Space is no longer associated solely with satellite launches and exploration; it has become an economy where communications, data, infrastructure, and technical services intersect, with applications extending to sectors that operate on Earth.

In Saudi Arabia, the contours of this economy have begun to expand. The space economy reached $8.7 billion in 2024, while the Communications, Space & Technology Commission expects it to reach $31.6 billion by 2035, representing a 12% compound annual growth rate.

But behind this figure lies a more important question: Where will this growth come from, and where will its economic value be created?

The Space Economy… Bigger Than Its Direct Market

To understand the figure, it is important to distinguish between the space economy and the space market.

The space economy encompasses a broader range of activities and industries that generate value by relying on space technologies and services, while the Saudi space market was worth $1.9 billion in 2024 and is expected to reach $5.6 billion by 2035.

This gap reveals an important part of the story: the economic value of space does not stop at manufacturing or launching a satellite; it extends to the services, applications, and activities that rely on its technologies and data.

Value Begins on Earth

Sector opportunities are emerging in areas such as satellite communications and navigation, Earth observation, ground infrastructure, and satellite development.

This is where the view of space changes: economic value does not come merely from reaching space, but from turning its technologies and data into services and solutions used on Earth.

One aspect of this can be seen in the 2026 Sustainability Report, which highlights the use of space technologies and satellite-based Earth observation alongside artificial intelligence to address environmental and development challenges, through national success stories involving more than 25 entities from the public and private sectors.

$31.6 Billion… Where Does the Economic Value Lie?

The projected growth of Saudi Arabia’s space economy is important not only because it will expand the sector, but also because of the types of activities that can grow around it. As space services, infrastructure, and data applications expand, so too will opportunities for companies, investment, and specialized talent.

From this perspective, the jump from $8.7 billion to $31.6 billion signals the expanding economic activity connected to space. But the most important value will lie in how well this growth can build local services, technologies, and capabilities. The greater the contribution of local companies, talent, and technologies across the value chain, the broader and more sustainable the sector’s impact will be.

Therefore, the most important question may not be: Will Saudi Arabia’s space economy reach $31.6 billion? Instead, it may be: How much of this value will be transformed into companies, services, technologies, and capabilities built within the Kingdom?