Pakistani IT Companies to Form Consortiums to Enter Saudi Export Market

Pakistan’s IT companies are aggressively planning to tap export potential in the Kingdom of Saudi Arabia’s IT and IT-enabled services market through consortiums, it is reliably learned. In this connection, Pakistani companies as a group or consortium will be able to win high-valued projects from the government and private sector and ensure service delivery as per their expertise, thus earning substantial revenue instead of avoiding major multi-dimensional projects. This decision was taken by IT companies of different sizes and areas of strength in a meeting recently held under the chair of Muhammad Zohaib Khan, Convenor, Federation of Pakistan Chamber of Commerce and Industries (FPCCI) on Information Technology ahead of LEAP 2025—one of the mega trade fairs of IT and tech. Pakistan has made significant progress in diversifying its exports to Middle East countries, particularly the United Arab Emirates and the emerging Kingdom of Saudi Arabia. Muhammad Zohaib Khan from FPCCI said Pakistani IT companies are set to establish their footing in KSA’s market, with expectations of receiving big orders in the near future. In the last two years, nearly 100 IT companies have set up their offices—separately and in joint ventures—doubling their exports to $100 million in the last financial year 2023-24. Senior Vice Chairman Pakistan IT Association (P@SHA) Muhammad Umair Nizam said Pakistan’s IT companies are planning a significant breakthrough in Saudi Arabia’s market to increase export receipts. He informed ProPakistani that an exclusive daylong summit of the Saudi Pakistan Business Forum is being organized to give strategic direction to IT exporting companies along with Saudi investors, in collaboration with PASHA, Pakistan Software Exports Board (PSEB), and the Ministry of IT and Telecommunication. He mentioned that the participation of Pakistani IT companies is set to increase in the coming years to enhance their penetration in the host state and the region through LEAP 2025. “We are very optimistic that Pakistani IT companies will sign multiple business deals at this upcoming event, which will also reflect growth in the country’s annual exports,” he added. More than 80 companies participated in previous LEAP conferences and exhibitions, and this number is expected to rise this year due to government incentives and the growing interest of IT companies in expanding exports to the GCC region. Saad Shah, an exporter with operations in the KSA market, said that scores of multinational private and public sector companies are being established in the industrial zones and commercial sector of the largest country in the Arabian Peninsula, offering significant opportunities for Pakistani companies in enterprise solutions, automation, and AI. He further said the KSA market is attractive and affordable in terms of revenues and operations, as local laws are now more flexible for non-Arab companies to establish their businesses. Additionally, the mobility of staff and operational expenses are quite affordable for mid- to large-sized companies. Pakistan’s IT exports surged to $1.53 billion in the first half of the current financial year 2024-25 and are projected to reach $4 billion by the end of FY25. The relevant ministry and IT companies are working aggressively to enhance their business footprint in both traditional and non-traditional markets.