Overview of Developments in the Saudi ICT Market Dale Millar – dmillar@mcit.gov.sa 24 April 2018

Market in Numbers and Key Government Drivers Saudi Government Digital Transformation 55 e-government projects underway Centralized Public Sector Solutions Digitized Healthcare Digital Economy Smart Cities e-Commerce Sharing economy Advanced Manufacturing Rural Connectivity and 5G © Ministry of Communications and Information Technology | 12 November 2018

Segment Size and Growth © Ministry of Communications and Information Technology | 12 November 2018

Smart Cities & IoT - $1.28 Bn in 2018 Yanbu Underway – Riyadh, Medinah, Jeddah and Mecca Greenfields - Neom and Faisaliyah City to follow Applications Smart Lighting and Poles Traffic Control Parking Waste Management Power Savings Crowd Control IOT Fleet and Freight Management Asset Tracking Healthcare © Ministry of Communications and Information Technology | 12 November 2018

Support for Saudi SME Strong Government support for SME Sector (SAR 5 billion accelerator fund) Increase in Foreign Ownership Bankruptcy Regulations Transition to Innovation and Technology Growth in e-commerce ICT Investments in Services, Connectivity, Mobility and Cloud Saudi Millennials – Consumption, Entrepreneurship and Innovation © Ministry of Communications and Information Technology | 12 November 2018

Other Key Highlights E-Commerce – Currently 1% of retail spend Regional Hotspot Evolving Market Fulfillment and Payment Fintech - $1.2 billion in 2018 Regulatory changes Analytics Use Cases in Retail Finance Omnichannel Transformation Blockchain Testing IT Security - $390 million in 2018 National Security Initiatives Telco Participation 58% of Enterprises with Projects this year © Ministry of Communications and Information Technology | 12 November 2018

Final Key Highlights Cloud Compute - $138 million in 2018 54% of enterprises implemented private cloud rising to 80% in 12 months 24% of enterprises utilizing public cloud rising to 60% in 12 months Telecom 5G and 4.5G Testing in 2018 Network Infrastructure Surge IoT Driving Bandwidth AI, AR and Robotics Advanced manufacturing Logistics Haj Applications © Ministry of Communications and Information Technology | 12 November 2018