Saudi Cybersecurity Market Reaches $4.35bn

Saudi Arabia’s cybersecurity market reached SR16.3 billion ($4.35 billion) in 2025, growing 10.7 percent annually as businesses and government entities increased spending on digital protection, according to the National Cybersecurity Authority (NCA).

Spending and digital government

Private companies accounted for 69 percent of the market, spending SR11.2 billion, while government entities spent about SR5.1 billion, or 31 percent, the NCA said in its Key Economic Indicators in the Cybersecurity Sector 2026 report.

Saudi Arabia has expanded digital government services under Vision 2030. The Kingdom’s Digital Government Strategy for 2025–2030 aims to contribute an estimated cumulative SR11.4 billion to gross domestic product and create more than 26,000 jobs by 2030. It aims to provide integrated digital services and improve government efficiency, increasing the need to protect public-sector systems and data.

The NCA launched its CyberIC program in 2022 to develop national cybersecurity capabilities, localize technologies and training content, and stimulate the domestic industry. Its initiatives include encouraging the production of cybersecurity products, services and solutions within Saudi Arabia.

The NCA estimated the sector contributed approximately SR20 billion to the Kingdom’s GDP at current prices in 2025. It reported a compound annual growth rate of 13.2 percent between 2023 and 2025. Cybersecurity product and service providers contributed SR9.7 billion directly, while indirect contributions amounted to SR10.3 billion. The authority said the total represented 0.42 percent of the Kingdom’s GDP and 0.71 percent of GDP from non-oil activities.

Workforce and industry priorities

Saudi Arabia’s cybersecurity workforce exceeded 22,000 professionals in 2025, growing at a compound annual rate of approximately 5.9 percent between 2023 and 2025. Women made up 33 percent of the workforce, compared with a global average of around 22 percent.

Products generated SR8.3 billion, or 51 percent, of market activity, while services accounted for SR7.9 billion, or 49 percent. The report named endpoint security and management, network security, cybersecurity operations solutions, cybersecurity system integration and data security among the most in-demand products and services.

The NCA linked growth to initiatives designed to boost competitiveness, attract investment and encourage innovation, alongside stronger cooperation between public and private entities. Its report drew on a study involving public- and private-sector stakeholders, academic institutions and cybersecurity professionals. The classification framework covered five main categories and 25 activities, spanning more than 100 cybersecurity products and services.

Investment and cyber risks

Saudi Arabia has held the top position in the cybersecurity index of the IMD World Competitiveness Yearbook for the past three years. Mohamad Hashem, general manager for Saudi Arabia and Bahrain at Kaspersky, said increasingly sophisticated cyberattacks were making cybersecurity a strategic business priority as organizations adopted artificial intelligence, cloud computing, automation and connected technologies.

“This is driving greater investment in security solutions that can help businesses identify threats earlier, respond faster and maintain operational continuity,” Hashem told Arab News. He said the sector was becoming a more important economic contributor and stressed the need for continued investment in cyber resilience.

Economist Ahmad Chreim said global security spending was projected to reach between $240 billion and $308 billion in 2026 as AI increased cyber risks while also strengthening defensive capabilities. He identified AI-driven threat detection, cloud security, and identity and access management as growth areas, particularly as AI agents and automated systems increase the number of digital identities organizations must protect.

“Emerging markets, including the Middle East, are seeing some of the fastest growth rates globally as they build security-first infrastructure from the ground up rather than retrofitting legacy systems, a genuine opportunity for the region to leapfrog rather than play catch-up,” Chreim said.

Hashem said Saudi Arabia was strengthening its cybersecurity ecosystem through digital transformation, protection of critical infrastructure, local talent development and cooperation across sectors. Effective cybersecurity can reduce disruption and downtime, he said, while protecting operational technology is essential to maintaining operations and supply-chain continuity. Integrating security into new technologies, he added, can help organizations manage risk as they develop digital services and expand operations.