THE SAUDI ARABIAN CYBERSECURITY MARKET OVERVIEW & LICENSING REQUIREMENTS
This article has been researched and written by the Business Development Team at Creation Business Consultants. AI has not been used in generating this article.
The cybersecurity sector in Saudi Arabia is experiencing rapid expansion and evolution, driven by various factors such as growing digitalization, regulatory requirements, and the evolution of cyber threats. Projections indicate strong market growth, with substantial input expected from both governmental and private entities.
SAUDI CYBERSECURITY MARKET: TRENDS & GROWTH
Saudi Arabia’s cybersecurity market is projected to continue its strong growth trajectory due to the nation’s increasing integration with the global economy, which makes it a target for cyber threats from abroad. The government is responding by investing heavily in cybersecurity infrastructure, both through direct initiatives and support for private sector efforts. This is reflected in the growing emphasis on regulatory compliance and data protection, with laws such as the Saudi Arabian Data and Privacy Law and the Cybersecurity Law enacted in 2019 mandating strict cybersecurity measures for organizations handling sensitive data.
Digital technology adoption across sectors, especially cloud services, is a key market driver. Organizations are migrating to the cloud to enhance performance, implementing a cloud-first approach for new projects (Mordor Intel). Healthcare, in particular, witnesses a surge in digitalization, increasing vulnerability to cyberattacks. Consequently, there’s a growing demand for cybersecurity solutions in healthcare to safeguard patient information and hospital data.
SAUDI ARABIA CYBERSECURITY MARKET AND KEY PLAYERS
International and local companies are actively participating in the cybersecurity landscape in Saudi Arabia. Major global players like IBM, Palo Alto Networks, and McAfee have a significant presence. For example, Palo Alto Networks has launched advanced threat detection and response services optimized to reduce the number of alerts, thereby enabling better threat management.
Market Size in USD Billion
CAGR 13.78%
STUDY PERIOD
2019 - 2029
Base Year for Estimation
2023
Market Size (2024)
USD 0.63 Billion
Market Size (2029)
USD 1.19 Billion
CAGR (2024-2029)
13.78%
Market Concentration
Medium
MAJOR PLAYERS
CHALLENGES AND OPPORTUNITIES
The cybersecurity market in Saudi Arabia, while growing, faces several significant challenges that could impede its growth if not addressed effectively. Among these challenges is the notable skills shortage in the cybersecurity field. The rapid evolution of cyber threats requires a workforce that is not only large in number but also highly skilled in cutting-edge technologies and strategies. Despite the high demand, there is a significant talent gap, as local educational programs are still catching up to the global standards required for advanced cybersecurity training. This shortage is exacerbated by the global competition for cybersecurity talent, with Saudi Arabia having to compete with other nations offering attractive compensation and career opportunities to skilled professionals (Market Research USA).
Another challenge is the complexity of managing cybersecurity across an increasingly digital and connected landscape. As businesses and government entities continue to digitalize their operations, they expose themselves to a broader range of cyber threats. This complexity is particularly pronounced in the context of Saudi Arabia’s ambitious Vision 2030, which pushes for a widespread digital transformation across all sectors of the economy. Ensuring cybersecurity in such a rapidly changing environment requires continuous adaptation and innovation in security strategies and technologies (Mordor Intel).
On the opportunity front, Saudi Arabia’s cybersecurity market is ripe with potential for growth and innovation. The shift towards cloud computing, for instance, opens new avenues for cloud security services. With the government’s strong push towards a cloud-first strategy and the establishment of data sovereignty laws, there is a growing need for services that can secure data in the cloud while complying with local regulations (Mordor Intel). Additionally, the proliferation of Internet of Things (IoT) devices in industries such as healthcare, manufacturing, and utilities presents a significant opportunity for the development of specialized cybersecurity solutions tailored to these sectors (Mordor Intel).
Despite the robust market growth, Saudi Arabia faces challenges such as a shortage of skilled cybersecurity professionals. This talent gap could hinder the country’s ability to manage cyber risks effectively. The cybersecurity field is rapidly evolving, and there is a pressing need for continuous education and training to equip professionals with the necessary skills to combat emerging threats.
CYBERSECURITY LICENSING REQUIREMENTS IN SAUDI ARABIA
For a cybersecurity firm aiming to operate in Saudi Arabia, there are specific regulatory requirements and licensing conditions that need to be fulfilled, primarily overseen by the National Cybersecurity Authority (NCA), the Ministry of Investment, and the Ministry of Commerce and Industry. Business licenses in Saudi Arabia are essential for these firms, as the NCA plays a central role in regulating cybersecurity practices across the country, ensuring that both public and private entities adhere to national cybersecurity standards and practices.
Firstly, it’s essential for cybersecurity firms to register with the NCA. This registration has become a mandatory regulatory requirement since August 1st, 2022, for any entity providing cybersecurity services within the kingdom. This is part of a broader effort to standardize and improve cybersecurity measures across all sectors in alignment with Saudi Vision 2030.
The registration process involves complying with the Essential Cybersecurity Controls (ECC), which the NCA updated and issued to set forth basic cybersecurity standards. These controls cover a wide range of requirements, including but not limited to, securing critical infrastructures, managing cyber risks, and protecting against cyber threats. Additionally, specific guidelines such as the Cloud Cybersecurity Controls and Critical Systems Cybersecurity Controls may also apply depending on the services offered by the cybersecurity firm.
Moreover, cybersecurity firms must also be aware of and comply with other relevant laws and regulations, such as the Personal Data Protection Law (PDPL), which mandates the protection of personal data akin to GDPR’s requirements, and the Cybersecurity Law that addresses general cybersecurity practices and cybercrimes. Compliance with these regulations is crucial not only for operational legality but also for maintaining corporate reputation and trustworthiness in a highly regulated market.
Lastly, there are no fees associated with the registration process with the NCA, making it more accessible for firms to comply with the regulatory framework. However, maintaining compliance with the dynamic and comprehensive set of regulations can be a challenging task, requiring ongoing attention and adaptation to new legal and technical requirements as they evolve.
For further details on the licensing requirements and registration process, cybersecurity firms should directly consult the NCA’s official resources or legal experts specializing in Saudi Arabian cybersecurity regulations.
TAKEAWAY
If your organisation is contemplating entering the Saudi Arabian Cybersecurity market and would like an expert discussion on the overall scope of the market, the necessary licensing and structuring of a new company in Saudi Arabia, please feel free to get in touch with our Corporate Advisory team at Creation Business Consultants.
