Saudi Communications And Information Technology Exports Surpass SAR6 Billion In 2023

The services export sector in Saudi Arabia is experiencing significant growth, contributing to the increase in non-oil exports. The Saudi Export Development Authority (Saudi Exports) is playing a crucial role in supporting and empowering this sector by providing means to enhance the reach of Saudi services in new markets. This effort aims to achieve national targets and increase the percentage of non-oil exports.Services exports refer to the value of services exchanged between residents and non-residents in an economy. This includes services provided to customers from outside the economy offering the service. According to the World Trade Organization (WTO), there are four mechanisms involved in services exports: cross-border trade, consumption of services by visitors in a foreign country, commercial presence abroad, and the movement of natural persons.In 2023, services exports exceeded expectations, marking their best performance compared to previous years with a 40% increase, totaling SAR182 billion according to preliminary data. The revival of the travel sector played a significant role in this surge, growing by 43% and constituting 74% of the total services at SAR135 billion. The transport sector followed with exports valued at SAR24.2 billion, and telecommunications services exports at SAR6.3 billion.The Saudi telecommunications and information technology market is experiencing notable growth. In 2022, the size of the information technology market exceeded SAR91 billion, with a 13% increase in the number of digital startups. The local content ratio in the technology sector also surpassed 28%. Recognizing this potential, Saudi Exports launched the "Saudi Technology" label as a sub-brand of the "Saudi Made" program in 2023. This initiative aims to support national technological products and companies, expand their reach, and promote them locally and globally.To facilitate service exporters' access to importers, Saudi Exports offers a package of essential services either directly or in partnership with relevant entities. The goal is to solve exporters' challenges and help them access target markets. Participation in international exhibitions and trade missions, such as the GITEX Technology exhibitions, is one of the ways Saudi Exports supports service exporters. In 2024, Saudi Exports participated in GITEX Africa in Morocco, showcasing twenty-five national companies specialized in communications and information technology.Saudi Exports is also working on partnerships with government entities to develop the technology sector and improve the export environment for companies operating in it. One success story is the support provided to Foodics in entering the Japanese market and signing an agreement with Interlink to support the accessibility of its services in East Asia. This success enhances Saudi technological service exports, develops the technology sector, and prepares it for expansion into new regional and global markets.Other notable examples include the expansion of the smart platform Mrsool into the Egyptian market, the services provided by the Renad Al Majd group in eight different countries, technical support provided by Naseej technology company to prestigious universities in Egypt, and Labayh medical care company's acquisition of the Emirati app Nafas.Supporting the services export sector is part of Saudi Exports' efforts to achieve sustainable growth in non-oil exports. By promoting Saudi services and products, enhancing their competitiveness, and accessing international markets, Saudi Exports contributes to the national economy and aligns with the goals of Saudi Vision 2030.In conclusion, the services export sector in Saudi Arabia is experiencing significant growth, driven by various factors such as the revival of the travel sector and advancements in telecommunications and information technology. Saudi Exports plays a crucial role in supporting this sector by providing essential services and initiatives to enhance the reach of Saudi services in international markets. This effort aligns with the goals of diversifying the sources of income for the national economy as outlined in Saudi Vision 2030.

With inputs from SPA