Riyadh: The services export sector is one of the promising sectors contributing to the increase of Saudi non-oil exports.

In light of this, the Saudi Export Development Authority (Saudi Exports) employs its efforts and capabilities to support and empower this sector by providing facilitated means to enhance the reach of Saudi services to new markets and expand them, thereby achieving national targets and increasing the percentage of non-oil exports.

Services exports refer to the value of services exchanged between residents and non-residents in an economy, including services provided to customers from outside the economy offering the service.

According to the World Trade Organization's (WTO) definition, this involves four mechanisms: cross-border trade, such as providing consulting services to a company outside the Kingdom; consumption of services by visitors in a foreign country, such as cinemas and entertainment venues; commercial presence abroad, such as opening a branch of a retail store outside the Kingdom; and the movement of natural persons, such as Saudi individuals working in other countries.

In 2023, services exports exceeded expectations, marking their best performance compared to previous years with a 40% increase, totaling SAR182 billion, according to preliminary data. This surge was driven by the revival of the travel sector, which grew by 43%, constituting 74% of the total services at SAR135 billion. Following this was the transport sector, with exports valued at SAR24.2 billion, and telecommunications services exports at SAR6.3 billion.

The Saudi telecommunications and information technology market is a significant market experiencing notable growth. The size of the information technology market exceeded SAR 91 billion in 2022, with a 13% increase in the number of digital startups. The local content ratio in the technology sector also surpassed 28%. Consequently, Saudi Exports seeks to encourage Saudi companies in the technology services sector to access international markets. In 2023, they launched the "Saudi Technology" label as a sub-brand of the "Saudi Made" program to support national technological products and companies, expand their reach, and promote them locally and globally.

The number of registered national technology companies exceeded 54, enhancing the position of Saudi technological companies and products and increasing the percentage of technological product exports to priority markets. Saudi Exports offers a package of services essential for service exporters to reach importers, either through Saudi Exports services or in partnership with relevant entities. It aims to facilitate the export process, solve exporters' challenges, and help them access target markets by participating in international exhibitions and trade missions like the GITEX Technology exhibitions.

Saudi Exports participated in GITEX Africa 2024 in Morocco, the largest tech event in Africa, from May 29 to 31, 2024. Twenty-five national companies specialized in communications and information technology are participating under the "Saudi Made" pavilion. The goal was to highlight global market opportunities in the technology sector, promote Saudi technological products and services, and open new export channels, thereby enhancing the contribution of the telecommunications sector to non-oil GDP.

In addition, Saudi Exports is working to activate partnerships with government entities to develop this sector and improve the export environment for companies operating in it. It contributes to the development of the "BRIDGE" initiative in collaboration with the Ministry of Communications and Information Technology to support rapidly growing technology companies in expanding internationally and increasing their technological exports.

One of the notable success stories of Saudi service exports in the technology sector is the support provided to Foodics in entering the Japanese market and signing an agreement with Interlink to support the accessibility of its services in East Asia. This enhances Saudi technological service exports, develops the technology sector, and prepares it for expansion into new regional and global markets and business lines.

In addition, the smart platform Mrsool has expanded into the Egyptian markets with over 3 million installations for its application, boasting a diverse network of more than 2,000 partners and merchants. The app witnesses over 10 million monthly browsing operations. Additionally, customers have benefited from the services of the Renad Al Majd group, which specializes in information technology, offering digital transformation solutions, cybersecurity, and efficient data management in eight different countries.

Moreover, Naseej technology company has provided technical support for student affairs management systems to several prestigious universities in Egypt as part of its efforts to expand into global markets, which will in turn boost Saudi service exports. Furthermore, Labayh medical care company acquired the Emirati app Nafas as a step towards expanding its customer base and reaching a new segment of beneficiaries.

Supporting the services export sector is an extension of various services and initiatives offered by Saudi Exports to achieve sustainable growth in non-oil exports. Saudi Exports harnesses all its capabilities to promote Saudi services and products, enhance their competitiveness, and access international markets, reflecting the status of Saudi products. This serves as a vital contributor to the national economy, aligning with the goals of Saudi Exports and translating into the Saudi Vision 2030 by meeting the wise leadership's aspirations for diversifying the sources of income for the national economy.