Overview                                                                                            

The Saudi government foresees the kingdom's telecommunications sector revenues to exceed 55 billion Saudi riyals ($14.7 billion) by 2010, up from SAR40 billion in 2006, Telecom sector revenues grew from SAR19.8 billion in 2001, to SAR40 billion by the end of 2006, with annual growth of 15%, revenue is expected to exceed SAR55 billion by 2010. STC and Mobily, the current mobile telecom providers in Saudi Arabia have generated combined operational revenue of SAR39.8 billion in 2006, from fixed-line and mobile phone services.

The Saudi Arabian cabinet has recently granted the country's third mobile license to a Kuwaiti MTC-led consortium. It's also expected to grant licenses for three new fixed-line operators.

Saudi Arabia had 19.5 million mobile phone lines by the end of 2006, with a penetration rate of 81.7% of the population. Digital subscriber lines reached 300,000 by the end of the first quarter of 2007. Internet users reached 5 million, or 20%, of the population.

The Saudi government is mulling investing SAR3 billion to execute its e-government program that will allow 40 state agencies to provide 150 government services through electronic media within five years.

Best Prospects/Services                                                                  

The Kingdom of Saudi Arabia is expected to need a significant amount of technology, software and hardware to create the new digital infrastructure that the Saudi government is hoping for.

Best Prospects include:

DSL access switch, enabling multi-service transmission equipment,

Fiber-optic satellite links

Wideband transceivers

Network protocol software and systems

Broadband wireless access system  

Opportunities                                                                           

The Saudi Council of Ministers has approved a national plan for the development of its telecom and information technology sector with the objective of transforming the Kingdom into a knowledge-based society and a digital economy. 

The plan calls for the establishment of a powerful telecom and IT industries to make them one of the major sources of income.

The national plan for telecom and IT has long-term and short-term objectives. The Kingdom has already begun implementing some plans and programs for the development of the sector.

The Kingdom’s first Knowledge Economic City (KEC) is coming up in Madinah (Medina). It will have a technological and economic information center, a campus for medical research and biosciences and a center for studies in Islamic civilization.

The project is expected to attract investments worth more than SR25 billion and create nearly 25,000 new jobs. KEC will have a range of complementary zones -- a technology and KBI zone; an advanced IT studies institute; an integrated medical services zone; a retail zone; and a business district.

For more information please contact:

Ahmed Khayyat at ahmed.khayyat@N0SPAM.mail.doc.gov in Riyadh
Yousef Daqqaq at yousef.daqqaq@N0SPAM.mail.doc.gov in Jeddah
Ishtiaq Hussain at ishtiaq.hussain@N0SPAM.mail.doc.gov in Dhaharan