Serbia’s information technology sector has become one of the country’s most dynamic economic drivers. According to the National Bank of Serbia, exports of information and communication technology (ICT) services reached €4.13 billion in 2024, up nearly 20 percent from the previous year. Preliminary figures for the first five months of 2025 show another 14 percent year-on-year rise, putting the sector on track to cross €5 billion in exports by the end of the year.
The industry employs an estimated 110,000 people, or about 4 percent of the national workforce, spread across more than 4,000 companies. Software development dominates the market, with strong clusters in Belgrade and Novi Sad. Over a decade, ICT exports have grown from roughly €375 million in 2012 to today’s multibillion-euro scale, a trajectory that has outpaced many neighbouring economies.
These figures reflect a steady shift from traditional manufacturing to knowledge-based services. Serbia’s government has invested in digital infrastructure and introduced tax incentives for IT businesses, while universities have expanded computer science programs to meet the rising demand for skilled developers.
Why Nearshoring Works for MENA Clients
For enterprise clients in the Middle East and North Africa, Serbia offers time-zone compatibility with both Europe and the Gulf, reducing the delays that can complicate cross-continental collaboration. English is widely used in the IT workforce, and many engineers have experience working on international projects.
Labour costs remain competitive compared with Western Europe, but Serbia’s developers often operate to European Union standards for quality and data protection. This combination has attracted financial services firms, telecom operators and e-commerce companies from the UAE, Saudi Arabia and Qatar.
“Companies from the Gulf are looking for partners that can deliver complex digital products while understanding European regulatory standards,” said Marko ÄŒadež, President of the Chamber of Commerce and Industry of Serbia (CCIS). “Serbia has developed a generation of IT companies that can work across both environments with confidence.”
From Outsourcing to Co-Creation
The country’s outsourcing industry has moved beyond simply providing additional coders for foreign teams. Serbian firms are increasingly involved in the entire product cycle, from initial design to testing and maintenance, allowing them to collaborate as long-term partners rather than short-term contractors.
This evolution is visible among the Serbian delegation preparing for GITEX Global 2025 in Dubai, where the nation has been selected as Future Digital Economy Partner Country. At the North Star startup exhibition, companies will present solutions in areas such as artificial intelligence, fintech, energy technology and creative digital services.
“Our firms are no longer just providing staff for hire,” ÄŒadež said. “They are creating digital products and platforms together with their clients. That shift is what makes Serbia interesting to enterprise customers in the Middle East.”
Challenges and Competition
Despite its rapid growth, Serbia’s IT sector faces structural pressures. Salaries for experienced developers have risen sharply, which may narrow the cost advantage over other Eastern European destinations. Policymakers recently debated cuts to incentives that had helped attract foreign specialists, prompting concern among industry leaders about sustaining the talent pipeline.
Competition is also intensifying. Poland and Romania remain strong regional rivals, while India continues to dominate the global outsourcing market. Ukraine’s technology sector, despite the ongoing war, has retained many of its international contracts and remains a key player in nearshoring.
ÄŒadež acknowledged these challenges but believes Serbia’s position is resilient. “We know that other countries are competing for the same projects,” he said. “Our strategy is to combine competitive pricing with the capacity to develop high-quality digital products and to maintain strong connections with both European and Middle Eastern markets.”
Outlook Toward 2030
Analysts and regional economic reports forecast steady expansion of Serbia’s digital economy over the next five years. Projections suggest ICT exports could reach between €8 billion and €10 billion by 2030, supported by growing demand for cloud services, artificial intelligence applications and fintech platforms.
The government aims to grow the technology workforce to around 160,000 by the end of the decade, an ambitious goal that will require continued investment in education and retention of skilled professionals. Regional clusters in Novi Sad, Niš and Belgrade are expected to strengthen, supported by venture capital inflows and partnerships with international firms.
If these trends hold, Serbia’s nearshoring model, offering MENA enterprises European quality standards and flexible collaboration, will continue to mature. For companies seeking digital product development beyond traditional outsourcing hubs, Serbia is emerging as a practical and strategically located option.