Software Expenditure Grows at CAGR of 11% in Saudi Arabia

Riyadh, The Kingdom’s technology sector is growing rapidly, driven by software spending, as the software market has increased at a compound annual growth rate (CAGR) of 11%, with the local market for application development and dissemination recording $651 million this year, the applications market $1.114 million and system infrastructure programs $817 million.

IDC’s Group Vice President and Regional Managing Director Jyoti Lalchandan said in his speech at the Digital Technology Forum 2023, organized by the Communications, Space and Technology Commission (CST), that the digital transformation era in the Kingdom has led to an eight-fold increase in the number of institutions and digital technology spending in 2023, “directing them toward operational and competitive excellence and long-term growth”.

Lalchandan added that by 2026, 40% of the total revenues of global organizations will be generated through digital products, services and expertise.

He also said that “the technical areas driving investments in 2023 for software innovators are associated with fast developers introducing software tools, automating testing and adopting an agile methodology in project portfolio management and artificial intelligence-supported development”.

Source: Saudi Press Agency

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