Saudi cybersecurity market sees 10.8% growth, reaching $3.55bn in 2023

Saudi Arabia’s investment in cybersecurity products, solutions, and services surged to SR13.3 billion ($3.55 billion) in 2023, reflecting a robust 10.83 percent increase from the SR12 billion spent in 2022.

Data released by the National Cybersecurity Authority showed that this upward trend underscored the Kingdom’s heightened focus on enhancing its cybersecurity infrastructure across the public and private sectors.

Government spending on cybersecurity amounted to SR4.1 billion, representing 31 percent of the total expenditure, while the private sector contributed SR9.3 billion, or 69 percent. Of the private sector’s investment, SR2.8 billion was allocated to securing Critical National Infrastructure. This notable increase in cybersecurity spending aligns with Saudi Arabia’s broader Vision 2030 strategy, which aims to establish the Kingdom as a global leader across multiple sectors.

The field’s rapid expansion has fortified national security and made a substantial contribution to the economy.

In 2023, the cybersecurity sector contributed an estimated SR15.6 billion to the gross domestic product, with SR8.6 billion coming from direct contributions and SR7 billion from indirect and induced effects. Products and solutions drive the Saudi cybersecurity market, accounting for 56 percent of the market, valued at SR7.5 billion. This segmentation highlights the Kingdom’s strategy of adopting a comprehensive approach to cybersecurity, emphasizing both preventive measures and responsive services.

The growth in spending and development within the sector is further evidenced by the rise in registered providers, which reached 353 by the end of 2023. This expansion underscores the increasing opportunities for businesses and the growing demand for specialized digital services.

Workforce development is also a key element of Saudi Arabia’s cybersecurity strategy. By the end of 2023, the number of cybersecurity specialists in the Kingdom had reached 19,600, with women comprising 32 percent of this workforce. This focus on human capital aligns with Vision 2030’s broader objectives of empowering women and enhancing their participation across various economic sectors.

Saudi Arabia’s cybersecurity model, which has been recognized internationally as a pioneering framework, plays a crucial role in this growth.

The model’s emphasis on nationwide adoption and the empowerment of entities to independently fulfill their roles has not only enhanced national outcomes but also improved the Kingdom’s global standing in cybersecurity.

The sector’s expansion is expected to continue as Saudi Arabia pursues further investments and innovations in this field.

The increasing sophistication of cyber threats, combined with the rapid digital transformation of various industries, underscores the need for continued investment in the sector.

This is particularly important as Saudi Arabia continues to diversify its economy and reduce its dependence on oil revenues, making cybersecurity a critical component of its long-term economic strategy.