BUSINESS INTERNET CONNECTIVITY IN SAUDI ARABIA

AVAILABLE SERVICES IN SAUDI ARABIA

According to its capital value and spending rates, Saudi Arabia’s telecoms market is the biggest in the Middle East. Growth in spending is expected to increase, due to strong demand for smartphones and high-speed networks. The government is also fostering future growth as telecom development is considered a priority in the country’s efforts for diversifying its oil-based economy.

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DETAILS

The Internet penetration rate was nearly 65% by mid-2016. Household computer penetration reached 58.1% and household internet penetration reached 53.5% of surveyed households with DSL forming 80% of internet technologies used at homes. The average household internet speed is currently 724 Kbps with a year-on-year growth of 82%.

TELECOMS MARKET

Today the fixed-line, internet and mobile markets in Saudi Arabia have all been liberalised. In another move towards liberalisation, three Mobile Virtual Network Operator (MVNO) licences were put up for auction in mid-2013. The expansion of mobile broadband is making the broadband services market move forward. The increasing number of high tech projects which are strongly supported by the government is also a key factor in this process. The national regulator is the Communication and Information Technology Commission (CITC).

BUSINESS ENVIRONMENT

Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses about 16% of the world’s proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 87% of budget revenues, 42% of GDP, and 90% of export earnings.

Saudi Arabia is encouraging the growth of the private sector in order to diversify its economy and to employ more Saudi nationals. Over 6 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors; at the same time, however, Riyadh is struggling to reduce unemployment among its own nationals. Saudi officials are particularly focused on employing its large youth population, which generally lacks the education and technical skills the private sector needs. The government has also looked at privatization and diversification of the economy more closely in the wake of a diminished oil market. Historically, Saudi Arabia has focused diversification efforts on power generation, telecommunications, natural gas exploration, and petrochemical sectors. More recently, the government has approached investors about expanding the role of the private sector in the healthcare, education and tourism industries. While Saudi Arabia has emphasized their goals of diversification for some time, current low oil prices may force the government to make more drastic changes ahead of their long-run timeline.

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DATACENTERS IN SAUDI ARABIA