Saudi Arabia’s space economy is projected to grow from $8.7 billion in 2024 to $31.6 billion by 2035, as the Kingdom expands investment in satellite technologies, digital infrastructure and space-based services as part of its wider economic diversification and sustainability agenda.
The projection is highlighted in Saudi Arabia’s Digital & Space Sustainability Report 2026, published by the Communications, Space and Technology Commission with support from the International Telecommunication Union.
The outlook is consistent with CST’s KSA Space Market Report 2025, which projected compound annual growth of around 12% through 2035.
Satellite technologies take larger role in sustainability
The report highlights the growing role of space technologies in addressing environmental and development challenges.
More than 50% of essential climate variables can be measured from space, according to the report, making satellite systems increasingly important for climate monitoring and environmental management.
Potential applications include water management, agriculture, desertification monitoring and disaster response.
The use of Earth observation and other space-based services could therefore expand alongside the commercial development of Saudi Arabia’s space sector.
Digital infrastructure provides foundation for space growth
Saudi Arabia’s broader digital infrastructure is also presented as an important foundation for the expansion of advanced technology industries.
Internet penetration reached 99.6% in 2025, while fibre-optic coverage extended to more than 3.9 million homes.
The Kingdom also recorded 99.2 points in the ITU ICT Development Index 2025, which the report says was the highest score globally.
These indicators reflect the scale of Saudi Arabia’s investment in connectivity as it seeks to build digital and space technologies into larger parts of the economy.
Digital economy accounts for 15% of GDP
The report said Saudi Arabia’s digital economy contributed 15% of GDP in 2024, equivalent to SR459 billion, or around $122.4 billion.
It also described Saudi Arabia as having the largest ICT market in the region.
That provides a broader commercial base for the development of adjacent sectors including AI, cloud, satellite services and space technology.
Business adoption of AI is also increasing. According to data cited from the General Authority for Statistics, AI adoption among Saudi businesses rose to 33.1% in 2025, up 20% from the previous year.
Women’s participation in digital sector reaches 35%
Women accounted for 35% of participation in Saudi Arabia’s digital sector, according to the report.
That represents a substantial increase from 7% in 2018 and is described as the highest rate in the Middle East and North Africa region, as well as above G20 and EU averages.
The increase forms part of a broader effort to expand the domestic talent base supporting digital and technology-led economic growth.
AI positioned as sustainability enabler
Saudi Minister of Communications and Information Technology Abdullah Al Swaha said the Kingdom is seeking to unlock the potential of AI and digital innovation as tools for sustainable development.
The report connects AI with economic development, environmental protection and broader societal outcomes.
That reflects an increasingly integrated approach in which AI, connectivity and space infrastructure are treated as complementary technologies rather than separate sectors.
Space growth tied to wider environmental agenda
The report also places the development of digital and space technologies within Saudi Arabia’s wider sustainability strategy.
Under the Saudi Green Initiative, more than 85 initiatives have been launched since 2021, including 10 that have been completed.
According to the report, Saudi Arabia has rehabilitated one million hectares of land, connected more than 3.6GW of renewable energy to the national grid and planted more than 161 million trees.
It also said 18.1% of terrestrial areas and 16.1% of marine areas are now protected, while 10,000 wild animals have been released into nature reserves and national parks.
