Report Overview

An increasing government and private sector investments in secure critical facilities to address rising concerns over property crimes, thefts, and vandalism and rapid urbanization with the growing expatriate population are expected to drive Saudi Arabia Private Security Market during the forecast period between 2025 and 2031.

Saudi Arabia Private Security Market – Industry Trends & Forecast Report, 2031

Saudi Arabia Private Security Market size was estimated at USD 3.4 billion in 2024. During the forecast period between 2025 and 2031, Saudi Arabia Private Security Market size is projected to grow at a CAGR of 6.2% reaching a value of USD 5.1 billion by 2031. Prominent drivers of the market include increasing national projects, rising urbanization, and surging technological advancements, fueling the need for innovative security solutions. Opportunities are growing in the oil and gas sector, with over 120 facilities safeguarding USD 200 billion in GDP contributions, and the cybersecurity market is soaring, expected to reach USD 5 billion by 2025. Financial institutions managing USD 700 billion in assets are heavily investing in advanced systems, while the expanding tourism sector, with over 500 new hotels, is set to generate USD 1 billion in security revenues. Mega-projects like NEOM (USD 500 billion) and the Red Sea Project (USD 500 million) present lucrative opportunities, alongside over 5,000 active construction projects worth USD 1.6 trillion and growing transport infrastructure. The rising demand for event security and data protection further underscores the surging growth potential of Saudi Arabia’s private security market.

Private Security – Overview

Private security refers to security services provided by private individuals or organizations, rather than government or public agencies, to protect people, property, and assets. These services include a range of activities such as surveillance, access control, risk assessment, personal protection, and securing infrastructure. Private security firms cater to businesses, institutions, and individuals, offering customized solutions to address specific security needs, such as guarding commercial premises, monitoring cybersecurity, safeguarding critical infrastructure, and ensuring safety during events. The sector often works alongside public law enforcement to enhance overall security and mitigate risks.

Saudi Arabia Private Security Market

Growth Drivers

Increasing Investments in Large Infrastructure Development Projects

Saudi Arabia's Vision 2030 has triggered a surge in infrastructure investments, with government and private sector initiatives driving transformative developments across the Kingdom. The trillion-dollar pipeline of projects, including smart cities, tourism hubs, and clean energy developments, has created a soaring demand for private security solutions to safeguard assets and ensure operational efficiency. Mega-projects like NEOM and the Red Sea Project, alongside public sector investments such as the USD 10.6 billion agreement to develop infrastructure across 11 cities, underscore the growing need for advanced security services. Additionally, initiatives like the Saudi Ports Authority’s USD 240 million investment in logistics infrastructure and private sector contributions, including Agility’s USD 163 million investment in logistics parks, highlight the rising demand for securing critical infrastructure. The Global Supply Chain Resilience Initiative, targeting USD 11 billion in investments, and USD 2.26 billion worth of utility infrastructure projects further fuel this growth. With over 93 construction projects announced in 2022 and giga projects like NEOM leading the way, Saudi Arabia’s private security market is set to expand significantly as infrastructure development continues to accelerate.

Challenges

High Initial Investments and Maintenance Costs for Advanced Security Equipment and Technology

High initial investments and maintenance costs for advanced security equipment and technology pose significant challenges to the growth of the Saudi Arabia Private Security Market. Implementing sophisticated systems, such as AI-powered surveillance, biometric access control, and cybersecurity solutions, requires substantial capital, which can deter small and medium enterprises from adopting these technologies. Additionally, ongoing maintenance, software updates, and skilled personnel training further increase operational expenses. These financial constraints limit market penetration, particularly for businesses operating with tight budgets. Despite rising demand for advanced security solutions, cost barriers remain a key restraint, affecting the adoption rate and slowing the market’s overall expansion.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Private Security Market

Escalating geopolitical tensions can significantly impact Saudi Arabia Private Security Market by driving heightened demand for advanced security solutions. Rising regional instability increases threats to critical infrastructure, such as oil and gas facilities, logistics hubs, and mega-projects, necessitating robust protection measures. Businesses and government entities are compelled to invest in cutting-edge surveillance, access control, and cybersecurity systems to safeguard assets and ensure operational continuity. Additionally, heightened risks during large-scale events and expanding urban areas require enhanced private security services. While this presents growth opportunities, it also increases costs and operational complexities for security providers, shaping the market's dynamics in a challenging environment.

Saudi Arabia Private Security Market

Segmental Coverage

Saudi Arabia Private Security Market – By Services Type

Based on services type, Saudi Arabia Private Security Market is divided into Manned Guarding Services, Electronic Security Services, Cash Management Services, and other service types segments. The manned guarding services segment holds the largest share of Saudi Arabia Private Security Market by services type. Manned security services play a crucial role in protecting physical assets, as security guards provide rapid response capabilities, which is driving market growth in the Kingdom. The country's Vision 2030 and its focus on diversifying the economy, including investments in renewable energy, privatization of state-owned enterprises, and the development of the tourism sector, further support the demand for these services. Industrial growth, driven by rising foreign direct investment (FDI) and joint ventures, creates more opportunities for manned security services, particularly in industrial facilities. Saudi Arabia’s economic transformation and modernization efforts, coupled with the growing complexity of security threats—from theft and vandalism to cyberattacks and terrorism—highlight the importance of specialized security expertise. Technological advancements have also influenced the security sector, presenting both benefits and challenges for traditional manned security services. While the COVID-19 pandemic increased demand for physical security services, delays in construction and the closure of buildings temporarily reduced the need for security guards.

Saudi Arabia Private Security Market – By End User

By end user, Saudi Arabia Private Security Market is divided into Residential, Commercial, Industrial, and Government & Institutional segments. The commercial segment holds the largest share of Saudi Arabia Private Security Market by end user. The demand for private security services in the commercial sector is driven by various establishments, including educational institutions, healthcare facilities, corporate offices, retail outlets, and financial institutions. With over 30,000 schools and universities and more than seven million students enrolled, educational institutions require heightened security measures. The healthcare sector, consisting of over 500 hospitals and 2,000 clinics, depends on private security to safeguard patients and staff. The growing number of corporate offices, particularly startups and international companies, further boosts demand for manned guarding and access control services. Additionally, Saudi Arabia’s retail industry, with over 1,000 malls, requires extensive security to manage high customer traffic, while the financial sector, managing over USD 600 billion in assets, heavily invests in securing its facilities. The adoption of advanced technologies, such as biometric systems and AI-driven surveillance, amplifies the sector’s security needs. The commercial sector’s overall investment in security is estimated to contribute USD 3 billion, playing a central role in driving growth and enhancing safety standards within the Kingdom.

Competitive Landscape

Major players operating in Saudi Arabia Private Security Market include Annasban Security, APSG Group, The Arab Security and Safety Services Company (AMNCO), ETH Security Solutions, G4S Limited, Garda World, Herasat Al-Jazirah For Security, Initial Saudi Group, Matco Security Services, and National Security Services (SAFE). To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In September 2024 - Matrix showcased its security solutions at Intersec Saudi Arabia 2024, featuring NDAA-compliant video surveillance, cyber-secure cameras, and GDPR-compliant Access Control systems with WhatsApp integration. The company also unveiled the COSEC ARGO FACE200T facial recognition terminal, emphasizing advanced security and operational efficiency for businesses in the region.

Scope of the Report

By Services Type

• Manned Guarding Services

• Electronic Security Services

• Cash Management Services

• Others

By End User

• Residential

• Commercial

• Industrial

• Government & Institutional