19 - 21 September, 2021, Riyadh

Market Data

Primary Market and Industry

Saudi Arabia, officially “Kingdom of Saudi Arabia” is the largest country in the Middle East covering an area of 2,149,690 sq km. It is bordered by Iraq, Jordan, Kuwait, Oman, Qatar, UAE and Yemen. In 2014, its economy was the strongest within the Middle East with a GDP (PPP) of US$752 billion (2015 - estimated: US$649 billion). With around 28 million inhabitants (25% of whom are expatriates) Saudi Arabia is – after Iraq - the second-most populous Arab state bordering the Arabian Gulf. With a population growth rate of 2% p.a, it is expected that the population will reach 36 million by 2025.

Saudi Arabia possesses about 17% of the world’s proven oil reserves and ranks as the largest exporter of petroleum and plays a leading role in OPEC. The petroleum sector accounts for approximately 80% of budget revenues; 45% of GDP, and 90% of export earnings. Saudi Arabia’s total exports were estimated at US$222 billion in 2015. The main export partners were China 13.3%, Japan 13%, US 12.9%, South Korea 10%, India 8.9%, Singapore 4% (2014). The estimated import value for 2015 is at US$160 billion. Main products were machinery and equipment, foodstuffs, chemicals, motor vehicles, textiles etc. Major import partners were China 13.3%, US 12.1%, India 8.3%, Germany 6.5%, South Korea 5.4%, Japan 4.9% (2014).

Security Industry in Saudi Arabia

The commercial security market is expected to grow at a CAGR of 11.4% over the period 2013 – 2018. The projected cumulative procurement of security systems in 2015 and 2016 would be approximately US$14 billion. The security market is highly dependent on imported equipment which are imported from USA, Russia, France, and the UK.

The commercial security market is also showing growth where the procurement is being made by the private sector. In the transport sector alone security expenditure is forecast to reach US$76 million by 2016.

Electronic Security Market

The electronic security market which includes video surveillance, access control and intrusion detection is forecasted to grow at CAGR of 14.4% over the period 2015 - 2021. The demand is increasing due to the growing security concerns over a possibility of potential terrorist attacks on public and private infrastructure including commercial buildings, airports, metros, malls, manufacturing plants, banks, oil and gas industry, commercial offices and residential apartments.

Access control systems market is forecast to reach around US$1.2 billion by 2020. Government sector being the largest driver of demand in this segment. Other end – user industries propelling growth of advanced security systems include banking, banking and non-banking financial services, insurance, transportation and oil & gas. The access control systems market comprises of access cards, biometrics based systems and controllers.

Video surveillance and ICT related security is the fastest growing segment followed by access control systems and intrusion detection systems. Government and transportation applications accounts for the largest share in 2014; however, growing commercial offices, banking & financial and retail sectors are also expected to contribute significantly.

Cyber security market in Saudi Arabia is expected to grow from US$1.5 billion in 2013 to US$3.5 billion in 2019, at a CAGR of 14.5%. Recently, Saudi Arabia witnessed growth in internet and mobile phone penetration and the dependence of economy on internet and high tech services. As the available security infrastructure could not cope up with the growth, major incidents of cyber and hacker attacks happened. Currently, the country is the biggest target of cyber attacks in the Gulf region, while globally, the it second in spam attacks. Increasing frequency and severity of security threats and lack of IT security expertise are propelling demand for Managed Security Services in the country. The public and private sectors has increased their investment in cloud security services, network security services, remote monitoring products.

Border Protection

Saudi Arabia’s border with its neighbouring countries spreads over a length of 4,415km plus 2,600km of coast line. It’s one of the longest and most sophisticatedly secured borders in the world and offers large business opportunities for the manufacturer of physical security products, perimeter security products and surveillance equipment.