22-05-2025
IT market likely to reach 2x telecom: AlJazira Capital
Jassim AlJubran, Head of Sell-Side Research at AlJazira Capital, expects rapid growth in the software and digital services sector.
This sector surpassed telecommunications in 2021, reaching SAR 101 billion in 2024 versus SAR 79 billion for telecom. Growth is driven by digital transformation and ongoing government spending.
In an interview with Argaam at the 2025 Telecom and Technology Indicators Forum, AlJubran said the IT market is forecasted to become twice the size of telecom in the coming years due to strong growth potential.
He noted that telecom has seen major operational changes recently, fueled by 5G expansion, fiber optic access, and rising data demand.
These changes have boosted financial results for major firms, with revenue compound annual growth rate (CAGR) rising to 6.6% from 2018 to 2024, compared to negative growth in earlier years.
AlJubran pointed out that unifying telecom tower assets under one entity, backed by the Public Investment Fund, is a strategic move improving efficiency and speeding up 5G rollout.
On investment, he said capital expenditure climbed to 16.5% of revenues in 2024, up from a 14% average during 2021–2023. This increase supports data center upgrades, 5G expansion, and AI and cybersecurity investments.
