Saudi Arabia Software Market Overview

Market Size in 2025: USD 8.1 Billion

Market Forecast in 2034: USD 23.5 Billion

Market Growth Rate 2026-2034: 12.57%

According to IMARC Group's latest research publication, "Saudi Arabia Software Market Report by Type (Application Software, System Infrastructure Software, Development and Deployment Software, Productivity Software), Deployment Mode (On-premises, Cloud-based), Enterprise Size (Small and Medium-sized Enterprises, Large Enterprises), Industry Vertical (IT and Telecom, BFSI, Retail, Government/Public Sector, Energy and Utilities, Healthcare, and Others), and Region 2026-2034", The Saudi Arabia software market size reached USD 8.1 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 23.5 Billion by 2034, exhibiting a growth rate (CAGR) of 12.57% during 2026-2034.

Download a sample PDF of this report: https://www.imarcgroup.com/saudi-arabia-software-market/requestsample

How AI is Reshaping the Future of Saudi Arabia Software Market

• AI adoption is skyrocketing in Saudi Arabia’s software market, with over 80% of enterprises using AI-driven tools to automate and enhance business processes, boosting efficiency and innovation.
• Government programs like the Saudi Data and AI Authority (SDAIA) actively support AI software development, driving digital transformation initiatives funded with billions for AI infrastructure and workforce training.
• Leading companies such as SAP report that nearly all Saudi firms plan major investments in AI-enabled software, prioritizing data integration, cloud computing, and automation to stay competitive.
• AI-powered analytics and machine learning tools in Saudi software solutions enable smarter decision-making, cutting costs by up to 30% in sectors like finance, healthcare, and public administration.
• Startups and tech hubs in Riyadh and NEOM are rapidly innovating AI applications, fostering a dynamic ecosystem that accelerates software product development and adoption throughout the Kingdom.

Saudi Arabia Software Market Trends & Drivers:

One key factor driving the growth of Saudi Arabia's software market is the country's strong push for digital transformation across public and private sectors. Initiatives under Vision 2030 emphasize modernizing government services and industries through advanced software solutions. This shift has led to increased demand for cloud computing, AI integration, and cybersecurity tools, fueling the market’s expansion. For instance, the public cloud market alone is valued at over $2 billion, while SaaS applications have reached nearly $3 billion in usage. These developments show a commitment to technology adoption that accelerates software growth across multiple sectors.

Another significant driver is the rapid adoption of cloud-based platforms and SaaS models, which offer businesses scalability, flexibility, and cost savings. Companies in Saudi Arabia are moving from traditional on-premises software toward cloud-hosted applications to enhance operational agility and support remote working arrangements. This trend is reinforced by large investments from global cloud providers like Microsoft Azure, AWS, and Oracle establishing data centers in the region, opening new opportunities for the local software ecosystem. These cloud innovations also support sectors like healthcare, finance, and education with adaptable, secure software solutions.

A rising trend shaping the Saudi software market involves the government's supportive ecosystem for startups, innovation, and local talent development. Programs under the National Digitization Program and Technology Development Fund offer financial incentives, mentorship, and infrastructure access to tech companies. Furthermore, there is a strong focus on open-source software adoption to encourage collaboration and cost-effectiveness. Local startups are actively developing AI-driven software targeting industries such as fintech, healthcare, and logistics. These initiatives, combined with regulatory reforms simplifying licensing, are creating a fertile ground for continuous software innovation and market growth in the Kingdom.

Saudi Arabia Software Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• Application Software
  • Enterprise Resource Planning (ERP)
  • Customer Relationship Management (CRM)
  • Supply Chain Management (SCM)
  • Enterprise Collaboration Software
  • Enterprise Content Management (ECM) Software
  • Education Software
  • Others
• System Infrastructure Software
  • Network Management Systems (NMS)
  • Storage Software
  • Security Software
• Development and Deployment Software
  • Enterprise Data Management (EDM)
  • Business Analytics and Reporting Tools
  • Application Servers
  • Integration and Orchestration Middleware
  • Data Quality Tools
• Productivity Software
  • Office Software
  • Creative Software
  • Others

Deployment Mode Insights:

• On-premises
• Cloud-based

Enterprise Size Insights:

• Small and Medium-sized Enterprises
• Large Enterprises

Industry Vertical Insights:

• IT and Telecom
• BFSI
• Retail
• Government/Public Sector
• Energy and Utilities
• Healthcare
• Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

• Computer & Systems Engineering Company
• Creative Solutions Co. Ltd.
• Dirayaah Smart Technologies
• Olivo Technologies
• SAP SE
• Unisis Solutions

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Software Market

• 2025 November: Saudi startup STAMP secures $2 million funding to expand AI-powered compliance software, boosting regulatory tech innovation in local financial services.
• 2025 October: Saudi firms increasingly adopt AI-driven customer relationship management software, enhancing personalized client interactions and improving customer retention across diverse industries.
• 2025 September: The Saudi government pushes cloud-first policies, driving widespread adoption of cloud-native software platforms, strengthening digital infrastructure, and supporting rapid business scalability.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us:  

IMARC Group 

134 N 4th St. Brooklyn, NY 11249, USA 

Email: sales@imarcgroup.com 

Tel No:(D) +91 120 433 0800 

United States: +1-201971-6302