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High Expectations for Growth of Saudi Telecom Market

The Saudi telecom sector is likely to grow in response to technology developments. (Asharq Al-Awsat)
The Saudi telecom sector is likely to grow in response to technology developments. (Asharq Al-Awsat)
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High Expectations for Growth of Saudi Telecom Market

The Saudi telecom sector is likely to grow in response to technology developments. (Asharq Al-Awsat)
The Saudi telecom sector is likely to grow in response to technology developments. (Asharq Al-Awsat)

Saudi Arabia ranked third as the fastest growing economy among the G20 countries, and first in the world in the 5G average download speed.

Some economists have raised expectations for the growth of the Saudi telecom market - the largest market in the Middle East and North Africa.

Saudi Arabia and the United States concluded a memorandum of cooperation in the field of 5G and 6G, with the aim of accelerating the growth of the digital economy and promoting the pace of research, development and innovation in the Kingdom.

Saudi businessman Abdullah Al-Malehi told Asharq Al-Awsat that Saudi Arabia had major leaps in the global ranks in the field of communications.

Pointing to figures by GSMA, Al-Malehi said that in 2020, the size of the communications and information technology market in the Kingdom amounted to USD36 billion, achieving a growth rate of seven percent compared to 2019.

The Saudi communications investor said that the revenues of telecom companies listed on the Saudi stock market continued to grow for the fourth year in a row, reaching 86.4 billion riyals (USD23 billion) in 2021, compared to about 81.12 billion riyals (USD21.6 billion) the previous year.

He also stressed that the size of the IT and emerging technologies market in the Kingdom amounted to more than USD17 billion, with a growth rate of 10 percent compared to 2019, while the contribution of the communications and information technology sector to the GDP reached 5.1 percent.

Al-Malehi explained that a new memorandum of cooperation linking technology companies in both the Kingdom and the United States would enhance the application of the 5G using open radio networks, enable the development of the 6G through similar technologies, and enhance partnership in the field of cloud infrastructure and related technologies.

Dr. Abdul Rahman Baeshen, head of the Al-Shorouk Center for Economic Studies in Jazan, stressed that the communications and information technology sector was the future of the digital economy, explaining that Saudi Vision 2030 included this field as a major axis for development and economic transformation.

He added that among the 18 agreements that Riyadh signed with Washington during President Joe Biden’s recent visit to the Kingdom was a major cooperation agreement in the field of technology and communications.

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Saudi Arabia Raises its Non-Oil Economic Growth Forecast to 6.2% in 2026

A view of a logo during the 54th annual meeting of the World Economic Forum, in Davos, Switzerland, January 19, 2024. (Reuters)
A view of a logo during the 54th annual meeting of the World Economic Forum, in Davos, Switzerland, January 19, 2024. (Reuters)
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Saudi Arabia Raises its Non-Oil Economic Growth Forecast to 6.2% in 2026

A view of a logo during the 54th annual meeting of the World Economic Forum, in Davos, Switzerland, January 19, 2024. (Reuters)
A view of a logo during the 54th annual meeting of the World Economic Forum, in Davos, Switzerland, January 19, 2024. (Reuters)

Saudi Arabia has raised its forecast for non-oil economic growth in 2026 to 6.2%, marking a jump from previous estimates of 5%.

Saudi Minister of Economy and Planning Faisal Alibrahim revealed that the Kingdom is targeting 4.8% non-oil economic growth in 2024, increasing to 6.2% by 2026, while emphasizing the long-term importance of investing in human capital.

Speaking during a panel discussion titled “The Future of Growth” at the World Economic Forum 2025 in Davos, Alibrahim stated that economic transformation and sustainable growth require bold, inclusive leadership and a long-term vision. He cited Saudi Arabia’s Vision 2030 as a model for reducing dependency on oil and diversifying investment portfolios.

Global economic growth rates currently stand at 3.2–3.3%, significantly below the historical average of 4%, he noted.

He stressed the importance of building institutional capacities and investing in human capital as foundational elements for sustainable economic growth, emphasizing that these factors are essential for any successful economic strategy.

On US economic policies with Donald Trump returning for a second term as president, the minister stated they would not have an immediate impact on the global economy, as they involve long-term restructuring. He added that Saudi Arabia maintains strong relations with the United States.

Saudi Finance Minister Mohammed Al-Jadaan reiterated the need to improve global methodologies for measuring gross national income (GNI) to better reflect the realities of emerging economies. He emphasized that enhancing measurement frameworks would improve the efficiency of international institutions, support sustainable development in emerging markets, and contribute to global economic equity.

Meanwhile, Saudi Tourism Minister Ahmed Al-Khateeb outlined plans to transform Riyadh into a global business hub by hosting around 25 major international conferences, including the Future Investment Initiative and the LEAP Technology Conference.

Al-Khateeb also announced the launch of the largest travel and tourism event of its kind, set to take place in November. He invited global stakeholders to participate, describing the forum as a significant attraction for the international tourism sector.

Speaking during a panel discussion titled “The Role of Tourism and Travel in Building Trust” at Davos, Al-Khateeb highlighted the rapid growth of Saudi Arabia’s travel and tourism sector, which outpaced global growth rates last year with an increase of over 70%, the highest among G20 nations.

This growth, he explained, is linked to Saudi Arabia’s efforts to open its borders to encourage tourism, a key part of Vision 2030, which aims to diversify the Kingdom’s economy.

The minister noted that Saudi Arabia offers a wide range of attractions, from the scenic mountains of the south to the Red Sea coastline in the west. He emphasized that the Kingdom is investing in human capital to strengthen the sector, pointing to the ambition of young Saudis eager to join the tourism industry.