Kholoud Hussein
The global space economy reached $464 billion in 2022 and is forecast to grow to $738 billion by 2030, according to the Space Foundation. Saudi Arabia, under its ambitious Vision 2030, is now positioning itself as a new powerhouse in this domain.
“Space is no longer just the domain of superpowers. Saudi Arabia sees it as a platform to localize high-value industries, inspire innovation, and create a new economy,” says Mohammed Al-Tamimi, CEO of the Saudi Space Agency (SSA).
The Kingdom’s strategy is clear: nurture a domestic space ecosystem, attract foreign investors, and become a regional hub for research, satellite tech, and even space tourism.
Institutional Foundations: Strategic Architecture Behind the Lift-off
The establishment of the Saudi Space Commission in 2018 (now the Saudi Space Agency) marked a pivotal moment. Its leadership under Minister Abdullah Alswaha and Al-Tamimi signaled a top-down national commitment.
In July 2023, Saudi Arabia signed a cooperation agreement with NASA, further reinforcing its international positioning. Minister Alswaha described it as “a step forward in building strategic partnerships that accelerate our national innovation capabilities and diversify the Kingdom’s global collaborations.”
Supporting the SSA’s efforts is the Communications, Space and Technology Commission (CST), which sets regulatory frameworks and promotes commercial activity in space. CST has launched multiple market intelligence reports identifying five opportunity clusters: satellite manufacturing, launch services, ground infrastructure, satellite communications, and earth observation.
Private Sector & Startup Surge: The Commercial Engine of Saudi Space
- Accelerators, Startups, and R&D
Saudi Arabia is not building a space sector from scratch — it is nurturing one through accelerators, R&D hubs, and university-led innovation.
In 2023, the SSA partnered with Techstars to run a 10-week accelerator. Frank Salzgeber, former head of innovation at the European Space Agency and advisor to the program, said: “There was never a better time and place to join the space industry than Saudi Arabia. By 2030, the Kingdom will be a major hub for commercial space activity.”
Meanwhile, Neo Space Group (NSG), launched by the Public Investment Fund (PIF) in 2024, focuses on satellite communications, remote sensing, and IoT — all areas ripe for private-sector development.
Other rising players include SARsatX, backed by Flat6Labs, which is building earth observation services using micro-satellites, and Orbit Arabia, a startup in early-stage development focused on space-based logistics.
Huda AlMansoori, co-founder of a Riyadh-based space tech incubator, notes: “The talent is there — our challenge is channeling it into deep-tech ventures, and that’s where university and government partnerships are crucial.”
Saudi universities like KAUST, KACST, and King Saud University are driving innovation. A joint nanosatellite launched with Spire Global and KAUST in 2023 via SpaceX marked a breakthrough for local research.
These institutions serve as feeders to the startup ecosystem and provide technical backstopping for early-stage ventures.
Investment Landscape & Economic Potential
Saudi Arabia’s space sector is rapidly emerging as an investment frontier, backed by a convergence of national policy, global market trends, and the rising appetite for high-tech infrastructure. While still in early formation, the Kingdom’s space investment landscape is evolving from state-led vision to private sector opportunity, one with the potential to generate multi-billion-riyal returns, catalyze regional leadership, and embed the country in the global space economy.
1. Public Capital as a Strategic Engine
The Kingdom’s space push is being powered initially by substantial government investment, driven primarily through the Public Investment Fund (PIF), the Saudi Space Agency (SSA), and affiliated tech and industrial funds. These entities have committed billions of riyals to:
- Build and launch domestic satellites
- Fund advanced research and local manufacturing
- Develop a regulatory framework that supports commercial activity
For instance, the PIF-backed Neo Space Group, launched in 2024, is tasked with developing satellite communications networks, earth observation platforms, and data analytics systems to support sectors from agriculture to oil and gas.
This top-down model mirrors the early phases of national development in other strategic sectors like renewable energy and advanced manufacturing. The goal is to de-risk early-stage infrastructure, create sovereign capabilities, and set the foundation for a thriving commercial market.
“We’re not just financing projects. We’re building a full ecosystem that can compete globally,” said Alswaha, Minister of Communications and Information Technology.
2. Growing Private Sector Momentum
While still nascent, the private sector is beginning to show signs of traction. Many early-stage Saudi startups are entering the space value chain, particularly in:
- CubeSat design and nano-satellite systems
- Downstream applications such as geospatial analytics, weather monitoring, and remote sensing
- Internet of Things (IoT) connectivity from low Earth orbit (LEO)
Notable players include:
- LeoTech Space, working on CubeSat hardware and educational payloads
- OrbitX, developing data processing tools for environmental monitoring
- SkyNode, a startup using satellite imagery for infrastructure and utility mapping
Although these companies remain in the seed and Series A stage, some have begun attracting capital from local VCs like Khwarizmi Ventures, Riyadh Valley Company, and Seedford Partners, as well as from international players scouting the region’s underexploited potential.
“We see space tech in Saudi as where fintech was 10 years ago — high risk, but massive upside,” said a partner at a Jeddah-based venture fund. “With the right exits, this could be one of the region’s most valuable verticals.”
3. FDI and Global Partnerships on the Rise
Saudi Arabia is also positioning itself as an attractive destination for foreign direct investment (FDI) in space, thanks to regulatory reforms, tax incentives, and a clear roadmap outlined by the National Space Strategy.
In 2024 alone, the Kingdom signed over 15 MoUs and joint ventures with international space agencies, aerospace manufacturers, and satellite operators. These include:
- A strategic agreement with Thales Alenia Space for satellite development
- Collaboration with OneWeb and Eutelsat to extend broadband coverage
- Technology transfer partnerships with Chinese and Indian satellite firms
Foreign players are drawn to Saudi Arabia’s commitment to localization, its strong capital markets, and the possibility of using the Kingdom as a launchpad into broader MENA and African markets.
The Saudi Investment Promotion Authority has identified space technology as a “Tier-1 opportunity” for inbound FDI and is working with the Ministry of Investment (MISA) to develop customized incentives for international aerospace companies.
4. Dual-Use Applications Multiply ROI Potential
Space in Saudi Arabia is not just about launches and satellites — it’s about the data and services they enable. The real economic value will come from commercializing applications that serve other Vision 2030 sectors, including:
- Agritech: Monitoring crop health, soil conditions, and water usage from space
- Mining & Energy: Using satellite imagery to detect geological anomalies or monitor pipeline infrastructure
- Urban Planning: Assisting in NEOM and smart city development with geospatial planning tools
- Disaster Management: Supporting emergency response and early-warning systems for floods or heatwaves
This interconnectivity creates layered economic value and opens doors for cross-sector investment. A single satellite platform can serve dozens of public and private sector clients — from Aramco to the Ministry of Environment — dramatically improving ROI.
5. Unlocking Future Value Through Industrial Localization
Long-term, the Kingdom aims to localize critical parts of the aerospace supply chain, including satellite assembly, sensor manufacturing, launch support services, and space-grade materials. This would reduce reliance on imports, strengthen national security, and create thousands of high-skilled jobs.
Several initiatives are underway:
- Establishing a Space Industry Cluster in Riyadh and Taif
- Incentivizing aerospace manufacturing under Made in Saudi branding
- Training local engineers and technicians through public-private partnerships
These efforts reflect the broader Vision 2030 priority of building an innovation-driven, export-oriented industrial base, with space positioned as a high-impact sector.
Saudi Arabia’s space investment landscape is evolving rapidly — from public infrastructure and basic services to an increasingly diversified portfolio of startups, foreign partners, and commercial applications. While risks remain, the economic upside is undeniable: access to a trillion-dollar industry, increased strategic autonomy, and the development of deep-tech capabilities that can ripple across the economy.
As capital flows in and capabilities mature, Saudi Arabia is poised to shift from a buyer of space technology to a builder — and eventually, to a global exporter of space-enabled solutions.
Foreign Investment & International Partnerships
Saudi Arabia is actively courting foreign players. In 2024, Halo Space announced it would begin stratospheric balloon tourism flights from Saudi Arabia. The company estimates $600 million in revenue by 2030, with 400 flights annually priced at around $100,000 to $164,000 per ticket.
Carlos Mira, CEO of Halo Space, explained: “We chose Saudi Arabia because of the regulatory clarity, stable investment climate, and access to funding. Vision 2030 gives us confidence that the country is serious about space tourism.”
Major partnerships include:
- NASA: civil cooperation on exploration and R&D.
- Axiom Space: supported the Kingdom’s first astronaut mission in 2023.
- LeoLabs and NorthStar: helping monitor orbital debris and enhance satellite safety.
- SES and OneWeb JV: building LEO ground infrastructure in Tabuk.
NEOM, the $500 billion smart city project, is also hosting testbeds for space-tech experiments — including earth observation and atmospheric studies — in partnership with international space firms.
Strategic Fit with Vision 2030
Saudi Arabia’s foray into space is not an isolated ambition—it is a direct extension of Vision 2030, the Kingdom’s comprehensive roadmap to diversify its economy, reduce its reliance on oil, and position itself as a hub of innovation and global leadership. The development of the space sector serves as a strategic enabler across multiple Vision 2030 pillars, from economic diversification and digital transformation to education, defense, and global positioning.
1. Economic Diversification Beyond Oil
One of the central tenets of Vision 2030 is to shift Saudi Arabia's GDP composition away from hydrocarbons and toward high-tech industries and services. The global space economy, expected to surpass $1.8 trillion by 2035 according to McKinsey, offers a compelling opportunity for Saudi Arabia to tap into new revenue streams through:
- Satellite manufacturing
- Space-based data analytics
- Remote sensing for agriculture and infrastructure
- Telecommunications and broadband delivery in underserved regions
By investing in space infrastructure and commercial capabilities, the Kingdom is effectively planting the seeds of a post-oil innovation economy.
“Space is not just science—it’s strategy,” said Alswaha. “It drives solutions for water, food, security, and economic resilience. This is the heart of Vision 2030.”
2. A Catalyst for Innovation and Deep Tech
The space sector is inherently interdisciplinary, requiring advances in robotics, AI, cybersecurity, materials science, and energy systems. It therefore acts as a powerful catalyst for the Kingdom’s emerging deep tech ecosystem, sparking local innovation and forging partnerships between universities, research centers, and startups.
Institutions such as KAUST, KACST, and King Fahd University of Petroleum and Minerals (KFUPM) are already aligning their research agendas to support aerospace and space sciences. Programs under the Saudi Space Agency aim to connect academic R&D with real-world applications, ranging from satellite payload development to climate analytics powered by geospatial data.
The space sector also encourages technology transfer and local IP creation, crucial to the Kingdom’s long-term ambition of becoming a producer—not just a consumer—of advanced technologies.
3. Human Capital Development and Youth Empowerment
Vision 2030 places a strong emphasis on unlocking the potential of Saudi youth, and the space economy offers a new and inspiring domain for engagement. From astronaut programs and aerospace engineering scholarships to STEM bootcamps and space hackathons, there is a national push to nurture the next generation of space scientists, engineers, and entrepreneurs.
The recent participation of Saudi astronauts—Rayyanah Barnawi and Ali AlQarni—on international space missions has ignited public interest and served as powerful symbols of national capability and aspiration.
“Our children need to see that science is a path to the stars—not just something in books,” said Badr Al-Aiban, Advisor at the Royal Court. “Space inspires curiosity, and curiosity builds capability.”
By 2030, Saudi Arabia aims to have trained thousands of specialists in aerospace and satellite sciences, and introduce space-focused curricula across major universities and vocational programs.
4. Enhancing National Security and Sovereignty
Space plays a growing role in geopolitical competitiveness and strategic autonomy, especially in areas like secure communications, border surveillance, and cyber defense. Vision 2030 underscores the need for Saudi Arabia to reduce dependency on foreign systems and develop sovereign technological capabilities.
With the development of localized satellite infrastructure, encrypted data networks, and dual-use payloads, the space sector strengthens national resilience and empowers local decision-making in crisis management, environmental monitoring, and defense logistics.
The National Space Strategy, approved by the Council of Ministers, outlines specific goals to enhance security-related capabilities through indigenous satellite constellations and enhanced partnerships with friendly powers.
5. Global Branding and Soft Power
Participation in the space economy elevates Saudi Arabia’s image as a modern, forward-thinking nation committed to scientific advancement, global cooperation, and peaceful space exploration. This aligns with Vision 2030’s ambition to position the Kingdom as a thought leader on the international stage—not only economically, but scientifically and diplomatically.
Through strategic cooperation with agencies such as NASA, Roscosmos, the European Space Agency, and the Chinese National Space Administration, as well as through its contributions to global forums like the UN Committee on the Peaceful Uses of Outer Space (COPUOS), Saudi Arabia is cultivating a new dimension of foreign policy and soft power.
These initiatives also help attract foreign direct investment (FDI), joint ventures, and technology partnerships—all critical to the success of Vision 2030.
In essence, space is not a detour from Saudi Arabia’s development priorities—it is a powerful multiplier. It fuses the knowledge economy with security interests, the tech sector with youth empowerment, and the national identity with global influence.
As Vision 2030 progresses into its critical execution phase, the integration of space into the Kingdom’s economic DNA is no longer speculative—it’s strategic. And if successful, it will mark a historic leap not only for Saudi Arabia, but for the entire region’s place in the space economy.
VII. Talent Development: The Human Capital Frontier
A sustainable space economy requires skilled engineers, astrophysicists, designers, and entrepreneurs.
In 2023, Serco Middle East launched its first space graduate program in Riyadh. Amar Vora, Serco’s director of space strategy, explained: “To address Saudi Arabia’s ambitions, the need for space skills and talent is going to be absolutely critical.”
Initiatives like SSA’s Ajyal program and KAUST’s satellite fellowships are designed to build a national talent pipeline. The participation of Rayyanah Barnawi — the first Saudi female astronaut — in a 2023 Axiom mission has inspired a surge of interest in STEM education.
Challenges on the Launchpad
Despite its ambitious trajectory and strong top-down support, Saudi Arabia’s space sector faces a number of structural, operational, and strategic challenges that could slow its momentum if not addressed holistically.
1. Talent Gaps: Bridging the Skills Deficit
One of the most critical bottlenecks is the shortage of specialized talent. While Saudi Arabia has made progress in encouraging STEM education and developing astronaut programs like Ajyal, the domestic workforce still lacks mid- to senior-level experts in critical areas such as orbital mechanics, propulsion systems, satellite software, and deep-space mission design.
This issue is compounded by global competition for space professionals, especially with countries like the UAE, India, and the US scaling their space ambitions. According to a 2023 report by the OECD on space workforce development, countries that lead in space tech invest heavily in long-term STEM capacity building and have well-established university-to-lab-to-startup pipelines — a model still in its early stages in Saudi Arabia.
“There’s a perception gap,” said a senior space researcher at KAUST. “We have many science graduates, but few with actual mission experience or specialized postdocs in astrodynamics or payload engineering.”
Without a broad base of engineers, scientists, and commercial space strategists, Saudi Arabia may struggle to build an autonomous space industry capable of scaling or sustaining high-tech operations without foreign support.
2. Overreliance on Government Funding
While state-led investment has been essential in kickstarting the ecosystem, Saudi Arabia’s space sector remains disproportionately dependent on public capital, especially from the Public Investment Fund (PIF) and other state-affiliated vehicles. This limits the diversity of innovation, slows down market responsiveness, and creates fragility if government priorities shift.
As of mid-2024, more than 80% of all major space-related funding in Saudi Arabia was sourced from public entities. Venture capital participation remains limited and risk-averse, with few dedicated space investment funds (Seedford Partners being a notable exception).
Unlike the U.S., where NASA’s role is largely to enable and regulate while commercial players like SpaceX, Planet Labs, and Rocket Lab compete for contracts, Saudi Arabia’s current structure is still heavily top-down.
“We need to shift from a government-sponsored vision to a market-driven one,” noted a Riyadh-based space entrepreneur. “Otherwise, we risk building a showcase sector rather than a competitive one.”
3. Regulatory Maturity and Commercial Readiness
Although the Communications, Space & Technology Commission (CST) has made strides in launching licensing frameworks, spectrum management policies, and space debris protocols, Saudi Arabia’s regulatory environment is still evolving and not yet at par with global commercial benchmarks.
Startups report lengthy timelines to secure launch permissions, spectrum allocations, or import/export licenses for satellite components. Additionally, the lack of local manufacturing standards and IP enforcement mechanisms poses risks for high-tech investors.
In a region with growing geopolitical complexity, export control laws, dual-use technology regulations, and data sovereignty policies must be carefully developed to attract long-term partners and comply with global norms such as those set by the ITU and UN COPUOS.
“The legal infrastructure is being built, but it must be faster and clearer,” said an executive from a European satellite firm working in the Kingdom. “Foreign investors need certainty, especially in a high-stakes field like space.”
4. Long Time Horizons and Uncertain Commercial Returns
Space, by nature, is a long-game sector. Building a sustainable business case often requires years of R&D, launch testing, and orbit validation, followed by more time before profitability is achieved. For most early-stage investors, this presents an unattractive risk profile.
In the Saudi context, where startup ecosystems are still maturing and exits are limited, the lack of near-term commercial wins may disincentivize private capital unless accompanied by patient co-investment structures or government-backed guarantees.
Moreover, venture capitalists often lack the technical due diligence capabilities to evaluate space startups — a gap that could be addressed through education, advisory boards, or specialist fund-of-fund mechanisms.
5. Regional & Global Competition
Saudi Arabia is not alone in its ambitions. The UAE, Israel, Turkey, and Egypt are all investing in space technology and are further along in areas such as satellite imaging, data services, or launch capabilities. These countries have also built strong bilateral ties with key partners like NASA, the European Space Agency, and private launch companies.
To stay competitive, Saudi Arabia must continue to differentiate itself — either by becoming the regional logistics and satellite ground hub, by localizing component manufacturing, or by offering globally competitive R&D incentives and workforce development programs.
Outlook to 2030: Orbiting Toward Opportunity
As Saudi Arabia accelerates its space ambitions, the road to 2030 presents not just symbolic milestones, but a tangible opportunity to transform its economic and technological trajectory. The Kingdom is no longer approaching the space economy as a prestige project—it is positioning it as a strategic growth engine embedded within national priorities.
1. Projected Market Size and Economic Contribution
According to a 2023 study by Euroconsult, the Middle East’s space economy could exceed $10 billion by 2030, with Saudi Arabia expected to claim 20–30% of that share if its current investment pace continues. This translates to a domestic space market of roughly $2–3.5 billion by the end of the decade, spanning satellite communications, imaging, data services, and emerging verticals like space-based IoT.
A 2024 white paper from the Saudi Space Agency (SSA) projects that space technologies could contribute 0.5% to the Kingdom’s GDP by 2030, alongside creating over 8,000 direct jobs and potentially 25,000 indirect jobs across supply chains and downstream services.
“We don’t see space as an isolated sector—it will empower other industries like agriculture, energy, logistics, and climate,” said Al-Tamimi, SSA’s CEO.
2. National Security & Sovereignty
By 2030, Saudi Arabia aims to achieve partial independence in satellite manufacturing, launch access, and data infrastructure. This autonomy is crucial not only for communications and earth observation, but also for national security, emergency response, and cyber resilience.
Efforts are already underway. The PIF’s Neo Space Group is building satellite ground stations and planning for a dedicated constellation to serve both civilian and strategic needs. Experts anticipate the development of dual-use satellite capabilities for border control, maritime monitoring, and disaster prediction.
As regional tensions and cybersecurity risks grow, space sovereignty will become a core tenet of national resilience—a perspective increasingly echoed by policymakers in Riyadh.
3. Becoming a Regional & Global Player
Saudi Arabia’s location gives it geopolitical and geographical advantages. Positioned between Europe, Africa, and Asia, it is ideally suited for:
- Hosting ground station infrastructure
- Supporting launch logistics in emerging spaceports (especially in Tabuk and Taif)
- Serving as a regulatory and financing hub for the regional space economy
By 2030, the Kingdom could play a similar role in the Middle East that Luxembourg or Singapore plays in Europe and Southeast Asia: a niche space economy leader, enabling international startups and established players to base operations, raise capital, and test innovations in a stable, business-friendly environment.
4. Tourism, Education, and Public Engagement
Space is also being used as a tool for soft power, inspiration, and tourism. With commercial stratospheric flights set to begin via Halo Space by 2026, Saudi Arabia could become the first country in the Middle East to offer space-adjacent tourism to the public, attracting high-net-worth visitors and scientific missions alike.
Educational institutions are expected to expand their aerospace engineering programs, and Saudi youth—especially women—are being actively encouraged to pursue STEM paths. The success of Rayyanah Barnawi, the first Saudi female astronaut, has already sparked significant interest in space among young Saudis.
“When children see someone from their own country go to space, they begin to imagine careers that once felt unreachable,” said Huda AlMansoori, co-founder of a Riyadh-based STEM nonprofit.
5. Long-Term Vision: Moonshots and Beyond
While most of the current investment is focused on near-Earth technologies—LEO satellites, data platforms, and earth observation—Saudi Arabia is not ruling out deep space collaboration. The SSA has publicly discussed interest in:
- Contributing to the moon and Mars missions via international partnerships
- Establishing a Saudi payload program aboard commercial or governmental spacecraft
- Participating in space mining dialogues, especially with countries like the U.S., Japan, and Luxembourg
By 2030, the Kingdom could feasibly become a co-sponsor of exploratory missions or a host for moon analog testing environments, leveraging its vast deserts and stable climate.
A Decade of Acceleration
Saudi Arabia’s space strategy is multi-layered and cross-sectoral. It intertwines national security, education, private sector development, and global influence. But the success of this strategy will hinge on a few key metrics:
- Successful commercial satellite deployment from locally-led entities
- A robust private investment ecosystem beyond state capital
- Clear regulatory pathways for international partnerships
- And a long-term talent development pipeline that ensures sustainability beyond 2030
“We are not in a race to the stars,” said Minister Abdullah Alswaha in a 2024 press statement. “We are building a platform that connects people, protects resources, and powers progress. Space is simply our next domain of growth.”
As the Kingdom enters the second half of Vision 2030, its space ambitions are no longer theoretical. They are grounded in infrastructure, capital, policy, and purpose, with clear momentum toward making Saudi Arabia not just a participant in the global space economy, but a leader in shaping its future.
To conclude, Saudi Arabia’s foray into space is more than a prestige play—it’s a strategic lever for economic diversification, tech independence, and global engagement. By 2030, the Kingdom aims to nurture a vibrant, sustainable space sector encompassing manufacturing, research, services, tourism, and data-driven industries.
The journey is ambitious. Critical will be continued investment, further private-sector development, scaled talent production, regulatory evolution, and guardrails for geopolitics. If the stars align, Saudi Arabia may well become the Arab world’s premier space economy, reshaping its global role and cementing the human capital and technological foundations of its post-oil future.
