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ICT Sector Could Contribute $53 Bln to Saudi GDP in 2022

The ICT sector’s contribution to the Kingdom’s GDP in Q1 2021 reached 5.48%. (Asharq Al-Awsat)
The ICT sector’s contribution to the Kingdom’s GDP in Q1 2021 reached 5.48%. (Asharq Al-Awsat)
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ICT Sector Could Contribute $53 Bln to Saudi GDP in 2022

The ICT sector’s contribution to the Kingdom’s GDP in Q1 2021 reached 5.48%. (Asharq Al-Awsat)
The ICT sector’s contribution to the Kingdom’s GDP in Q1 2021 reached 5.48%. (Asharq Al-Awsat)

The information and communication technology (ICT) sector’s contribution to the Saudi GDP reached SAR 146.9 billion ($39 billion) during the past year, with predictions it could reach SAR 200 billion ($53 billion) in 2022, a recent report revealed.

Published by the Research and Information Center of the Chamber of Commerce and Industry in Riyadh, the report revealed that the ICT sector’s contribution to the Kingdom’s GDP in Q1 2021 reached 5.48%.

Moreover, the report shed light on the digital economy’s contribution to global GDP, which amounted to about 15.5%, including the most important investment opportunities provided by the sector in the fields of e-commerce, tourism, smart cities, education, human capital and innovation.

The report emphasized that Saudi Arabia has a strong digital infrastructure. It stressed that the Kingdom has accelerated its process of digital transformation, which contributed to facing crises that disrupt all services in the public and private sectors.

Infrastructure readiness also contributed to the continuity of business, education and all the requirements of the daily life of citizens and residents in light of the coronavirus pandemic, ranking the Kingdom among the top 10 developed countries in the world due to its robustness in digital infrastructure, the report added.

It said the Ministry of Communications and Information Technology aims to raise the digital economy’s contribution to the GDP in the coming years to more than 19 %, compared to 5.48 % in 2021.

Saudi Arabia has witnessed clear steps in the efforts to expand its economic base and keep pace with the qualitative transformations driven by digital acceleration around the world, added the report.

It made several recommendations to achieve the Kingdom's goals in the digital economy during the next stage.

Most notably, it recommended providing safer applications to protect customer data, paying attention to technical education in the field of networks and cybersecurity, as well as establishing electronic industries inside Saudi Arabia to keep pace with global technology, reduce import costs and create job opportunities.

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Positive Outlook for Saudi Stock Market Next Week

A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
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Positive Outlook for Saudi Stock Market Next Week

A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)

Saudi Arabia’s Tadawul All Share Index (TASI) ended the second week of March with a slight decline for the third consecutive week, closing down 0.73% at 11,725.88 points, compared to the previous week's close of 11,811.11 points.

In an analysis of the market performance during the week ending March 13, Dr. Suleiman Al-Humaid Al-Khalidi, a financial market analyst, told Asharq Al-Awsat that the market experienced a sharp decline not seen in years, coinciding with a drop in global markets, particularly in the US, where $2 trillion in value was wiped out in a single day.

This accounted for roughly 60% of the total market value of the Saudi stock market.

Al-Khalidi noted that the key player in the Saudi market is the banking sector, especially Al-Rajhi Bank's shares, which showed resilience and did not follow the downward trend. This was attributed to the strong profits reported by the banking sector in 2024.

The primary factors contributing to the market’s decline include global economic pressures, particularly US tariffs on most global economies, ongoing global uncertainty, and the Federal Reserve's tight monetary policies, he explained.

These factors have significantly impacted liquidity flows into financial markets. Additionally, fluctuations in global oil prices, despite recent stability, have also played a role.

This downturn has been accompanied by caution among sovereign wealth funds, investment institutions, and some portfolios in injecting new liquidity or altering their positions until there is more clarity in the financial markets, he went on to say.

Moreover, Al-Khalidi said that the Saudi stock market has not accurately reflected the true strength and size of the Saudi economy, which has grown to SAR 4 trillion, up from SAR 600 billion in 2016, before the launch of Vision 2030.

Additionally, the country’s GDP has reached approximately $1.1 trillion.

Looking ahead to the market's performance in the coming week, he noted that there are strong support levels at 11,550 points, followed by 11,450 points.

These levels could help shift the market toward an upward trajectory and better reflect the robust growth of the Saudi economy.

Al-Khalidi emphasized that the banking and energy sectors could play a leading role in driving the market higher, pushing the index beyond this week’s closing levels.

He also pointed out that some stocks are hitting new lows, presenting significant investment opportunities for those seeking safe havens with steady returns in the Saudi market.