Takaichi faces productivity test and “government crisis”

A recent report revealed that the size of the cybersecurity market in the Kingdom reached about 16.3 billion riyals ($4.3 billion) during the past year, with a compound annual growth rate for the past three years of 10.7 percent.

Spending by government sector entities on cybersecurity products and services amounted to about 5.1 billion riyals, representing 31 percent of the market size in the Kingdom, while private sector spending recorded 11.2 billion riyals, representing 69 percent of the market size.

The National Cybersecurity Authority issued a report on “The Most Prominent Economic Indicators in the Cybersecurity Sector in the Kingdom 2026,” covering a number of economic indicators, including the size of the cybersecurity market, the sector’s contribution to the gross domestic product, the most prominent indicators of its workforce, and other indicators that reflect the growth of the sector in the country.

GDP

The authority indicated that the contribution of the cybersecurity sector to the gross domestic product at the current prices of the Kingdom during the year 2025 amounted to about 20 billion riyals, with a compound annual growth rate of 13.2 percent. Of which, 9.7 billion riyals is a direct contribution to providers of cybersecurity products and services, and 10.3 billion riyals is an indirect contribution. This contribution represents 0.42 percent of the gross domestic product, and 0.71 percent of the domestic product for non-oil activities.

The report addressed the size of the workforce in the cybersecurity sector in the Kingdom. It reached more than 22 thousand specialists during the past year, with a compound annual growth rate of 5.9 percent. This is in exchange for specialized training initiatives and programs in the field of cybersecurity that are compatible with the needs and requirements of vital sectors, to support economic and social development in the Kingdom. While the global rate of women’s participation in working in the cybersecurity sector reached about 22 percent, the percentage of women’s participation in working in the sector in the Kingdom exceeded this global rate to record 33 percent of the total specialists working in the sector.

Spending on products

The report reviewed the size of the cybersecurity market according to the classification of cybersecurity products and services, as the percentage of spending on products reached 51 percent of the total market size, with a value of 8.3 billion riyals.

Spending on cybersecurity services reached 49 percent of the total market size, with a value of 7.9 billion riyals.

The report also reviewed the most prominent cybersecurity products and services, which included “peripheral security and management, cybersecurity systems integration, network security, data security, and cybersecurity operations solutions.”

Government and private integration

The report confirmed that the growth in the size of the cybersecurity market in the Kingdom comes within the framework of efforts and initiatives aimed at enhancing competitiveness, encouraging investment and innovation in the cybersecurity sector, and integration between the government and private sectors to contribute to the development of the sector in the Kingdom.

It should be noted that the methodology for preparing the study included classifying all products and services in the cybersecurity sector according to the classification of services and products, which included 100 products and services, following the best international methodologies, standards and practices in this regard.

The National Cybersecurity Authority is the authority responsible for cybersecurity in the Kingdom, and the national reference in its affairs, and aims to strengthen it. To protect the state's vital interests and national security, in addition to protecting sensitive infrastructure, priority sectors, and government services and activities.

The authority is responsible for stimulating the growth of the cybersecurity sector in the Kingdom, encouraging innovation and investment in it, conducting studies, research and development in cybersecurity, and preparing periodic reports on the state of cybersecurity in the Kingdom at the national and sectoral levels.

The decision to merge the “General Authority for Foreign Trade” and the “Saudi Export Development Authority” into a unified entity under the name “The General Authority for Foreign Trade and Export” represents an organizational step aimed at enhancing institutional integration and unifying efforts aimed at supporting national exports and expanding the presence of Saudi products in global markets.

The Council of Ministers, headed by Prince Mohammed bin Salman bin Abdulaziz, the Saudi Crown Prince and Prime Minister, agreed to merge the two bodies, directing the preparation of what is necessary for this process, and removing what requires taking regular action within 180 days. Prince Abdulaziz bin Salman, Minister of Industry and Mineral Resources, will be Chairman of the Board of Directors of the new authority, and the Minister of Commerce will be Vice-Chairman.

This trend comes in light of the growing importance of foreign trade as a tributary to economic growth and a tool for enhancing the competitiveness of Saudi products and opening new horizons for national enterprises to reach broader international markets.

Exporter support tools

It is expected that unifying specialties and coordinating initiatives will contribute to raising work efficiency, enhancing access to foreign markets, and developing tools to support exporters, in line with the goals of diversifying the national economy and increasing the contribution of non-oil exports to economic growth. Speaking to Asharq Al-Awsat, specialists said that with the completion of the integration requirements within 180 days, attention will turn to the new authority’s work mechanisms and performance indicators, and the extent of its ability to transform regulatory integration into broader export opportunities and sustainable gains for the Saudi economy, in addition to supporting the private sector through more opportunities available to national companies.

Small and medium enterprises

The advisor and professor of commercial law, Osama bin Ghanem Al-Obaidi, told Asharq Al-Awsat that the next stage: After merging the “General Authority for Foreign Trade” and the “Saudi Export Development Authority” into one entity, “it requires focusing on small and medium enterprises, helping them overcome export challenges, and building sustainable international trade partnerships.”

The stage also requires “developing clear performance indicators that measure the growth of non-oil exports, and count the number of new markets that Saudi products reach, and the extent to which exporters benefit from the services provided.” According to Dr. Al-Obaidi.

He pointed out that the decision combines opening markets and enabling the Saudi product to access them, “in a step that enhances its competitiveness and shortens its journey to global markets,” and that the step “facilitates procedures and facilitates trade operations, by raising the level of integration between the two sides and developing a unified platform that saves time and cost for the beneficiaries, thus enhancing the Kingdom’s economic competitiveness and attracting more local and foreign investments.”

Dr. Al-Obaidi added: “In my estimation; The success of the new authority will be measured by the added value it achieves to the national economy, not merely by unifying the organizational structures. The more institutional integration is reflected in increasing export opportunities, enhancing the competitiveness of Saudi products, and diversifying sources of income, the closer this step will come to achieving its economic goals, which supports the goals of (Vision 2030) and enhances the Kingdom’s position in global trade.”

Strategic dimensions

For her part, economic researcher and technical advisor, Fadwa Al-Bawardi, explained that the decision to merge the “General Authority for Foreign Trade” and the “Saudi Export Development Authority” into one entity represents a pivotal organizational transformation that embodies the national trend towards governance of the trade file and unifying efforts to activate integration between trade policies and export development.

According to Al-Bawardi, the strategic dimensions of this decision go beyond the scope of administrative restructuring. The new entity constitutes a vital bridge linking the opening of global markets and empowering the productive capabilities of Saudi contractors and companies.

She indicated, in her interview with Asharq Al-Awsat, that the investor is not content with searching for new sales outlets, but rather is looking forward to building a solid production base that stimulates exports, stressing that the real bet of the new entity lies in “overcoming logistical and regulatory obstacles, and raising the competitive efficiency of the Saudi product on the map of international trade.”

Trade disputes and restrictions

Al Bowardi added, “The competitive presence of Saudi goods and services in global markets is not based only on the quality element, but also requires an integrated support system that ensures facilitating access to markets, addressing conflicts and trade restrictions, and intensifying international promotion initiatives, which gives local exporters sufficient empowerment to compete with confidence and competence.”

The economic researcher also emphasized that the actual criterion for the success of this step lies in “the extent to which the new structure is able to translate institutional assembly into a tangible economic impact, measured by the extent of simplification of procedures, unification of service delivery platforms, and speed of response to the requirements of the business sector and national factories, as well as penetrating promising markets that enhance the presence of non-oil exports.”