponential growth in the space sector as part of its economic diversification plans in the region.

He anticipated that space would be a top priority under the direction of Crown Prince Mohammed bin Salman, who serves as the chairman of the Council of Economic and Development Affairs and leads the Supreme Space Council.

The potential for the space sector to impact all economic sectors through services enabled by space data is significant, highlighted Malem.

Since 2018, the Saudi space sector has made big strides in creating a competitive and accessible environment.

Malem noted efforts had been made to enhance the Kingdom’s strategy and achieve incredible accomplishments in human spaceflight missions, including plans to launch Saudi astronauts this year.

Serious Mobilization

Riyadh has taken significant steps toward the sector, affirmed Malem, adding that Saudi Arabia has filled positions with qualified professionals from the global space industry over the past year.

According to Malem, the Kingdom adopted a policy of attracting the best talent to help shape the space sector’s long-term growth, drive, and sustainability.

Saudi Arabia’s space sector will prioritize both economic expansion and the development of its national workforce, said Malem.

The sector aims to position the Kingdom as a leading country in the field of space, he added, noting that this effort presents significant opportunities for building a skilled and confident local workforce capable of implementing the space program and supporting the revitalization of national visions.

Serco’s Plan

Serco’s action plan includes collaborating with local academic, industrial, and public sector organizations to design, develop, and provide training, revealed Malem.

He added that the aim is to prepare Saudi citizens with the abilities, knowledge, and experience required to tackle long-term growth challenges in the regional space sector.

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.

Saudi Arabia to Lead Middle East Countries in Sustainable Space Sector Development